SmartRight Copy Protection Initiative Gaining Momentum (0224)

Paris, France -December 2nd, 2002- To strengthen their joint effort to develop a global, renewable, and cost-effective copy protection system for digital home networks, Thomson, Canal+ Technologies, Gemplus, Micronas, Nagravision, Pioneer, SchlumbergerSema, and STMicroelectronics announce that SCM Microsystems, a provider of smart card reader technology and conditional access modules, is joining the SmartRight initiative.

Last fall, the SmartRight system was proposed to the Digital Video Broadcasting (DVB) ad-hoc group on Copy Protection Technology in reply to a call for proposals on Copy Protection and Content Management technologies. SmartRight is a comprehensive framework meeting all commercial requirements in the call for proposal. The DVB Copy Protection Technology ad-hoc group, of which all SmartRight partners are active members, is currently working on defining the specification of the system that will be the standard for copy protection and content management for digital television environment in countries that employ the DVB technology, namely Europe and many countries in Latin America and Asia. SmartRight is considered by many industry players to constitute a good architecture for such a system. Since its creation last fall, the SmartRight group has been successfully working on refining the technical specifications and the business implementation of the SmartRight system, and it is gaining increasing support within the technology and content industry.

With the SmartRight system, content is kept scrambled as required throughout the consumer's personal home network until it is displayed on a rendering device. Descrambling is done in the rendering device, using a renewable security module, such as "smart card". This simple method provides end-to-end encryption security, and enables consumers to access content from any device of their personal private network.

"SCM Microsystems remains committed to developing high-quality security standards that protect access to digital content," said Robert Schneider, CEO of SCM Microsystems, Inc. "SmartRight offers a solid framework for copy protection and control. As the pioneer of removable security for digital TV, SCM is pleased to work with other industry leaders in the SmartRight initiative to develop secure access standards that span all types of digital content and platforms."

The SmartRight system is designed to facilitate the business model for digital content delivery of all parties concerned, including content owners, and to enable the creation of value-added models. With an increasing number of companies showing their support, SmartRight is an initiative open to any interested party.
"The support from our partners is key to the deployment of the SmartRight system, and strengthens our belief that SmartRight is a good solution for content protection that will help develop new digital business models", said Jean-Charles Hourcade, Senior Vice President, Research and Innovation at Thomson.

The progress in SmartRight development is regularly demonstrated at industry shows and exhibitions. Jointly with Micronas, a SmartRight demonstrator was showcased at Consumer Electronics Show (CES) 2002 in Las Vegas, USA, and SmartRight prototypes were presented at the Gemplus Developer Conference that took place in Singapore from November 12 to 14. All visitors of CES 2003 will also be welcome at the SmartRight technology pavilion.

Furthermore, the SmartRight team is proud to announce the launch of a website meant to provide all potential customers as well as technology and content providers with information related to the system. It is accessible at: www.smartright.org.

More information about DVB is available at www.dvb.org.

About SmartRight

SmartRight is a copy protection system for digital home networks, which combined with conditional access systems (CAS) or digital rights management (DRM) systems, provides an effective end-to-end solution for the protection of digital content. SmartRight is a global system deployable in any region of the world. It accepts content from any kind of source, including free-to-air and pre-recorded content. The specification defines a common syntax for SmartRight content to ensure interoperability and defines a simple application program interface (API) with current main CAS and DRM systems. The system is network security neutral and may either co-operate with these systems or be fully transparent to them.

The SmartRight system was first designed and developed by Thomson with the support of technology partners wishing to jointly develop and promote this digital copy protection system. Press contact: Solene Jaboulet (+33 1 41 86 60 76 / jaboulets@thmulti.com)

Company information

About Canal+Technologies
CANAL+TECHNOLOGIES is a leading international provider of interactive TV software offering a range of flexible open standard solutions to broadcasters and digital operators around the world. CANAL+TECHNOLOGIES powers more than 14.5 million set-top boxes which are deployed on every continent on cable, satellite and digital terrestrial networks. Over 30 digital operators and broadcasters have already deployed its interactive TV middleware MEDIAHIGHWAY and the conditional access system MEDIAGUARD, including CANALSATELLITE in France, SUREWEST in the United States, Astro Measat and ZeeTV in Asia, to deliver true interactive applications that are changing the perception of what consumers can expect of TV. CANAL+Group, Sun Microsystems, Sony, Thomson and Sogecable are equity and strategic partners in CANAL+TECHNOLOGIES. For more information: http://www.canalplus-technologies.com. Press contact: Marie-Vincente Pasdeloup ; +331 71 71 5632 ; mvp@canal-plus.fr

