Datakey and Rainbow team up on $1.2 million government order for USB authentication tokens

MINNEAPOLIS, Minn. and IRVINE, Calif., Feb. 5, 2002 – Datakey Inc. (Nasdaq: DKEY;, the leading U.S.-based developer of smart card technology for securing e-business, and Rainbow eSecurity, a Rainbow Technologies, Inc. (Nasdaq: RNBO; company and leading provider of digital content and transaction security solutions, today announced a $1.2 million order for iKey USB authentication tokens and software for an international government agency. This order is expected to ship by the end of the first quarter of 2002. Government employees will use the iKey for secure e-mail applications.

Datakey and Rainbow have a long-term relationship that began in 1999 when Rainbow built its iKey 2000 family of authentication tokens based on Datakey’s cryptographic smart token technology. The relationship includes a reseller agreement enabling Datakey to market and sell Rainbow iKeys to its customers worldwide. This award represents the first major deployment under the agreement.

“Our iKey USB tokens are making significant inroads with customers worldwide because they are easy to use and deploy, and deliver effective protection of a user’s digital identity for computer log-on, web access, digital signing and secure e-mail,” said Shawn Abbott, president, Rainbow eSecurity. “We are pleased to work closely with Datakey on this new government customer contract to further advance the selection of this security form factor.”

Tim Russell, vice president and general manager, Datakey, said, “As more and more organizations conduct business online, the need for strong user authentication and data security has never been greater. The purchase of iKey tokens is further proof that enterprises, government agencies and financial institutions increasingly are turning to smart tokens powered by Datakey technology to provide the best protection for user digital credentials.”

About Rainbow Technologies

Founded in 1984, Rainbow Technologies is a leading provider of information security solutions for the Internet, eCommerce, mCommerce, content protection, software distribution and high-assurance communications. Rainbow applies its core technology to a variety of Internet applications including software security; custom high assurance security hardware; complete eBusiness services; and content/transaction security solutions over corporate networks, VPNs and the Internet. Rainbow’s products include; secure Web server acceleration solutions; anti-piracy and Internet software distribution solutions: PKI-based security solutions; voice, data and satellite information security and authentication solutions; and USB-based Web authentication tokens. With headquarters in Irvine, California, Rainbow security 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 sells Rainbow products worldwide. For more information, visit our Web site at

About Datakey Inc.

Datakey Inc. ( is a pioneer in developing smart card-based solutions for information security applications. Datakey smart card technology secures business-to-business e-commerce by:

· Safeguarding a user’s digital identity.

· Authenticating and controlling user access to enterprise networks, applications and resources.

· Protecting the integrity and privacy of data shared over corporate networks and the Internet.

Datakey solutions focus on the ease of deployment, use and management of smart cards in an enterprise for a wide range of logical and physical security applications – including password management, host authentication, Windows 2000 log-on, VPN access, web authorization, desktop security, corporate badge and building access, biometric integration, public key encryption, digital certificates and digital signatures.

Forward-Looking Statements

This press release contains a forward-looking statement relating to the expectation that the $1.2 million in products will be shipped by the end of the first quarter of 2002. This statement contains certain risks and uncertainties that may cause actual results to differ materially from those projected.

These risks and uncertainties include: (i) the inability to receive product in time to make the required deliveries; (ii) the introduction of competitive information security products; and (iii) the uncertain market conditions created by the current economic downturn.

Rainbow Technologies’ Safe Harbor Statement

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements, certain of which are contained in this press release and include, but are not limited to, the nature, terms, and valuation of reseller agreement with Datakey and the company’s ability to comply with the shipment criteria as specified in the agreement. These statements speak only as of the date of this press release and are subject to various risks and uncertainties that could impact actual results.

Rainbow Technologies and iKey are trademarks of Rainbow Technologies, Inc. Datakey is a trademark of Datakey, Inc.

Don't miss