SafeNet Announces SafeEnterprise SONET/SDH Encryptors

New Family of Encryption Appliances Allow Secure Communications At Speeds Up To 10 Gigabits
Company Expects a Minimum of $50 Million in Revenue from New Product Line

BALTIMORE, Maryland, October 20, 2004 – SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced the release of the SafeEnterprise™ SONET/SDH Encryptors, a family of high-performance encryption appliances designed to secure Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) networks at various speeds up to 10 Gbps. The SafeEnterprise SONET/SDH encryptors, which come in four varieties at speeds of OC3, OC12, OC48 and OC192, are centrally managed under the SafeEnterprise Security Management Center (SMC), the only enterprise security management application on the market that provides a single, dedicated application for securely managing appliances for IP, ATM, Frame, Link, and now SONET/SDH networks.

SONET Background
SONET is the mainstay of optical networking technology with almost 70% of new optical equipment sales designed for SONET networks, according to Infonetics Research. Large Enterprise organizations choose SONET networks because of their reliability, interoperability, low latency and efficient use of the fiber medium. SONET is used for data, voice and video applications including data backup, remote storage and disaster recovery. Until now, there has been no way to secure the high speed SONET networks themselves.

SONET encryption is the ideal technology for securing these high speed networks because it does not create additional traffic overhead. For example, IPSec adds up to 40% additional traffic overhead, forcing customers to choose between performance and security.

The SafeNet Breakthrough
"Our large Enterprise customers asked us to provide a low-overhead encryption product for SONET networks," said Chris Fedde, SafeNet's Senior Vice President and General Manager, Enterprise Security Division. "Today we are happy to announce this family of new products which provide true fiber speed encryption at up to 10 gigabits per second. This capability now allows high speed communication which is both efficient and highly secure. Based on initial customer reaction, we believe this new product line will generate a minimum of $50 million in revenue over the next few years."

Part of the SafeEnterprise Security System, the SafeEnterprise SONET/SDH Encryptor secures connections for OC3, OC12, OC 48, and OC192 SONET/SDH networks providing scalable performance and seamless end-to-end integration to deliver improved network operation and performance with uncompromising security. Used for applications such as multi-point high-speed data transmission, disaster recovery, and storage area networks, the SONET/SDH encryptor is designed to integrate transparently and simply into the SONET/SDH network architecture and is configurable as a path or line encryptor. The SONET/SDH Encryptor employs the federally regulated Advanced Encryption Standard (AES) algorithm and is designed to meet Common Criteria EAL 4 and FIPS 140-2 accreditation.

Key Features for the SafeEnterprise SONET/SDH Encryptor:

• Full duplex speeds up to 10 Gbps
  
• Fully Automated Key Management using X.509 certificates for authentication
  
• Interface options for OC3, OC12, OC48, and OC192
  
• Supports transmission over spans of 2km (Short range), 15km (Intermediate Range), and 40km (Long Range)
  
• Secure remote management via the SafeEnterprise Security Management Center using SNMPv3

Availability
First customer shipments of the SafeEnterprise SONET/SDH Encryptors have begun. A phased rollout of shipments for the family of SONET Encryptors is planned, and all models will be available for all customers by the first quarter of 2005.

For further details on any components of the SafeEnterprise Security System, please visit SafeNet's web site – www.safenet-inc.com, or contact SafeNet Sales at 443-327-1200 or 800-533-3958.

About the SafeEnterprise Security System
The SafeEnterprise Security System is a complete end-to-end security system comprised of solid security products including VPN clients and appliances, and a central management system. Offering a range of products to meet the needs for corporations of all sizes, the SafeEnterprise Security System provides the enterprise user with a complete system solution that has the flexibility and scalability to keep pace with networks as they evolve. The system supports increased network capacity and speed, as well as evolution from one protocol or topology to another, without wholesale replacement of the security infrastructure. The system's unique security management capabilities enable centralized, secure management of systems that can scale to accommodate many thousands of devices.

About the SafeEnterprise Security Management Center
The SMC provides total security management for SafeNet WAN and IPSec appliances, and software clients including authentication, definition and enforcement of security policy, configuration, monitoring, and audit capabilities. The SMC is a robust, Java-based management platform that authenticates any combination of SafeNet solutions deployed on the enterprise network and remotely configures, monitors, and performs firmware updates for SafeNet network security products.

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