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PRISM GROUP, INC. ANNOUNCES AGREEMENT WITH RAINBOW TECHNOLOGIES

 WOODINVILLE, Wash., Jan. 13 /PRNewswire/ -- Prism Group, Inc. (NASDAQ: PRSM), a software manufacturing and fulfillment company, announced today that it has signed an agreement with Rainbow Technologies (NASDAQ-NMS: RNBO) of Irvine, Calif. whereby Prism-Direct, the Company's software fulfillment division based in Woodinville, Wash., will provide CD-ROM unlocking services for client software publishers.
 This new encryption technology allows software companies to offer customers a more efficient way of sampling and purchasing software products via CD-ROM. Customers can demo the software contained on the disc and then buy the programs they want. To purchase the software for normal use, the customer calls Prism-Direct's fulfillment center. Upon payment by credit card, the customer receives a unique access code allowing him to "unlock" the program(s) he has purchased.
 Software distribution by CD-ROM has been heralded as a key trend within the software industry which may soon cause major changes in how business and consumer software is marketed. Many software developers and publishers are already beginning to offer their software packages on CD-ROM.
 The Prism Group of companies specializes in the manufacture and distribution of computer software. The Prism Group also includes MicroDisk Services and Software Production, both located in Washington state. Prism's customers include many of this country's major software developers and publishers.
 -0- 1/13/94
 /CONTACT: Ron Como & Associates, 212-227-3010/
 (PRSM RNBO)


CO: Prism Group, Inc.; Rainbow Technologies ST: Washington, California IN: CPR SU:

TW-MP -- NY065 -- 1121 01/13/94 13:22 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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