Aladdin Knowledge Systems Ltd (MM) (ALDN)

Identity theft becomes increasing threat
By RYAN NADEL


Israelis lost over $10 million as a result of identity theft in 2005, a significant portion of which was caused by password theft where stolen passwords were used to access victims' bank accounts and perform other malicious transactions.

Those numbers are from Aladdin Knowledge Systems, an Israel-based international data security company that has taken a leading role in developing methods to protect users from password theft in response to the increased vulnerability of passwords, and on Monday hosted the "Absolutely Everybody is Talking Internet Security" conference at the Airport City convention center.

"The concept is just like you have a key for your home and a key for your car, now you have a key for your data," said Aladdin CEO Yanki Margolit.

Margolit presented to the crowd of about 300 Aladdin's eToken user authentication device, which enables users to safely carry their personal digital credentials with them and log on to company networks using a USB key without the use of traditional passwords, which carry with them great risk. A traditional password can easily be stolen, lost, shared or cracked but the eToken, he said, eliminates these risks by securely storing passwords and digital credentials.

"New enemies have emerged as threats, we are now fighting big companies not teenage hackers," explained Shimon Gruper, of Aladdin, at a one of the sessions.

According to Gruper, the world of viruses and Internet theft has been penetrated by big companies who are motivated by the money.

"Cyberspace is more lucrative than the drug trade," he said, quoting statistics from the US Treasury.

Gruper identified the biggest danger as Trojan viruses, which infect the user disguised as, or imbedded in, legitimate software. Trojan viruses have the ability to infiltrate the victim's computer access passwords and track activity, a method referred to as "keylogging."

Gruper reported that during 2005 there was an increase of over 140% in Trojan viruses infecting computers. These increases, he explained were a direct result of organized networks of infectors.

Network security was also on the agenda at the conference. Because security methods often interfere with business operations, Cisco Systems, a US-based worldwide leader in networking, has collaborated with Aladdin to develop security systems that work on the network level as opposed to the individual computer or server level.

"We want security to be a business enabler, we focus on aligning the security practice to the business practice," said Boaz Elgar, security business development manager at Cisco Systems Israel. Cisco's network security products focus on creating a self-defending network, in which the entire network is a point of defense.

Meanwhile, Amir Lecker, director of Israel operations for Utimaco Safeware, a Germany-based data security developer, focused on the unique risk posed by portable devices such as PDAs, cell phones, and laptops, calling these items the "black hole" of data security because they can be easily stolen or simply lost.

"On portable items people do not have specialized security," he said. "There needs to be a mobile security system."

Margolit also commented on the broader Israeli hi-tech market, expressing concerns about its future growth.

"We used to manufacture and develop. Now we are just developing and then turning to someone else and looking for exits," he said, noting that the Indian hi-tech market developed from a center of to a leader in research and development.

"I am concerned that Israel is moving in the opposite direction," he said. "We need to make sure we pass on Israeli hi-tech to the next generation."

http://www.jpost.com/servlet/Satellite?cid=1161811240826&pagename=JPost%2FJPArticle%2FShowFull

Hiccup or flu at Aladdin?
The stock has plunged since a revenue warning. CEO Margalit: We’re not alone.

Gitit Pincas 17 Jul 06 17:20

These days, when Israeli shares are sinking on international bourses, it’s hard to say for certain what the cause is. The mix includes suffered by all technology shares, as the Nasdaq’s index struggle to keep its head above water shows. It includes pressure before the publication of financial reports for the second quarter. There is also includes a new ingredient: the escalation in the security situation in Israel, with Katyushas falling all over the north, and US investors worried that some Israeli companies are halting production and heading to the bomb shelters. The weekend and the start of the new week show that anything is possible.
One Israeli share added to this recipe a special ingredient all of its own. Six days after the end of the second quarter of 2006, Aladdin Knowledge Systems Ltd. (Nasdaq: ALDN; TASE: ALDN) published a revenue warning. Since then, the share has fallen 30%. Aladdin makes USB-based verification and content security management solutions for enterprises. Its market cap is $210 million.

Aladdin’s failure to meet its guidance apparently came as a surprise. Two weeks before the end of the quarter, the company’s managers, including those based abroad, told foreign investors that all was well. Three weeks later, the company was forced to announce that revenue for the second quarter would be $20.8 million, $2 million less than market forecasts and less than its previous guidance of $21.7-23.7 million. The company added that it now expected earnings per share for the second quarter to be $0.22-0.26, down from its previous guidance of $0.26-0.29 (representing a profit of $3.9-4.4 million).

