Baltimore Technologies to Acquire GTE's CyberTrust.

Business Editors

SAN JOSE, Calif. and LONDON--(BUSINESS WIRE)--Jan. 17, 2000

RSA Conference 2000

Baltimore Adds Hosting Services, Blue-Chip Customers and

Strengthens U.S. Presence in Acquisition of U.S. Competitor

Baltimore Technologies plc (Nasdaq:BALT)(LSE:BLM) a global leader in e-security solutions, today announced that it has signed a definitive agreement to acquire GTE CyberTrust Solutions Inc. ("CyberTrust") for US$150 million.

CyberTrust is a wholly owned subsidiary of Contel Federal Systems, Inc., a wholly owned subsidiary of GTE Corporation (NYSE:GTE). The acquisition will be funded entirely through the issuance of Baltimore Technologies stock.

The acquisition will increase Baltimore Technologies' market-share in security systems for e-business and e-commerce security, particularly in the Public Key Infrastructure (PKI) marketplace.

CyberTrust is a global industry leader in hosted Certificate Authority systems with an impressive blue-chip client base. The addition of CyberTrust's PKI-hosting services will allow Baltimore Technologies to offer a complete suite of PKI-based products and services. Based in the Boston area, CyberTrust is one of the world's leading PKI-enablers of secure e-commerce, serving clients such as American Express, Mastercard, Deutsche Telecom, Swisskey, Telecom Italia and Sonera.

Speaking at the start of the RSA 2000 Security Conference in San Jose, Fran Rooney, CEO of Baltimore Technologies said, "In line with the strategy that was outlined in our recent NASDAQ offering, this acquisition is one of a continuing number of strategic global moves for Baltimore Technologies, creating the e-security company for the 21st century. The acquisition of a leading U.S. based PKI vendor makes Baltimore Technologies one of the strongest single worldwide sources for e-business and mobile commerce security. The CyberTrust business will give us world class hosting facilities, extend our excellent blue-chip client base, and enhance our U.S.-based corporate structure with minimal overlap in products and services."

This acquisition will strengthen Baltimore Technologies by providing the following complementary business elements:

--   Hosting facilities in the U.S. and Japan which, having been built
     up with a $25m investment, provide a significant growth
     opportunity as customers increasingly demand outsourced PKI-based
     services
--   U.S. blue-chip customer base
--   U.S. organization with sales and professional services
--   Access to embedded Web Browser root keys, and associated trust
     businesses

The number of consideration shares to be issued will be determined on the basis of a 10-day average closing share price prior to closing of the transaction. In addition, Baltimore Technologies will issue approximately 1.4 million shares for the benefit of CyberTrust employees.

Combined revenues for Baltimore Technologies and CyberTrust for the nine months ended Sept. 30, 1999 would total (pound)24.9m ($39.6m) based on Baltimore Technologies' published unaudited revenue for the period of (pound)16.2m ($25.6m) and data from the unaudited management accounts of CyberTrust. The transaction is expected to be non-dilutive to long-term projected earnings. The acquisition will be accounted for as a purchase transaction and is expected to close in mid-March following approval from Baltimore Technologies shareholders.

About Baltimore Technologies

Baltimore Technologies develops and markets security products and services to enable companies to develop trusted, secure systems for e-business, the Internet and mobile commerce. Its products include a wide range of Public Key Infrastructure (PKI) systems, wireless e-security solutions, cryptographic toolkits, security applications and hardware cryptographic devices. Baltimore's global professional services organization offers a wide variety of consulting, training and deployment support to its customers worldwide. Baltimore Technologies markets and sells its solutions worldwide directly and through the TrustedWorld channel program. TrustedWorld includes many of the world's leading technology companies and a wide variety of global, regional and local business alliance partners.

Baltimore Technologies employs over 450 people worldwide and operates from over 20 cities with headquarters in Dublin, Ireland; London, UK; and Sydney, Australia. Baltimore Technologies plc is a public company with dual listings on NASDAQ (BALT) and the London Stock Exchange (BLM). Intel Corporation is a minority shareholder in the company. Baltimore Technologies made e-commerce history in 1998 when President Clinton and Ireland's Prime Minister Ahern digitally signed an inter-governmental communique using security technology provided by Baltimore Technologies. For further information and press releases on Baltimore Technologies, please visit www.baltimore.com.

Baltimore Technologies reported revenues of (pound)16.2m ($25.6m) and an EBITDA loss of (pound)24.5m ($39.2m) for the nine months ending Sept. 30, 1999.

About CyberTrust

CyberTrust is a leading enabler of secure extranets and e-commerce for organizations endeavoring to extend high value relationships to the Web. The CyberTrust Secure Extranet Method establishes a first-in-market standard for certificate-enabled extranets that support privilege-based user access, data confidentiality, audit trails and digitally signed, binding transactions. Through their global network of partners, CyberTrust offers the industry's most complete suite of public key infrastructure-based products, outsourcing service and consulting. CyberTrust is a GTE company headquartered in Needham Heights, Mass., with offices in Washington, D.C., London, England and Sapporo, Japan. You can learn more about CyberTrust at www.cybertrust.com.

For the financial year ending Dec. 31, 1998, CyberTrust has unaudited pro-forma turnover of $15m with an EBITDA loss of $33m. Net assets, excluding intercompany balances, were $12m at Dec. 31, 1998.

Note to Editors: Baltimore Technologies, e|security, TrustedWorld, PKIWorld, Telepathy and Baltimore product names including UniCERT, MailSecure, PKI-Plus and J/CRYPTO are all trademarks of Baltimore Technologies plc. All other trademarks are the property of their respective owners.

In order to utilize the Safe Harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995, we are providing the following cautionary statement: This announcement includes forward-looking statements. These statements can be identified by the use of terminology such as "believes," "expects," "may," "will," "should," "anticipates," "estimates" or other similar words. Baltimore Technologies has based these forward-looking statements on the Directors' current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties, and assumptions about Baltimore Technologies, including, among other things, its ability to implement a change in business model; its anticipated expansion plans and growth strategies, including the acquisition described herein; its expectation of the impact of this expansion on our revenue potential, cost basis and margins; its expectation of the competitiveness of its software products; its intention to introduce new software products and services; anticipated trends and conditions in its industry including regulatory changes; its ability to compete, both internationally and in the U.S. In light of these risks, uncertainties and assumptions, the events discussed in this announcement might not occur. Baltimore Technologies undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.