Rainbow Ships New Sentinel 7.1.1 – Industry’s Most Comprehensive Solution for Electronic License Management and Distribution

New Features Include Windows 2000 Support; Localization for Top Six Leading Business Languages for Easier International Deployment

IRVINE, Calif., April 9, 2001 – The Digital Rights Management (DRM) group of Rainbow Technologies, Inc. (Nasdaq: RNBO) a leading provider of high-performance security solutions for the Internet, eCommerce and software protection, is now shipping the newest version of the industry’s leading solution for secure electronic management, licensing, and distribution. The new SentinelLM 7.1.1’s leading-edge software licensing and management tools are designed to secure applications from unauthorized execution and software piracy. The newest version includes new usability features and stronger security to combat online software piracy.

In addition, the new version of SentinelLM provides support for the Microsoft Windows 2000 operating system and is localized to six of the world’s most used business languages: English, French, Spanish, Traditional Chinese, Simplified Chinese and Japanese.

“Rainbow’s SentinelLM is gaining momentum because of the product’s continued ability to innovate and adapt to the changing needs of ISVs, software developers and ASPs,” said Robert Shields, sr. director of strategic marketing for Rainbow’s new Digital Rights Management group. “SentinelLM 7.1.1 offers a comprehensive solution for electronic license management and distribution, electronic software distribution and eCommerce licensing tools and security for today’s leading business-critical applications.”

Other new key features include License Server Usage log file reporting capability, change in Network Trial License behavior, enhanced Subscription Trial License file, and UNIX support.

SentinelLM 7.1.1 is a secure software-based solution for managing, controlling and administering software distribution, updates, new releases and software patches. Rainbow also offers SentinelExpress, which works in conjunction with SentinelLM to offer the ability to securely distribute and license software via the Internet. The key benefits of this combination are:

* Electronically licenses and distributes software

* Secure applications from unauthorized execution

* Protect developers and ISVs from illegal licensing

* Secure applications and their derivative information

* Offer customized software packages to customers

Pricing and Availability

Prices for SentinelLM 7.1.1 vary based on licensing requirements. For specific pricing information, call Rainbow at 1-800-852-8569 or International sales at 1-949-450-7465. SentinelLM 7.1.1 is available immediately.

About Rainbow Technologies

Founded in 1984, Rainbow Technologies is a leading provider of security solutions for software, the Internet and eCommerce. Rainbow applies its core technology to a variety of applications-from electronically 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. Rainbow’s Digital Rights Management (DRM) group is headquartered in Irvine, California and maintains offices throughout the United States, United Kingdom, France, Germany, Australia, China, The Netherlands, Brazil, India, and Taiwan. A network of nearly 80 authorized distributors sells Rainbow products worldwide. For more information, visit our Web site at www.rainbow.com.

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Rainbow Technologies and Sentinel are trademarks of Rainbow Technologies. 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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