Faraday's NetComposer Platform Selected by SafeNet for SafeXcel Security Processors

SafeNet Takes Faraday's NetComposer Structured ASIC Into Fast Growing SME Market

HSINCHU, Taiwan and SUNNYVALE -- Calif., Oct. 27, 2005 -- Faraday Technology Corporation (TAIEX: 3035), a leading ASIC and IP provider, today announced that SafeNet, Inc. (Nasdaq: SFNT - News), setting the standard for information security, has selected Faraday's NetComposer(TM) (NC-1) structured ASICs as the platform for the company's next generation enterprise security processors. The first SafeNet SafeXcel-51xx series products based on Faraday's NC-1 will be sampling in Q4 of this year.

"We are very excited that Faraday's NC-1 platform is chosen by SafeNet, a world leader in encryption security solutions. We view it as a strong validation of our structured ASIC strategy," said H.P. Lin, President of Faraday Technology. "While Faraday and SafeNet's joint customer referral and IP licensing partnership programs continue to be successful, the joint collaboration on the NC-1-based chips has further strengthened our partnership. We are happy that Faraday's NC-1 has contributed to SafeNet's strategy of addressing the fast growing but cost-sensitive small and medium- sized enterprise market."

The market for communication processors in the small and medium size enterprise (SME) segment has been estimated at $300 million for 2004 shipments, with security processors representing one of the fastest growing areas. Faraday's NC-1 structured ASIC has proven to be a viable platform solution for application-specific standard products (ASSPs) and system designs in several segments of the SME market, including security appliances, IPSec VPNs, layer-7 content inspection systems, XML engines, and storage/TCP-offload accelerators.

"The time-to-market and cost advantages offered by Faraday's NC-1 enabled us to execute on our SafeXcel 51xx SoC solutions with half the engineering resources and one-third the costs associated with typical 0.13um ASIC projects," said Henk Pruim, Vice President and General Manager of SafeNet's Networking Business Unit. "The combination of an appropriate cost structure, integrated high-performance ARM(TM) architecture CPU and unique data path design -- all in one device, empowered SafeNet to architect a complete in-line security solution with integrated software, delivering exceptional price/performance to the SME market. We will continue to rollout more SafeXcel SoCs based on the NetComposer platform."

"The joint partnership with SafeNet on NC-1 is a great example of a successful collaboration between Faraday and an industry leader on a customer- driven structured ASIC product from the early stages of definition to market introduction of the chip," said Christopher Moezzi, Vice President of Business Development and Structured ASIC Marketing at Faraday USA. "We will continue to form strategic partnerships with networking, security and storage chip and systems companies as we roll-out our next generation SerDes-based Structured ASIC products that support PCI-Express, SATA, and SGMII interfaces."

About SafeNet

SafeNet, Inc. 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

About Faraday Technology Corporation

Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad IP portfolio includes 32-bit RISC CPUs, USB 2.0, Ethernet, Serial ATA, and PCI-Express. With more than 580 employees and 2004 revenue of $159 million, Faraday is one of the largest fabless ASIC companies in the Asia-Pacific region, and it also has a significant presence in other markets, worldwide. Headquartered in Taiwan, Faraday has service and support offices around the world, including the U.S., Japan, Europe, and China. For more information, please visit: http://www.faraday-tech.com