WatchGuard Accelerates Firebox X VPN Performance With SafeNet’s SafeXcel-1141 VPN Chip

BALTIMORE, Maryland — June 15, 2004— SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced that the WatchGuard Firebox X integrated security appliances incorporate SafeNet's SafeXcel™-1141 VPN chip for VPN performance acceleration. WatchGuard Technologies, Inc. (Nasdaq: WGRD), a leading provider of network security solutions for the small to midsize enterprise (SME) market, has used SafeNet software and chip-based VPN technology in previous generations of its Firebox System security appliances.

"Integrated security appliances require hardware acceleration to meet system performance goals," said David Potts, Senior Vice President and General Manager for SafeNet's Embedded Security Division. "Our SafeXcel-1141 chip enables WatchGuard to deliver high-performance VPN capabilities on an integrated appliance at an affordable price. WatchGuard's new Firebox X is specifically designed to meet the security needs of SME customers and we’re excited to help WatchGuard serve this market."

WatchGuard Firebox X is the first line of integrated security appliances with full model upgrade capability that can be activated with the application of software license keys. Customers can purchase model upgrades as their security needs change and obtain all the performance and functionality of a higher model in the line, just as if they had purchased it originally. The model upgrade allows customers to scale their existing Firebox X security appliance simply and economically without costly and time-consuming hardware replacements. It integrates firewall, VPN, application layer security, intrusion prevention functionality, spam blocking, Web filtering, authentication and high availability capability in a single appliance. WatchGuard expects to extend the Firebox X line with the AES encryption acceleration capability provided by the SafeXcel chip – an emerging market requirement.

"As a technology and value leader for VPN acceleration, SafeNet continues to be an important partner for us," said John Stuckey, vice president of marketing for WatchGuard. "We feel confident incorporating the SafeXcel-1141 chip into the Firebox X line of products because it delivers the advanced security capabilities and performance level our customers demand."

Part of the Momentum Series in SafeXcel silicon chips, the SafeXcel-1141 is a highly sophisticated security co-processor designed for SME targeted networking applications like routers and firewalls.

About WatchGuard Technologies, Inc.
WatchGuard is a leading provider of network security solutions for small- to mid-sized enterprises worldwide, delivering integrated products and services that are robust as well as easy to buy, deploy and manage. The company’s Firebox X line of expandable integrated security appliances is designed to be fully upgradeable as an organization grows and to deliver the industry’s best combination of security, performance, intuitive interface and value. WatchGuard Intelligent Layered Security architecture protects against emerging threats effectively and efficiently and provides the flexibility to integrate additional security functionality and services offered through WatchGuard. Every WatchGuard product comes with an initial LiveSecurity Service subscription to help customers stay on top of the security landscape with vulnerability alerts, software updates, expert security instruction and superior customer care. For more information, please call (206) 521-8340 or visit www.watchguard.com.

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 SafeXcel is a trademark of SafeNet, Inc. WatchGuard, LiveSecurity and Firebox are either registered trademarks or trademarks of WatchGuard Technologies, Inc. in the United States and/or other countries. All other trademarks are the property of their respective owners.