SafeNet Announces Groundbreaking Enterprise Security Processor for SME Networking Equipment

SafeXcel-5140 is the First High-performance Security Processor Purpose-built for SME Market

Embedded Systems Conference, BOSTON, Massachusetts - September 12, 2005 - SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced its SafeXcel-5140, the market's first Enterprise Security Processor specifically designed for network equipment manufacturers targeting the fast-growing small and medium-sized enterprise (SME) market.

The SafeXcel-5140 is a unique single-chip solution that integrates an industry-standard ARMv4®-compliant 32-bit RISC processor together with embedded security acceleration for best-in-class network protection, performance and cost advantage.

Pre-integrated with SafeNet's QuickSec Unified security software, the Enterprise Security Processor enables OEMs to build complete VPN gateways, broadband access devices and home networking equipment, while significantly reducing time-to-market.

"The SME market has unique price and performance requirements. Until now there simply haven't been any cost-effective enterprise security processors available for OEMs building high-bandwidth SME equipment," explains Henk Pruim, Vice President and General Manager for SafeNet's OEM/Networking Business Unit. "The SafeXcel-5140 is a groundbreaking processor that addresses the SME market's need for high-performance network processing, maximum security, and affordability in a single chip."

SafeNet's Enterprise Security Processor features unique characteristics, including:

PERFORMANCE – As high bandwidths become more widely available to SMEs, the SafeXcel-5140 processor is precisely delivering the throughput levels this market requires, ranging from full duplex 45 Mbps for small packets to full duplex 100 Mbps for average-size and larger packets. While existing security-enabled processors can handle large IP packets at reasonable data rates, they often perform very poorly when it comes to processing small packets. The SafeXcel-5140 chip excels at small packet sizes and provides more than wire-rate, full-duplex T3 throughput across all packet sizes. This is particularly important as small packets are much more prevalent in typical Internet traffic than large packets.

PRICE – SMEs are looking for powerful yet economical networking security appliances. With a sub-$40 price tag, the SafeXcel-5140 is the most cost-effective security processor in the market – dramatically improving material cost and margins for networking equipment OEMs. The SafeXcel-5140 delivers about 10 times the small packet performance of similarly priced security processors.

INTEGRATION & TIME-TO-MARKET – The SafeXcel-5140 chips are pre-integrated with SafeNet's security platform QuickSec Unified to provide a complete hardware/software security solution with wire-rate throughput across all packet sizes. This pre-integration significantly reduces design and integration cycles, resulting in accelerated time to market and reduced project cost for OEMs.

FEATURES - The SafeXcel-5140 provides hardware implementations for 3DES, AES, SHA-1, MD5, random number generation, and public-key acceleration. The enterprise security processor also features packet filtering and flow processing, NAT, NAT-T, NAPT, IPSec and Secure Real-time Transport Protocol (SRTP) processing, as well as SHA-256, AES Galois Counter Mode (GCM), AES-XCBC-MAC-96, and Extended Sequence Numbers.

POWER REDUCTION - Power consumption is a major concern among system designers as it affects total system cost, density, and performance. The SafeXcel-5140 reduces system power requirements in two significant ways: first by replacing a 2-chip solution with a single chip, and second by providing dedicated IPSec packet processing hardware, which is substantially more power-efficient than using a general purpose processor.

"The combination of a fast RISC processor, a powerful security engine, and embedded networking features makes the SafeXcel-5140 uniquely suited to the needs of the SME market. The market for communications processors in SME was about $300 million in 2004, with secure processors as one of the fastest growing segments," adds Linley Gwennap, principal analyst of The Linley Group. "As a company focused on security, SafeNet will deliver a complete and robust hardware/software solution to its customers."

The SafeXcel-5140 Enterprise Security Processor is a key component of SafeNet's fully integrated security solutions for OEMs in telecommunications, SME, SOHO, and Semiconductor markets. SafeNet OEM products include QuickSec security software, SafeXcel hardware security processors and silicon-proven semiconductor IP. This complete security platform enables vendors to build complete network security solutions while reducing total cost and time to market. For more information about the SafeXcel-5140, please visit http://www.safenet-inc.com/SafeXcel5140.

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, NetGear, 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.

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