Chinese Government's Approval of Windows 2000 to Accelerate Adoption of iKey for Internet Security in China - Rainbow Technologies' public-key encryption system - Company Business and Marketing

Edge: Work-Group Computing Report, March 13, 2000

Rainbow Technologies (Nasdaq:RNBO), a leading provider of security solutions for the Internet and eCommerce, Wednesday praised the Chinese's government's decision to allow Microsoft to market Windows 2000 software in China.

This ruling well-positions Rainbow's Chinese joint venture, Rainbow-Goldensoft, to play a major role in providing products and services to the rapidly growing Chinese Internet market.

"The Chinese government's approval of Windows 2000 represents a major opportunity for Rainbow to market our iKey authentication token in the world's fastest growing Internet market," said Humphrey Chan, director of Asia/Pacific, Rainbow Technologies. "As Windows 2000 moves to become the dominant desktop operating system in China, our established presence in China and dominant market position as the leading supplier of software security solutions makes Rainbow as the best choice to secure these new Windows 2000 desktops."

Microsoft's Windows 2000 operating system, launched Feb. 17, 2000 in North America, contains powerful 128-bit encryption technology. In January, the Chinese government began requiring companies and individuals to register encryption products with the government, to allow officials to monitor encrypted communications for national security or law enforcement. The Chinese State Encryption Management Commission's decision to approve Windows 2000 eases Western corporate fears that the Chinese government was about to ban all foreign encryption technology which is pervasive throughout most Internet and network communications infrastructure products.

According to the China Internet Network Information Center (CNNIC, June 1999), the number of Internet users in China is expected to double annually and will exceed 50 million by 2003.

Rainbow solutions for Windows 2000 include the iKey 1000 authentication token and CryptoSwift eCommerce acceleration solutions. The iKey 1000 provides powerful two-factor security to augment Windows 2000 software-based security. Rainbow's CryptoSwift eCommerce accelerator will support Windows 2000 server environments later in Q2/00.

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-based security solutions; voice, data and satellite security systems; and USB-based authentication tokens.

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