Aladdin Announces General Availability of HASP SRM

New HASP Software Rights Management solution gives software publishers the means to enable significant business growth and increased profitability

CHICAGO, March 19, 2007 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, strong authentication and content security solutions, today announced general availability of HASP SRM, 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 has 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 new 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.

Innovative Business-Enabling Technology and Complete Life-Cycle Support

The heart of HASP SRM is its Cross-LockingTM technology that enables software publishers to choose the security key after protection is implemented: a hardware key – HASP HL or a software (electronic) key – HASP SL. Engineers protect the software once and release a single protected application binary. Business decision-makers can then apply licensing models and choose the security protection key with a click of the mouse any time during the entire lifecycle of the product — from initial release and after deployment in the field.

An easy-to-implement, out-of-the-box solution, HASP SRM empowers software publishers with the ability to mix-and-match a variety of protection, licensing and distribution capabilities for the creation of tailored, customized product offerings. With HASP SRM, software publishers can readily adapt their operations, on-the-fly, in response to new business opportunities such as new geographical markets, emerging target segments, different user types, and budget constraints. Because HASP SRM comes from Aladdin, customers can gain all of these advantages while being assured that their products and underlying intellectual property benefit from best-of-breed protection.

HASP SRM optimizes and facilitates the integration of Software Rights Management in the software publisher’s organization, offering business flexibility at every stage of the software life-cycle. Role-based processes and tools designed for developers, sales, marketing, fulfillment and IT staff, ensure effectiveness, quick time-to-market, and reduced costs. Engineers protect their software with a single automatic HASP SRM Envelope tool that now supports HASP HL and HASP SL protection keys. Marketing managers use the HASP SRM Business StudioTM to define software packages, apply license models and security protection keys, as well as to track customer orders, license terms and extensions.

"With the introduction of HASP SRM, Aladdin has gone a long way toward helping the industry arrive at a definition of Software DRM as a business-enabling technology solution," said Zippy Aima, research analyst for the Digital Media Practice at Frost & Sullivan. "In addition to specifying the high degree of flexibility and security required to implement innovative distribution and sales models critical in today’s competitive market, industry players such as Aladdin have exhibited best practices critical to the success of these models."

> Stronger Security & Increased Memory for HASP HL Hardware Keys

Software publishers who choose to secure their software and licenses to the HASP HL hardware protection key enjoy major security enhancements. HASP SRM forms a secure communication channel between the HASP HL key and the application, preventing middle layer attacks. Multiple 128-bit encryption keys used with the on-chip AES encryption engine ensure exclusive and unsurpassed security for every protected application, module and feature. Unique HASP LicenseOnChip™ and UpdateOnChipTM technologies protect the licenses and their terms: all license logic is executed on the hardware chip itself, never leaving the key. Additionally, the memory of HASP HL keys has been quadrupled, enabling the protection of twice as many applications and features. HASP SL, based on the field-proven HASP HL technology, also includes multiple AES 128-bit encryption keys that deliver unparalleled software-based protection.

Scalability and Backward Compatibility

All HASP HL keys currently in the field are HASP SRM-ready, as their hardware supports the HASP SRM functionality. For an immediate and smooth migration to the new technology, publishers can quickly and easily update these keys remotely to ensure their new software versions receive the full HASP SRM security enhancements. Furthermore, as with the HASP tradition, HASP SRM is fully backward compatible to earlier HASP generations.

"We are pleased to announce the much-anticipated general availability of Aladdin HASP SRM," said Avi Barir, vice president of Software DRM at Aladdin Knowledge Systems. "As the worldwide leaders in Software DRM and with more than 20 years of expertise in the industry, Aladdin is confident HASP SRM stands as the most flexible, innovative solution for protecting, licensing and distributing software that truly enables ALL software publishers to deliver their products with full confidence —not only in preventing loss of revenue, but also in ensuring growth of their top and bottom lines. Aladdin continues to set the standard for innovation, reliability and service, and HASP SRM stands to significantly strengthen our market leadership and greatly expand our addressable market for HASP solutions worldwide."

For additional information on Aladdin HASP SRM, 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.

©2002-2007 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP, 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

####

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