New Aladdin Hybrid Device Lowers TCO for Token-Based Strong Authentication

New device extends battery life and allows replacement of batteries in One-Time-Password tokens

CHICAGO, October 10, 2006 - Aladdin Knowledge Systems (Nasdaq:ALDN), the leader in Software DRM, identity management and content security solutions, today announced general availability for Aladdin eToken NG-OTP 2.0, the latest version of the award-winning hybrid USB and One-Time Password (OTP) strong authentication solution. The release underscores Aladdin's commitment to meeting market demand through even easier device management and ever-important cost savings.

eToken NG-OTP 2.0 builds on the powerful Aladdin eToken NG-OTP first introduced in 2005, combining USB and One-Time Password authentication in a single, convenient smart card token. This new version of eToken NG-OTP offers the following key enhancements:

• Longer battery life - Significantly stronger batteries
• Low battery indicator - Alerts when the device battery (needed for OTP functionality) is running low
• New physical design - New case with OTP generation button and LED indicator moved to the back of the token for improved ergonomics
• Battery replacement option - An option for replacing the token's battery at Aladdin's premises at its end of life

With one of the longest battery lives in the industry and several design enhancements, eToken NG-OTP 2.0 provides organizations with an even simpler method of supplying powerful strong authentication solutions for employees, partners and customers. Greatly reducing the costs associated with replacing tokens due to low or dead batteries, eToken NG-OTP 2.0 offers an enhanced battery that lasts approximately five years or 10,000 clicks of the OTP generation button. Aladdin also now offers the option of battery replacement for eToken NG-OTP 2.0, eliminating the need to replace the device once its batteries are dead.

"After listening directly to the needs of our customers and solution partners, we're pleased to offer eToken NG-OTP 2.0, as this latest release shines with innovation and enhanced design," said Shlomi Yanai, vice president of the Aladdin eToken Business Unit. "With the introduction of this new token, no longer do dead batteries mean dead authentication tokens. Organizations and users now benefit from the convenience of a low battery indicator as well as the ability to replace the battery and not waste time and money completely replacing a token. We've added even greater cost savings and reliability to eToken's already long list of unmatched benefits."

About Aladdin eToken

Aladdin eToken is the world leader for USB-based authentication solutions. It provides strong user authentication and cost-effective password management solutions enabling organizations to easily and effectively expand business opportunities with secure network access, improve data security through enhanced encryption and digital signing, and reduce costs and vulnerabilities through superior password management. For more information, please visit www.Aladdin.com/eToken.

About Aladdin

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), founded in 1985, is a global provider of security solutions. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin's Software DRM products allow software developers and publishers to protect their intellectual property, increase revenues through licensing, and reduce losses from software piracy. Aladdin's Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (identity and password management) and what content their users can utilize (proactive content security). Aladdin has offices in 10 countries, a worldwide network of channel partners and holds numerous industry awards for innovation and reliability. For more information, please 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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