Rainbow’s Sentinel USB System Drivers Garner WHQL Certification from Microsoft for Windows 2000 OS

Drivers Provide a Communications Path Between The Sentinel Key and the Protected Application

IRVINE, Calif., August 28, 2001 – The eSecurity group of Rainbow Technologies, Inc. (Nasdaq: RNBO) a leading provider of high-performance security solutions for the Internet, eCommerce and software protection, today announced that its USB-based Sentinel System Drivers for SuperPro and SuperProNet software security tokens have gained Windows Hardware Quality Labs certification from Microsoft. The certification means the drivers and USB Sentinel hardware keys have met rigorous standards for operation with the Windows 2000 operating system.

The Sentinel System drivers act as a communications trail between the USB Sentinel hardware key and the protected software application. Users can install the new drivers using Windows Installer, which can place the driver on any Windows 9x/NT/2000 operating system environment as easily as installing application software on a personal computer.

In addition, merge modules for the system drivers are available for seamless integration into any Microsoft Windows Installer based package. Both the new installation and merge modules pass all Microsoft ICE (Internal Consistency Evaluation) tests. This aids Rainbow customers seeking Windows logo compliance.

“WHQL certification is a powerful endorsement for the functionality built into our new Sentinel System drivers,” said Jay Cunningham, director of product management, eSecurity group, Rainbow Technologies. “Optimizing the use of our Sentinel USB hardware keys requires support for all currently available Windows operating system environments. The new Sentinel System drivers well positions Sentinel as the Windows application software protection of choice for today while providing a solid foundation for supporting the Windows XP applications of tomorrow.”

The Sentinel Suite of Products

The Sentinel product family enables software security for ISVs and software developers through secure hardware and software-based license software distribution and management tools. Sentinel secures applications from unauthorized execution and protects developers and ISVs from illegal licensing and distribution. These products represent the industry’s most powerful and flexible solution for securing critical applications in stand-alone or networked environments. Rainbow’s eSecurity group markets the industry’s leading software security, electronic software licensing and management, and digital rights management solution.

Rainbow’s Sentinel solutions provide the tools to enable:

* Digital Rights Management (DRM) for software and applications

* Electronic License Distribution/Management (ELD/M)

* Electronic Software Distribution (ESD)

* Electronic Commerce Licensing Tools and Security.

Rainbow has sold more than 26 million smart tokens to date, securing more applications for more users than any other company in the industry.

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 security solutions; voice, data and satellite security systems; and USB-based authentication tokens. Rainbow’s eSecurity group is based 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, iKey, Fortezza, Sentinel, SuperPro, SuperProNet, SentinelLM and SentinelExpress 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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