SafeNet Wins DOD Contract

BALTIMORE -- SafeNet, Inc. (NASDAQ:SFNT), setting the standard for information security, announced today that it has been awarded a $150 Million Indefinite Delivery Indefinite Quantity (IDIQ) contract from the Department of Defense (DoD) for its new KIV-7M Link Encryptor, the largest contract in SafeNet's history. The Company also has received a delivery order in excess of $18 million that will begin to ship in early October.

"This contract far exceeds the Company's preliminary expectations of a $50 Million dollar contract," said Chris Fedde, Senior Vice President and General Manager for SafeNet's Enterprise Security Division. "In fact, the initial IDIQ award already represents approximately half of our minimal market projections for this product."

Due to the late timing of the contract award, the Company anticipates that revenue for the third quarter will be in the range of $63 million to $65 million. Given the initial order of $18 million which is now in backlog, the Company reaffirms its full year 2005 guidance.

SafeNet expects to report its full third quarter financial results on October 27, 2005.

SafeNet Inc.