Aladdin HASP Receives 2007 Global Frost & Sullivan Award for Product Innovation

NEW YORK, May 9, 2007 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, USB-based authentication and secure Web gateways, today announced that Frost & Sullivan, a global growth consulting company, named Aladdin the recipient of its 2007 Global Frost & Sullivan Award for Product Innovation, recognizing Aladdin HASP’s leadership in the software DRM market and its unparalleled innovation in providing software developers trusted protection, licensing and distribution solutions.

The award is being presented to Aladdin today during the Company’s Analyst Day event in New York. Frost & Sullivan’s April 2007 analysis (N1AF-70), titled "World Content Protection and Digital Rights Management Markets," named Aladdin the recipient of the prestigious award.

"We’re pleased to recognize Aladdin through our 2007 Global Frost & Sullivan Product Award for Innovation," said Zippy Aima, research analyst at Frost & Sullivan. "Existing solutions in the market today enable enterprises to fulfill their business goals by protecting their assets against piracy and electronic theft. However, the need of the hour is to transform DRM solutions from being inhibitors to enablers that offer the flexibility required by software vendors to create new business opportunities that complement the workflow process, increase revenues, and render persistent security. The ability of Aladdin HASP to render security throughout the lifecycle of software development has enabled it to gain advantage over other competitive offerings. HASP provides uniquely powerful support to each phase of the software lifecycle."

"One of the highest honors ever presented to Aladdin, the 2007 Global Frost & Sullivan Award for Product Innovation stands as prestigious recognition of Aladdin HASP’s ongoing leadership throughout the worldwide software DRM market," said Avi Barir, vice president of software DRM at Aladdin Knowledge Systems. "Providing software protection, licensing and distribution solutions for more than 20 years, Aladdin is committed to offering its customers the most innovative, reliable technology that empowers software developers with unmatched flexibility and revenue-generating capabilities. We’re deeply honored to receive such far-reaching recognition from Frost & Sullivan’s analyst teams."

For more information on Frost & Sullivan’s Best Practices research and the "World Content Protection and Digital Rights Management" analysis, visit www.frost.com.

About Aladdin HASP

The Aladdin HASP family of software DRM products is the #1 choice of software publishers worldwide. HASP provides software developers with strong software protection, licensing and distribution solutions that enable them to prevent software piracy and increase revenues, protect intellectual property, and expand licensing models to reach more customers. Visit www.Aladdin.com/HASP.

About Aladdin

Aladdin Knowledge Systems' Software Rights Management products are the #1 choice of software developers and publishers to protect intellectual property, increase revenues, and reduce losses from software piracy. Aladdin eToken is the world's #1 USB-based authentication solution. The Aladdin eSafe secure Web gateway provides the most advanced protection against the latest Web-based threats and attacks. Aladdin has offices in 12 countries, a worldwide network of channel partners, and has won numerous awards for innovation. For more information, please visit the Aladdin Web site at www.Aladdin.com.

####

All trademarks and registered trademarks are the property of their respective holders.