SCM Microsystems, Inc.
Ticker:SCMM 131 Albright Way
Exchange:NASDAQ-National Market Los Gatos, CA 95032
Industry:High-Tech (SIC Code 3577) (408) 370-4888

Offering Information
Type of Shares:Common Shares Filing Date:6/12/97
U.S. Shares:2,620,000 Offer Date:10/6/97
Non-U.S. Shares:750,000 Filing Range:$11.00 - $13.00
Primary Shares:3,250,000 Offer Price:$13.00
Secondary Shares:120,000 Gross Spread:$0.91
Offering Amount: $40,440,000 Selling:$0.51
Expenses:$975,000 Reallowance:$0.10
Shares Out After:9,404,489

Primary Underwriting Group
ManagerTierPhone
Cowen & CompanyLead Manager (212) 495-6000
Hambrecht & Quist IncorporatedCo-manager (415) 439-3626

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Bank's Law Firm: Rogers & Wells
Auditor: KPMG Peat Marwick
Registrar/Transfer Agent: First National Bank of Boston

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$16.63$4.20$2.81Assets:$13.37
Net Income:-$1.11-$0.47-$0.50Curr Assets:
EPS:-$0.19-$0.08Liabilities:$5.57
Prior EPS:-$1.08-$0.25Curr Liabilities:
Cash Flow/Oper:-$1.67Equity:$7.80
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company designs, develops and manufactures hardware, firmware and software products for data security and access control applications. The company sells to OEM computer, telecommunications and digital video broadcasting component manufacturers. The compnany's objective is to leverage its expertise in PCMCIA and smart card technologies and its extensible, upgradable smart card token-based security architecture to capitalize on the growing demand for data and network security and the need to control access to digital information. The compnay markets, sells and licenses its products througha direct sales and marketing organization primarily to OEMs and also through distributors, VARs, system integrators and resellers worldwide. OEM customers include Compaq, Dell, France Telecom, IBM, Kirch Group (BetaDigital), Schlumberger, Security Dynamics, Siemens/Nixdorf, Sun Microsystems and Telnor.

Use of Proceeds
The proceeds from the proposed offering will be used for repayment of indebtedness, capital expenditures and general corporate purposes, including working capital.

©1997 IPO Data Systems, Inc. - All rights reserved.