New Report says Rainbow’s Sentinel is the World’s Leading Hardware Solution for Software Security

New Internet Security Report Says Sentinel Has a 42 percent Share of Software Licensing Authentication Tokens (SLAT)

IRVINE, Calif. – November 5, 2002 – IDC’s new Internet security report on authentication and biometric technologies, “Worldwide Hardware and Biometrics Authentication Market Forecast and Analysis 2001-2006,” published in October 2002, reports that Rainbow Technologies’ Sentinel software security token is the worldwide market share leader for software licensing authentication tokens (SLATs) with a 42 percent share of the market — a significant lead over its next closest competitor. IDC’s report estimates that the SLAT market will grow to $150 million by 2006. Rainbow Technologies, Inc. (Nasdaq: RNBO), a leading provider of digital content and transaction security, has sold nearly 30 million smart tokens to date, securing more applications for more users than any other company in the industry.

While IDC predicts that the SLAT market is growing slower than other authentication technology markets, they anticipate the SLAT market will be about $150 million by 2006, from $105 million in 2001, and will account for ten percent of the overall hardware authentication market. IDC believes traditional parallel port “dongles” will be replaced with USB-based tokens for SLAT-based security which will offer users low cost, effective software security protection, and greater convenience. Rainbow’s Sentinel SuperPro was the industry’s first USB-based software security hardware device.

“The need to reduce software piracy, secure software applications and manage software licenses is critical. Software developers and publishers can maximize license revenues with SLATs because they are an excellent anti-piracy solution,” said Charles Kolodgy, research manager, Internet security, IDC. “IDC believes that Rainbow’s large installed base and continued investment in new anti-piracy and other authentication technologies positions the company to maintain its market leadership.”

“As software security protection transitions towards the USB form factor, we believe Rainbow is best positioned to help software developers around the world effectively secure their applications while preventing application-level software piracy,” said David M. Lynch, vice president of worldwide marketing, Rainbow Technologies. “Simply put, Sentinel keys secure more software applications than any other competitive solution. We’re seeing particularly strong growth in the Asia Pacific Rim market and believe Sentinel can play a pivotal role in combating software piracy with solutions that provide a high degree of security and are easy to both deploy and use.”

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

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 nearly 30 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 proven information security solutions for mission-critical data and applications used in business, organization and government computing environments. With headquarters in Irvine, Calif., Rainbow maintains offices and authorized distributors throughout the world. For more information, visit the Web site at

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