From: Hifn

750 University Avenue

Los Gatos, CA 95032

Contact: Hifn, Inc.

Brian Sparks
408-399-3520
bsparks@hifn.com

Hifn Announces the Availability of Royalty Free LZS® Data Compression Library for
TLS/SSL

LOS GATOS, Calif., February 7, 2005 -- Network security and flow classification market
leader Hifn™ (Nasdaq: HIFN), today announced the availability of LZS221-Cv3.1, the latest LZS
data compression software library. Previously, Hifn announced a new compression standard for
TLS using LZS®, released by the IETF as RFC 3943. This library replaces the previous royalty-
free version, LZS221-Cv3.0, with enhancement features targeted at the new TLS protocol for LZS
compression.
LZS221-Cv3.1 eliminates the possibility of data expansion in the data communications
channel while maintaining history optimizing both compression ratio and data transmission
performance. Also, LZS221-Cv3.1 provides the ability to maintain separate histories for
compression and decompression, which optimizes performance when line errors occur.
“Now that LZS is a compression standard for TLS connections, these two key features
optimize performance for the TLS applications,” says Robert Friend, product line director at Hifn,
Inc., and author of “Transport Layer Security (TLS) Protocol Compression Using Lempel-Ziv-Stac
(LZS)” (RFC3943). “Incorporating LZS compression into security devices enhances the end user
experience along with protecting their data.”
Compression within TLS is the most efficient technique to help reduce the bandwidth and
latency requirements associated with exchanging large amounts of data while preserving the
security services provided by TLS. Since TLS security defeats layer 2 and layer 3 compression,
there is a need for layer 5 compression. Now end users can benefit from compression at layer 2
(PPP), layer 3 (IP), and layer 5 (TLS).
Hifn Announces the Availability of Royalty Free LZS® Data Compression Library Page 2

LZS221-Cv3.1 is fully compatible with the rest of Hifn's LZS product line, and enables the
full Hifn compression feature set optimized for TLS products at the price-sensitive end of Hifn's
data compression software product line. Hifn's new TLS data compression software extends the
applications of LZS221-Cv3.0 from PPP, IPComp and Frame relay into TLS applications. This
data compression software, as well as more optimized Hifn software libraries, can be part of a
downloadable software agent in an SSL VPN appliance offering.
SSL VPN appliances already feature downloadable agents for full network access and kiosk
clean-up. Now, with Hifn’s security processors that include LZS, SSL VPN manufacturers can
uniquely offer bandwidth acceleration and enhanced user experience in their security product lines.
LZS221-Cv3.1 is available on a royalty-free basis specifically for PPP, IPComp, Frame
Relay, and now TLS applications. However, Hifn offers optimized implementations of LZS221
software libraries. Hifn is the only company that provides integrated LZS compression and security
on a single, low-cost processor.

About Hifn
Hifn, of Los Gatos, California makes integrated circuits and software for network
infrastructure developers. Hifn combines network processing, security, compression, content
search and flow classification technology into solutions for complex packet management. Most of
the major network equipment manufacturers use Hifn's patented technology to improve network
packet processing.
Hifn was founded in 1996 and is traded on the NASDAQ Stock Exchange under the HIFN
symbol. For more information, contact: Hifn, 750 University Avenue, Los Gatos, CA 95032.
Phone: 408-399-3500. Fax: 408-399-3501. Web: http://www.hifn.com.

FORWARD-LOOKING STATEMENT NOTICE

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 regarding the Company’s future financial performance. These forward-looking statements related to revenue growth,
expense reduction, product development, potential impact of design wins, prospects for economic recovery, gross margins and operating margins are subject to the risks
set forth below and actual results could vary. The specific risks include: dependency on a small number of customers, customer demand and customer ordering patterns.
Orders from Hifn’s customers may be below the company’s current expectations. Additional risks include: risks associated with the success of Hifn’s ongoing technology
development efforts; Hifn’s ability to successfully integrate new technology into products in a cost-effective manner; Hifn’s ability to effectively control expenses; the
timing of Hifn’s new product introductions; intense competition in the network and storage equipment industries; and the significant uncertainty of market acceptance of
Hifn’s new products. These and other risks are detailed from time to time in Hifn’s SEC reports. Hifn undertakes no duty to update these disclosures.

Hi/fn and LZS are registered trademarks of Hi/fn®, Inc. Hifn, FlowThrough, and MeterFlow are trademarks of Hi/fn, Inc. All other trademarks are the property of their
respective owners.