THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

SCM Microsystems, Incorporated (SCMM)

4/28/2005 Proxy Information

Oystein Larsen, a member of our Board of Directors, served through December 2004 as Executive Vice President Business Development and New Business of Conax AS, a company that is engaged in the development and provision of smart-card based systems and purchases Security products from us. In 2004, the aggregate amount purchased did not exceed 5% of either our or Conax’s revenues. At December 31, 2004 and March 31, 2005, SCM had no accounts receivable due from Conax AS. The largest amount outstanding from Conax AS due the Company since January 1, 2004 was approximately $165,000. These accounts receivable amounts do not bear interest. Mr. Larsen is not directly compensated for revenue transactions between the two companies.

4/21/2004 Proxy Information

During 2003, Andrew Vought, a member of our Board of Directors, was paid $98,000 for consulting services provided to the Company related to the sale and divestiture of our Digital Media and Video business.

Prior to his engagement as our Chief Financial Officer in June 2003, Steven L. Moore provided consulting services to the Company related to the sale and divestiture of our Digital Media and Video business, for which he was paid $68,928 in consulting fees and related expenses.

Oystein Larsen, a member of our Board of Directors, serves as Executive Vice President of Conax AS, a company that is engaged in the development and provisioning of smart-card based systems and purchases Security products from us. In 2003, the aggregate amount purchased did not exceed 5% of either our or Conax AS’s revenues. At March 31, 2004, SCM had an accounts receivable of approximately $160,000 due from Conax AS. The largest amount outstanding from Conax AS due the Company since January 1, 2003 was approximately $174,000. These accounts receivable amounts do not bear interest. Mr. Larsen is not directly compensated for revenue transactions between the two companies.

Steven Humphreys, our Chairman, served from October 2001 to October 2003 as Chairman and Chief Executive Officer of ActivCard Corporation, a digital identity management software company that purchases Security products from us. In 2003, the aggregate amount purchased did not exceed 5% of either our or ActivCard’s revenues. At March 31, 2004, there were no accounts receivable amounts due from ActivCard. The largest amount outstanding from ActivCard due the Company since January 1, 2003 was approximately $1.5 million. Mr. Humphreys is not directly compensated for revenue transactions between the two companies.

From July 1996 to October 2001, Mr. Humphreys was an executive officer of SCM Microsystems, Inc., serving as President and Chairman from July 1996 until December 1996, at which time he became Chief Executive Officer and served as President and Chief Executive Officer until April 2000.

In August 2003, the Company completed the sale of our retail digital media reader business to Zio Corporation, a company based in California that had been formed by Andrew Warner, our former Chief Financial Officer. The agreement with Zio Corporation includes provisions for distributing existing inventories of the Company’s digital media readers, with the Company being reimbursed for product per agreed terms in the sales agreement. At March 31, 2004, SCM had accounts receivable of approximately $46,000 due from Zio Corporation. As of March 31, 2004, SCM has recognized no revenue from sales to Zio Corporation. The largest amount outstanding from Zio due the Company since August 1, 2003 was approximately $2.5 million. Mr. Warner is not directly compensated for revenue transactions between the two companies.

During 2002, the Company discontinued sales of media and storage products as part of the announced separation of our Digital Media and Video division. This discontinuation included the sale of on hand media and storage inventory to Pexagon, a company based in Connecticut. SCM recognized no revenue from these sales. Brian Campbell, a former vice president and executive officer of the Company who left the Company in June 2003, is the majority shareholder of Pexagon. At March 31, 2004, SCM had accounts receivable of $84,305 due from Pexagon. The largest amount outstanding from Pexagon due the Company since January 1, 2003 was approximately $3.3 million. SCM and Pexagon continue to have an ongoing trading relationship.

4/29/2003 Proxy Information

Brian Campbell, an executive vice president of the Company, is the majority shareholder of Pexagon, a digital media distribution company. During 2002, the Company discontinued sales of media and storage products as part of its announced separation of its Digital Media and Video division. This discontinuation included the sale of on hand, media and storage inventory to Pexagon. SCM recognized no revenue from these sales. At March 31, 2003, the Company had an accounts receivable of $2.3 million due from Pexagon.

The largest amount outstanding from Pexagon due the Company since January 1, 2002 was $2.9 million. SCM and Pexagon continue to have an ongoing trading relationship in the form of inventory transactions. These accounts receivable amounts do not bear interest.

Oystein Larsen, a member of our Board of Directors, serves as Executive Vice President of Conax AS, a company engaged in the development and provisioning of smart-card based systems that purchases Security products from us. In 2002, the aggregate amount purchased did not exceed 5% of either our or Telenor Conax AS’s revenues. At March 31, 2003, there were no accounts receivable due from Conax AS. The largest amount outstanding due the Company from Conax AS since January 1, 2002 was Ř452,000 (approximately $389,000). These accounts receivable amounts do not bear interest. Mr. Larsen is not directly compensated for revenue transactions between the two companies.

Steven Humphreys, our Chairman, serves as Chairman and Chief Executive Officer of ActivCard Corporation, a digital identity management software company that purchases security products from us. In 2002, the aggregate amount purchased did not exceed 5% of either our or ActivCard’s revenues. At March 31, 2003, accounts receivable amounts due from ActivCard were $1.5 million. The largest amount outstanding due the Company from ActivCard since January 1, 2002 was $1.5 million. Mr. Humphreys is not directly compensated for revenue transactions between the two companies.