IDC Recognizes Rainbow as Industry’s Leading SSL Acceleration Solution Provider

IRVINE, CA – NOVEMBER 6, 2001 – A recent report on the cryptographic acceleration industry, "Speed Demons: The Cryptographic Acceleration Markets," from IDC (International Data Corp.), Framingham, Mass., has named Rainbow eSecurity, a Rainbow Technologies, Inc., (Nasdaq: RNBO) company and a leading solutions provider of digital content and transaction security, as the industry's dominant SSL accelerator board company with a 66.2 percent market share. IDC broke out the entire cryptographic acceleration market into five segments — cryptographic acceleration ASICs, SSL acceleration boards (the largest of the five segments), virtual private network (VPN) acceleration boards, secure public key processing devices and SSL appliances — and noted that Rainbow is the only company with significant market share in each category.

 

According to IDC, the five-year outlook for cryptographic acceleration products is very healthy. IDC reports that the chip market reached $54 million in 2000 and should increase to $326 million by 2005. IDC reported that the markets for boards/devices accounted for $82 million in 2000 and is expected to exceed $593 million by 2005. The SSL appliance market will grow from $32 million in 2000 to $308 million by 2005.

"Rainbow's range of products allow the company to move across all markets as they ebb and flow," said Charles Kolodgy, research manager, Internet security, IDC. "The company is in a position to benefit from the foundation it has lain. Rainbow provides products to the U.S. government that secure classified

information which affirms the market's confidence about the company's capability to produce very robust security products. IDC believes Rainbow Technologies should remain one of the premier vendors across the cryptographic acceleration landscape."

"When we began creating and marketing the industry's first SSL acceleration products in 1997, we set out to solve the problem of speeding up the slow

encryption process to combine improved Web-server performance with high levels of transaction security," said Shawn Abbott, president, Rainbow eSecurity.

"This new IDC report validates our research and development investments of the mid 1990s as well as our market leadership and product innovation. Today,

CryptoSwift is the industry's most honored brand for cryptographic acceleration. We will continue to leverage our technology investments as we

build the next generation of Internet security solutions."

About CryptoSwift

Rainbow's eCommerce performance and security acceleration technology is the industry's leading solution for cryptographic acceleration, providing fast and

secure transactions over the Internet while dramatically reducing Web-server and network-appliance response time. The CryptoSwift family of eCommerce

acceleration solutions accelerates the public-key cryptographic functions of popular security protocols such as SSL/TLS, WAP/WTLS, S/MIME, IKE/IPSec and others. SSL acceleration technology was first developed by Rainbow and improves server-response time for secure connections by freeing the Web

servers and network appliances to perform other tasks, especially during peak load and heavy traffic periods. Since 1997, Rainbow's CryptoSwift is the SSL

acceleration solution of choice for fast, secure online transactions for B2B and B2C environments of all types and sizes.

CryptoSwift has won more major industry awards for excellence than any other SSL acceleration solution, including a prestigious "Well-Connected Award" for

best SSL accelerator and "Editor's Choice Award" for best internal SSL accelerator from Network Computing, a "Blue Ribbon Award" from Network World

as the industry's top cryptographic accelerator and two American Electronics Association (AEA) High Tech Awards for "Innovative Product/Technology" in 2000 and 2001. In addition, Rainbow's NetSwift2012 appliance for SSL/WTLS (wired/wireless) security acceleration was a 2001 Editor's Choice from

Communications News. A September 2001 report from IDC entitled, "Speed Demons: The Cryptographic Acceleration Markets," named Rainbow the market's

leading SSL accelerator board company with a 66.2 percent market share.

About IDC

IDC is a market research and consulting firm that supports the strategic planning needs of all segments of the high-tech industry. IDC assists information technology professionals in developing strategic plans, measuring market opportunity, anticipating technology, monitoring competition, selecting distribution

channels and evaluating the impact of industry events.

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 VPNs. Rainbow's products include; secure Web server and VPN acceleration boards; anti-piracy and Internet software distribution solutions; PKI-based security solutions; voice, data and satellite security systems; and USB-based Web authentication tokens. Rainbow eSecurity headquarters are in Irvine, California, with 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 http://www.rainbow.com.

NOTE TO EDITORS: Contact Charles Kolodgy of IDC by calling (508) 872-8200 or via email at ckolodgy@idc.com.

Rainbow Technologies and CryptoSwift are trademarks of Rainbow Technologies, Inc. All other company and product names are trademarks of their respective organizations.

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 thatcould cause actual results to differ materially from those expressed in 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

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