Identive Group Inc.

EANS-News: Identive Group Inc.
SCM Microsystems gains ground in Chinese market with second delivery of smart card readers to China Unicom

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Marketing

Ismaning, Germany, March 15, 2011 (euro adhoc) - SCM Microsystems, a leading provider of solutions for secure access, secure identity and secure exchange and a business unit of Identive Group, Inc. (NASDAQ: INVE, Frankfurt: INV), today announced its second delivery of high speed SCR3310v2 reader/writers to China Unicom, which now has deployed more than 90,000 SCM reader/writers to facilitate SIM card issuance to its mobile phone customers across China.

One of the largest mobile service providers in China, China Unicom is using the SCM reader/writers in point of sales kiosks, stores and retail shops to quickly personalize a SIM phone card for each subscriber on the spot. Responding to the increasing demand for instant personalization of SIM cards at issuance, China Unicom has recently expanded its RPS (remote personalization system) program to its partners' retail shops and point of sales, which are now also enabled with SCM readers.

SCM's SCR3310v2 reader/writers enable China Unicom and its partners to quickly and cost effectively configure the specific services requested by each new or returning customer. Previously, predefined cards were used that enabled specific combinations of services, such as voice and mobile banking, mobile chatting, mobile banking and chatting or mobile info-on-demand. In addition to the inventory challenge this created, it was difficult to ensure the satisfaction of specific requests of every subscriber in every location. By using blank SIM cards and SCM´s reader/writers, China Unicom and its partners now can personalize the cards based on each customer's service selection, including the SIM cards used in the popular iPhones and iPads, which China Unicom exclusively provides to the China market.

"Our RPS program has been very successful with customers and has allowed us to provide personalized SIM cards both quickly and more cost effectively," said Gu Ding-Ming, service manager, marketing department of China Unicom Ltd. "SCM's reader/writers are a critical component of this success as they provide the reliability and performance needed to quickly and securely upload large amounts of data to each card. SCM has continued to demonstrate its capabilities to fulfill high-volume orders in a very short timeframe and to our complete satisfaction."

"We are very pleased to be working with China Unicom to support their RPS program," said Michael Schreiber, vice president of sales for SCM Microsystems. "This relationship has helped us to develop a stronger presence in the Chinese market, which we are working to deepen as well as expand to additional verticals. We look forward to a long and successful partnership with China Unicom, as both companies continue to provide innovative solutions for the mobile phone market in China."

Background of the Chinese GSM Market China is the largest single Global Systems Mobile (GSM) market in the world today, with more than 650 million users despite market penetration below 50%, according to a 2009 report of the GSM Association. The majority of mobile phone users in China opt for prepaid plans based on removable SIM cards, which often come with new subscriber benefits in terms of pricing and other advantages. SIM cards also provide flexibility, as service coverage typically is limited to a specific geographic region and it is more cost effective to simply switch out the SIM card and use a local service subscription when traveling from one area to another. The demand for SIM cards in China is significant, and mobile phone operators are rapidly changing their business models to provide quick configuration of cards for subscribers.

About China Unicom China Unicom provides a wide range of telecommunication services to customers in mainland China, including GSM and WCDMA cellular business, fixed-line voice, broadband and other Internet-related services, information and communications technology services, business and data communications services, and other related telecommunication value-added businesses. As of the end of 2010, China Unicom had 153.37 million 2G subscribers, 14.06million 3G subscribers, 47.22 million broadband subscribers and 96.64 fixed-line subscribers.

About SCM Microsystems SCM Microsystems, a business unit of Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV), is a leading provider of solutions for secure access, secure identity and secure exchange. The company offers the world's broadest range of contact, contactless and mobile smart card reader and terminal technology, digital identity and transaction platforms, as well as systems that integrate physical and logical access control. SCM´s smart card-based products and solutions are utilized around the world to enable security and identification applications, transaction systems, eHealth- and eGovernment programs and physical access systems. Identive Group, Inc. is a leading provider of products, services and solutions for the security, identification and RFID industries. For additional information, visit www.scmmicro.com and www.identive-group.com.

end of announcement                               euro adhoc
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Contact:

Frau Annika Oelsner
Tel.: +49 89 9595-5220
E-Mail: investorrelations@identive-group.com

Branche: Computing & Information Technology
ISIN: US45170X1063
WKN: A1C0ZG
Index: NASDAQ
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