To: Dale Baker who wrote (19493 ) 7/13/2000 4:21:47 PM From: Norm Demers Respond to of 118717 RSAS, great earnings: RSA Security Announces Record Revenues BEDFORD, Mass., July 13 /PRNewswire/ -- RSA Security Inc. (Nasdaq: RSAS) today reported financial results for the second quarter ended June 30, 2000. Revenue for the second quarter of 2000 increased 29 to 66.7 million, from 51.8 million for the second quarter of 1999. Reported net income for the second quarter of 2000, including the operations of RSA Capital, was 37.2 million (0.87 per share on a diluted basis), compared to 43.0 million (1.05 per share on a diluted basis) for the second quarter of 1999. Reported net income for the second quarter of 2000 includes a pre-tax gain of 45.0 million from the sale of shares of the Company's holdings in VeriSign, Inc. and Trintech Group PLC. Earnings for the quarter from the Company's core operating business increased 57 to 9.4 million (0.22 per share on a diluted basis) from 6.0 million (0.15 per share on a diluted basis) for the same period in 1999. Revenue for the six months ended June 30, 2000 was 130.0 million, a 29 increase over the same period last year. Net income from the Company's core operating business increased 64 to 18.0 million, or 0.41 per diluted share, compared to 11.0 million, or 0.27 per diluted share, in the first six months of 1999. Reported net income for the first six months of 2000 was 61.8 million, compared to 84.0 million for the same period last year. Reported net income for the first six months of 2000 includes pre-tax gains of 72.1 million from the sale of shares of the Company's holdings in VeriSign, Inc. and Trintech Group PLC. "We are pleased with the Company's performance in Q2 and the first half of 2000," said Art Coviello, CEO and president of RSA Security. "Our RSA Keon PKI products are gaining momentum, sales of our RSA BSAFE encryption software are strong, and our RSA SecurID authentication solutions are expanding into the markets for B2B and B2C e-commerce