Aladdin eSafe Named Finalist for Prestigious SIIA Codie Award

CHICAGO, January 11, 2007 - Aladdin Knowledge Systems Ltd.
(NASDAQ: ALDN) the leader in Software DRM, strong authentication and content security solutions, today announced that Aladdin eSafe, an integrated, gateway-based anti-virus, spyware control, Web browsing security and application filtering solution, stands as a finalist for the Software & Information Industry Association's (SIIA) prestigious Codie Awards in the Best Security Solution category.

Established in 1986, SIIA's Codie Awards celebrate outstanding achievement and vision in the software, digital information and education technology industries. Through a unique combination of journalist and peer review, the Codie Awards recognize 72 categories of outstanding products and services, selecting form more than 1,200 nominations submitted by 600 companies. Neutral specialists, including more than 219 individuals in the trade press, consulting, academic, and IT communities, reviewed all of the products entered, determining the finalists.

"The 2007 Codie Finalists represent real winners, even at this stage of the contest," said Ken Wasch, SIIA President. "Competition is fiercer than ever and that makes selection as a Codie Finalist a real achievement. All the companies on this year's list should feel justifiably proud of their recognition." "It's a great honor for Aladdin eSafe to receive such premier industry recognition as a finalist for an SIIA Codie Award," said Shimon Gruper, vice president of technologies for the Aladdin eSafe Business Unit. "eSafe is consistently praised for its unique ability to proactively protect against fierce Web threats such as spyware and phishing attacks."

The next step in the process brings finalists before the SIIA members for a final peer vote that determines winners for each category. The 2007 Codie Awards will be presented at a gala event on April 17 at the historic Palace Hotel in San Francisco, California. For a complete list of 2007 Codie Award finalists, visit: www.siia.net/codies/2007/finalists.asp.

About SIIA

The Software & Information Industry Association (SIIA) is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to more than 800 leading software and information companies. For further information, visit www.siia.net.

About Aladdin eSafe

Aladdin eSafe is a high capacity, perimeter-based, strong content security solution that provides organizations a transparent shield from threats and enhances productivity. eSafe enables organizations to supply secure Web surfing through a wire speed security gateway featuring powerful anti-spyware and unauthorized application filtering; reduce spam though a proactive email security gateway with advanced spam management; and improve security through URL filtering with transparent inspection of HTTP, FTP, SMTP and POP3. For more information, please visit www.Aladdin.com/eSafe.

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.

©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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