U.S. Department of Defense Adds Rainbow's High Assurance Security Solution to Secure Classified Network and Satellite Communications

Business Wire, Sept 7, 2000

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--Sept. 7, 2000

Next Generation KIV-7HSA Product Increases Data Throughput

and Provides Enhanced Encryption Capabilities

Rainbow Technologies, Inc. (Nasdaq:RNBO), a leading provider of high-performance security solutions for the Internet and eCommerce, today announced that the Department of Defense's (DoD) National Security Agency (NSA) has added the Rainbow Mykotronx KIV-7HSA COMSEC Unit to its Indefinite Delivery, Indefinite Quantity (IDIQ) contract that runs through September 2002.

Mykotronx's KIV-7 products are used in securing classified communications throughout the DoD and other Government agencies. The KIV-7HSA is the latest technological enhancement to the KIV-7 product line, bringing higher throughput and increased utility to a broad spectrum of network and satellite communication architectures. As many as 14,000 KIV-7HSAs, valued at more than $54 million, can be purchased by DoD and Civilian agencies of the U.S. Government under this contract. KIV-7HSA was endorsed by the National Security Agency under the Commercial COMSEC Endorsement Program in August 1999.

"Inclusion of the KIV-7HSA on the NSA contract is a significant milestone in the history of the KIV-7 product line and in the long-standing contractual relationship between Mykotronx and the NSA," said Jim Kopycki, President of Mykotronx.

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. The company is headquartered in Irvine, California, and maintains offices throughout the United States, United Kingdom, France, Germany, Australia, China, The Netherlands, Russia, India, and Taiwan. A network of nearly 50 authorized distributors sells Rainbow products worldwide. For more information, visit our Web site at www.rainbow.com.

Note to Editors: Rainbow Technologies is a trademark of Rainbow Technologies. All other product or company names are trademarks of their respective organizations.

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.