Aladdin Announces eToken OEM Deal with RSA Security

CHICAGO, February 9, 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 an OEM agreement with RSA Security Inc.

This OEM agreement represents the second phase of the Aladdin-RSA Security partnership following the patent licensing agreement originally announced on January 31, 2005. Through this OEM agreement, RSA Security will release a new RSA SecurID® authenticator that incorporates the Aladdin eToken USB technology. The new device that will use Aladdin eToken technology will be based on a standard Javacard™ platform and combine the convenience of a portable plug-and-play USB device with the secure storage of digital certificates and passwords.

"Over the last year, we have continued to build a strategic relationship with RSA Security resulting in an OEM agreement for Aladdin that continues to extend our leadership in USB-based token technology and intellectual property," said Leedor Agam, vice president of business development for Aladdin Knowledge Systems. "We are pleased to expand our relationship with RSA Security, as we consider this a significant leap forward in our position within this fast-growing authentication market."

"As the worldwide leader in strong authentication, RSA Security is committed to providing customers worldwide with the broadest range of flexibility and choice in two-factor authentication," said Derek Brink, vice president of corporate development at RSA Security. "We look forward to leveraging this OEM relationship to further enhance our broad line of authenticators."

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. eToken, Aladdin Knowledge Systems and the Aladdin logo are trademarks or registered trademarks of Aladdin Knowledge Systems, Ltd. RSA, RSA Security and SecurID are either registered trademarks or trademarks of RSA Security Inc. in the United States and/or other countries. All other product and brand names mentioned in this document are trademarks or registered trademarks of their respective owners

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