Aladdin Knowledge Systems Appoints Aviram Shemer
Chief Financial Officer

TEL AVIV, ISRAEL, January 10, 2007, - Aladdin Knowledge Systems, Ltd. (NASDAQ: ALDN), the leader in Software DRM, strong authentication and content security solutions, today announced the appointment of Mr. Aviram Shemer as Chief Financial Officer effective immediately.

Shemer returns to Aladdin after holding senior management positions at two Israeli-based NASDAQ-listed companies. Most recently, he was Chief Financial Officer at PowerDsine Ltd., a developer of Power over Ethernet (PoE) solutions recently acquired by Microsemi Corporation. Prior to that, he served as Vice President of Finance for Alvarion, Ltd., a provider of wireless broadband solutions and specialized mobile networks. Mr. Shemer served at Aladdin for six years in various positions, most recently serving as Vice President of Finance. Mr. Shemer holds a B.A. in Accounting and Economics and an MBA with a specialization in Finance and Accounting from Tel Aviv University.

"A seasoned executive with strong experience in finance and operations, Aviram offers a clear record of accomplishment and a unique familiarity with Aladdin," said Yanki Margalit, Chief Executive Officer of Aladdin Knowledge Systems. "We welcome Aviram to Aladdin's senior management team. He offers consistently proven management experience important to Aladdin as we continue to implement our growth strategy and further strengthen our financial position."

As announced previously, Ms. Efrat Makov, former Chief Financial Officer, will remain with the Company through the reporting of fourth quarter and fiscal year 2006 financial results to ensure a smooth transition.

About Aladdin

Aladdin Knowledge Systems Ltd. is a global provider of security solutions that reduce software theft, authenticate network users and protect against unwanted Internet and e-mail content, including spam, viruses and spyware. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin's Software DRM products allow software publishers to protect their intellectual property and increase revenues by reducing losses from software theft and piracy. Its Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (authentication) and what content their users can utilize (content security). Visit the Aladdin Web site at www.Aladdin.com.

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