-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 OA9k/BmBkF1G4KbkXnchm7NCTWIGOYH/ulBo/4MrMp9i03KaM/I7pzHm7lgS7CWD
 ZBjoepnYGoeKPKpvVMRW4g==

<SEC-DOCUMENT>0001179110-04-016872.txt : 20040820
<SEC-HEADER>0001179110-04-016872.hdr.sgml : 20040820
<ACCEPTANCE-DATETIME>20040820113035
ACCESSION NUMBER:		0001179110-04-016872
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040818
FILED AS OF DATE:		20040820

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			STRAUB WALTER W
		CENTRAL INDEX KEY:			0001186175

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20634
		FILM NUMBER:		04987981

	BUSINESS ADDRESS:	
		STREET 1:		C/O RAINBOW TECHNOLOGIES INC
		STREET 2:		50 TECHNOLOGY DRIVE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92618
		BUSINESS PHONE:		9494507350

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SAFENET INC
		CENTRAL INDEX KEY:			0000850313
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				521287752
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		4690 MILLENNIUM DRIVE
		CITY:			BELCAMP
		STATE:			MD
		ZIP:			21017
		BUSINESS PHONE:		4109317500

	MAIL ADDRESS:	
		STREET 1:		4690 MILLENNIUM DRIVE
		CITY:			BELCAMP
		STATE:			MD
		ZIP:			21017

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INFORMATION RESOURCE ENGINEERING INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-08-18</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000850313</issuerCik>
        <issuerName>SAFENET INC</issuerName>
        <issuerTradingSymbol>SFNT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001186175</rptOwnerCik>
            <rptOwnerName>STRAUB WALTER W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>4 SUMMIT</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>IRVINE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92603</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock $.01 Par Value</value>
            </securityTitle>
            <transactionDate>
                <value>2004-08-18</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>42185</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>9.81</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock $.010 Par Value</value>
            </securityTitle>
            <transactionDate>
                <value>2004-08-18</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>32277</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>28.1188</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9908</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option to Buy Common Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>9.81</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-08-18</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>42185</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>9.81</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>1994-08-24</value>
            </exerciseDate>
            <expirationDate>
                <value>2004-08-25</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock .01 Par Value</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>42185</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>256033</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes></footnotes>

    <ownerSignature>
        <signatureName>Kristen Carter of SafeNet, Inc. for Walter Straub</signatureName>
        <signatureDate>2004-08-20</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----