SafeNet Announces Promotion of Carole Argo to President and COO; Names Former Microsoft Executive Ken Mueller as SVP and CFO

New Positions Add Depth, Talent and Experience to Executive Management Team As Company Builds Security Industry Leadership Position

BALTIMORE, Md. — June 29, 2004 — SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced the promotion of Carole Argo to president and chief operating officer of the company, and named former Microsoft executive Ken Mueller as its new chief financial officer.

In her new role as President/COO, Argo will report to SafeNet's Chairman and CEO, Anthony Caputo, and will be responsible for the company's day-to-day global operations. Her primary focus will be executing the company's growth strategy with a continuing role in merger and acquisition activity.

Mueller, also reporting to Caputo, is now responsible for all accounting, finance, treasury and legal functions, with a near term focus of building a financial organization, which will support SafeNet's continued growth.

"We have indicated for some time our plan to strengthen our management depth and operational focus, particularly in light of the Rainbow acquisition," Caputo said. "SafeNet has experienced explosive growth over the past few years. We now have a combined client base of over 5,000 customers, nearly 800 employees working around the world, and an anticipated combined revenue base of over $200 million. That kind of growth demands a robust infrastructure. I am very pleased to announce Carole's promotion to president and COO, and Ken's acceptance of the chief financial officer position."

"Over the past five years, Carole Argo has played a key role in assuring that SafeNet's operating activities have been sharply focused on execution of our business plan. Her knowledge and insight into all facets of our business uniquely qualify Carole to lead our two operating divisions and assure continued rapid and profitable growth. I am confident that Carole will thrive in her new role because she has proven time and again that she is an exceptional leader who is particularly adept at assuring that business goals are met."

"Ken Mueller assumes leadership of a solid finance and accounting organization, which continues to perform very well in SafeNet's high growth environment. He, too, is an exceptional executive with proven skills in leading finance organizations for technology companies experiencing rapid growth. Ken also has a strong base of international experience, which will extremely valuable as we continue to grow our global operations and will help us expand to an even higher level of growth and excellence," Caputo concluded.

Argo Background
Carole Argo has served as SafeNet's senior vice president and CFO since 1999. Her leadership was integral to the successful identification, closing and integration of three strategic acquisitions totaling some $170 million in annual revenues between January 2003 and March 2004. In July 2003, she successfully led a secondary public offering that raised net proceeds of approximately $84 million, the largest equity follow-on offering in the security sector that year. Before joining SafeNet, Argo was chief financial officer of Optelecom, Inc., a publicly traded fiber optics company. Earlier, she spent eight years as vice president of finance and operations at Byk Gardner, an international color and appearance instrumentation company, which was located in 3 continents—Argo was responsible for worldwide manufacturing, product development, and financial operations at Byk Gardner. She also has seven years of public accounting experience with Deloitte & Touche as an audit manager. She received an executive Master of Business Administration from Loyola College of Maryland, a Bachelor of Science in Accounting from the University of Arizona, and is a Certified Public Accountant.

"I am confident that we will continue on our path as a leader in information security, and I am proud to be a part of it. I believe we have only begun to tap the potential for this company, our products, and our people," said Argo

Mueller Background
Ken Mueller joins SafeNet from Microsoft Corp. where he held the position of chief financial officer, Microsoft Business Solutions, a $700 million business unit. During his tenure with Microsoft Business Solutions, Mueller led the effort to build out the worldwide finance organization, completed the integration of two businesses, and helped relocate a new finance Shared Service Center to Fargo, N.D.

Mueller has over 20 years of senior finance experience working in high growth tech companies like Platinum Technology, Galileo International, Apple Computer, and Digital Equipment. In addition, he helped build two start-up companies. Mueller has experience in developing the financial infrastructure and discipline to support companies growing from $200 million in revenue to a billion. For example, during his tenure at Platinum, an international software and service company, Ken was responsible for building the financial infrastructure in three worldwide support centers, enabling the rapid and efficient assimilation of more than 50 acquisitions in three years. Mueller received a Bachelor of Science degree from Northwestern University and a Masters in Business Administration from DePaul University. He is also a Certified Public Accountant.

"I am excited to join SafeNet because the company has established itself as a top-tier player in the information security industry, a sector that's targeted as one of the hottest areas of information technology," said Mueller. "I believe SafeNet is the right company, with the right products, at the right time. I look forward to the many challenges and successes that lie ahead."

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, Adobe, 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. Important factors that could cause actual results to differ materially are included but are not limited to those listed in SafeNet's periodic reports and registration statements filed with the Securities and Exchange Commission. The Company assumes no obligation to update information concerning its expectations.

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Editor’s Note: SafeNet is a registered trademark and SecureIP Technology is a trademark of SafeNet, Inc. All other trademarks are the property of their respective owners.