SafeNet Announces Version 2.0 of SafeZone IP

New Version Allows Organizations to Easily Integrate Embedded Security Into Chips for Mobile, Enterprise, and Consumer Electronics Markets

Baltimore, Maryland – January 27, 2005 – SafeNet (NASDAQ: SFNT), setting the standard for information security, today announced version 2.0 of its SafeZone™ IP, license-ready security blocks, for semiconductor manufacturers to provide the highest levels of security necessary to protect revenues and meet compliance requirements in the mobile, consumer entertainment, and enterprise markets.

SafeZone IP 2.0 is the embedded hardware security foundation for all security-sensitive applications such as digital rights management (DRM), mobile commerce enterprise, and anti-fraud solutions. Designed for cost-effective integration into any mobile or consumer device, SafeZone IP 2.0 provides a complete platform enabling secure authentication, key management, and decryption of protected content.

"Today’s mobile carriers, handset vendors, and consumer electronics manufacturers demand robust embedded security to protect premium content, enable new mobile services, and protect critical revenue streams," adds David Potts, Senior Vice President and General Manager, Embedded Division at SafeNet. "SafeZone IP 2.0 delivers the powerful security features that today’s mobile and consumer electronics manufacturers demand, and builds upon an installed base of vendors that already trust SafeNet with their embedded security needs."

New Features for SafeZone 2.0

• OMA DRM 2.0 API support for all security operations necessary to deploy an OMA DRM 2.0 compatible agent
  
• Secure Key Management to prevent sensitive cryptographic key material from being compromised and guarantee the integrity of keys, programs, and data stored on the device
  
• Key ownership and partitioning to prevented malicious applications from using other applications keys, or gaining access to sensitive key material
  
• Portability across a range of operating systems (WinCE, Symbian, Linux) and microprocessor platforms.

To ease integration and enable seamless platform portability, SafeNet also provides SafeZone Software, an integrated security framework that enables application developers to transparently utilize and easily integrate security services provided by hardware implementations of SafeZone IP. SafeZone Software provides the security protocols and algorithms essential to applications while ensuring API compatibility and seamless upgradeability to future generations of processors and devices.

The end result is a fully integrated hardware and software security solution that reduces total cost of ownership, speeds time to market and dramatically reduces risk by sourcing the SafeZone solution from the OEM’s most trusted source in security.

SafeNet is the only OEM security vendor that provides complete security systems that range from hardware IP, chips, and software for OEM solutions to full implementations of secure networks for governments, banks and large enterprises.

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. Samsung, Texas Instruments, Nokia, Ericsson, NEC, ARM, Bank of America, NetGear, the Departments of Defense and Homeland Security, Adobe, 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 and SafeZone is a trademark of SafeNet, Inc. All other trademarks are the property of their respective owners.