Aladdin HASP HL Named a Finalist for SIIA CODiE Award

CHICAGO, February 1, 2006 - Aladdin Knowledge Systems (NASDAQ: ALDN), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that its HASP HL software protection and licensing solution stands as a finalist in the Software & Information Industry Association's 21st Annual CODiE Awards.

Chosen among independent expert judges, Aladdin HASP HL is a finalist for the coveted "Best Digital Rights Management Solution" category. The SIIA CODiE Awards celebrate achievement and vision in software, education technology and digital content. For 21 years, SIIA CODiE Awards have remained the leading honor for the software and information industry's finest products and services. Each year, CODiE Awards judges work to identify the "best-of-the-best" from hundreds of nominees. Recipients of the 2006 CODiE Awards will be announced at a gala event on May16, 2006 at the Westin St. Francis hotel in San Francisco, California.

"The 21st Annual CODiE Awards continue the tradition of honoring the best of the software, information and education technology industries," said Ken Wasch, SIIA President. "When one considers the number of outstanding companies that competed this year, being named a CODiE Awards Finalist is a significant achievement."

"It's a great honor for Aladdin HASP HL to be named a finalist for the prestigious SIIA CODiE Award, as this marks the fourth time Aladdin has received this recognition," said Avi Barir, vice president of Software Digital Rights Management (DRM) at Aladdin Knowledge Systems. "As the most widely used hardware-based Software Digital Rights Management solution available in the marketplace today, HASP HL allows software publishers to grow their revenues significantly by providing the highest level of protection against software piracy and intellectual property theft. In addition, HASP HL's secure licensing system provides software publishers new and creative ways to sell their products, allowing them to target new market segments and increase revenue (e.g. feature-based, concurrent multi-user, subscriptions, pay-per-use and many more)."

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware- and software-based anti-piracy solutions engineered for software publishers to ensure that their intellectual property is protected and they get paid for each product they ship. 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.

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