EXHIBIT 99.1

EXHIBIT 99.1

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 REPORTS FIRST QUARTER RESULTS

FREMONT, CA - MAY 6, 2004 - SCM Microsystems, Inc. (Nasdaq: SCMM, Prime
Standard: SMY), a leading provider of solutions that open the Digital World,
today announced results for the first quarter ended March 31, 2004.

SCM's reported financial performance for the 2004 first quarter reflects
continuing operations for the Company's Security business only, as SCM sold its
retail Dazzle-branded digital media and video business in July of 2003. SCM's
continuing Security business is focused on enabling secure access to digital
content and services through the digital television and PC platforms. Financial
results for the retail digital media and video business are being treated as
discontinued operations.

FIRST QUARTER RESULTS

Revenues from continuing operations in the first quarter of 2004 were $13.2
million, within the range of management guidance of $12 million to $15 million.
This represents a decrease of 29% compared with revenues of $18.7 million in the
first quarter of 2003, and a sequential increase of 5% from revenues of $12.6 in
the fourth quarter of 2003. By product segment, first quarter 2004 revenues
included $5.9 million from sales of Digital TV security modules, $4.3 million
from sales of smart card readers and other products for PC and network security,
and $3.0 million from sales of OEM flash media reader technology. Gross margin
from continuing operations in the first quarter of 2004 was 41%, within the
range of management guidance of 40% to 42%.

Operating expenses for continuing operations in the first quarter of 2004,
as reported in accordance with GAAP, were $9.3 million. This figure includes
amortization of intangibles of $0.3 million and $0.1 million in other charges
for legal settlement and costs related to the Company's Security business.
Operating loss for the quarter was $(3.9) million. This compares with operating
loss of $(0.5) million in the year ago quarter, which included amortization of
intangibles of $0.3 million and restructuring and other charges of $0.3 million.

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Net loss from continuing operations for SCM's Security business for the
first quarter of 2004, as reported in accordance with GAAP, was $(3.6) million,
or $(0.23) per share, compared with net income of $0.1 million, or $0.01 per
share, in the first quarter of 2003.

BALANCE SHEET

Cash, cash equivalents and short-term investments at the end of the first
quarter of 2004 grew to $56.2 million, compared with $55.0 million at December
31, 2003.

Steady Execution to Plan

Robert Schneider, chief executive officer of SCM Microsystems commented,
"As we had anticipated, sales of our Digital TV and PC Security products
remained soft during the first three months of 2004, reflecting market pressures
that we have been positioning ourselves to address for several months now. Our
performance in the first quarter demonstrates steady execution to our plan and
careful management of our cash. Significantly, we signed our first digital
television operator customer in Korea, and achieved certification of our
security products with two different partners for this important market. We also
introduced several new products to address emerging market opportunities in
areas such as mobile security, secure networking for small businesses and
physical access control. In the second quarter we intend to remain focused on
expanding these successes to pave the way for a return to growth in the second
half of 2004."

GUIDANCE

For the second quarter of 2004, management estimates that revenues from its
Security business will be in the range of $13 million to $15 million, reflecting
continued pressure on sales of Digital TV products in Europe and a lack of
visibility into the timing of anticipated digital security projects in the U.S.
and Europe. Gross margin is expected to be between 40% and 42%. Within this
range of revenue and gross margin, SCM expects to record an operating loss for
its Security business in the second quarter of 2004.

CONFERENCE CALL

SCM will hold a conference call and webcast on May 6, 2004 at 8:30 AM
Eastern Time to discuss the results of its 2004 first quarter. The webcast can
be accessed through the Company's investor relations site at
www.scmmicro.com/ir_en/index.html.

-- FINANCIALS FOLLOW --

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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.

NOTE: This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934. These statements are subject to risks and
uncertainties which may cause actual results to differ materially from those
contemplated herein. These include, without limitation, our statements regarding
(i) our expectations for revenue, gross margin and operating loss for the second
quarter; (ii) our expectations that will be able to expand on our initial
successes in the Korean digital TV market and with recently introduced products
in the mobile security, secure networking for small businesses and physical
access control market sectors; and (iii) our ability to return to growth in the
second half of 2004. Actual results could differ materially. Our financial
results may not meet expectations. Our customers may not go forward with planned
projects that we believe would create demand for our products, and these
projects, even if carried out, may not create demand for our products or result
in the realization of any benefit to us. We may not successfully execute against
our market opportunities or the identified markets and market opportunities may
grow or develop differently than anticipated or not at all. Other risks and
uncertainties that could cause our actual business and operating results to
differ include, but are not limited to our ability to manage our business given
the greater volatility in sales and net margins we experience as an OEM Security
company; our ability to grow based on a strategy of participating in multiple
early stage markets; our ability to successfully develop and introduce new
products that satisfy the evolving and increasingly complex requirements of
customers; the markets in which we participate or target may not grow, converge
or standardize at anticipated rates or at all; we may not successfully compete
in the markets in which we participate or target; and competitors could take
market share or create pricing pressure. For a discussion of further risks and
uncertainties related to our business, please refer to our public company
reports, including the Report on Form 10-K for the year ended December 31, 2003,
filed with the U.S. Securities and Exchange Commission.

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All trade names are trademarks or registered trademarks of their respective
holders.

NOTE: The Condensed Consolidated Statements of Operations in this press release
include pro forma operating results that are not in accordance with GAAP. A
reconciliation of the presentation of pro forma results to GAAP is also provided
in this release. As described in the tables, pro forma net earnings exclude
charges related to the amortization of intangible assets and restructuring and
infrequent charges. We believe pro forma results enable our management and our
investors to better evaluate comparable operating results. Further, our pro
forma results are a primary indicator our management uses to plan and forecast
for future periods. These pro forma results are not intended as a substitute for
information presented in accordance with GAAP. Furthermore, our pro forma
information may not be comparable to pro forma information that other companies
provide.
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SCM MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)