Security Dynamics developing SoftID™ authentication software; New security solution based on industry-leading SecurID® technology

Business Wire, April 1, 1996

CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 1, 1996--Security Dynamics Technologies, Inc. (Nasdaq: SDTI), a leading provider of computer and network security solutions, today announced the development of SoftID, a software-based one-time password authentication product for network protection. SoftID provides a cost-effective security solution for verifying the identity of users throughout the enterprise. With the addition of SoftID, Security Dynamics expands its broad line of easy-to-use token-based identification and authentication products already available on the market.

Many network managers today are running applications across the enterprise, such as e-mail, that require a level of security stronger than the reusable password, but not as high a level as afforded by the two-factor user authentication of a hardware token. When deployed on physically secure PCs, SoftID one-time password software addresses this requirement by providing a level of security commensurate with less sensitive environments. More sensitive applications, such as human resources or financial databases, that demand a higher level of user identification assurance would typically rely on two-factor user authentication hardware tokens such as the SecurID Card and SecurID Key Fob.

"For certain applications, network managers are looking to offer their users a level of security that goes beyond the reusable password," said Fred Pinkett, product line manager at Security Dynamics. "Security Dynamics' SoftID is a cost effective solution that answers these needs with a format that is both easy to use and administer."

Utilizing the same technology found in the SecurID token, SoftID generates a new access code every 60 seconds that, when combined with the users' secret PIN, authenticates the user attempting to access a protected network. SoftID is easy to use; the user simply enters his or her secret PIN, and SoftID transmits a one-time passcode to Security Dynamics' ACE/Server(R) network security software for verification. With a high degree of scalability, ACE/Server software centrally manages and administers user profiles and maintains a comprehensive audit trail that records all access attempts.

Network managers will be able to easily deploy and manage SoftID using their current ACE/Server software solutions, as well as existing Security Dynamics' hardware and software Access Control Module (ACM) products. SoftID will also be compatible with all of Security Dynamics' existing strategic partner client applications. Security Dynamics' SoftID is expected to be available for Windows 3.1x, Windows `95 and Windows NT Workstation V3.51 environments in the second quarter of 1996, and SoftID will be priced at $34.95 each.

About Security Dynamics

Security Dynamics designs, develops, markets and supports a family of security products used to protect and manage access to computer-based information resources. The Company's family of products employs a combination of patent-protected super smart token and software or hardware access control products to authenticate the identity of users accessing networked or stand-alone computing resources. The Company's customers include Fortune 500 companies and financial institutions as well as academic institutions, research laboratories, hospitals and federal, state and foreign government organizations. Security Dynamics can also be found on the World Wide Web at http://www.securid.com/. -0-

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development (including the interoperability of SoftID with client applications of existing strategic partners), undetected errors or bugs in the software, changes in product pricing policies, competitive pressures, lower-than-expected demand for the one-time password security solution, general economic conditions and the risk factors detailed form time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission.

SecurID and ACE/Server are registered trademarks and SoftID is a trademark of Security Dynamics Technologies, Inc. All other products and service names mentioned herein are trademarks of their respective owners.

CONTACT: David Hammond Mike Farber, Owen Davis

Security Dynamics Schwartz Communications

(617) 547-7820 (617) 431-0770