Clearswift Acquires Content Technologies

$30 Million Offered to Baltimore Technologies

Clearswift Corporation, the privately-held UK Secure Content Management
software company, today announced its offer of $30 million (£20.5 million)
to acquire the Content Technologies subsidiary of Baltimore Technologies
plc (London, BLM). Acceptance of this offer is provisional and subject to
Baltimore shareholders' approval at their extraordinary general meeting.

Clearswift was created in 2001, when experienced new management, a $10
million investment and international offices were added to the 19 year old
NET-TEL organisation. In July 2001, it launched Clearswift Enterprise
Suite (ES), an easy to use, highly scalable and portable solution for
content filtering, messaging policy enforcement and email security.
Clearswift ES, designed for larger enterprises, has been strongly endorsed
by the marketplace. Organisations who have adopted Clearswift products
include Marks & Spencer, Standard Life, MCI Worldcom and NATO.

The Content Technologies subsidiary of Baltimore Technologies plc sells and
supports the market leading MIMEsweeper family of products, through a
global network of offices and partners. Over 10,000 customers and 10
million end users benefit from MIMEsweeper Policy-Based Content Security
solutions within their Email and Web environments. Developed on Microsoft
Server-based technology, MIMEsweeper can be deployed to manage Internet and
Intranet based messaging systems.

The market for Secure Content Management software is predicted by analysts
IDC to grow 20.5% Compound Annual Growth Rate up to 2005. Clearswift
expects its own growth to exceed market projections, especially given that
Email Filtering is forecast to grow by 46% CAGR.

"The combination of Clearswift and Content Technologies will create the
world's number one company for managing email and Web secure content. We
will be the only company with products, services and sales channels to meet
the needs of customers of all sizes and levels of complexity.
Complementary products, channels, geographic coverage and management skills
provide for an excellent fit between the two UK organisations, whose
headquarters are just 12 miles apart," said Don Taylor, CEO, Clearswift.

A syndicate of venture capital funds - Amadeus Capital Partners, Cazenove
Private Equity and Kennet Capital - is backing the acquisition. Amadeus
Capital Partners is also an existing investor in Clearswift.

Bijan Khezri, CEO, Baltimore Technologies plc, comments, "Integrating
Baltimore's Content Technologies business with Clearswift creates a
powerful new force in the global content security marketplace. Baltimore
believes that there is value in maintaining a shareholding in the new
Clearswift - providing a potentially significant upside."

After the completion of the acquisition, the new Clearswift Company will be
headquartered in Theale, Berkshire, UK. International offices are in the
USA (East and West Coast), France, Germany and Australia, with additional
operations in Japan.

About Clearswift

Clearswift Corporation is a provider of award-winning Enterprise Email
Management solutions. Clearswift provides organisations worldwide with
highly scalable tools for content filtering, messaging policy enforcement
and email security. Clearswift ES (Enterprise Suite) is a portfolio of
products for larger enterprises, government organisations and service
providers. MailGuard is a streamlined product for small and medium sized
enterprises. Mistakes and malice using email can lead to high-profile
security breaches, expensive lawsuits and damaged reputations. Clearswift
products can combat the abuse of the email communications channel, in turn
offering protection and peace of mind.

The company is headquartered in Ruscombe, Berkshire, with a Software
Laboratory in Welwyn Garden City, Hertfordshire, UK. US headquarters are in
Waltham, Massachusetts. Clearswift traded as NET-TEL from 1982 to June
2001. More information about Clearswift, its products and services is
available at

About Content Technologies

Content Technologies' MIMEsweeper products are the world's leading family
of Web, Email and Intranet content security solutions. More than 10,000
customers and 10 million users globally use the award winning MIMEsweeper
solutions to protect their networks and business form email and Web-based
threats. These threats include the circulation of inappropriate images and
text, Spam and oversize files that can cause degradation in network
service, loss and corruption of data, breaches of confidentiality, as well
as viruses and malicious code. Content Technologies is a wholly owned
subsidiary of Baltimore Technologies, who acquired the company in October

For more information on Content Technologies, see

About Baltimore Technologies

Baltimore Technologies' products, services and solutions solve the
fundamental security and trust needs of e-business. Baltimore's e-security
technology gives companies the necessary tools to verify the identity of
those with whom they are doing business and to securely manage which
resources and information users can access on open networks. Many of the
world's leading organisations use Baltimore's e-security technology to
conduct business more efficiently and cost effectively over the Internet
and wireless networks. Baltimore also offers worldwide support for its
authorisation and public key-based authentication systems. Baltimore's
products and services are sold directly and through its worldwide partner
network, Baltimore TrustedWorld. Baltimore is a public company, trading
principally in London (BLM), with offices in major cities worldwide.


For further information, please contact:

Eric Leach, Eric Leach Marketing Ltd
Tel: +44 (0)20 8758 7587
Mobile: +44 (0)7836 275 278
Fax: +44 (0)20 8758 7517

Paul Rutherford, CMO, Clearswift Corporation
Tel: +44 (0)118 924 1607
Mobile: +44 (0)7786 862 040
Fax: +44 (0)118 924 1601