eToken Wins FIPS 140-1 Level 2 and 3 Certification

Aladdin Knowledge Systems now offers strong USB authentication security for critical government assured networks

CHICAGO, March 20, 2003 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) today announced that its eToken PRO USB authentication device has earned FIPS (Federal Information Processing Standards) 140-1 Level 2 and 3 physical protection certification from the National Institute of Standards and Technology (NIST).

The Secretary of Commerce approves standards and guidelines that are developed by NIST, who then issues FIPS certification after an accredited testing lab proves a product's conformance and suitability for use with Federal computer systems. These standards define the security requirements that must be satisfied by a cryptographic module used in a security system protecting information within IT systems.

eToken's FIPS certification is especially timely, coming in the wake of President Bush's sign off of the final version of the National Strategy to Secure Cyberspace. In particular, the policy document calls for the government to secure its own systems from unauthorized access. Two-factor authentication is a proven technology to protect sensitive government networks and vital IT assets with its high reliability and cost-effectiveness.

"Post 9/11," says Leedor Agam, vice president eToken Solutions, "government agencies have a new mandate to assure the security of their data and networks. eToken PRO, with its FIPS 140-1 Level 2 & 3 certification, allows these agencies to quickly deploy a strong security solution that is cost effective, easy-to-use and fully secure."

"This is a significant eToken milestone and will enable the company's expansion into the government sector and assist those organizations responding to the new Homeland Security Act guidelines," adds Stephen Axel, vice president of global marketing.

eToken™
eToken, is a USB authentication device about the size of a normal house key. It offers users and IT security administrators a fully portable, cost-effective means to authenticate users and digitally sign sensitive business transactions. eToken PRO offers advanced smart card functionality with a robust onboard cryptographic processor featuring either 1024-bit RSA, 3xDES and SHA1 algorithms. eToken PRO is the ideal solution for PKI enabled applications. Since operations such as signing and PKI key generation are done on the token itself, sensitive data is kept away from the hostile environment of the PC. eToken R2 offers simple yet robust 120bit DESX onboard security functionality as its underlying technology. Both the eToken PRO and the R2 feature a one-piece plastic housing, providing an unmatched tamper-evident and water-resistant container. For more information, visit www.aladdin.com/eToken.

Aladdin Knowledge Systems
Aladdin (Nasdaq: ALDN) is a leader in digital security, providing solutions for software commerce and Internet security since 1985. Aladdin serves over 30,000 customers worldwide. Aladdin's products include: the USB-based eToken device for user authentication and e-commerce security; the eSafe line of content security solutions that protect PCs and networks against malicious, inappropriate and nonproductive Internet-borne content; HASP and Hardlock, hardware-based software security systems that protect the revenues of developers; and Privilege, a software licensing and distribution platform.
Please visit the Aladdin Web site at www.aladdin.com.

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