SafeNet Announces New Executive Appointments

  
    
  
  
    
      SafeNet, Inc. (NASDAQ:SFNT), a global leader in information security, 
      today announced that its Board of Directors has made the following 
      appointments to the Company’s senior 
      leadership team:
    
    
      
        Walter W. Straub, an independent Director, has been appointed Chairman 
        and interim Chief Executive Officer;
      
      
        Chris Fedde, Senior Vice President and General Manager of the 
        Enterprise Security Division, has been appointed to the position of 
        President and Chief Operating Officer; and
      
      
        John W. Frederick, Vice President and Worldwide Controller, has been 
        appointed Chief Accounting Officer and interim Chief Financial Officer.
      
    
    
      The appointments follow the resignations of Anthony A. Caputo, Chairman 
      and CEO, and Carole Argo, President, Chief Operating Officer and acting 
      Chief Financial Officer from their respective officer positions. Both 
      resignations are effective immediately and the Board has announced that 
      it will engage an executive search firm to conduct a search for a 
      permanent CEO.
    
    
      Both Mr. Caputo and Ms. Argo will continue to be available to SafeNet 
      through the end of the year to assist in the Company’s 
      management transition.
    
    
      Straub Brings Deep Knowledge of the Information Security Industry
    
    
      Mr. Straub has served as an independent director on the SafeNet Board 
      since March 2004, when the firm he co-founded, Rainbow Technologies 
      Inc., merged with SafeNet. Mr. Straub served as President and CEO of 
      Rainbow for more than 20 years before the merger.
    
    
      “I look forward to my role at SafeNet as we 
      continue to build on our strong momentum and long track record of 
      excellent growth and financial performance,” 
      said Mr. Straub. “SafeNet is an acknowledged 
      market leader in the information security industry, with strong customer 
      relationships, a talented employee base and a tradition of innovation in 
      engineering and product development. My objective is to ensure that 
      SafeNet continues to build momentum and focus on what it does best – 
      providing leading-edge security products and outstanding service to the 
      customers that entrust their most critical security needs to SafeNet.”
    
    
      Mr. Fedde joined SafeNet in February 2001 and most recently has led the 
      company’s largest business unit, the 
      Enterprise Security Division. In addition to his tenure at SafeNet, Mr. 
      Fedde has served in executive roles at other major technology companies, 
      most recently at Harris Corporation and Motorola.
    
    
      Mr. Frederick has more than 20 years experience as a senior financial 
      executive in a variety of industries. Before joining SafeNet in June 
      2006, he served as Vice President and Corporate Controller for Arby’s 
      Restaurant Group. His diverse experience has included roles at both 
      large and small companies, for which he has been the principal executive 
      responsible for public reporting, Sarbanes Oxley compliance, strategic 
      planning, treasury, internal audit and tax.
    
    
      Options Review Continues
    
    
      The management changes at SafeNet are the result of an ongoing review of 
      the Company’s stock options granting 
      practices by a Special Committee of the Board. The Special Committee of 
      independent directors was formed in June 2006 and is continuing its 
      review.
    
    
      “On behalf of the Board, I wish to thank Tony 
      and Carole for their many contributions to SafeNet,” 
      said Mr. Straub. “Tony has played an integral 
      role in the growth and success of SafeNet over the past 20 years, 
      spearheading the Company’s sales and 
      marketing initiatives in the financial and federal government market 
      segments and leading SafeNet through its initial public offering in 
      1992. Since joining SafeNet in 1999, Carole has played an important role 
      in leading the Company’s day-to-day global 
      operations and executing SafeNet’s growth 
      strategy. We are pleased that Tony and Carole will continue to be 
      available to SafeNet for the remainder of the year to help ensure a 
      smooth transition.”
    
    
      Mr. Caputo said, “After an association with 
      SafeNet that stretches back 20 years, I have submitted my resignation 
      because I believe it is in the best interests of the Company. The issues 
      related to stock options occurred under my leadership and I do not want 
      my continued presence to be a distraction to the important work we 
      perform for our customers every day. I am confident that SafeNet will 
      continue to succeed and grow under the strong and deep management team 
      that we have in place.”
    
    
      As previously announced, the Company has concluded that certain option 
      grants made between 2000 and 2005, including grants to directors, 
      officers and employees, were or likely were accounted for using 
      incorrect measurement dates under applicable accounting rules in effect 
      at the time, and that material non-cash, stock-based compensation 
      expenses related to these option grants will have to be recorded.
    