Why is Aladdin missing its guidance? The company left investors in the dark. In the press release, Aladdin chairman, president and CEO Yanki Margalit said, “We encountered softness in select geographic markets during the quarter. As a result, we have undertaken a global restructuring of our sales organization to ensure we capture every sales opportunity and continue to grow our business. To achieve these goals, we have promoted Elinor Nissensohn to the position of global VP of sales and marketing.” He did not mention digital rights management (DRM) or other product lines, nor gave specifics about the source of the problem.

CIBC Capital Markets analysts Shaul Eyal, Yair Reiner, and Manish Hemrajani believe that Aladdin’s problem is in Germany. His hypothesis is that the 2006 World Cup caused the problem. Oscar Gruss analyst Ehud Eisenstein blames the US market. By the way, Margalit has said more than once that he felt too many analysts were covering the company. Jeffries & Co., one of the underwriters for Aladdin’s secondary offering, no longer covers the company, while UBS, which led the offering in early 2005, has not yet begun covering it.

Margalit and Aladdin CFO Efrat Makov spoke with investors recently, but not with the media. In his first interview since the revenue warning, Margalit told “Globes” by phone from the US, “Our sales will be slightly less than forecast, but not our profit.”

“Globes”: What does your analysis show?

Margalit: “We cannot talk about one problematic product during the quarter, but there were a number of territories that were weaker than expected. My research of the industry indicates that we’re not alone in this battle. We may have been the first to announce that our second quarter results will be lower, but we won’t be the only company with lower sales than it expected.”

There won’t be profit warnings at this stage, two weeks after the end of the quarter. Do you mean that companies in your field are likely to miss the numbers?

“It’s possible. We’re seeing difficulties at companies like EMC Corp. (NYSE:EMC), IBM Corp. (NYSE:IBM), and Secure Computing Corp. (Nasdaq:SCUR). I don’t like doing less than I planned and then blaming the market, and I don’t intend to do so. But I see a lot of companies in the industry facing difficulties, some of them back in the previous quarter, the first quarter of 2006, which was full of profit warnings.”

Which geographical areas are your source of weakness? Capital market sources say your biggest problem was the US, and that your sales restructuring is meant to solve it.

“We cannot provide further details.”

What about the hypothesis that the World Cup caused the weakness?

“It’s amusing and interesting. I heard this hypothesis. It seems that people are looking for reasons and excuses in all kinds of places, and not always where they really lie. What is certain is that the entire industry is struggling with growth, more than it originally thought.”

An uncomfortable situation

Is it possible that a large part of the fall in Aladdin’s share is related to a loss of confidence in the company, a problem that is worsening?

“I don’t know how to answer that. It’s hard to distinguish. When a share falls, you always look for the reasons, but I can’t tell you which part our announcement is responsible for, and which part the market as a whole is responsible for. I prefer not to specifically discuss the results, but to propose looking at us in a broader context as an IT company and as an Israeli company. In both respects, we are in an uncomfortable situation. I can say that in general, and not only at Aladdin, we’re facing a more difficult period.”

How much of the quarter did you close during the final month? Was it over 50%. Is it still possible to talk about linearity during a quarter or not?

“We cannot say what the proportion is, but non-linearity is intensifying. Quarters have become increasingly back-end for a long time now. I can say that Aladdin continues to be an excellent company, and we should be analyzed in a broader perspective in terms of time and industry. Aladdin’s general position in terms of products and market is excellent. Unquestionably, the share falls in a period like this with events like these, and that’s OK. I hope that it will respond with equal speed when we supply good news.”

What should we understand from the appointment of Nissensohn? After all, until now, global sales were directly under your authority.

”This is a necessary step and a continuation of a process begun at Aladdin several years ago, in three stages. First was the construction of business units that enabled us to grow and expand. This step meant I had a smaller, but still large, management. The second step was the appointment of CFO Efrat Makov, who basically manages Aladdin’s backbone. Besides this, we had territory managers, and Elinor Nessensohn one of them. This structure was not yet flexible enough, and did not let me see things only from above, as it should be. Therefore, the third step was to take all the global sales organizations and consolidate them under Elinor. Her performance exceeded expectations during the past six quarters, and she’ll build a new sales structure.”

A general question. You’re in the US. What do you hear from Americans about the situation in Israel?

