SafeNet Announces Strategic Alliance with Phoenix Technologies to Deliver High Assurance Security Software and Managed Services

Industry Leaders to Deliver Integrated End-point Security

BALTIMORE, Maryland — July 29, 2002— SafeNet (Nasdaq: SFNT), a leading global provider of Internet security technology that is the de facto standard in the VPN industry, today announced a strategic alliance with Phoenix Technologies Ltd. (Nasdaq: PTEC), a global leader in device-authenticated software products for connected digital devices. Under the agreement, SafeNet and Phoenix will link together their market leading products to create the industry’s most secure VPN software and services.

The companies today announced that SafeNet will integrate Phoenix FirstAuthority™ Device Authentication into its SoftRemote® and Soft/Smart™ VPN remote access client software to create High Assurance security software and managed services for its customers. The integration of this ROM-based authentication will strengthen SafeNet's client software by authenticating the PC on which it is operating on the network. Phoenix products, pre-installed by PC manufacturers within the BIOS, are designed into millions of PCs each year.

"This is the next logical step for strong, high assurance security," said Anthony Caputo, Chairman, and CEO of SafeNet. "We've pushed security and privacy to the next level—not only authenticating the user, but also the digital device. This High Assurance security along with the broad distribution of the Phoenix BIOS, and SafeNet's industry leading VPN software will be an unprecedented combination. Working in partnership with leaders like Phoenix Technologies, SafeNet is committed to providing the highest security possible and addressing an issue that has become a matter of national concern."

With the addition of device authentication to SafeNet client software, the new partnership will add a higher level of security, one that authenticates the PC itself in addition to authenticating the user through user name and password, when the VPN is invoked. This adds a strong second layer of protection. The process is simple, integrated, and transparent for users, unlike other technologies for authentication such as tokens. This kind of High Assurance managed VPN technology will be offered to SafeNet's commercial, government, and OEM customers who would like to add PC device authentication capabilities to their VPNs.

"The combination of SafeNet and Phoenix makes a lot of sense," said Jim Hurley, vice president of security and privacy with Aberdeen Group. "The integration of the unique identity of a PC with passwords, passphrases, and certificates provides the enterprise with multiple factors to assure that VPN-based remote access is provided only for duly authorized users."

"By adding Phoenix FirstAuthority to an already strong user authentication security solution, SafeNet will continue to differentiate itself from other security companies," said Albert E. Sisto, Chairman, President, & Chief Executive Officer for Phoenix Technologies. "Now SafeNet will not only offer High Assurance security but will add integrated and transparent device authentication for its customers. SafeNet has the infrastructure and expertise to easily and quickly deploy our technology to their services and solutions."

About SafeNet, Inc.
SafeNet, Inc. (Nasdaq: SFNT) has set the industry standard for virtual private network (VPN) technology and secure business communications. With more than 18 years experience in developing, deploying, and managing network security systems for the most security-conscious financial institutions and government organizations around the world, SafeNet's proven technology has emerged as the de facto industry standard for VPNs. SafeNet created the first Internet VPN system, which has evolved into the only encryption platform to meet every security need in every product category. SafeNet security solutions, based on SecureIP Technology™, and part of the CGX Security Platform, have become the products of choice for leading Internet infrastructure manufacturers, service providers, and security vendors. With SafeNet securing the infrastructure of today's e-business communications as well as leading the way in government Homeland and classified data security, the company has opened new markets for interoperable, secure, and deployable VPN communications. Commercial customers include Texas Instruments, Microsoft, Samsung, Centillium Communications, ARM, and Cisco Systems. Government customers include U.S. Department of Defense, U.S. Internal Revenue Service, and the Social Security Administration. For more information, visit http://www.safenet-inc.com/ .

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Editor’s Note: SafeNet and SoftRemote are registered trademarks and SafeXcel, SoftRemotePDA, and SecureIP Technology are trademarks of SafeNet, Inc. All other trademarks are the property of their respective owners.