RAINBOW TECHNOLOGIES ANNOUNCES SENTINELEXPRESS 2.0 FOR SOFTWARE PURCHASING
AND ACTIVATION OVER THE INTERNET

Las Vegas, NV, COMDEX (#S2666), November 17, 1998 - Rainbow Technologies,
Inc. (NASDAQ: RNBO), a leader in high performance security solutions for
the Internet and electronic commerce, today announced the release of
SentinelExpress 2.0, an E-commerce tool for developers, providing secure
software distribution and license activation via the Internet.

SentinelExpress 2.0 combines Electronic Software Distribution (ESD) and
Electronic License Distribution (ELD) with the security and flexibility of
License Manager technology. Developers can securely distribute demos and
licensed applications over the Internet with SentinelExpress, and
automatically generate/activate software licenses from their web site.
Combined with SentinelLM-Shell, SentinelExpress offers an easy to
implement, low cost ESD solution for developers looking to get on-line
quickly to sell their software.
"Rainbow provides E-commerce and ESD solutions to software developers
across the globe with SentinelExpress 2.0. We're the only company that
offers business solutions for all levels of developers and products," said
Norm Denton, senior vice president of Rainbow's Sentinel Business Unit.
"SentinelExpress 2.0 is a complete approach designed to take the fear out
of licensing and selling software via the Internet."

For the developer, SentinelExpress' Internet activation drives down
fulfillment costs, enhances distribution, speeds licensing and captures 100
percent registration data - product demos are activated, providing real
time data that the developer can utilize in converting prospects to
customers - all from their web site without licensing or piracy concerns.
For the consumer, SentinelExpress creates new opportunities to evaluate,
purchase and activate software automatically using "try-and-buy" technology
through a developer's web site 24 hours a day.

The Internet gives software developers more options for distributing,
licensing and protecting software. SentinelExpress expands a developer's
options for how they demonstrate, sell and activate usage of their
software. End users can download full versions of demonstration software
or purchase software directly over the Internet. Developer benefits include
the low cost of delivery, 100 percent user registration and new
communication channels with customers via the Internet.

For large corporate or vertical market developers that manufacture multiple
titles, or software that is too large to download, SentinelExpress can
activate products distributed through traditional physical channels such as
CD-ROM or shrink-wrapped distribution. SentinelExpress will engage end
users to "try-and-buy" the software without interruption, which requires
issuing licensing keys from the developer's web site to the end user's PC.
SentinelExpress works in conjunction with Rainbow's license key generation
software, SentinelLM license manager, and is the first product to allow
hardware keys to be updated via the Internet.

Pricing and Availability

SentinelExpress 2.0 is available now. Please contact your Rainbow sales
representative for your complete ESD solution.