“On one hand, there’s a kind of empathy and sympathy. On the other hand, they’re tired of the situation. They’re sick of it.”

When Aladdin published its warning for the third quarter of 2005, most investment houses subscribed to the theory that it was a hiccup; a one-time crisis that would pass. The company presented very good financial results for the subsequent quarter. On the basis of an analysis of forecasts and recommendations, it now seems that analysts are not so sure that this was a one-time incident. It may be an attack of hiccups. We’re talking about reorganization at a company, something that indicates a performance problem. It is now harder to believe that the second half of 2006 will be better than the market expects, because the problems won’t be solved overnight.

Aladdin will publish its financial report on July 24, at which point it will be possible to see exactly what happened to the forecasts for the second quarter are, what really caused the weakness (Ronaldinho? Zidane? Or maybe simply bad performance), and what can be expected for the year. This happens to be a good opportunity to mention that Retalix Ltd. (Nasdaq: RTLX; TASE: RTLX), another Israeli company that published a profit warning, went even further, and will publish its financial report for the second quarter on August 29. This is not very early, definitely not for a company that wants to send a message of business as usual.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2006

Dubi

Oscar Gruss cuts Aladdin to Hold

09.7.06 | 10:13 By Omri Cohen

As last week rolled to a close, Oscar Gruss analyst Ehud Eisenstein downgraded Aladdin Knowledge Systems (Nasdaq, TASE: ALDN) from Buy to Hold, after the company warned that second-quarter 2006 revenues would fall short of expectations.

Aladdin, a provider of computer network security systems, now sees second-quarter earnings at the lower end of its previous range of 22 cents per share to 26 cents per share. Quarterly sales are now expected to be in a range of $20.8 million to $21 million, down from its prior outlook of $21.7 million to $23.7 million.

Eisenstein says he sees no substantial change in Aladdin's business environment, but the company may be having difficulties in implementing its business program, which it couldn't resolve in the space of a single quarter.

The analyst therefore counsels investors to wait and see what steps the Aladdin management takes in order to restart growth.

Aladdin's field is data security, including software to protect digital copyright. It has two key products, eSafe to protect digital content and eToken, a user identification key when accessing the enterprise network.

In the first half of 2005 Aladdin posted 21% earnings growth, Eisenstein says, but that dropped to 15.8% in the second half. At the end of the third quarter of 2005 Aladdin had warned that growth in its digital protection software sales (DRM) were expected to slow.

Aladdin did not provide a breakdown of product sales, so it's hard to see where the drag is, says the analyst.

For the year 2006 Eisenstein lowered his forecasts, to $95 million sales or 10% growth compared with 2005. His pro forma profit forecast was lowered by 17 cents per share to $1.

In parallel, CIBC World Markets repeated an Outperform rating for Aladdin, but cut the 12-month price target from $25 to $20. Analyst Shaul Eyal thinks the German market, which is responsible for 20-22% of Aladdin's sales, was the main problem in the second quarter, possibly due to distraction by the World Cup.

http://www.haaretz.com/hasen/spages/736240.html

Dubi

“Aladdin could become another Symantec”
IT security guru Steve Hunt explains how Israeli security companies can achieve breakthroughs, and talks about the opportunities of the local software giants.

Shlumik Shelah 14 Jun 06 17:02

“Wherever in the world I have clients, Israel is considered the leader in security,” says Steve Hunt, one of the world’s most influential analysts in IT security, explaining what brought him to Israel. “From the corridors of Washington to South America and Scandinavia, everyone always asks me, ‘What’s happening in Israel?’”
Hunt, a former VP for IT security research at Forrester Research (Nasdaq:FORR), left a year ago to found A4 International, where he is trying a slightly different model from the one used at Forrester. He still provides advice and analyses of the security market, especially IT security. At A4 International, he plays a broader role in the decisions of companies that hire his services. A4 International focuses on consultancy and business development relating to convergence of all security fields (information, physical, and homeland security).

Hunt is a technology analyst. Before joining Forrester, he worked for several years at Giga, acquired by Forrester in late 2001. He says that each year he talks with thousands of managers using different security technologies, which is the source of his vast knowledge about security accumulated over years as an analyst. One way in which he helped clients was to match security products suppliers with frustrated customers, which made him popular among security products makers, including quite a few Israeli companies in the sector. Either because of this, or for other reasons, Hunt visits Israel several times a year.

