One of World's Largest Rental Car Companies to Deploy Aladdin eToken to Meet Payment Card Industry (PCI) Data Security Standard Compliance Requirements

CHICAGO, July 2, 2007 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), the leader in Software DRM, USB-based authentication, and secure Web gateways, today announced that one of the world's largest rental car companies will be deploying thousands of Aladdin eToken USB authentication keys across many of its U.S. facilities next month. The selection of Aladdin eToken follows a lengthy evaluation process by the company, directly competing against numerous other solutions to meet Payment Card Industry (PCI) Data Security Standard compliance requirements.

The company will also be deploying Aladdin's industry-leading Token Management System (TMS) in order to efficiently and easily manage its rental car company employee credentials, as well as the complete token life cycle and its associated security applications – all from one centralized system. Large amounts of time spent managing passwords affects productivity at a company of its size. Thus, the deployment of Aladdin eToken and the TMS, as part of their larger PKI implementation, reduces IT expenses and allows employees of the rental car leader to gain robust, two-factor authentication using highly-durable, portable and convenient eToken PRO USB keys. Remote employees will use the eToken PRO keys to securely access their VPN and logon to important Web applications – helping to prevent sophisticated thieves from extracting credit and debit card information from unsecured databases.

"Aladdin continues to see ongoing momentum in eToken growth, especially among large, global companies concerned with tightening access to sensitive data and providing overall, far-reaching user authentication," said Chen Arbel, vice president of engineering at Aladdin Knowledge Systems. "The Aladdin eToken deployment by one of world's largest rental car company's reaffirms eToken's ability to provide large-scale, reliable and easily-managed authentication solutions for thousands of employees, as their selection of eToken centered on Aladdin's superior technology, service and support. Combined with our unique TMS solution, eToken shines as an industry leader in innovation and flexibility – standing as a powerful tool for meeting important PCI Compliance requirements."

About Aladdin eToken

Aladdin eToken is the world leader for USB-based authentication solutions. eToken provides strong user authentication and cost-effective password management solutions, enabling secure network access, improved data security through enhanced encryption and digital signing, as well as compliance with a wide range of regulatory requirements worldwide. Visit www.Aladdin.com/eToken.

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. laddin 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, visit the Aladdin Web site at www.Aladdin.com.

©2007 Aladdin Knowledge Systems, Ltd. All rights reserved. eToken, 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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