Rainbow's Smart Tokens Reach Critical Mass - 26 Million Sold; Rainbow Claims Leadership in Software Security; High Security Authentication

Apr 10, 2001, 01:00 ET from Rainbow Technologies, Inc.

    SAN FRANCISCO, SAN JOSE, Calif. and IRVINE, Calif., April 10 /PRNewswire/
 -- The Digital Rights Management group of Rainbow Technologies, Inc.
 (Nasdaq:   RNBO) a leading provider of high-performance security solutions for
 the Internet, eCommerce and software protection, today claimed leadership of
 the worldwide smart-token security market by announcing that Rainbow has sold
 26 million software security keys, high-security authentication tokens, and
 workstation security solutions.  Rainbow made the announcement at today's
 2001 RSA Data Security Conference and Software Development West trade shows.
     Stacked token-to-token, these smart tokens stretch nearly 900 miles and
 could fill up 15 international soccer fields.  Rainbow's family of smart
 tokens include the Sentinel software security keys and the iKey workstation
 security token, the Fortezza and Fortezza Plus Crypto Cards, and the MYK 82
 and KMU high-assurance products from Rainbow-Mykotronx.  For a representation
 of the volume of smart tokens sold by Rainbow, click on the link provided:
 http://www.rainbow.com/viz/index.html.
     With a recent joint study from the Business Software Association (BSA) and
 the Software Information Industry of America, the need for securing
 enterprise-level software applications should continue to grow, as some
 $12 billion worldwide was lost to software piracy in 1999, the latest year
 statistics were available.  The study suggests that incidents of software
 piracy increase during tougher economic times.  For software publishers and
 ISVs, an investment in security technology can prevent unauthorized execution
 and illegal distribution of their valuable applications.
     "As the Internet, eCommerce and enterprise software markets continue to
 expand, the protection of a company's digital intellectual property from
 unauthorized access or use represents a key weapon in revenue erosion," said
 Robert Shields, senior director of strategic marketing, Rainbow Technologies.
 "Since software pirates can steal and distribute software over the Internet
 quickly and hackers can spread malicious computer virus or assume someone's
 digital identity, Rainbow's family of smart tokens are a proven and tested
 solution for preserving an organization's business-critical data and
 intellectual property investment.  We intend to build on our market leadership
 by providing continued product innovation, developing strong strategic
 partnerships and building powerful smart-token security solutions for the
 enterprise and the individual."
 
     The Sentinel Suite of Products
     The Sentinel product family enables software security for ISVs and
 software developers through secure hardware and software-based license
 software distribution and management tools.  Sentinel secures applications
 from unauthorized execution and protects developers and ISVs from illegal
 licensing and distribution.  These products represent the industry's most
 powerful and flexible solution for securing critical applications in
 stand-alone or networked environments.  Rainbow's Digital Rights Management
 group markets the industry's leading software security, electronic software
 licensing and management, and digital rights management solution.  Rainbow has
 sold more keys to more customers than any other competitive solution.
 
     Rainbow's Sentinel solutions provide the tools to enable:
       --  Digital Rights Management (DRM) for software and applications
       --  Electronic License Distribution/Management (ELD/M)
       --  Electronic Software Distribution (ESD)
       --  Electronic Commerce Licensing Tools and Security
 
     Members of the Rainbow Sentinel family include Sentinel SuperPro,
 SuperProNet, SentinelLM, and SentinelExpress.
 