In early June, Hunt participated in the InfoSec 2006 conference organized by Secoz Ltd. Despite his appreciation for Israeli technology, he has quite a bit of criticism of business developments in Israel. “I think that anyone developing technology should check whether the product will be ready for market when the market is ready for the technology, and whether there will be too much competition. These are seemingly simple recommendations, but they’re apparently often forgotten. When I look at the Israeli technology space, I see too many Israeli technology companies doing the same thing. Too many are competing against each other, and not enough are targeting new niches. I’m mainly referring to my field of expertise (the security market), but when I talk with analysts from other sectors, they tell me the same thing.

“On one hand, Israel is known to everyone as a country with a record of high achievement in technology innovation. On the other hand, Israel suffers from competing against itself. When a technology company is a little successful, six other companies immediately pop up to compete against it.”

“Check Point missed growth opportunities”

One Israeli company that Hunt considers a market leader is Aladdin Knowledge Systems Ltd. (Nasdaq: ALDN; TASE: ALDN), run by chairman and CEO Yanki Margalit. Hunt does rule out the possibility that Aladdin could become an acquisition target by a software giant, but he sees the company achieving greatness in another direction.

“To an observer, Aladdin has been a company without a clear strategy from the beginning. The company could grow through acquisition to become a major power in the security sector. If it chooses not to do this, and so far it has not, then I see it as a target for a takeover. The problem with anyone trying to acquire it is to swallow the company’s three product lines - anti-virus (eSafe), authentication (eToken), and copyright protection (HASP). This complicates an acquisition of the company.

“I’d rather see Aladdin acquiring another growing company and turning its brand into a major power. After acquiring Veritas Software, Symantec Corp. (Nasdaq:SYMC) changed from a leading name in security into a major software infrastructure company. I think that there’s room in the security sector for another great name in IT security that will replace Symantec. Aladdin could do it. Symantec was the largest company in the IT security sector, but it now focuses more on infrastructures.

“There’s room in the market for a new large security player in the area of information security or security in general. Aladdin also has a good chance of combining its products with the physical security sector where it will use its eToken solution. Aladdin could become a major brand if it wanted. They could be on the level of Symantec if they wanted; they have the tools for it.”

Hunt is more critical of another Israeli company - Check Point Software Technologies Ltd. (Nasdaq: CHKP). He says Gil Shwed’s security giant has not always picked the right road. “Check Point is a company that for years had many possibilities to exploit opportunities in the market. And I am sure that it’s hard for a company like that to decide over time which opportunities to exploit. As a result, Check Point has missed some growth opportunities, which is not to detract from its success. It executed its decisions. Check Point is a company with technological skills; they constantly create new solutions in the lab. They decide which solutions to bring to market, which partners will help them, and which trends to focus on. This is confusing for a company with one product, certainly for a company with hundreds of products.”

“Symantec should renew itself to cope with Microsoft”

“Globes”: What is the hottest field in the security market today?

Hunt: “In general, event driven management is the hottest field in the security market. Billions of dollars are being poured into it. It includes things such as video surveillance, alarms, and surveillance and locating equipment. These are immense fields of investment and revenue, and they all have one thing in common: all the systems were designed to help us find out what’s happening, how important it is, and what to do about it.”

Hunt mentions a number of Israeli companies in this sector, including NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) (a developer of video surveillance systems), and Orsus Solutions Ltd., run by chairman and CEO Arye Finegold, a co-founder of Mercury Interactive Corp. (Pink Sheets:MERQ). Orsus is developing a situation management response coordination solution.

Hunt says, “Every time I see their solution, I’m pleased. Another sector with room for innovation is video analysis. Today’s technology in this area is inadequate, but Israel has promising companies in this sector, such as start-up Math.”

It seems that Israeli companies are unable to penetrate large homeland security projects.

“Israel is successful in the military sphere, and is known for this in the world. This is a major part of any homeland security solution. Israel appears to be well equipped at the moment to contribute to the world in the area of military technology, and to make the world a better place, but there are products in the simple homeland security sector, such as Haifa-based SDT - Scent Detection Technologies Ltd. (run by chairman Shabtai Shavit, a former head of the Mossad), which has technology for detecting airborne chemicals. This technology could be used to protect airports, for example.”

In your opinion, how can Israeli companies succeed in the security sector?

