SOFTBANK EC HOLDINGS and Rainbow Form Joint Venture in Japan

Rainbow Technologies-K.K. to Market Industry’s Leading Solutions for Emerging Japanese Internet Security Market

IRVINE, CA and Tokyo, JAPAN. July 9, 2001 – Rainbow Technologies, Inc. (Nasdaq: RNBO), a leading provider of high-performance security solutions for the Internet and eCommerce, and SOFTBANK EC HOLDINGS CORP., a Japanese leader in software distribution and Internet infrastructure solutions, today announced a joint venture aimed at becoming the leading supplier of Internet security products in Japan, the largest IT market in Asia and the second-largest IT market in the world.

The new joint venture, Rainbow Technologies-K.K., will be based in Tokyo and will market Rainbow’s Sentinel software license management solutions, iKey USB authentication tokens, and CryptoSwift eCommerce acceleration and server performance enhancement products in Japan.

SOFTBANK E-COMMERCE GROUP is a leading distributor of business software in Japan, so the joint venture provides opportunities for developers to adopt Rainbow’s advanced electronic software distribution (ESD) solutions. Rainbow Technologies-K.K. will also provide Rainbow’s hardware-based Internet security solutions through SOFTBANK’s strong distribution channels.

The senior management of the new company includes Ken Miyauchi, president and CEO, SOFTBANK EC HOLDINGS CORP. (formerly SOFTBANK E-COMMERCE); Yasushi Okamura, executive vice president and CTO, SOFTBANK COMMERCE CORP.; Irianto Gunara, director of business strategy and development dept., Business Planning and Administration Div., SOFTBANK EC HOLDINGS CORP.; Walt Straub, president and CEO, Rainbow Technologies; Dr. Avi Margalith, COO, Digital Rights Management, Rainbow Technologies; and Humphrey Chan, vice president of Asia Pacific and Americas, Digital Rights Management, Rainbow Technologies. The new Tokyo office is operational and will be staffed to match demand.

“We are pleased to partner with Rainbow Technologies to deliver the industry’s leading security products to the Japanese market,” said Ken Miyauchi, president and CEO, SOFTBANK EC HOLDINGS CORP. “As increasing numbers of Japanese companies conduct business transactions over the Internet, the need for authenticating users, companies and transactions across international borders will become a significant requirement for these organizations. In our partnership with Rainbow Technologies, we believe the SOFTBANK group is well-positioned to provide the solutions this emerging market needs for success.”

“SOFTBANK E-COMMERCE Group has a powerful record of building successful and profitable partnerships with some of the best companies in the world,” said Walt Straub, president and CEO, Rainbow Technologies. “We are pleased they chose Rainbow as their strategic partner for serving the fast-growing Japanese Internet security market. There is a high degree of synergy between our two companies, and we share common objectives for penetrating the Japanese market.”

“Rainbow’s core products are market leaders and lend themselves well to our aggressive distribution strategy,” said Yasushi Okamura, executive vice president and CTO, SOFTBANK COMMERCE CORP. “Rainbow’s proven leadership, strong customer references and experience in the Asia/Pacific Rim Internet security markets make them the ideal partner for success.”

“Rainbow has been doing business in Japan for more than 10 years. Our solid customer base and recent success with the iKey and CryptoSwift product lines were critical factors in SOFTBANK’s selection of Rainbow as a joint-venture partner,” said Humphrey Chan, vice president of Asia Pacific and Americas, Digital Rights Management, Rainbow Technologies. “In the Asia Pacific region, we have established a firm direct presence and market leading position in Australia, India, Taiwan and China. With a strong partner like SOFTBANK, we anticipate strong growth across our product lines in Japan.”

About SOFTBANK CORP.

SOFTBANK CORP. has emerged as one of the world’s leading Internet market forces. Through its ownership positions in more than 800 Internet companies and its unique Internet management concept, it is able to create market synergies for its family of companies on a global scale. In Japan, its activities encompass distribution, publishing, Internet infrastructure services, a broad range of eCommerce businesses and joint ventures with companies including Microsoft, Cisco, Yahoo!, the National Association of Security Dealers, and many other market leaders. In the U.S., SOFTBANK is the largest shareholder in leading Internet companies including Yahoo!, E*TRADE and ZDNet and is helping to build Internet companies in Latin America, Australia, New Zealand, India, China and Korea. (www.softbank.com)

About SOFTBANK EC HOLDINGS CORP.

SOFTBANK EC HOLDINGS CORP., formerly SOFTBANK E-COMMERCE CORP. (SBEC), is an intermediary holding company of SOFTBANK CORP., which plans and funds strategic initiatives, as well as supports and manages SOFTBANK Group companies to operate in the IT distribution and electronic commerce sector. SBEC’s affiliates are business-to-business companies, such as NIHON ARIBA KK, VerticalNet Japan Corp, ONSALE Japan, SmartFirm and CMnet; and business-to-consumer companies, such as e-Shopping! Books, e-Shopping! Toys, e-Shopping! CarGoods, e-Shopping! Wine, CarPoint K.K, e-career and Vector Inc. For more information, see the company’s Web site at www.softbank.co.jp/e_ir_fra.htm or www.softbankec.co.jp

About SOFTBANK COMMERCE CORP.

SOFTBANK COMMERCE CORP., a subsidiary of SBEC, will serve as the master distributor of Rainbow’s security products in Japan. The Company has inherited the original business of SOFTBANK CORP. as a leading IT distributor in Japan with annual revenue of over $2.5B for fiscal year 2000 and has been profitable since its inception. The Company represents more than 4,000 hardware and software vendors throughout the world for the Japanese market and provides some 10,000 IT wholesalers and system integrators with distribution channels to more than 34,000 outlets in Japan. For more information, see the company’s Web site at http://www.sb-commerce.co.jp/.

About Rainbow Technologies, Inc.

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, mCommerce and Virtual Private Networks (VPNs). Rainbow’s products include secure Web server and VPN acceleration boards; electronic license management and Internet software distribution solutions; PKI-based security solutions; voice, data and satellite security systems; smart cards 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, India, The Netherlands, Brazil and Taiwan. A network of nearly 80 authorized distributors sell Rainbow products worldwide. For more information, visit the Rainbow Web site at www.rainbow.com.




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