Except for statements of historical fact, the information presented herein constitutes
forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the company to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements.
Such factors include general economic and business conditions, the loss of market
share, changes in consumer buying habits and other factors over which Aladdin Knowledge
Systems Ltd. has little or no control.