Aladdin Milestone: $500 Billion of Software Protected

Aladdin Knowledge Systems marks 20 years of preventing software piracy and announces it has sold more than 30 million Aladdin HASP keys

TEL AVIV, ISRAEL, November 7, 2005, - Aladdin Knowledge Systems (NASDAQ: ALDN), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that its 20th anniversary this year marks more than $500 billion in software piracy prevented by its market-leading Aladdin HASP® solution. This week Aladdin also announced it has sold more than 30 million Aladdin HASP keys.

Since Aladdin's founding in 1985, Aladdin has provided software publishers and developers with powerful protection against piracy through Aladdin HASP software protection and license management products. Named the world's largest provider of software licensing and authentication tokens by IDC, Aladdin continues to save organizations billions of dollars in lost revenues caused by pirates. Using annual piracy rates from around the globe and the increasing cost of software piracy each year, Aladdin's CEO Mr. Yanki Margalit today announced that Aladdin conservatively estimates HASP's privacy prevention at half of a trillion dollars.

"As the world's largest provider of hardware-based software anti-piracy solutions, Aladdin is proud to celebrate more than $500 billion in software piracy prevention," Margalit said. "We continue to develop and offer innovative, flexible Aladdin HASP solutions for developers that not only secure their products, but also increase revenues through customizable sales models. This week serves as a significant celebration for Aladdin, marking not only our 20-year history and 30 millionth HASP key sold, but our large role in anti-piracy efforts around the globe."

To celebrate Aladdin's 20-year history, Margalit is scheduled to host numerous long-time customers in Tel Aviv, Israel during a conference for employees and distributors this week. For more information on the Aladdin HASP product line, visit www.Aladdin.com/HASP.

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware and software solutions engineered for software publishers to ensure that their intellectual property is securely protected and that their products are easy to distribute. Aladdin HASP provides the highest level of anti-piracy protection available to combat unauthorized copying and use. HASP also delivers powerful new tools to enable innovative software licensing schemes and flexible pricing models that allow publishers to bring their products to market with confidence while increasing sales and profits:

• HASP for Single-User: A hardware-based (HASP HL) or software-based (HASP SL) solution for protecting and licensing software running on stand-alone computers.
• HASP for Enterprise: A hardware-based (HASP HL Net) solution for protecting and licensing software used by multiple users in network environments and the enterprise.
• HASP for Trialware: A software-based solution (HASP TT) for creating secure, controlled software trialware.
• HASP for Documents: A hardware-based system (HASP DocSeal) for protecting intellectual property and sensitive information in HTML files.

HASP is the worldwide market leader in software DRM solutions and is used by more software developers than any other product. In a recent head-to-head comparison conducted by independent testing lab KeyLabs, HASP finished far ahead of its closest competitor with a large lead in key categories including security, ease-of-use, flexibility of tools and functionality, and compatibility across platforms and environments.

About Aladdin

Aladdin Knowledge Systems Ltd. is a global provider of security solutions that reduce software theft, authenticate network users and protect against unwanted Internet and e-mail content, including spam, viruses and spyware. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin's Software DRM products allow software publishers to protect their intellectual property and increase revenues by reducing losses from software theft and piracy. Its Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (authentication) and what content their users can utilize (content security). Visit the Aladdin Web site at www.Aladdin.com.

©2002-2005 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP, Aladdin Knowledge Systems and the Aladdin logo are trademarks or registered trademarks of Aladdin Knowledge Systems, Ltd. All other product and brand names mentioned in this document are trademarks or registered trademarks of their respective owners.

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