Form: 8-K

Current report

July 28, 2003

EXHIBIT 99.2

Published on July 28, 2003

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EXHIBIT 99.2

FOR IMMEDIATE RELEASE




CONTACTS:
Steve Moore Darby Dye Manfred Mueller
Chief Financial Officer Investor Relations-US Investor Relations-Europe
510-360-2300 510 360 2302 +49 89 9595 5140
smoore@scmmicro.com ddye@scmmicro.com mmueller@scmmicro.de


SCM MICROSYSTEMS COMPLETES SALE OF
DAZZLE(TM) DIGITAL VIDEO CONSUMER BUSINESS

FREMONT, CALIF. - July 28, 2003 - SCM Microsystems, Inc. (Nasdaq: SCMM; Prime
Standard: SMY), a leading provider of solutions that open the Digital World,
announced today that it has completed the sale of its Dazzle digital video
business to Pinnacle Systems, Inc. (Nasdaq: PCLE). Under the terms of the sale
agreement announced June 30, 2003, Pinnacle has paid SCM 1,866,851 shares of
Pinnacle common stock with an approximate market value of $21.5 million to
purchase selected assets and liabilities of the digital video business. The sale
includes all product rights, inventory, intellectual property, trade names and
other rights related to the business. The sale is subject to post-closing cash
adjustments relating to inventory, backlog, receivables and prorated royalty
fees, as described in the Agreement that is attached to the Form 8-K being filed
with the SEC today.

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. The
company markets and sells its smart card reader technology for network and
physical access and conditional access modules for secure digital TV decryption
to OEM customers in the government, financial, enterprise and broadcasting
markets worldwide. Global headquarters are in Fremont, California, with European
headquarters in Ismaning, Germany. For additional information, visit the SCM
Microsystems web site at www.scmmicro.com.

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