RNS Number:5569U
Baltimore Technologies PLC
23 January 2004

                   BALTIMORE TECHNOLOGIES SHAREHOLDER UPDATE

London, UK - 23 January 2004: Baltimore Technologies plc (London: BLM) today
posted the following letter to all Baltimore shareholders:

Dear Shareholder,

When I last wrote to you at the beginning of December to update you on the
developments at Baltimore Technologies, I mentioned that the Board was looking
at putting a voluntary low cost share dealing service in place to help those
investors who hold a small number of shares. I am writing to you now to announce
the introduction of this service, together with the launch of a special
shareholder helpline.

Voluntary share dealing service

Although we welcome all small shareholders, we recognise that due to Baltimore's
history a large number of very small shareholders exist on the register. For
those persons we recognise that it may be uneconomic to sell such a small
shareholding, given typical share dealing costs. Consequently, all shareholders
who hold up to 500 Baltimore Technologies shares will soon be able to use a
voluntary, low cost, postal share dealing service. Using this service, such
shareholders can either buy more Baltimore Technologies shares, up to a value of
#5,000, or sell their entire Baltimore Technologies shareholding, with a
transaction fee of one penny per share. Shareholders with more than 500 shares
who wish to trade should contact their bank, IFA or broker in the usual way.

There will also be an option to donate to charity the cash proceeds of any share
sale through ShareGift - the charity share donation scheme.

Details of how to take part are enclosed with this letter to those shareholders
with up to 500 shares.

Shareholder information line

We have established a toll-free shareholder information line, operational from
today, which all shareholders can call for help with general enquiries, to
access this service please call Freephone 00800 8888 8080 (or +44 20 7335 5704
if calling from outside the UK and the Republic of Ireland). The information
line is open between 09.00 and 17.30 Monday to Friday.

General update

I am also keen to keep you informed of developments at your company and to
update you on our progress at securing value for the business.

We are continuing to work hard in all our shareholders' interests to resolve the
company's remaining liabilities and to monetise residual non-cash assets. As
stated in our letter to you of 5 December, over the last 21 months since the
current management took over, #41 million of cash has been raised from
disposals, and monthly operating losses have been cut by #5.5m. We hope to be
able to update you with further information in respect of our efforts in this
regard shortly.

We are also continuing to review the strategic options facing the company, which
are essentially either returning cash to shareholders by liquidating the company
or investing in another business through acquisition. We are making progress
and, as I stated in December, the Board expects to be able to make a
recommendation to shareholders for approval by the time that Baltimore
Technologies announces its audited full year results by the end of March.

I look forward to updating you on further progress shortly.

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 Banker, Broker or 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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                      This information is provided by RNS
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