Rainbow’s iKey 2032 USB Authentication Token Gains FIPS-140-2 Certification

Offers a New Standard in High-Assurance Desktop Security

IRVINE, Calif., August 20, 2001 – The eSecurity group of Rainbow Technologies (Nasdaq: RNBO), a leading provider of security solutions for the Internet and eCommerce, today announced that the Company’s iKey( 2032 workstation and network security solution has achieved FIPS-140 Level 2 certification from the National Institute of Standards and Technology (NIST).

Under the certificate issued by the NIST, the iKey 2032 provides users with the following FIPS-approved algorithms: DES (Cert. #88); DSA/SHA-1 (Cert. #35); and RSA (vendor affirmed). In addition, the iKey 2032 supports Triple-DES (vendor affirmed) and Diffie-Hellman (key agreement).

“As the market for authentication tokens continues to expand, the iKey is clearly becoming the USB token of choice for many types of organizations,” said Shawn Abbott, president of Rainbow’s eSecurity group. “FIPS-140 Level 2 certification makes the iKey 2032 a powerful and portable two-factor authentication USB device suited for applications that demand the highest level of security.”

“The FIPS-140 certification for the iKey 2032 means that today’s security-focused organizations seeking a desktop security solution that offers high assurance security in an easy-to-use form factor can find it in the iKey 2032,” said Ken Robinette, president, InterSoft International Inc., Houston. “We’ll integrate our SecureNetTerm and SecureKeyAgent software with the iKey to provide powerful two-factor authentication to provide advanced SSH and SSL/TLS client software for our customers.”

The iKey 2032 supports enterprise, business-to-business and business-to-consumer applications built on all major Public Key Infrastructure (PKI) systems by providing on-board cryptographic key generation; secure storage of key pairs and X.509 digital certificates; and performing digital signature signing operations on-board. Removing certificate storage and signing from vulnerable desktop systems and placing these functions in the token significantly reduces the risk of internal or external security attacks. The iKey 2032 provides a reliable, robust security solution that is easy-to-use and administer, yet provides an exceptional PKI-based security solution for desktop applications for the Internet, eCommerce, extranets and corporate intranets. Through user identification data contained in each device, network administrators can grant or deny access based on the user’s authorization level. Each token features 32K of memory to more easily store and manage digital certificates and digital signatures.

The iKey 2000 series software supports Windows( 2000 OS, however Windows 2000 Smart Card login is only supported with the iKey 2032 or the iKey 2032 FIPS tokens. In addition, this software (version 4.5.10 available in September) combines tools in the token manager and certificate utilities to provide a new user-friendly interface. These new features give system administrators a P12 import utility and certificate swapping used for Windows 2000 Smart Card login customers.

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-based security solutions; voice, data and satellite security systems; and USB-based authentication tokens. With headquarters in Irvine, California, Rainbow maintains offices throughout the United States, United Kingdom, France, Germany, Australia, China, India, The Netherlands, Brazil and Taiwan. A network of nearly 80 authorized distributors sell Rainbow products worldwide. For more information, visit our Web site at www.rainbow.com.

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Rainbow Technologies and iKey are trademarks of Rainbow Technologies, Inc. All other product and company names are trademarks of their respective holders.

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.

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