This was announced on the Safenet website.... This is great...

This was announced on the Safenet website.... This is great news... 30% royalties from an estimated $US50m... Stock is way undervalued!!!!

SafeNet Announces SafeEnterprise SONET/SDH Encryptors


New Family of Encryption Appliances Allow Secure Communications At Speeds Up To 10 Gigabits

Company Expects a Minimum of $50 Million in Revenue from New Product Line

BALTIMORE, Maryland, October 20, 2004 – SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, today announced the release of the SafeEnterprise™ SONET/SDH Encryptors, a family of high-performance encryption appliances designed to secure Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) networks at various speeds up to 10 Gbps. The SafeEnterprise SONET/SDH encryptors, which come in four varieties at speeds of OC3, OC12, OC48 and OC192, are centrally managed under the SafeEnterprise Security Management Center (SMC), the only enterprise security management application on the market that provides a single, dedicated application for securely managing appliances for IP, ATM, Frame, Link, and now SONET/SDH networks.

SONET Background
SONET is the mainstay of optical networking technology with almost 70% of new optical equipment sales designed for SONET networks, according to Infonetics Research. Large Enterprise organizations choose SONET networks because of their reliability, interoperability, low latency and efficient use of the fiber medium. SONET is used for data, voice and video applications including data backup, remote storage and disaster recovery. Until now, there has been no way to secure the high speed SONET networks themselves.

SONET encryption is the ideal technology for securing these high speed networks because it does not create additional traffic overhead. For example, IPSec adds up to 40% additional traffic overhead, forcing customers to choose between performance and security.

The SafeNet Breakthrough
“Our large Enterprise customers asked us to provide a low-overhead encryption product for SONET networks,” said Chris Fedde, SafeNet’s Senior Vice President and General Manager, Enterprise Security Division. “Today we are happy to announce this family of new products which provide true fiber speed encryption at up to 10 gigabits per second. This capability now allows high speed communication which is both efficient and highly secure. Based on initial customer reaction, we believe this new product line will generate a minimum of $50 million in revenue over the next few years.”

Part of the SafeEnterprise Security System, the SafeEnterprise SONET/SDH Encryptor secures connections for OC3, OC12, OC 48, and OC192 SONET/SDH networks providing scalable performance and seamless end-to-end integration to deliver improved network operation and performance with uncompromising security. Used for applications such as multi-point high-speed data transmission, disaster recovery, and storage area networks, the SONET/SDH encryptor is designed to integrate transparently and simply into the SONET/SDH network architecture and is configurable as a path or line encryptor. The SONET/SDH Encryptor employs the federally regulated Advanced Encryption Standard (AES) algorithm and is designed to meet Common Criteria EAL 4 and FIPS 140-2 accreditation.

Key Features for the SafeEnterprise SONET/SDH Encryptor:


Full duplex speeds up to 10 Gbps

Fully Automated Key Management using X.509 certificates for authentication

Interface options for OC3, OC12, OC48, and OC192

Supports transmission over spans of 2km (Short range), 15km (Intermediate Range), and 40km (Long Range)

Secure remote management via the SafeEnterprise Security Management Center using SNMPv3

Availability
First customer shipments of the SafeEnterprise SONET/SDH Encryptors have begun. A phased rollout of shipments for the family of SONET Encryptors is planned, and all models will be available for all customers by the first quarter of 2005.