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RSA Announces Earnings

BEDFORD, Mass. -- RSA Security Inc. (NASDAQ:RSAS) today reported financial results for the second quarter ended June 30, 2006.

Revenue for the second quarter of 2006 increased 23% to $94.4 million from
$76.5 million for the second quarter of 2005. Net income in accordance with
Generally Accepted Accounting Principles (GAAP) for the second quarter of
2006 was $2.8 million, or $0.04 per diluted share. Net income for the second
quarter of 2006, adjusted to exclude stock-based compensation charges,
restructuring charges related to the Company's restructuring of its
engineering resources, transaction fees associated with EMC's proposed
acquisition of RSA Security and amortization of intangible assets associated
with RSA Security's acquisition of Cyota and PassMark Security ("Adjusted
Net Income"), was $10.6 million, or $0.14 per diluted share (refer to the
"Use of Non-GAAP Financial Measures" section and accompanying financial
tables for reconciliations of GAAP to non-GAAP financial information). GAAP
net income for the second quarter of 2005 was $8.5 million, or $0.12 per
diluted share. The Company did not report non-GAAP net income for the second
quarter of 2005.

"RSA Security had another outstanding quarter with both record revenue and
orders, a clear indication that spending on key identity-centric security
initiatives and encryption continues to be a top priority," said Art
Coviello, RSA Security president and chief executive officer. "We continue
to be successful at growing all areas of our business, and we are excited
about the market potential of all of our solutions.

"Further, we are extremely excited about the definitive agreement to be
acquired by EMC that we announced on June 29. Together RSA Security and EMC
can accelerate the much needed integration of critical security measures
into the information infrastructure."

RSA Security Inc. (Nasdaq: EMC)