     The Sentinel SuperPro and SuperProNet security keys are the industry's
 most comprehensive, full-featured, easy-to-use software protection solution
 that allows IT professionals to increase software demonstration limits and
 upgrade demos to fully licensed versions of an application without having to
 ship a new security key or visit the end-user site.  Both SuperPro and
 SuperProNet provide powerful multiple algorithm protection and 128-byte
 programmable read/write memory.
     SuperProNet, the newest member of Rainbow's Sentinel product family, is
 perfect for securing client/server-based software applications from
 unauthorized execution and protects these applications from illegal licensing
 and distribution over a networked environment.  The security key easily
 connects to the network via a parallel or USB port on a network server and
 allows for the concurrent use of a protected application by multiple clients.
 Sentinel SuperProNet's network-licensing capabilities are also enhanced
 through a server-monitoring tool that lets system administrators track license
 usage on the network.  In addition, a one-time update option for license codes
 prevents license codes from being applied more than once during a field
 exchange.  SuperProNet allows developers and software publishers to program
 keys specifically for use by their distributors to provide a measure of
 control over the number of end-user keys each distributor can activate and
 update.
     Rainbow's latest release of SentinelLM 7.1.1 is a secure software-based
 solution for managing, controlling and administering software distribution,
 updates, new releases and software patches.  SentinelLM provides support for
 Microsoft Windows 2000 operating system and is localized for six of the
 world's most-used business languages; English, French, Spanish, Japanese,
 Traditional Chinese and Simplified Chinese.  Other key features of SentinelLM
 include License Server Usage log file reporting capability, change in Network
 Trial License behavior, enhanced Subscription Trial License file and UNIX
 support.
     SentinelExpress enables electronic software distribution and works in
 conjunction with SentinelLM to offer software developers and ISVs the ability
 to securely distribute and license software via the Internet.  The key
 benefits of this combination are:
       --  Secured applications from unauthorized execution
       --  Protection from illegal licensing
       --  Customized software packages to customers.
 
     Rainbow's iKey Workstation Security Solution
     Rainbow's expertise in developing hardware keys for software protection
 provide a solid foundation for the development of a powerful, two-factor
 authentication token called iKey.  This "smart key" workstation security
 solution functions in the same manner as a smart card, but does not require a
 reader and is easily inserted in the USB port of a desktop or notebook
 computer.  The iKey 1000 series is a cost-effective security token for B2C
 loyalty and branding, Windows 2000 security and Public Key Infrastructure
 (PKI) applications.  The iKey 2000 series is designed for B2B, enterprise
 security, and other sophisticated PKI applications.
     The iKey places a user's credentials, or digital identity, directly on the
 cryptographically secure token itself, so the user's credentials no longer
 need to be stored on a client PC or notebook.  Unless a computer system has a
 high level of assurance as to the identity of the user, the iKey should not
 allow that user access to sensitive data or services.  As a bare minimum,
 password protection should be turned on and a strong password selected, but
 passwords are not enough.  The iKey's powerful two-factor authentication, such
 as something you know (for example, a password and PIN number) and something
 you hold (for example, a secure token), and easy-to-use, easy-to-install form
 factor make it a popular workstation security choice.
     Because of the iKey's ability to store a user's credentials on the token,
 coupled with strong security, the iKey is growing more popular in a host of
 environments.  For example, online banking systems, government information
 systems, and corporate networks have started using tokens rather than
 passwords.  Tokens are starting to replace passwords in the enterprise, in B2B
 environments (such as Identrus), and B2C systems.  Many of these new systems
 are often replacing previous password-based security solutions.
 
     High-Assurance SmartTokens from Rainbow-Mykotronx
     The Rainbow-Mykotronx Fortezza Crypto Card implements cutting-edge
 cryptographic security and authentication methods in a PCMCIA SmartToken for
 Federal government and high-assurance commercial applications.  The
 Fortezza Crypto Card is self-contained, standardized, and easily integrated
 to provide users with the ultimate in portable security, together with
 on-board storage of user credentials, keys, and digital certificates.
 Fully Fortezza-compliant, the card incorporates the National Security
 Agency-certified CAPSTONE RISC-based cryptographic processor.  It is the
 hardware SmartToken of choice for securing the Defense Messaging System (DMS).
      Used by the government to protect top-secret information, the
 Fortezza(TM) Plus Crypto Card is the next-generation solution for both current
 and evolving information security (INFOSEC) applications.  MISSI-compatible
 and PC CARD 95, 16-bit data I/O-compliant, the Fortezza(TM) Plus Crypto Card
 is the cryptographic engine for the Secure Terminal Equipment (STE).  The size
 of a credit card, Fortezza(TM) Plus takes advantage of such commercial network
 technologies as ISDN to deliver high-quality secure digital voice/data
 services.  This SmartToken provides on-board storage of user credentials,
 keys, and digital certificates.  In addition, the card incorporates the
 National Security Agency-certified Krypton 4C RISC-based cryptographic
 processor.
     For more details on these, and other high-assurance SmartTokens from
 Rainbow-Mykotronx, visit http://www.rainbow.com/mykoweb/.
 
