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MedStar Health Chooses Aladdin eToken to Protect Access to Critical Hospital Applications

More than 1,500 MedStar doctors and nurses now rely on eToken to access patient data

CHICAGO, January 18, 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 (Enterprise Security), today announced that MedStar Health, a $2.7 billion non-profit, community-based healthcare organization serving the Baltimore/Washington region, selected the Aladdin eToken strong authentication device to provide powerful security for doctors and nurses remotely accessing vital hospital applications.

More than 1,500 clinicians within seven MedStar-operated hospitals now use the USB-based Aladdin eToken to gain access to two critical medical applications presenting data from more the 139,000 inpatient admissions and more than 900,000 outpatient visits each year. eToken, about the size of an average house key, requires doctors and nurses to possess the actual token and input the token password in order to access MedStar patient data outside the hospital.

"Aladdin has been great to work with, as they have helped us deploy Aladdin eToken with customized security applications used by clinicians throughout our network of hospitals," said Jason Kreuter, Ph.D., associate director for MedStar e-Health and the MedStar Clinical Portal. "Our clinicians realize the importance of properly securing patient data, and we continue to receive positive feedback praising eToken's simple, yet powerful authentication technology."

"Large healthcare organizations demand reliable, powerful employee authentication in order to protect the privacy of their patients and to assist in complying with the numerous laws affecting the industry," said Teney Takahashi, market analyst at The Radicati Group. "By deploying the Aladdin eToken USB device, MedStar gains proven authentication technology that helps provide peace of mind not only for its clinicians, but also its patients."

"As the healthcare industry continues to rise to the challenge of meeting strict patient privacy requirements, we're pleased to see such large deployments of Aladdin eToken as seen at MedStar Health's network of prestigious hospitals," said Dan Pfeifle, senior director, eToken for Aladdin North America. "We continue to see healthcare providers choose Aladdin eToken for strong user authentication, as it has proven to serve as a reliable, durable token that remains flexible enough to offer the wide variety of security features needed to match patient privacy laws."

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, Simple Sign-On, secure email, and numerous other applications. eToken is available in smart card and USB form factors featuring physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smartcards 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 and viruses. 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 limit revenue loss 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. 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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All trademarks and registered trademarks are the property of their respective holders.

Press Contact:

Matthew Zintel
Zintel Public Relations
310.574.8888
Investor Relations Contact:

Debbie Kaye
Aladdin Investor Relations
investor@aladdin.com
646.468.0481