SafeNet Releases Expanded Line of High Performance SafeXcel IP Security Engines

Advanced Features and Streamlined Licensing Model Designed for Networking Equipment OEMs

BALTIMORE, Maryland, December 20, 2004 - SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced the availability of an expanded line of proven SafeXcel IP Security Engines in response to customer demand for new features, performance improvements and streamlined, cost-effective licensing. These OEM-ready, off-the-shelf IP Security Engines are based on SafeNet’s proven designs, which are deployed in millions of consumer and enterprise systems around the world.

The SafeXcel IP Security Engines offer semiconductor designers a faster, more reliable, and more cost effective solution versus in-house designs. The IP Security Engines are available in a variety of configurations that enable a wide range of design goals such as performance, gate count, and low cost with an excellent track record of supporting industry-leading semiconductor OEMs. Customers can receive expert design and implementation support directly from the experienced security engineers who design SafeNet SafeXcel IP Security Engines.

"Our new SafeXcel IP Security Engines enable semiconductor OEMs to rapidly and cost-effectively build advanced security into next-generation ASSPs and ASICs that are embedded into feature-rich communications products for consumer, government, and enterprise markets," said Henk Pruim, Vice President and General Manager for SafeNet's Networking Business Unit. "We listened to our customers and now provide individually packaged SafeXcel IP Security Engines to give OEM vendors the flexibility to select individual engines to suit their specific design needs."

"We licensed SafeNet’s SafeXcel IP Security Engines to add to our IP portfolio for office automation and network security ASICs because we were looking for the product reliability and support that only a proven, financially sound security vendor like SafeNet can offer," said Sunil Baliga, vice president of marketing and business development at Kawasaki Microelectronics (K-Micro), a leader in advanced yet affordable ASICs.

The SafeXcel IP Security Engine family encompasses the broadest array of security functions in the industry:

• DES and 3DES
• AES
• ARC4
• MD5
• SHA-1
• SHA-256
• Public Key Acceleration
• True Random Number Generation

All of the IP Security Engines are available in several configurations. The symmetric encryption/decryption security engines and the hashing engines have a layered design, where the inner layer provides wide bus interfaces, and where the outer layer provides a 32-bit register interface. This layering gives customers the highest degree of flexibility during integration at system level, while preserving the ability to use pipelining in order to achieve optimal throughput.

The Public Key Accelerator is a fully scaleable design, allowing customers to achieve the broadest range of performance, gate count, and power consumption goals. Furthermore, this design provides resistance against power and timing analysis attacks.

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 and SafeXcel is a trademark of SafeNet, Inc. All other trademarks are the property of their respective owners.