Multex.com's Market Guide Names Rainbow Technologies as one of 13 Fundamentally Strong Internet Stocks; USA Today Reports Findings Based on Strict Criteria for Financial Momentum.

Business Editors & High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 31, 2000

Rainbow Technologies Inc., (Nasdaq:RNBO), a leading provider of high-performance security solutions for the Internet and eCommerce, was named by Multex.com's Market Guide as one of 13 Internet-related stocks that are fundamentally strong.

The findings, published in USA Today on Aug. 28, 2000, used just filed quarterly reports to select companies with improving financial results and a reasonable stock price.

Under Market Guide's criteria, companies needed to be profitable or expected to be profitable by 2001; boost revenue in latest quarter faster than previous four quarters; generate free cash flow in last quarter greater than the average of the four prior quarters; post gross margins of at least 40 percent; and, post operating margins of at least 10 percent.

Rainbow was included on the list with companies such as Adobe Systems, Fiserv, Mercury Interactive, Sapient, Siebel Systems, Verity and WebTrends.

"The stocks getting most of the attention from the investing public are, in many cases, companies that are not fundamentally strong," said Marc Gerstein, director of investor products, Market Guide.

"At Market Guide, we track more than 800 Internet companies and on many occasions we find that those companies with the strongest business and financial fundamentals are those least known by investors. Rainbow Technologies has a strong cash position, minimal debt and their non-discretionary cash flow is significantly positive before discretionary spending.

"They have very strong year-to-year growth in sales and EPS and stronger returns on invested capital than usually seen in Internet-related businesses."

"Rainbow continues to achieve solid revenue and earnings growth due to the company's key product offerings in the Internet-infrastructure market," said Patrick Fevery, chief financial officer, Rainbow Technologies.

"We continue to attract major customers because of our ability to meet their demands for sophisticated infrastructure, performance and security products. This is in no small part due to our strong financial resources that enable us to carry the necessary inventory, receivables, intellectual property and other assets needed for these important customer relationships.

"We are pleased with the recognition of our hard work by Market Guide and we will continue to strengthen Rainbow's financial position and build on our strong track record of consistent growth."

About Rainbow Technologies

Founded in 1984, Rainbow Technologies is a leading provider of security solutions for the Internet and eCommerce. Rainbow applies its core technology to a variety of Internet applications -- from securing software to the acceleration of secure communications for eCommerce and Virtual Private Networks (VPNs).

Rainbow's products include secure Web server and VPN acceleration boards; anti-piracy and Internet software distribution solutions; PKI security solutions; voice, data and satellite security systems; as well as USB-based authentication tokens.

The company has headquarters in Irvine and maintains offices throughout the United States, the United Kingdom, France, Germany, Australia, China, India, The Netherlands, Russia and Taiwan. Rainbow's network of nearly 50 authorized distributors sell the company's products worldwide.

For more information, contact Rainbow at 800/852-8569 or see the company's Web site at www.rainbow.com.

About Multex.com

Multex.com (www.multex.com) is the Internet's leading financial e-marketplace connecting buyers and sellers of financial services. Multex.com is a global company that provides information and commerce enabling technology and infrastructure, application services, Web hosting and online community services to the major financial marketplace participants: brokerage firms, investment banks, corporations and individual and institutional investors.

The company focuses on three core business areas: Business-to-Business (B2B), which provides real-time, Web-based financial applications and information for institutional investors and other financial institutions; Application Service Provider (ASP), which develops, hosts and operates Web sites and portals for financial institutions, enabling them to connect to their clients; and Business-to-Consumer (B2C), which provides financial applications and information to individual investors through a network of branded and affiliated Web sites.

Multex.com serves this fast-growing and diverse marketplace through a number of industry leading brands, including MultexNET(R), a subscription/transaction based, real-time, online service providing financial information from more than 750 firms such as Merrill Lynch, Salomon Smith Barney and Robertson Stephens to more than 10,000 buy-side firms and nearly 35,000 subscribers; MultexEXPRESS(SM), a Web-development and hosting business with more than 100 sites serving more than 2 million users; BuzzPower, industry leading e-community software; and Multex Investor(SM) Sage Online and Market Guide, Multex.com's individual investor sites, which have attracted more than 2 million unique visitors.

Multex.com has more than 500 information and distribution partners including: Reuters, Bloomberg, Dow Jones, AOL, Yahoo, Quicken.com, CBS MarketWatch and CNNfn.com.

Note to Editors: Rainbow Technologies is a trademark of Rainbow Technologies Inc. All other company and product names are trademarks of their respective organizations.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in our Annual Report on Form 10-K and other materials filed with the Securities and Exchange Commission ("SEC") (as well as information included in oral statements or other written statements made or to be made by the company) contain statements relating to the following: dependence upon existing and new product offerings, competition, intellectual property and licensing, future growth, rapid technological and market change, manufacturing and sourcing risks, Internet infrastructure and regulation, the inclusion of network security functionality in hardware or system software, international operations, among others. These conditions involve important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of the company. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. The company assumes no obligation to update information concerning its expectations.