SafeNet Announces New License Management Support for Software Application Developers

Customers Praise the Expanded Capabilities for the Sentinel LM 7.3 Product

Baltimore, MARYLAND – May 24, 2004– SafeNet (NASDAQ: SFNT), setting the standard for information security, today announced the addition of new license models for the Sentinel LM 7.3 software licensing and protection application.

Windows software vendors can now leverage out-of-the-box license models based on units of measure or capacity, in addition to other standard license models such as evaluation licensing, feature-based, and lease/rental models. Sentinel LM 7.3 also provides new ease-of-use functionality for application shelling and license generation.

"We're pleased that Sentinel LM continues to be enhanced and improved," said Steve Watt, senior director of marketing for Timberline, a Best Software company. "Timberline develops Timberline Office, integrated financial and operations software for the construction and real estate industries. The ability to provide modular and flexible solutions for our customers is an important part of our product strategy," he said.

"We're pleased to see the new license models for Sentinel LM 7.3 as a show of SafeNet's commitment to the Sentinel LM product," said Bill Hasenjaeger, Product Marketing Manager of CGTECH, a leader in software technology for manufacturing.

Sentinel LM 7.3 allows software application developers to easily add complex licensing to their applications. Enforcing license agreements is a primary concern for application developers to ensure that fair compensation is received for every license in use. Sentinel LM allows developers to focus on their core application, leaving the complex license model and server support to Sentinel LM. Sentinel LM allows developers to incorporate the licensing into their application and maintain a single code base that can be configured with multiple license options as needed for their customers. This reduces administration and maintenance for the application developer.

"The Sentinel LM offering continues to keep pace with the rapidly evolving software licensing market," said Charles Baumert, Director of Product Management for the Sentinel Business Unit. "Sentinel LM 7.3 enhances the ease with which our customers can add license management functionality to their applications, while adding new features such as capacity licensing to further improve options available to our customers. We plan to expand on our LM product, by offering integration with major ERP/CRM systems, and adding new security enhancements in our next release of Sentinel LM, scheduled to be available in latter part of 2004."

About SafeNet, Inc.
SafeNet is a global leader in information security. Founded more than 20 years ago, the company provides complete security utilizing its encryption technologies to protect communications, intellectual property and digital identities, and offers a full spectrum of products including hardware, software, and chips. ARM, Bank of America, Cisco Systems, the Departments of Defense and Homeland Security, Microsoft, Samsung, Texas Instruments, the U.S. Internal Revenue Service and scores of other customers entrust their security needs to SafeNet. For more information, visit www.safenet-inc.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this release, which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include contract termination risks, risks associated with acquiring other companies, including integration risks, and other risks described in SafeNet's Securities and Exchange Commission filings.

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