     About Rainbow Technologies
     Founded in 1984, Rainbow Technologies is a leading provider of security
 solutions for the Internet and eCommerce.  Rainbow applies its core technology
 to a variety of Internet applications -- from securing software, to the
 acceleration of secure communication for eCommerce and Virtual Private
 Networks (VPNs).  Rainbow's products include secure Web server and VPN
 acceleration boards; anti-piracy and Internet software distribution solutions;
 PKI security solutions; voice, data and satellite security systems; and
 USB-based authentication tokens.  Rainbow's Digital Rights Management group is
 headquartered in Irvine, California and maintains offices throughout the
 United States, United Kingdom, France, Germany, Australia, China, The
 Netherlands, Brazil, India, and Taiwan.  A network of nearly 80 authorized
 distributors sells Rainbow products worldwide.  For more information, visit
 our Web site at www.rainbow.com.
 
     Rainbow Technologies, iKey, Fortezza, Sentinel, SuperPro, SuperProNet,
 SentinelLM and SentinelExpress are trademarks of Rainbow Technologies.
 
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for forward-looking statements.  Certain information included in our
 Annual Report on Form 10-K and other materials filed with the Securities and
 Exchange Commission ("SEC") (as well as information included in oral
 statements or other written statements made or to be made by the Company)
 contain statements relating to the following:  dependence upon existing and
 new product offerings, competition, intellectual property and licensing,
 future growth, rapid technological and market change, manufacturing and
 sourcing risks, Internet infrastructure and regulation, the inclusion of
 network security functionality in hardware or system software, international
 operations, among others.  These conditions involve important factors that
 could cause actual results to differ materially from those expressed in any
 forward-looking statements made by or on behalf of the Company.  Any
 forward-looking statements are made pursuant to the Private Securities
 Litigation Reform Act of 1995 and, as such, speak only as of the date made.
 Statements made in this document that are not purely historical are
 forward-looking statements, including any statements as to beliefs, plans,
 expectations, or intentions regarding the future.  The Company assumes no
 obligation to update information concerning its expectations.
 
     For further information, please contact Dan Chmielewski of Rainbow
 Technologies, Inc., 949-450-7377, dchm@rainbow.com; or Shay Stockdill of
 Strategies, 714-957-8880, ext. 116, shay@strategiesadpr.com, for Rainbow
 Technologies, Inc.
 
 

SOURCE Rainbow Technologies, Inc.
    SAN FRANCISCO, SAN JOSE, Calif. and IRVINE, Calif., April 10 /PRNewswire/
 -- The Digital Rights Management group of Rainbow Technologies, Inc.
 (Nasdaq:   RNBO) a leading provider of high-performance security solutions for
 the Internet, eCommerce and software protection, today claimed leadership of
 the worldwide smart-token security market by announcing that Rainbow has sold
 26 million software security keys, high-security authentication tokens, and
 workstation security solutions.  Rainbow made the announcement at today's
 2001 RSA Data Security Conference and Software Development West trade shows.
     Stacked token-to-token, these smart tokens stretch nearly 900 miles and
 could fill up 15 international soccer fields.  Rainbow's family of smart
 tokens include the Sentinel software security keys and the iKey workstation
 security token, the Fortezza and Fortezza Plus Crypto Cards, and the MYK 82
 and KMU high-assurance products from Rainbow-Mykotronx.  For a representation
 of the volume of smart tokens sold by Rainbow, click on the link provided:
 http://www.rainbow.com/viz/index.html.
     With a recent joint study from the Business Software Association (BSA) and
 the Software Information Industry of America, the need for securing
 enterprise-level software applications should continue to grow, as some
 $12 billion worldwide was lost to software piracy in 1999, the latest year
 statistics were available.  The study suggests that incidents of software
 piracy increase during tougher economic times.  For software publishers and
 ISVs, an investment in security technology can prevent unauthorized execution
 and illegal distribution of their valuable applications.
     "As the Internet, eCommerce and enterprise software markets continue to
 expand, the protection of a company's digital intellectual property from
 unauthorized access or use represents a key weapon in revenue erosion," said
 Robert Shields, senior director of strategic marketing, Rainbow Technologies.
 "Since software pirates can steal and distribute software over the Internet
 quickly and hackers can spread malicious computer virus or assume someone's
 digital identity, Rainbow's family of smart tokens are a proven and tested
 solution for preserving an organization's business-critical data and
 intellectual property investment.  We intend to build on our market leadership
 by providing continued product innovation, developing strong strategic
 partnerships and building powerful smart-token security solutions for the
 enterprise and the individual."
 
