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Rainbow Technologies Partners with Internet Smartsec AB to Distribute Security Products in Sweden

Leading Security Distributor to Market Rainbow's NetSwift iGate Instant Private Web, iKey Authentication Keys and CryptoSwift eCommerce Accelerators in Sweden.

LONDON UK and Alvsjö Sweden - January 7 2003 - Rainbow Technologies (Nasdaq: RNBO), a leading provider of products and solutions that make security simple, today announced a partnership with Internet Smartsec AB, a leading security distributor based in Sweden to market Rainbow's products and solutions. Smartsec will work closely with Rainbow's European staff in the United Kingdom.

Under the terms of the agreement, Smartsec will market Rainbow's NetSwift iGate Instant Private Web, iKey range of two-factor authentication USB keys and the CryptoSwift eCommerce accelerator to Smartsec's reseller partners. Smartsec and its partners will provide customers with comprehensive solutions to their Internet security needs.

Smartsec, a value adding distributor of IT security products is very pleased to announce this agreement. "We chose Rainbow to complement our existing security infrastructure solutions", said Benny Hansson, general manager at Smartsec.

"Smartsec has an outstanding reputation for providing high levels of service and customer satisfaction in Sweden," said Gary Clark, vice president of European operations, Rainbow. "The high value they provide to their reseller partners creates tremendous customer demand, making them an ideal fit for Rainbow's expanding channel in Northern Europe. We are delighted to partner with them."

About NetSwift iGate
The NetSwift iGate's end-user authentication and SSL acceleration provides customers with a complete solution for building an Instant Private Web. The solution secures Web access from the user's browser to the web server farm regardless of network topology. Unlike more traditional VPN solutions, the NetSwift iGate Web security appliance requires no reconfiguration of network servers, or firewalls.

The NetSwift iGate solution integrates Rainbow's iKey with the browser to provide powerful, two-factor authentication of all users. The iKey effectively eliminates the inherent weakness in user-name/password security that typically takes up the majority of any organisation's Help Desk services. On the server side, Rainbow's security appliance uses a CryptoSwift accelerator to provide complete security of all network traffic between itself and the browser, using industry-standard SSL encryption.

About iKey
Rainbow's iKey is the industry's leading family of USB-based Web authentication tokens, and is available in versions for Microsoft Windows, as well as for Public Key Infrastructure (PKI) and high assurance environments.

The iKey 2000 allows users to store their digital identities on a device that fits on their key chain. The iKey 2000 is specifically designed for use in PKI environments where on-board private key signing and storage is critical. The iKey 2000 series supports all major PKI systems and VPN's out of the box, including: Baltimore, CA eTrust, Check Point NG, Cisco VPN, Entrust, KyberPASS, Microsoft Windows 2000, Netscape, NetScreen VPN, Nortel VPN, Secure Computing, Verisign, Xcert, and many others.

The iKey 2032 was awarded FIPS 140-1 Level 2 certification (Tamper evident) by the National Institute of Standards and Technology (NIST).

In addition, Rainbow offers the iKey 1000 series for a cost-effective security key for B2C loyalty and branding, Windows 2000 security, secure remote access, other non-PKI VPNs and file encryption applications.

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.

-ends-

Rainbow Technologies contact:
Dan Chmielewski / Gary Clark
Rainbow Technologies
Tel: +44 (0) 1932 579 200
mailto:dchm@rainbow.com
mailto:GClark@UK.rainbow.com

Press contact:
Sarah Hewitt / Nicola Atkins
Strategic Alliance International
Tel: +44 (0) 1494 434 434
mailto:sarahh@strategicpr.net
mailto:nicolaa@strategicpr.net

Internet Smartsec AB contact :
Benny Hansson
Internet Smartsec AB
Tel : +46 8 447 1840
mailto:benny@smartsec.se

About Rainbow Technologies
Founded in 1984, Rainbow Technologies is a leading provider of proven information security products and solutions that make security simple. Rainbow's products secure mission-critical data and applications used in business, organization and government computing environments. With headquarters in Irvine, California, USA, Rainbow maintains offices and authorized distributors throughout the world. For more information, visit the Web site at http://www.rainbow.com

About Internet Smartsec AB
Internet Smartsec AB distributes and markets a broad range of high quality IT security products. Smartsec is a value-adding distributor with leading product from Rainbow, Symantec, NetScreen Technologies, WebSense Inc, BorderWare Technologies and Trend Micro.

Smartsec works with a network of experienced partners, value-added resellers, consultants and integrators to provide complete security solutions.

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Rainbow Technologies, NetSwift iGate, iKey and CryptoSwift are trademarks of Rainbow Technologies. All other product and company names are trademarks of their respective holders.
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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