RNS Number:9026S
Baltimore Technologies PLC
05 December 2003

                   BALTIMORE TECHNOLOGIES SHAREHOLDER UPDATE

London, UK - 5 December 2003: Baltimore Technologies plc (London: BLM) today
posted the following letter to all Baltimore shareholders:

Dear Shareholder,

Following last Friday's Extraordinary General Meeting (EGM) I am keen to update
you on the progress with your company.

At the EGM shareholders approved the sale of the PKI business, Baltimore's last
remaining operating business. I am pleased to let you know that the sale was
completed on Tuesday, 2 December. In addition, reflecting the slimmed-down
nature of the Company, the number of board members has been reduced from seven
to five and I have been appointed as Executive Chairman. I am also pleased to
confirm that Andrew Hunt has joined the Board as of 4 December 2003 and will
replace John Cunningham as Senior Independent Non Executive Director on 1
January 2004. Andrew brings a wealth of relevant management experience to this
key role and will ensure that shareholders' interests continue to be represented
strongly.

The sale of the PKI business is a turning point in Baltimore's development. As
I'm sure you are well aware, the last few years have been extremely difficult
for your company. Indeed, when I was invited to become Chief Executive Officer
in October 2001 to address the financial crisis facing the company, Baltimore
was at that time incurring an average monthly loss before interest, tax,
depreciation, amortization and exceptional items of #5.9 million, with only #21
million of cash in December 2001. This situation was clearly unsustainable and,
as part of our strategy to preserve value for shareholders, some hard decisions
and tough action had to be taken. Recognising that Baltimore lacked the scale to
compete profitably, this has ultimately resulted in the sale of the operating
businesses. However, through this process, the Board has:

   *Generated cash of #41million as a result of eight disposals during 20
    months

   *Reduced average monthly operational losses by #5.5 million, as at the end
    of June 2003

   *Reduced annual operational losses by 76.5%, or #54 million, from 2001 to
    2002

Next steps

Looking ahead, the Board remains committed to maximising value for Shareholders.
There are basically two broad options available;

   *Returning cash to shareholders by liquidating the company, or;

   *Investing in another business through acquisition.

In either case, the complex legacy of Baltimore's remaining global legal, tax
and property liabilities need to be resolved first. However, the Board is
extremely well equipped in terms of knowledge and expertise to address all
outstanding legacy issues and to realise the value of our remaining non-cash
assets. We are currently working hard to achieve this and I expect the process
to take until June next year. I therefore want to reassure you that, in
parallel, the Board is also proactively evaluating business acquisition
opportunities. We expect to be in a position, by the time of our next full
year's financial results announcement in March 2004, to make a recommendation to
shareholders as to the best option to take. Baltimore is your company and any
recommendation by the Board related to either liquidation or an acquisition will
be subject to shareholders' approval.

Finally, we are aware that there are many shareholders with a small number of
shares who may wish to sell but are dissuaded from doing so by share dealing
costs. We are therefore reviewing ways in which these shareholders can realise
small shareholdings in a cost effective manner. I intend to keep you updated on
progress on this and in general in due course. In the meantime, may I convey my
best wishes for the holiday season and for a successful 2004.

Yours sincerely,



Bijan Khezri
Executive Chairman

   If you have sold or otherwise transferred all of your holding of shares in
  Baltimore, you should forward this letter to the person to whom the sale or
     transfer was effected for transmission to the purchaser or transferee.

                                    - ENDS -

For further information please call:

Smithfield - 020 7360 4900
Andrew Hey
Nick Bastin
Will Swan

About Baltimore Technologies (BLM)

Following the completion of the disposal of Baltimore Technologies' core PKI
authentication business on 2 December 2003 the continuing Group's assets consist
primarily of cash, the Company's residual hardware and software support
businesses and a range of property interests.

For further information go to: www.baltimore.com



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