New Territories, Inc. Selects Aladdin HASP SL for Security, Licensing and Product Activation

CHICAGO, January 18, 2005 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) ] today announced that New Territories, Inc., a leading supply chain management solutions provider, implemented Aladdin HASP SL to securely distribute and license its customers' software solutions through both electronic software distribution (ESD) and physical distribution. The HASP SL solution provides strong copy protection and flexible licensing capabilities that supports trialware, product activation, subscription, and rentals.

Recently added to the Inc. 500 List of Fastest Growing Private Businesses, Rhode Island-based New Territories provides software publishers around the globe with supply chain management services and hosted stores. Using Aladdin HASP SL (formerly known as Privilege), one of the leading software-based licensing, software protection and software distribution solutions in the market today, New Territories is empowered to easily control the distribution and use of their customers' solutions, preserving revenue while also securing key digital assets.

> "As a contracted manufacturer and distributor of software, we now rely heavily on Aladdin HASP SL to provide simple yet powerful piracy protection while electronically distributing and licensing software packages," said Keith Deinert, vice president at New Territories. "This is a great complement to the products that we already physically distribute. We see Aladdin HASP SL as a revenue-enabling system that allows us to bring our clients' products to market securely and easily while reducing operational and distribution costs."

The HASP Family of Products

• HASP HL – a hardware-based licensing and software protection system
• HASP SL (formerly known as Privilege) -- a software-based licensing, protection and distribution system
• HASP TT (formerly known as the Privilege Trialware Toolkit) --for creating secure, controlled trialware
• HASP DocSeal -- a hardware-based system for protection of intellectual property and sensitive information

About New Territories

New Territories delivers a fully integrated, single-source supply chain solution, from eCommerce through product design, manufacturing, and fulfillment. Our clients receive tremendous VALUE from our model because solutions are customized, because service and responsiveness is second-to-none and because total costs are significantly reduced. Visit the New Territories Web site at http://www.newterritories.net or call (401) 583-0226 for more information. About Aladdin

Aladdin (NASDAQ: ALDN) has been a leading innovator in digital security since 1985, focusing on solutions for Software Digital Rights Management and Enterprise security. Serving more than 30,000 customers worldwide, Aladdin's products include the USB-based eToken™ device for strong user authentication, password management, and protection against identity theft; the eSafe® integrated content security solution that proactively protects networks against blended threats, including malicious, inappropriate, and nonproductive Internet-borne content; and the HASP® family of hardware- and software-based products that flexibly protect, license, and distribute software and intellectual property. Visit the Aladdin Web site at http://www.Aladdin.com.

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