Aladdin HASP HL Drive Allows Publishers to Protect, License and Deliver Software on One USB Key

CHICAGO, March 20, 2007 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, strong authentication and content security solutions, today announced general availability of its new HASP® HL Drive, an innovative USB device that allows software vendors to protect, license and deliver their software applications, drivers and data to end-users using a single USB key.

HASP HL Drive is the latest addition to the HASP SRM protection key family, released yesterday, that enables software publishers to grow their business through software protection, IP protection and secure licensing. By combining hardware- and software-based protection into one solution, HASP SRM empowers software vendors with the flexibility to choose the level of protection and licensing that best fits their budget and business needs.

One Key: One Simple, Comprehensive Delivery System

Accompanying the time-tested capabilities of HASP HL, the HASP HL Drive key arms software vendors with the ability to easily deliver fully-licensed and protected software – greatly reducing installation steps for end-users. With HASP HL Drive, vendors can use partitioning software to provide mass storage for their end-users. This provides significant flexibility, allowing software vendors to partition the key in any way, designating space for the software (ROM) and mass storage for the end user – they can store their own application data files. Additionally, HASP HL Drive’s auto-run software setup capabilities allow end-users to run the protected application directly from the HASP HL Drive key, adding even further convenience for the end-user.

Unmatched Protection Against Software Piracy

Through on-chip 128-bit AES encryption a robust link between the application and the hardware key is ensured, while a secure communication channel between HASP HL Drive and the application offers powerful resistance to middle layer attacks. Other advanced protection features include:

• Secure, non PC-dependent external storage device – Store licenses, passwords, strings, and application dependent data in either protected read/write memory or ROM
• Unique ID number for every key – Provides strong Intellectual Property protection and easily identifies and confirms only properly licensed, authorized application users
• HASP SRM Envelope automatic file wrapper – Provides anti-reverse engineering, file encryption and code obfuscation to protect valuable algorithms and trade secrets

HASP HL Drive Supports Multiple Licensing Methods

HASP HL Drive stores tamper-proof licenses, using LicenseOnChip™ technology embedded in each key, ensuring licenses are protected by hardware. The new key also offers remote, flexible updating capabilities using a Remote Update System (RUS) which sends encrypted and RSA digitally-signed license terms to users in the field.

Multiple licensing methods supported include:

• Perpetual – Once purchased, the software can be used indefinitely
• Feature-Based – Enable or disable product features based upon user needs and budget. HASP HL Drive's added memory means a greater number of features and/or applications can be protected with each key
• Pay-Per-Use – Use the HASP HL Drive memory counters to charge users for the number of times they use the application or certain features
• Custom, Complex Licensing – Use the HASP HL Drive counters, secure memory, and unique ID to create the license models that best fit business needs

"A major leap forward for software vendors, HASP HL Drive brings an unsurpassed level of convenience and protection – combining not only security and licensing methods, but also allowing the actual delivery of the protected software on the key itself," said Avi Barir, vice president of Software DRM at Aladdin Knowledge Systems. "Offering a powerful, multi-tasking protection and licensing solution, Aladdin clearly leads the market with unsurpassed innovation and technology that directly answers software vendors’ demands for comprehensive, all-inclusive solutions that decrease steps while maximizing revenue through anti-piracy, IP protection and licensing options. HASP HL Drive is the culmination of more than 20 years of experience in developing the most useful tools possible for vendors in need of strong and reliable software DRM solutions."

HASP HL Drive is designed and manufactured under ISO 9001:2000, ensuring consistent quality and performance. For additional information on Aladdin HASP HL Drive and the entire suite of HASP SRM solutions, visit www.Aladdin.com/HASP.

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.

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