RNS Number:0017Q
Baltimore Technologies PLC
22 September 2003


  Baltimore Technologies Completes Divestment Programme with Sale of Core PKI
                             Business to beTRUSTed




London, UK - 22 September, 2003 - Baltimore Technologies plc (London: BLM)
("Baltimore") today announced that it has entered into a conditional agreement
with beTRUSTed to sell its core PKI business for a total consideration of #5.0
million in cash. The sale is subject to approval by Baltimore's shareholders at
an Extraordinary General Meeting, and a circular with notice of the Meeting will
be sent shortly.

Following the recently announced sales of SelectAccess, OmniRoot and Managed
Services, the sale of the PKI business completes Baltimore's disposal programme.
Once completed, these transactions, together with the settlement with
Clearswift, will have generated total cash proceeds of approximately #20.9
million since July. The sale of SelectAccess to HP has now closed and funds have
been received on 18 September, 2003.

Comment

Bijan Khezri, Chief Executive Officer of Baltimore Technologies plc, commented:

"We firmly believe in the need for scale to continue driving consolidation of
the software industry worldwide. The long-term competitiveness of the PKI
business requires critical mass and beTRUSTed has emerged as an excellent
partner to take our PKI technology and customer base to its next level.

This transaction is our last significant asset disposal and will deliver on our
commitment to eradicate operational cash burn and maximize shareholder value.
The cash balance resulting from Baltimore's successful asset disposals
effectively puts the future strategic options available to Baltimore
Technologies into a new perspective. We remain committed to maximising value for
our shareholders and we look forward to providing an update in due course."



"We are extremely pleased to acquire the Baltimore PKI business and its
world-class clients, employees and software. Over 75% of our clients have made
significant investments in Baltimore's PKI suite which we have implemented and
operated for many years. We believe that beTRUSTed's ownership will provide the
necessary stability and support for existing and prospective clients to build
and deploy critical business applications that leverage Baltimore's technology,"
said John Garvey, Chief Executive Officer of beTRUSTed."



Rationale for the divestment

Since the launch of the controlled sale process in May, Baltimore has believed
that the Company lacks critical mass. During the course of the past two years
the Company has succeeded in significantly reducing operational cash burn.
However, Baltimore alone does not represent a platform on which to consolidate.
The need for scale in today's infrastructure software market makes the disposal
of Baltimore's core PKI business an obvious proposal. As a highly
customer-centric organization, it is critical for Baltimore to provide a
sustainable long-term direction to our customers. beTRUSTed represents an ideal
partner in that regard.

Financial effect of the disposal

The Company intends to use the cash proceeds of #5.0 million from the disposal,
payable at completion, for general corporate purposes. Baltimore expects that
the disposal will complete by the end of November 2003.

Restructuring

As a result of this transaction, certain PKI employees will transfer to
beTRUSTed. The PKI group will remain principally Ireland-based. Baltimore will
implement a redundancy programme for the majority of its remaining employees.

Information on PKI business

The PKI business is the core of Baltimore's ongoing revenue generating business.
With over 300 customers worldwide in the high-end government, finance and
telecommunications market, Baltimore's flagship product, UniCERT, is the world's
leading PKI infrastructure. Baltimore's PKI products ensure organisations can
securely leverage the power of web and wireless networks, for cost-efficient
commerce and collaboration, to achieve a sustainable competitive advantage while
reducing overall risk.

Based on unaudited management information for the twelve-month period ended 31
December 2002, the PKI business generated revenues of #19.3 million and a loss
before interest and tax of #11.1 million. As at 31 December 2002, the net
liabilities of the PKI business were #42.8 million. This is largely represented
by an intercompany payable to the parent company for the funds which were made
available to the business, from the fundraising exercise carried out in 1999.



About Baltimore Technologies

Baltimore Technologies' products, professional services and solutions solve the
fundamental security needs of e-business. Baltimore's e-security technology
gives companies the necessary tools to verify the identity of who they are doing
business with and securely manage which resources and information users can
access on open networks. Many of the world's leading organisations use
Baltimore's e-security technology to conduct business more efficiently and cost
effectively over the Internet and wireless networks.

Baltimore's products and services are sold directly and through its worldwide
partner network, Baltimore TrustedWorld. Baltimore Technologies is a public
company, principally trading on London (BLM). For more information on Baltimore
Technologies please visit www.baltimore.com

About beTRUSTed

beTRUSTed is the premier global provider of security and trust services to the
world's leading organisations and government agencies. Through its managed
security services, beTRUSTed offers clients a comprehensive package of leading
security products coupled with unrivalled expertise to help reduce costs,
increase revenue and comply with government and industry regulations.

For further information contact:

Smithfield Financial +44 20 7360 4900

Andrew Hey +44 20 7903 0676

Nick Bastin +44 20 7903 0633

Will Swan +44 20 7903 0647

                                      ###



The directors of Baltimore Technologies plc accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of the directors of Baltimore Technologies plc (having taken all
reasonable care to ensure that such is the case), the information contained in
this announcement is in accordance with the facts and does not omit anything
likely to affect the import of such information.

Certain statements that are not historical facts including certain statements
made over the course of this announcement may be forward-looking in nature. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance and achievements of
the Company to be materially different from any future results, performance or
achievements implied by such forward-looking statements.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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