Aladdin eSafe and eToken Solutions Named Finalists for the SC Magazine European Awards 2006

CHICAGO, March 8, 2006 - Aladdin Knowledge Systems Ltd. (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 it has been named a finalist for four categories of the SC Magazine European Awards 2006.

Aladdin eSafe, an integrated gateway content security solution providing proactive email security and Web browsing security, stands as a finalist for the Best Anti-Trojan, Best Anti-Virus and Best Anti-Spyware categories. Aladdin eToken, a cost-effective, strong user authentication and password management solution, also stands as a finalist for the Best Security Solution for Healthcare category.

Considered the leading annual awards program for the information security industry, SC Magazine's SC Awards highlight the leading companies, products and services in the field. Winners will be announced during a gala event on April 25th at The Grosvenor House Hotel, Park Lane, London.

"Following on the heals of five finalists spots and Aladdin eSafe's 2006 SC Magazine Award for "Best Anti-Trojan Solution" in the U.S. Awards, this significant European recognition is a continued honor," said John Gunn, vice president of global marketing for Aladdin Knowledge Systems. "Being named a finalist in four SC Magazine European Awards categories is an illustration of Aladdin's ongoing drive to meet customer demands through constant innovation."

About SC Awards

With over 1,300 product and service nominations from over 330 competing companies globally, the SC Awards are the world's leading awards program for the information security industry. The SC Awards program spans US, Asia, and UK. The SC Awards are composed of both the Reader Trust Technology Awards-voted on by SC readers in each region and the SC Awards Council, a group of carefully selected senior CSOs - and the Professional Awards that are judged by a panel of the industry's top talents.

Recognizing technical excellence and professional achievement across a variety of different categories, the SC Awards is a truly unique program developed to bring attention to the industry's top products and highlight the professionals that have both created them and use them within their companies. For more information, visit www.scmagazine.com.

About Aladdin eSafe 5

Aladdin eSafe, recently named a finalist for four 2006 SC Magazine Awards, is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:

• Layered anti-spyware
• Spam management
• Application filtering
• Proactive anti-virus technologies

Unlike other products which focus on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most - at the gateway front line.

For more information on Aladdin eSafe, visit http://www.Aladdin.com/eSafe.

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. eSafe, eToken, 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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