    
      As a result, as previously announced, the Company expects that annual 
      and interim financial statements for the periods from 2000 through March 
      31, 2006, will have to be restated.
    
    
      SafeNet will hold its third quarter earnings conference call on October 
      25, as previously announced. Details are available in the Investor 
      Relations section of the SafeNet website at www.safenet-inc.com.
    
    
      Biography of Walter W. Straub
    
    
      Walter W. Straub, 63, is a co-founder of Rainbow Technologies, Inc. He 
      was Chief Executive Officer and President of Rainbow from 1984 until 
      March 2004, when Rainbow merged with SafeNet. Mr. Straub led Rainbow’s 
      initial public offering in 1987 and secondary offering in 1991. Mr. 
      Straub serves as a director of CAM Commerce Solutions, Inc. (NASDAQ: 
      CADA), a provider of commerce solutions for traditional and web 
      retailers. Mr. Straub received a bachelor’s 
      degree in electrical engineering and a master’s 
      degree in finance from Drexel University. He is a member of the Board of 
      Trustees of Drexel University and serves on the Concordia University 
      President’s Advisory Council. In 1993, Mr. 
      Straub was named Orange County, CA Technology Entrepreneur of the Year.
    
    
      About SafeNet, Inc.
    
    
      SafeNet is a global leader in information security. Founded more than 20 
      years ago, the company provides complete security utilizing its 
      encryption technologies to protect communications, intellectual property 
      and digital identities, and offers a full spectrum of products including 
      hardware, software, and chips. UBS, Nokia, Fujitsu, Hitachi, ARM, Bank 
      of America, NetGear, the Departments of Defense and Homeland Security, 
      Adobe, Samsung, Texas Instruments, the U.S. Internal Revenue Service and 
      scores of other customers entrust their security needs to SafeNet. For 
      more information, visit www.safenet-inc.com
    
    
      "Safe Harbor" Statement under the Private Securities Litigation 
      Reform Act of 1995
    
    
      The statements contained in this release, which are not historical 
      facts, are forward-looking statements within the meaning of Section 27A 
      of the Securities Act of 1933 and Section 21E of the Securities Exchange 
      Act of 1934. These statements are subject to uncertainties that could 
      cause actual results to differ materially from those set forth in or 
      implied by forward-looking statements. Important factors that could 
      cause actual results to differ materially are included but are not 
      limited to those listed in SafeNet's periodic reports and registration 
      statements filed with the Securities and Exchange Commission. The 
      Company assumes no obligation to update information concerning its 
      expectations.
    
  
SafeNet, Inc. (NASDAQ:SFNT), a global leader in information
security, today announced that its Board of Directors has made the
following appointments to the Company's senior leadership team:

   --  Walter W. Straub, an independent Director, has been appointed
        Chairman and interim Chief Executive Officer;

   --  Chris Fedde, Senior Vice President and General Manager of the
        Enterprise Security Division, has been appointed to the
        position of President and Chief Operating Officer; and

   --  John W. Frederick, Vice President and Worldwide Controller,
        has been appointed Chief Accounting Officer and interim Chief
        Financial Officer.

   The appointments follow the resignations of Anthony A. Caputo,
Chairman and CEO, and Carole Argo, President, Chief Operating Officer
and acting Chief Financial Officer from their respective officer
positions. Both resignations are effective immediately and the Board
has announced that it will engage an executive search firm to conduct
a search for a permanent CEO.

   Both Mr. Caputo and Ms. Argo will continue to be available to
SafeNet through the end of the year to assist in the Company's
management transition.

   Straub Brings Deep Knowledge of the Information Security Industry

   Mr. Straub has served as an independent director on the SafeNet
Board since March 2004, when the firm he co-founded, Rainbow
Technologies Inc., merged with SafeNet. Mr. Straub served as President
and CEO of Rainbow for more than 20 years before the merger.

   "I look forward to my role at SafeNet as we continue to build on
our strong momentum and long track record of excellent growth and
financial performance," said Mr. Straub. "SafeNet is an acknowledged
market leader in the information security industry, with strong
customer relationships, a talented employee base and a tradition of
innovation in engineering and product development. My objective is to
ensure that SafeNet continues to build momentum and focus on what it
does best - providing leading-edge security products and outstanding
service to the customers that entrust their most critical security
needs to SafeNet."

