SafeNet Announces Software Industry's First Hardware Token to Enable Wrapping Protection for Microsoft .NET Framework Version 2.0

Business Wire, August 16, 2006

BALTIMORE -- SafeNet, Inc. (NASDAQ:SFNT), setting the standard for information security, today announced the enhanced Sentinel Shell, a component of Sentinel Hardware Keys. This release makes Sentinel Hardware Keys the software industry's first hardware tokens capable of wrapping protection for Microsoft .NET Framework version 2.0.

The Sentinel Shell is an automated process that 'wraps' an executable file allowing developers to quickly and easily license and protect their software application. By providing multiple security layers, the Sentinel Shell thwarts hacking attempts by forcing a would-be hacker to break each layer in order to remove the software protection. Additionally, the Shell provides protection against memory dumping and includes protection against debuggers, which are tools that can be used to automatically dump code so a hacker can remove the protection calls.

"Microsoft is pleased to see SafeNet's introduction of Sentinel Hardware Keys, enhancing secure .Net development and customer run-time applications," said Gerry Albert, group manager from Microsoft's Developer Platform Division and head of the SecureIT Alliance. "We look forward to ongoing collaboration with SafeNet and other security partners to deliver even greater value to mutual customers as we continue to enhance the .Net Framework in future versions."

The Microsoft .NET Framework is a platform for building, deploying, and running Web Services and applications. This framework is an integrated development environment which allows different programming languages & libraries to work together seamlessly to create Windows-based applications that are easier to build, manage, deploy, and integrate with other networked systems.

"Developers using the newest Microsoft .NET framework are now able to take full advantage of the military-grade security offered by Sentinel Hardware Keys," said Ken Chow, general manager, SafeNet's Software Protection Business Unit. "In addition to API implementations that incorporate public key cryptography, software vendors can add the strength of the Sentinel Shell to protect their applications from piracy."

SafeNet and Microsoft are members of The SecureIT Alliance. The organization is comprised of a group of industry partners working together through an online web-community to develop, enhance and promote applications that interoperate with the Microsoft platform. For more information, visit www.secureitalliance.org.

Sentinel Hardware Keys

Sentinel Hardware Keys are SafeNet's industry-leading hardware tokens which, when attached to a computer or network, monitor and enforce the licensing of products which have been protected using this solution. Sentinel Hardware Keys deliver military-grade security through public key cryptography, AES encryption and internal authentication. When used in conjunction with Sentinel Business Layer APIs(TM), the Shell enhances overall security by adding protection against a variety of hacking techniques. Sentinel Hardware Keys are one of the main components of SafeNet's Unified Software Protection, the world's first comprehensive solution for protecting software products from unauthorized use and distribution. More information can be found at www.safenet-inc.com/sentinel

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. UBS, Nokia, Fujitsu, Hitachi, ARM, Bank of America, NetGear, 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 of SafeNet, Inc. All other trademarks are the property of their respective owners.