     The Sentinel Suite of Products
     The Sentinel product family enables software security for ISVs and
 software developers through secure hardware and software-based license
 software distribution and management tools.  Sentinel secures applications
 from unauthorized execution and protects developers and ISVs from illegal
 licensing and distribution.  These products represent the industry's most
 powerful and flexible solution for securing critical applications in
 stand-alone or networked environments.  Rainbow's Digital Rights Management
 group markets the industry's leading software security, electronic software
 licensing and management, and digital rights management solution.  Rainbow has
 sold more keys to more customers than any other competitive solution.
 
     Rainbow's Sentinel solutions provide the tools to enable:
       --  Digital Rights Management (DRM) for software and applications
       --  Electronic License Distribution/Management (ELD/M)
       --  Electronic Software Distribution (ESD)
       --  Electronic Commerce Licensing Tools and Security
 
     Members of the Rainbow Sentinel family include Sentinel SuperPro,
 SuperProNet, SentinelLM, and SentinelExpress.
 
     The Sentinel SuperPro and SuperProNet security keys are the industry's
 most comprehensive, full-featured, easy-to-use software protection solution
 that allows IT professionals to increase software demonstration limits and
 upgrade demos to fully licensed versions of an application without having to
 ship a new security key or visit the end-user site.  Both SuperPro and
 SuperProNet provide powerful multiple algorithm protection and 128-byte
 programmable read/write memory.
     SuperProNet, the newest member of Rainbow's Sentinel product family, is
 perfect for securing client/server-based software applications from
 unauthorized execution and protects these applications from illegal licensing
 and distribution over a networked environment.  The security key easily
 connects to the network via a parallel or USB port on a network server and
 allows for the concurrent use of a protected application by multiple clients.
 Sentinel SuperProNet's network-licensing capabilities are also enhanced
 through a server-monitoring tool that lets system administrators track license
 usage on the network.  In addition, a one-time update option for license codes
 prevents license codes from being applied more than once during a field
 exchange.  SuperProNet allows developers and software publishers to program
 keys specifically for use by their distributors to provide a measure of
 control over the number of end-user keys each distributor can activate and
 update.
     Rainbow's latest release of SentinelLM 7.1.1 is a secure software-based
 solution for managing, controlling and administering software distribution,
 updates, new releases and software patches.  SentinelLM provides support for
 Microsoft Windows 2000 operating system and is localized for six of the
 world's most-used business languages; English, French, Spanish, Japanese,
 Traditional Chinese and Simplified Chinese.  Other key features of SentinelLM
 include License Server Usage log file reporting capability, change in Network
 Trial License behavior, enhanced Subscription Trial License file and UNIX
 support.
     SentinelExpress enables electronic software distribution and works in
 conjunction with SentinelLM to offer software developers and ISVs the ability
 to securely distribute and license software via the Internet.  The key
 benefits of this combination are:
       --  Secured applications from unauthorized execution
       --  Protection from illegal licensing
       --  Customized software packages to customers.
 
     Rainbow's iKey Workstation Security Solution
     Rainbow's expertise in developing hardware keys for software protection
 provide a solid foundation for the development of a powerful, two-factor
 authentication token called iKey.  This "smart key" workstation security
 solution functions in the same manner as a smart card, but does not require a
 reader and is easily inserted in the USB port of a desktop or notebook
 computer.  The iKey 1000 series is a cost-effective security token for B2C
 loyalty and branding, Windows 2000 security and Public Key Infrastructure
 (PKI) applications.  The iKey 2000 series is designed for B2B, enterprise
 security, and other sophisticated PKI applications.
     The iKey places a user's credentials, or digital identity, directly on the
 cryptographically secure token itself, so the user's credentials no longer
 need to be stored on a client PC or notebook.  Unless a computer system has a
 high level of assurance as to the identity of the user, the iKey should not
 allow that user access to sensitive data or services.  As a bare minimum,
 password protection should be turned on and a strong password selected, but
 passwords are not enough.  The iKey's powerful two-factor authentication, such
 as something you know (for example, a password and PIN number) and something
 you hold (for example, a secure token), and easy-to-use, easy-to-install form
 factor make it a popular workstation security choice.
     Because of the iKey's ability to store a user's credentials on the token,
 coupled with strong security, the iKey is growing more popular in a host of
 environments.  For example, online banking systems, government information
 systems, and corporate networks have started using tokens rather than
 passwords.  Tokens are starting to replace passwords in the enterprise, in B2B
 environments (such as Identrus), and B2C systems.  Many of these new systems
 are often replacing previous password-based security solutions.
 
