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Aladdin Names Doron Cohen eToken CTO

CHICAGO, July 16, 2007 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), the leader in Software DRM, USB-based authentication, and secure Web gateways, today announced the appointment of Doron Cohen as CTO of the Aladdin eToken Business Unit. As the leader of eToken technology strategy, Cohen will be responsible for product strategy, technical innovation and participation in industry standards communities.

Prior to joining Aladdin, Cohen served as the CTO of the Identity Management Business Unit at BMC Software, where he played a leadership role in the inception, design and development of BMC identity management solutions and strategy. In more than 10 years at BMC Software, Cohen led the development of identity management solutions for the enterprise in distributed cross-platform environments, spanning operating systems, databases and applications.

Prior to his role as CTO, Cohen served as a director of development and led development teams at both BMC Software and New Dimension Software. Prior to New Dimension Software. Cohen served in a technology unit within the Israeli Defense Forces as a system programmer, developer and IT security project manager.

Cohen holds a Bachelor of Science degree in Math and Computer Science from Bar Ilan University in Israel and is a Certified Information Systems Security Professional (CISSP) from ISC2.

"Doron brings a strong record of technical leadership and expertise in identity management that will further energize Aladdin eToken's market leadership,” said Shlomi Yanai, vice president for the Aladdin eToken Business Unit. “We welcome Doron to Aladdin and see his position as yet another example of Aladdin's commitment to offering our valued customers the most innovative security products available."

About Aladdin eToken

Aladdin eToken is the world leader for USB-based authentication solutions. It provides strong user authentication and cost-effective password management solutions enabling organizations to easily and effectively expand business opportunities with secure network access, improve data security through enhanced encryption and digital signing, and reduce costs and vulnerabilities through superior password management. For more information, 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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All trademarks and registered trademarks are the property of their respective holders.

Press Contact:

Matthew Zintel
Zintel Public Relations
310.574.8888
Investor Relations Contact:

Debbie Kaye
Aladdin Investor Relations
investor@aladdin.com
646.468.0481