About Gemplus
GEMPLUS: the world's leading provider of smart card solutions.
Gemplus helps its clients offer an exceptional range of portable, personalized solutions that bring security and convenience to people's lives. These include mobile internet access, inter-operable banking facilities, e-commerce and a wealth of other applications. Gemplus is the only completely dedicated, truly global player in the Smart Card industry, with the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation. In 2001, Gemplus was the worldwide smart card leader in both revenue and total smart card shipments (source: Gartner-Dataquest, Frost and Sullivan, BNP Paribas). Gemplus was also awarded Frost and Sullivan's 2002 Market Value Award for its exceptional performance. Gemplus trades its shares on Euronext Paris S.A. First Market and on the Nasdaq Stock Market(tm) as GEMP in the form of ADSs. Its revenue in 2001 was 1 billion Euros.
Gemplus: beyond smart www.gemplus.com

About Micronas
Micronas (SWX Swiss Exchange: MASN, Neuer Markt Frankfurt: MNSN), a semiconductor company group with worldwide operations, is a leading supplier of cutting-edge IC and sensor system solutions for consumer electronics, multimedia and automotive electronics. The holding is headquartered in Zurich (Switzerland). Currently, the Micronas group employs about 1600 people. In 2001, it generated over CHF 566 Million in sales. For more information on Micronas and its products, please visit www.micronas.tdk.com. Micronas Media Contact: Iris Bahr, Phone +49-761-517-2324, email media@micronas.com.

About Nagravision
"Nagravision (http://www.nagra.com) is a leading provider of open conditional access, advanced management tools and integrated solutions for cable, satellite, terrestrial and MMDS, FTTH and xDSL operators worldwide. Its advanced solutions provide digital TV operators and content providers with the tools to operate and manage a range of interactive broadband services that include e-commerce, interactive program guides and multimedia-on-demand including VOD. Nagravision's digital and analog conditional access technologies are currently being utilized by leading operators worldwide representing over 35 million digital and analog subscribers. Nagravision is a division of the Switzerland-based Kudelski Group (SWX "KUD") and has offices in the United States, Singapore, Shanghai, Brazil, India, Spain, the UK, Italy and Switzerland. Kudelski began developing and marketing professional audio equipment (Nagra Audio) in 1951. Since then, Kudelski Group has developed into an enterprise with a workforce of more than 1,000 staff. The group's total turnover for 2001 amounted to CHF 455 million with a net return of CHF 72 million."

About Pioneer
With sales of 669 billion Yen in 2002 and 31,000 employees, Pioneer Corporation is a world leader in electronics products for the home, commerce and industry, respected for its role in introducing such innovations as interactive cable TV, GPS car navigation, DVD, plasma display, organic electroluminescent (OEL) display and digital broadcast settop box. The Pioneer Group is evolving as an entertainment-creating company by enhancing fun, convenience and comfort. In keeping with Pioneer's philosophy to "Move the Heart and Touch the Soul," this vision keeps the Company firmly focused on customer and shareholder satisfaction. For more information: http://www.pioneer.co.jp/index-e.html

About SchlumbergerSema
SchlumbergerSema is one of two business segments of Schlumberger Limited, a global technology services company. With more than 30,000 employees serving customers in 65 countries, SchlumbergerSema aggregates IT consulting, systems integration, managed services and related products to the oil and gas, telecommunications, energy and utilities, finance, transport and public sector markets. Leveraging the Schlumberger DeXa Suite of Services, it also provides IP network connectivity, information security solutions, distributed computing support services and data center hosting services. In 2001, Schlumberger revenues were $14.3 billion. For more information, visit www.slb.com.

About SCM Microsystems
SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access digital content and services. SCM's Security business provides smart card reader technology for the PC platform and conditional access modules for the digital TV platform to OEM customers in the government, financial, enterprise and broadcasting markets worldwide. The Company's Digital Media and Video business provides hardware, software and silicon solutions for creating and sharing digital media content to the worldwide retail market under the Dazzle brand. Global headquarters are in Fremont, California, with European headquarters in Ismaning, Germany. For additional information, visit the SCM Microsystems website at www.scmmicro.com. Press contact: Manfred Mueller, mmueller@scmmicro.de

About STMicroelectronics
STMicroelectronics, the world's third largest semiconductor company, is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2001, the Company's net revenues were $6.36 billion and net earnings were $257.1 million. Further information on ST can be found at www.st.com.

About Thomson
With sales of 10.5 billion Euros (U.S. $ 9.3 billion) in 2001, Thomson (Euronext Paris: 18453; NYSE: TMS) provides a wide range of video (and enabling) technologies, systems, finished products and services to consumers and professionals in the entertainment and media industries. To advance and enable the digital media transition, Thomson has five principal divisions: Digital Media Solutions, Displays and Components, Consumer Products, Patents and Licensing, and New Media Services. The company distributes its products under the Technicolor, Grass Valley, THOMSON and RCA brand names. For more information: www.thomson.net. Press contact: Jean-Loup Bourgois (+33 1 41 86 55 90 / bourgoisj@thmulti.com)