     High-Assurance SmartTokens from Rainbow-Mykotronx
     The Rainbow-Mykotronx Fortezza Crypto Card implements cutting-edge
 cryptographic security and authentication methods in a PCMCIA SmartToken for
 Federal government and high-assurance commercial applications.  The
 Fortezza Crypto Card is self-contained, standardized, and easily integrated
 to provide users with the ultimate in portable security, together with
 on-board storage of user credentials, keys, and digital certificates.
 Fully Fortezza-compliant, the card incorporates the National Security
 Agency-certified CAPSTONE RISC-based cryptographic processor.  It is the
 hardware SmartToken of choice for securing the Defense Messaging System (DMS).
      Used by the government to protect top-secret information, the
 Fortezza(TM) Plus Crypto Card is the next-generation solution for both current
 and evolving information security (INFOSEC) applications.  MISSI-compatible
 and PC CARD 95, 16-bit data I/O-compliant, the Fortezza(TM) Plus Crypto Card
 is the cryptographic engine for the Secure Terminal Equipment (STE).  The size
 of a credit card, Fortezza(TM) Plus takes advantage of such commercial network
 technologies as ISDN to deliver high-quality secure digital voice/data
 services.  This SmartToken provides on-board storage of user credentials,
 keys, and digital certificates.  In addition, the card incorporates the
 National Security Agency-certified Krypton 4C RISC-based cryptographic
 processor.
     For more details on these, and other high-assurance SmartTokens from
 Rainbow-Mykotronx, visit http://www.rainbow.com/mykoweb/.
 
     About Rainbow Technologies
     Founded in 1984, Rainbow Technologies is a leading provider of security
 solutions for the Internet and eCommerce.  Rainbow applies its core technology
 to a variety of Internet applications -- from securing software, to the
 acceleration of secure communication for eCommerce and Virtual Private
 Networks (VPNs).  Rainbow's products include secure Web server and VPN
 acceleration boards; anti-piracy and Internet software distribution solutions;
 PKI security solutions; voice, data and satellite security systems; and
 USB-based authentication tokens.  Rainbow's Digital Rights Management group is
 headquartered in Irvine, California and maintains offices throughout the
 United States, United Kingdom, France, Germany, Australia, China, The
 Netherlands, Brazil, India, and Taiwan.  A network of nearly 80 authorized
 distributors sells Rainbow products worldwide.  For more information, visit
 our Web site at www.rainbow.com.
 
     Rainbow Technologies, iKey, Fortezza, Sentinel, SuperPro, SuperProNet,
 SentinelLM and SentinelExpress are trademarks of Rainbow Technologies.
 
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for forward-looking statements.  Certain information included in our
 Annual Report on Form 10-K and other materials filed with the Securities and
 Exchange Commission ("SEC") (as well as information included in oral
 statements or other written statements made or to be made by the Company)
 contain statements relating to the following:  dependence upon existing and
 new product offerings, competition, intellectual property and licensing,
 future growth, rapid technological and market change, manufacturing and
 sourcing risks, Internet infrastructure and regulation, the inclusion of
 network security functionality in hardware or system software, international
 operations, among others.  These conditions involve important factors that
 could cause actual results to differ materially from those expressed in any
 forward-looking statements made by or on behalf of the Company.  Any
 forward-looking statements are made pursuant to the Private Securities
 Litigation Reform Act of 1995 and, as such, speak only as of the date made.
 Statements made in this document that are not purely historical are
 forward-looking statements, including any statements as to beliefs, plans,
 expectations, or intentions regarding the future.  The Company assumes no
 obligation to update information concerning its expectations.
 
     For further information, please contact Dan Chmielewski of Rainbow
 Technologies, Inc., 949-450-7377, dchm@rainbow.com; or Shay Stockdill of
 Strategies, 714-957-8880, ext. 116, shay@strategiesadpr.com, for Rainbow
 Technologies, Inc.
 
 SOURCE  Rainbow Technologies, Inc.