Frost & Sullivan Names Aladdin HASP Market Leader in Software Digital Rights Management Market

CHICAGO, 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, has named Aladdin the market leader in the Software Digital Rights Management (DRM) Market.

In its April 2007 analysis (N1AF-70), titled "World Content Protection and Digital Rights Management Markets," Frost & Sullivan lists Aladdin HASP's market share as leading far ahead of competitors. The research states, "Aladdin stood out as the market leader in the software DRM market commanding well over a third of the total market share. The company has been enjoying enormous growth year on year, which can be attributed to its focus on technology innovation. The company offers both a hardware- and software-based protection and licensing solution, thus allowing customers to easily integrate the solution in conjunction with their workflow model. The unique capability offered by the solution has enabled Aladdin to effectively penetrate the market over the years and gain a strong foothold in the industry."

Aladdin HASP SRM: Unmatched Innovation

HASP SRM stands as the industry's first business-accelerating Software Rights Management solution that fully integrates hardware- and software-based anti-piracy and intellectual property protection with secure licensing. Recognizing that today's software publishers operate in an increasingly competitive business environment, Aladdin built into HASP SRM an unprecedented level of flexibility that delivers a wide range of business choices never before available. Using HASP SRM to manage their entire software protection and licensing lifecycle, publishers can maximize revenue and increase differentiation by offering a variety of attractive software packages that meet dynamic market trends and changing customer needs. Aladdin's HASP SRM solution enables publishers to sell and distribute software as, when and where they need, without having to maintain multiple DRM systems and without compromising their products' security.

"The uniqueness of the solution stems from its ability to unify hardware- and software- based solutions," said Zippy Aima, research analyst at Frost & Sullivan. "Through a single set of tools the customer can get hardware-based or software-based solutions, or a combination of both. Aladdin HASP provides security throughout the lifecycle of software, including the software development phase — and the protection continues far after it reaches the end-user."

"Through constant dedication to meeting the needs of our customers and matching Aladdin HASP's technology with the industry’s latest avenues for distribution and licensing, Aladdin HASP continually reaffirms itself as a provider of software DRM solutions that are trusted, reliable and highly-praised by both developers and end users," said Avi Barir, vice president of software DRM at Aladdin Knowledge Systems. "Frost & Sullivan's recognition as the worldwide leader in software DRM illustrates our long-standing position as the #1 choice for software publishers as well as our ongoing, fast-paced growth in recent years."

Frost & Sullivan also named Aladdin as the recipient of its 2007 Global Product Innovation Award for the software DRM market. For more information on Frost &Sullivan and the "World Content Protection and Digital Rights Management" analysis (N1AF-70), 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.

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