SafeNet Sentinel Named Finalist for SIIA Codie Awards

Newly Announced Sentinel UltraPro a Finalist for Best Digital Rights Management Solution

Baltimore, Maryland, January 19, 2005 – SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced that its Sentinel UltraPro Software Protection product is a finalist for the SIIA Codie Awards in the Best Digital Rights Management Category.

"The Codie Awards are very distinguished in our industry and we're excited to be named a finalist in the DRM category," said Prakash Panjwani, Vice President and General Manager for SafeNet's Rights Management Business Unit. "UltraPro is designed to provide our customers highly secure DRM solutions, which are easy to use and also enable rapid deployment of some commonly used business models. Customers can take their software to market faster and realize better revenue streams. The recognition from the Codie Awards validates the feedback we have already received from our customer base since UltraPro was launched—UltraPro is a safe and practical choice for software developers."

SafeNet's Sentinel UltraPro Software Protection solution, announced in September 2004, won a finalist spot with over 1000 products nominated. The product provides a comprehensive toolkit that allows software developers to integrate a hardware device that plugs into a computer port and secures their application from piracy. UltraPro changes the software security paradigm with introduction of Business Layer API™ framework. This framework enables a dramatic reduction in integration time, reduces cost, and improves quality by reducing the opportunities for programming error. SafeNet's Business Layer API's abstract the most popular business models that software vendors use to license their applications, and provides an intuitive high level API that is easily integrated by the developer, without the need for learning a complex set of programming rules. Finally, the use of the hardware key provides both high security and complete mobility for the DRM solution.

The Codie Awards, the only peer-recognition awards program in the industry, is the standard-bearer for celebrating outstanding achievement and vision among software vendors worldwide. The awards program, now in its twentieth year, showcases the software and information industry's finest products. The Codie Awards were established by the Software Publisher's Association, now the Software & Information Industry Association—the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to the leading companies that are setting the pace for the digital age.

"The 20th annual Codie Awards continue the tradition of honoring the best of the software, content and education technology industries," said Ken Wasch, SIIA President. "When one considers the number of outstanding companies that competed this year, being named a Codie Awards finalist is a significant achievement."

For more information on the Codie Awards and a listing of all the finalists, please visit SIIA's website at http://www.siia.net/codies/2005/finalists.asp.

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.

Editor's Note: SafeNet is a registered trademark and Business Layer API is a trademark of SafeNet, Inc. All other trademarks are the property of their respective owners.