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Aladdin Knowledge Systems CEO to Ring NASDAQ Opening Bell in Celebration of More than Two Decades of Growth

CHICAGO, May 16, 2006 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, identity management, and content security solutions, today announced that Chairman and CEO Yanki Margalit will ring today's NASDAQ Opening Bell at 9:30 a.m. EDT in recognition of nearly 13 years as a NASDAQ-listed company and the 20th anniversary of its founding.

"Celebrating Aladdin's 20th anniversary in 2005, we've been listed on NASDAQ for nearly 13 years. Today we are honored to take part in NASDAQ's opening bell," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "Our dedication to customer service and constant innovation drives Aladdin's #1 position in the Software DRM industry, as well as our fast-growing success in identity management and content security."

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.

©2002-2006 Aladdin Knowledge Systems, Ltd. All rights reserved. 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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Press Contact:

Matthew Zintel
Zintel Public Relations
310.574.8888
Investor Relations Contact:

Debbie Kaye
Aladdin Investor Relations
investor@aladdin.com
646.468.0481