BALTIMORE -- SafeNet (Nasdaq: SFNT), a leading provider of private and public network security solutions who has set the industry standard for VPN technology and secure business communications, today announced the completion of the purchase of substantially all the assets of Raqia Networks, Inc., a fabless semiconductor company which offers a family of programmable systems-on-a-chip and co-processors ideal for Content Inspection including intrusion detection, firewall, and anti-virus scanning. Total consideration paid by SafeNet was 389,640 of SafeNet common stock plus $805,000 in cash. SafeNet previously invested $1 million in Raqia Networks. The agreement with Raqia includes the hiring of nine highly-skilled engineers from the Newton, Massachusetts-based company. These engineers will be integrated into the Embedded Security Division of SafeNet in the Danvers Massachusetts Development Center.SafeNet expects that this purchase, and the additional engineering staff, will have no impact on the Company’s revenue and earnings per share guidance given earlier this year. SafeNet management reasserts its 2003 financial guidance of $63-$65 million in revenue and $0.58-$0.60 in fully-diluted EPS on a pro forma basis. Pro forma items excludes income and losses from discontinued operations, acquisition-related expenses, and assumes a 35% income tax rate. "With this technology acquisition, we are expanding our high assurance portfolio beyond VPN and into Content Inspection," said Anthony Caputo, Chairman, and CEO of SafeNet. "We will now offer the industry silicon products for fast, completely secure networking using key functions such as intrusion detection, virus scanning, and firewalls. We plan to make this technology available in all existing SafeNet form factors including silicon, accelerator cards, appliances, software, and intellectual property. The first product, a chip capable of supporting speeds up to 2.5Gbps, will sample to customers in the first quarter of 2003."SafeNet Inc. Raqia Networks Inc.