FREMONT, Calif. and ISMANING, Germany, May 4 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard, SMY), a leading provider of solutions that open the Digital World, announced today that it has closed its merger with Hirsch Electronics Corp. The shareholders of both companies overwhelmingly approved the transaction, which included the payment of cash and the issuance of SCM common stock and warrants to purchase shares of SCM common stock in exchange for the securities of Hirsch. The merger closed on April 30, 2009, and Hirsch is now a wholly-owned subsidiary of SCM. Each company's products and services will continue to be marketed, sold and supported using their existing brand names.

'We see this merger as the completion of another milestone in the successful business relationship that SCM and Hirsch have been building together,' said Felix Marx, chief executive officer of SCM Microsystems. 'We decided to combine two industry leaders into a single powerhouse because we see the market developing in the same way, we focus on serving our customers in the same way, and we already know how to work together.'

Acquiring Hirsch, a physical access solution provider and re-seller of SCM's physical access readers, nearly doubles the size of SCM. SCM is a leading global provider of readers that enable people to access PCs and networks with smart cards containing authentication data and other information. This is known in the industry as 'logical access.' Hirsch was a pioneer of the access control market and is now a top player in what is known as 'physical access' - secure entry to buildings, campuses, military installations and other facilities.

Following the merger, Lawrence Midland, Hirsch's CEO and president and a director of Hirsch, has joined the Board of Directors of SCM and has also been named an executive vice president of SCM, heading up the new Hirsch business division. Also joining SCM's board is Douglas Morgan, a former director of Hirsch who was instrumental in launching Hirsch as a company and in developing Hirsch's core technology. With the recent departure of Dr. Hagen Hultzsch and Stephan Rohaly from the Board, SCM's Board of Directors now consists of seven members, who together have substantial and broad experience in the U.S. and European technology markets.

'Felix and I met about a year ago and found within an hour that we shared the same vision. It was obvious to both of us that Hirsch and SCM had significant and complementary strengths,' commented Lawrence Midland.