“I think that the key for success at almost every Israeli technology company is to find a large sales channel partner. There are few technology companies, outside of Check Point, that were wholly Israeli and succeeded. Check Point’s brand is pushed in the world. When people buy Check Point, they know the product is Check Point’s. There’s a simpler strategy, which is to consolidate a number of products in a single package. When Check Point, Aladdin, and even Whale Communications Ltd. (acquired by Microsoft Corp. (Nasdaq:MSFT) a few weeks ago) made sales, they usually went through a distributor who sold several key products to a customer. For example, a customer will buy from a distributor a protection system that includes Check Point’s firewall, together with a number of other products, such as an anti-virus from other software providers. It’s the distributor who provides the package.

“This is equally true in the homeland security sector. It would be correct for a homeland security company to link up with a distributor who will provide packages from several software providers. Another option is to use an OEM-type distributor, or to cooperate with another manufacturer.”

What can IT security companies do against the threat from Microsoft? It seems that Symantec is under pressure.

“All that means is that when a certain technology become standard, such as anti-virus or firewall, Microsoft integrates it into its operating system or another products package. This leaves Symantec, for example, to create the next products. Obviously, they will feel pressured so long as they rely on ant-virus. They have to move on and renew themselves.”

Published by Globes [online], Israel business news - www.globes.co.il - on June 14, 2006

Dubi

Aladdin Inks Significant Chinese Distribution Deal with Shanghai Wicresoft, Co. Ltd.

Tuesday June 6, 10:14 am ET

Shanghai Wicresoft Co., Ltd., a joint venture between Microsoft Corporation and the Shanghai Municipal Government, to distribute eToken and HASP - Aladdin CEO attends signing ceremony today in Shanghai

CHICAGO, June 6 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced that Shanghai Wicresoft Co., Ltd., a joint venture between Microsoft Corporation and the Shanghai Municipal Government in China, now serves as a significant distribution partner for the Aladdin eToken identity management solution and HASP software protection and licensing solutions. Aladdin CEO Yanki Margalit attended a signing ceremony today at the Regal International East Asia Hotel in Shanghai.
(Photo: http://www.newscom.com/cgi-bin/prnh/20060606/NYTU100

Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Source: Aladdin Knowledge Systems

· Aladdin & Shanghai Wicresoft, sign a distribution agreement.
· Click Here to Download Image

Designed to strongly promote China's software industry, Wicresoft is considered 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. In January 2004, Aladdin announced its first China-based office in Hong Kong, citing the ever-growing demand for software anti-piracy and enterprise security solutions.

"The cooperation between Aladdin and Wicresoft is based on the great perspective of information security industry in China," said Ingrid Wang, President of Shanghai Wicresoft Co., Ltd. "While the 'why' of security may be quite clear nowadays, the 'how' is an entirely different story. Wicresoft is now taking a more active role as a catalyst, coordinator, and the 'bridge' to introduce leading DRM and enterprise security technology into the local market. This enriches our own service system to benefit customers and also accelerates the development of the industry."

"We're pleased to now work hand-in-hand with one of the leading forces in the Chinese IT industry," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "This distribution agreement stands as one of our most strategic efforts in better serving our customers in China. We look forward to increasing our HASP and eToken sales in China through Wicresoft's distinguished position within the country."

About Wicresoft

Shanghai Wicresoft Co., Ltd. is a leading IT and Business Process Outsourcing company in China. Established as a joint venture between Microsoft Corporation and Shanghai Municipal Government in 2002, Wicresoft has spent the last four years dedicated to the success of our customers by leveraging high- quality people and leading-edge technology.

Shanghai Ex-Mayor Chen Liangyu's presence at the signing ceremony of the joint venture between Shanghai Alliance Investment Co Ltd. and Microsoft Corporation signifies Shanghai Municipal Government's full support of the new company. Both investors show full expectations on the cooperation that will introduce advanced concepts of management and latest technology from international industry fields to China, and build up local software companies' competencies for joining in competition in the global IT industry.

Based on the long-term vision, "To be a trusted world-class IT & Business Process Outsourcing Service Provider through Agility, Integrity and Responsibility", Wicresoft offers a wide range of integrated business, technology and process solutions to enable its customers to achieve their business aims and potential. With deep expertise and more than 800 IT professionals, we serve hundreds of government projects and enterprises around the globe, including many Fortune 500 corporations. Having acquired certifications in COPC-2000, ISO-9001 and CMM Level III, Wicresoft aims to be a trusted world-class IT & Business Process Outsourcing Service Provider. Visit www.wicresoft.com.

