Aladdin Opens Office in Shanghai

TEL AVIV, Israel, March 26, 2007 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software (DRM), strong authentication and content security solutions, today announced the opening of an office in Shanghai, China.

Led by Warren Stein, General Manager of Aladdin Asia, the Shanghai office supports the company's ongoing growth and presence in China. This month, the Aladdin eToken USB authentication solution received important certification status from Chinese police, validating eToken as a trusted computer security product.

On June 6, 2006, Aladdin announced that Shanghai Wicresoft Co., Ltd., a joint venture between Microsoft Corporation and the Shanghai Municipal Government in China, signed on as a significant distribution partner for Aladdin. Wicresoft is labeled a powerful influence in China's adoption of the latest technologies and IT management methodologies, as well as one of the most strategic investments in China. Aladdin's distribution agreement with Wicresoft comes as Aladdin's Software Digital Rights Management (DRM) and enterprise security sales continue to climb throughout the region, positioning China as an important step in Aladdin's growing Asian presence.

Aladdin's Shanghai office provides vital sales and support roles across all of Aladdin's product lines:

• HASP- The number one choice of software publishers worldwide, HASP provides strong software protection, licensing and distribution solutions that prevent software piracy, increase revenues, protect valuable intellectual property, and expand licensing models
• eToken - The world leader for USB-based authentication solutions, eToken provides strong user authentication and cost-effective password management solutions
• eSafe - A high capacity, perimeter-based, strong content security solution that provides organizations a transparent shield from Internet threats while enhancing productivity

"We are pleased to announce the first Aladdin office in mainland China," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "Aladdin now serves its growing, existing customer base throughout China more efficiently, while also providing valuable, local sales and support roles for this ever-important region. Aladdin's market-leading software DRM and enterprise security solutions continue to experience ongoing growth that will benefit greatly from our presence in Shanghai."

The opening of the Shanghai office follows Aladdin's formation of a subsidiary in Mumbai, India, announced on October 19, 2006.

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 12 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. 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

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