Aladdin Announces Two New eToken Patent Licensing and OEM Agreements

OEM and licensing agreements yield additional opportunities for the market leader in USB Authentication

CHICAGO, February 13, 2006 - 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 the completion of two new Aladdin eToken technology licensing agreements this month. These latest deals spawn from Aladdin's strengthening effort to vigorously enforce its patent rights worldwide.

Japan-based Athena Smartcard Solutions, a leading provider of smart card enabling technology, and Israel-based Algorithmic Research (AR), a worldwide provider of digital signature and data-security solutions for financial, commercial, and governmental sectors, have signed agreements with Aladdin to secure licenses to Aladdin's patents 6,763,399 and 6,748,541. The agreements also provide for the companies to OEM the Aladdin eToken USB authentication key.

These agreements follow Aladdin's announcement on February 9, 2006 outlining its eToken OEM and patent licensing deal with RSA Security Inc. Last year, Aladdin also announced it had reached a settlement with a U.S. distributor of China-based Feitian Technologies, in which the distributor agreed to not import, distribute, sell or offer infringing products. The agreement also provided for the payment of royalties to Aladdin.

"Aladdin patents continue to serve as significant tools for strengthening our market-leading position within the USB authentication market," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "Our recent line up of OEM and technology licensing agreements illustrates that we remain increasingly diligent in fortifying our portfolio of patents and intellectual property."

About Aladdin eToken

Aladdin eToken provides cost-effective strong user authentication and password management solutions. It provides enhanced security and ensures safe information access; improved password and ID management; and secure mobility of digital credentials/certificates and keys. Aladdin's product vision and innovation is evidenced by the company being awarded two key patents covering this security technology: USB devices with a smart card and USB devices as portable storage for credentials.

About the size of an average house key, the award-winning Aladdin eToken is easy to use and highly portable, providing users with powerful authentication by requiring something they have, the tamper-proof eToken, and something they know, a password. It is used for secure network logon, secure VPN, Web Sign-On, Single Sign-On, secure email, and numerous other applications. eToken USB and traditional smart card form factors are available with physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smart cards and ID Badges within an organization. In addition, TMS offers seamless, and reliable management for Enterprise security services combining both PKI and non-PKI systems. For more information, visit http://www.Aladdin.com/eToken

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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