Baltimore Technologies Announces Preliminary Year-end Results for the Year Ended 31 December 2001.

Business Editors/High Tech Writers

LONDON--(BUSINESS WIRE)--March 6, 2002

Baltimore Technologies (London:BLM), today announced its Preliminary results for the year ending December 31, 2001. Financial Highlights for 2001:

- Total revenues for the full year were US$102.5 million ((pound)70.4) (2000:
US$101 million ((pound)69.4)). Revenues stabilised with Q4 revenue of US$ 23.2
million ((pound)16.0 million) (Q4 2000: US$35.5 million ((pound)24.4)).

- Revenues (excluding previously announced divestments) were US$57 million
((pound)39.2) (2000: US$83 million ((pound)57.3)).

- Gross Margins were 53% from 66% in 2000, reflecting lower software revenues
and lower productivity in professional services.

- Overhead expenses (administrative expenses less amortisation) in 2001 were
US$191 million ((pound)131.2) (2000: US$116 million ((pound)79.6)). In Q4 these
fell to US$51.1 million ((pound)35.1) including US$13.4 million ((pound)9.2) of
one-off restructuring costs.

- LBITDA of US$125.5 million ((pound)86.2) (2000: US$42.9 ((pound)29.5)).

- Cash balance of US$30.8 million ((pound)21.2) at year-end (2000: US$156.9
((pound)107.8)) and cash spend now under control. Cash burn reduced with Q4
outflow US$17.0 ((pound)11.7) (Q3 2001: US$ 30.6 million ((pound)21.0)).

- Headcount (excluding previously announced divestments) has reduced to 596 as
at 31 December 2001 and at the end of January headcount for the core business
was 562.

Bijan Khezri, Chief Executive Officer of Baltimore Technologies said, "These results reflect stabilization in our business. Continuous improvement of our operational productivity, a refocused business around authentication, digital signing and authorization technologies and global professional services expertise around our products are key to our future competitiveness."

"The market opportunity is significant and broadening beyond the Finance and Government sectors, Khezri continued. "Whilst we do not expect any significant global macroeconomic growth until 2003, technology spending will increase in 2002. Major wins during Q4 and in Q1 2002 confirm our technology leadership and customer confidence worldwide. We are funded to execute our business plan."

To read the full text of the release, please visit: http://www.baltimore.com/news/press/pr20020306.html

Continuing Improvements in Business Operations

Baltimore have made significant progress in executing the restructuring programme announced on August 22, 2001 including announcing its divestment of Content Technologies to Clearswift Corporation for US$29.8 million ((pound)20.5), allowing Baltimore to refocus on its core competencies of authentication and authorization. Baltimore is also reducing its shareholding in Japanese operations from 62% to 19% generating a further US$6.8 million ((pound)4.7) in cash.

Market-Leading Customers Turn to Baltimore

Customer confidence continues to build as Baltimore refocused on its core technology strengths paired with technology-centric professional services. Demand for its core business of authentication and authorisation solutions remains strong.

During the fourth quarter, Baltimore signed or renewed revenue generating contracts with leading companies including CIGNA, American Express, The CommWorks division of 3Com, Belgium Post Group Services, First Data Resources Australia, TP Internet Poland, ATOS Origin, UOP LLC, ZABA Bank, and ING, the Netherlands-based financial services provider with affiliates throughout the world. In addition, the Company signed a $1 million (U.S. dollars) deal with ID CERT S.A., a South American managed service provider.

Baltimore's further dominance in the Government market continued. New business was signed with the General Secretariat of the Council of the European Union, Norwegian Defence, Estonia Centre, Ministry of Defence UK PPA and both the Ministry of Interior and Ministry of Finance, Italy.

Technology implementations with leading customers such as BBS, Atos, Mastercard, and the Australian Health Insurance Commission continue:

"BBS has three years experience working with Baltimore and using the UniCERT PKI system," said to 0yvind Apelland, Senior VP Trusted Services, BBS. "Our partnership with Baltimore continues to grow from strength to strength, and as a result of this we have selected Baltimore's security technologies and Professional Services to build the security platform for the BankID system. BankID is a common security system marketed by all Norwegian banks and enables trusted online transactions for consumers, businesses and public enterprises."

"Our relationship with Baltimore enables us to provide our clients with a significant value added offering that addresses their specific e-business security requirements," said Christian Huguet, President of the Customer Management Services activity of Atos Origin. "By working closely together Atos and Baltimore are enabling some of Europe's leading companies to exchange information electronically in a trusted and secure environment."

According to Bruce Rutherford, VP of e-Business and Emerging Technology at MasterCard, "Baltimore's proven PKI technology platform supported by its high service quality provides MasterCard with the assurance we need to deliver secure e-business services to our clients 24 x 7. MasterCard is focused on providing its members with the tools they need to give their customers anytime, anywhere, any-device access to their payment accounts, and Baltimore continues to meet our expectations as a key technology partner in supporting our business."

"The Health Insurance Commission (HIC) is an innovative and customer-focused organization delivering government health programs to the Australian community," commented a spokesperson from HIC. "HIC identified Baltimore Technologies as an organization that could provide comprehensive PKI technology to securely encrypt and digitally sign sensitive email communications between healthcare professionals, health care providers, specialists and General Practitioners."

Technology, Solutions and Partnership Focus

The Company is placing emphasis on developing future technology requirements around its flagship products, UniCERT and SelectAccess, the core technologies that allow customers to develop a secure business platform for e-business.

Over the next two quarters, Baltimore Technologies will introduce significant enhancements to its existing offerings. As part of its plan to offer the technologies that embrace the growing web services market, it will introduce new solutions that incorporate and support standards and communication vehicles of growing importance, including XKMS, Wireless, SAML and Microsoft's .NET.

"Baltimore has earned a worldwide reputation for security products which are uniquely architected for the Internet. While other vendors have built up proprietary desktop components, Baltimore has continued to develop open, modular, server-side products which are strong on flexibility, scalability and performance. With core capabilities in both authentication and authorization, Baltimore is well-positioned in the marketplace. IDC expects that the dynamics of the market will play to Baltimore's product strengths as e-business systems roll into full production and critical technology developments such as Wireless and Web Services start to mature," commented Thomas Raschke, Program Manager, European Internet Security, International Data Corp.

During the past quarter, Baltimore also established a new global solutions group (GSG) which is dedicated to leveraging both its core technologies and professional services (PS) experience in designing, building and deploying security solutions that drive its customers' business competitiveness. GSG is core to Baltimore's strategy of building a truly customer-centric security technology company.

Baltimore also continues to leverage its technology through strategic partnerships with the major industry players, including Microsoft:

"Baltimore was the first company to provide a third-party certificate authority compatible with Active Directory and integrated with Windows 2000. Baltimore has demonstrated support for Active Directory, and has recently received Windows 2000 certification of their SelectAccess product," said Jackson Shaw, Lead Product Manager at Microsoft. "We are looking forward to Baltimore's support of Microsoft .NET and other initiatives."

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 who they are doing business with and securely manage which resources and information users can access on open networks. Many of the world's leading organizations 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 authorization management and public key-based authentication systems.

Baltimore's products and services are sold directly and through its worldwide partner network, Baltimore TrustedWorld. Baltimore Technologies is a public company, principally trading on London (BLM). For more information on Baltimore Technologies please visit http://www.baltimore.com

(pound)translated at rate of(pound)1=$1.4554 (on December 31, 2001) for the convenience of the reader.

Certain statements that are not historical facts including certain statements made over the course of this document may be forward-looking in nature. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements implied by such forward-looking statements.