   Mr. Fedde joined SafeNet in February 2001 and most recently has
led the company's largest business unit, the Enterprise Security
Division. In addition to his tenure at SafeNet, Mr. Fedde has served
in executive roles at other major technology companies, most recently
at Harris Corporation and Motorola.

   Mr. Frederick has more than 20 years experience as a senior
financial executive in a variety of industries. Before joining SafeNet
in June 2006, he served as Vice President and Corporate Controller for
Arby's Restaurant Group. His diverse experience has included roles at
both large and small companies, for which he has been the principal
executive responsible for public reporting, Sarbanes Oxley compliance,
strategic planning, treasury, internal audit and tax.

   Options Review Continues

   The management changes at SafeNet are the result of an ongoing
review of the Company's stock options granting practices by a Special
Committee of the Board. The Special Committee of independent directors
was formed in June 2006 and is continuing its review.

   "On behalf of the Board, I wish to thank Tony and Carole for their
many contributions to SafeNet," said Mr. Straub. "Tony has played an
integral role in the growth and success of SafeNet over the past 20
years, spearheading the Company's sales and marketing initiatives in
the financial and federal government market segments and leading
SafeNet through its initial public offering in 1992. Since joining
SafeNet in 1999, Carole has played an important role in leading the
Company's day-to-day global operations and executing SafeNet's growth
strategy. We are pleased that Tony and Carole will continue to be
available to SafeNet for the remainder of the year to help ensure a
smooth transition."

   Mr. Caputo said, "After an association with SafeNet that stretches
back 20 years, I have submitted my resignation because I believe it is
in the best interests of the Company. The issues related to stock
options occurred under my leadership and I do not want my continued
presence to be a distraction to the important work we perform for our
customers every day. I am confident that SafeNet will continue to
succeed and grow under the strong and deep management team that we
have in place."

   As previously announced, the Company has concluded that certain
option grants made between 2000 and 2005, including grants to
directors, officers and employees, were or likely were accounted for
using incorrect measurement dates under applicable accounting rules in
effect at the time, and that material non-cash, stock-based
compensation expenses related to these option grants will have to be
recorded.

   As a result, as previously announced, the Company expects that
annual and interim financial statements for the periods from 2000
through March 31, 2006, will have to be restated.

   SafeNet will hold its third quarter earnings conference call on
October 25, as previously announced. Details are available in the
Investor Relations section of the SafeNet website at
www.safenet-inc.com.

   Biography of Walter W. Straub

   Walter W. Straub, 63, is a co-founder of Rainbow Technologies,
Inc. He was Chief Executive Officer and President of Rainbow from 1984
until March 2004, when Rainbow merged with SafeNet. Mr. Straub led
Rainbow's initial public offering in 1987 and secondary offering in
1991. Mr. Straub serves as a director of CAM Commerce Solutions, Inc.
(NASDAQ: CADA), a provider of commerce solutions for traditional and
web retailers. Mr. Straub received a bachelor's degree in electrical
engineering and a master's degree in finance from Drexel University.
He is a member of the Board of Trustees of Drexel University and
serves on the Concordia University President's Advisory Council. In
1993, Mr. Straub was named Orange County, CA Technology Entrepreneur
of the Year.

   About SafeNet, Inc.

   SafeNet is a global leader in information security. Founded more
than 20 years ago, the company provides complete security utilizing
its encryption technologies to protect communications, intellectual
property and digital identities, and offers a full spectrum of
products including hardware, software, and chips. UBS, Nokia, Fujitsu,
Hitachi, ARM, Bank of America, NetGear, the Departments of Defense and
Homeland Security, Adobe, Samsung, Texas Instruments, the U.S.
Internal Revenue Service and scores of other customers entrust their
security needs to SafeNet. For more information, visit
www.safenet-inc.com

   "Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995

   The statements contained in this release, which are not historical
facts, are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements are subject to uncertainties
that could cause actual results to differ materially from those set
forth in or implied by forward-looking statements. Important factors
that could cause actual results to differ materially are included but
are not limited to those listed in SafeNet's periodic reports and
registration statements filed with the Securities and Exchange
Commission. The Company assumes no obligation to update information
concerning its expectations.