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.

http://biz.yahoo.com/prnews/060606/nytu100.html?.v=53

Dubi

Aladdin eSafe Named Best Anti-Trojan Solution in 2006 SC Magazine European Awards

Monday May 1, 7:58 am ET

Aladdin eSafe gains significant recognition in U.S. and European SC Magazine Awards

CHICAGO, May 1 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced that Aladdin eSafe, an integrated, proactive content security, spyware and virus protection solution for the Internet gateway, received the "Best Anti-Trojan" award in the 2006 SC Magazine European Awards. On February 15th, Aladdin also announced that eSafe won the same award in this year's SC Magazine U.S. Awards.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

This latest recognition in Europe was presented to Shimon Gruper, vice president of technologies for the Aladdin eSafe Business Unit, during an awards ceremony on April 25th in London. SC Awards stand as prestigious recognition in the information security industry, with winners being selected among long lists of candidates. The two SC Magazine Awards accompany the recent release of Aladdin eSafe 5 FR2, which brings to market the most comprehensive Web security for organizations, together with a new URL Filtering Module and Spyware Neutralizer designed for protection against the fast-growing number of malicious Web sites containing dangerous spyware.

"It's a unique honor for Aladdin eSafe to receive such prestigious awards on both sides of the Atlantic," Gruper said. "We're even more pleased to see eSafe selected as the 'Best Anti-Trojan' solution within days of announcing eSafe 5 FR2 -- the latest version of the product that continues to expand its best-of-breed protection for Web browsing, anti-spyware and application filtering. These awards illustrate our commitment to providing zero-day protection for the top threats facing organizations today."

About Aladdin eSafe 5

Aladdin eSafe is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:


-- Layered anti-spyware
-- Spam management
-- Application filtering
-- Proactive anti-virus technologies

Unlike other products which focus on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most -- at the gateway front line. For more information on Aladdin eSafe, visit http://www.Aladdin.com/eSafe.

About SC Awards

With over 1,300 product and service nominations from over 330 competing companies globally, the SC Awards are the world's leading awards program for the information security industry. The SC Awards program spans US, Asia, and UK. The SC Awards are composed of both the Reader Trust Technology Awards -- voted on by SC readers in each region and the SC Awards Council, a group of carefully selected senior CSOs -- and the Professional Awards that are judged by a panel of the industry's top talents.

Recognizing technical excellence and professional achievement across a variety of different categories, the SC Awards is a truly unique program developed to bring attention to the industry's top products and highlight the professionals that have both created them and use them within their companies. For more information, visit http://www.scmagazine.com.

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 http://www.Aladdin.com.

http://biz.yahoo.com/prnews/060501/nym137.html?.v=41

Dubi

Aladdin Knowledge Systems Reports First Quarter 2006 Financial Results

Monday April 24, 7:00 am ET

Record Revenues of $22.9 Million

GAAP Net Income of $3.8 Million or $0.25 Per Diluted Share
Non-GAAP Net Income of $4.3 Million or $0.28 Per Diluted Share


CHICAGO and TEL AVIV, Israel, April 24 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced financial results for the first quarter of fiscal year 2006 ended March 31, 2006.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Revenues for the first quarter of 2006 were a record $22.9 million, an increase of 12 percent from $20.3 million for the same period in 2005. Aladdin again recorded double digit year-over-year growth rates in both of the Company's operating segments, Software DRM and Enterprise Security. Software DRM revenues for the first quarter were $16.1 million, an increase of 12 percent from $14.4 million in the same period in 2005. Enterprise Security revenues for the first quarter of 2006 were $6.8 million, a 14 percent increase from $5.9 million recorded in the same period in 2005.

Net income in accordance with Generally Accepted Accounting Principles (GAAP) for the first quarter of 2006 was $3.8 million or $0.26 per basic share and $0.25 per diluted share and compared to first quarter of 2005 GAAP net income of $1.2 million or $0.10 per basic share and $0.09 per diluted share. GAAP net income for the first quarter of 2005 was impacted by a $2 million one-time charge to settle a patent lawsuit. The one-time charge reduced net income per basic and diluted share by $0.15 and $0.14, respectively.

Non-GAAP net income for the first quarter of 2006, excluding stock-based compensation expense related to the Company's adoption of Financial Accounting Standards (FAS) No. 123R of approximately $0.5 million was $4.3 million, or $0.30 per basic share and $0.28 per diluted share. (Refer to the "Use of Non-GAAP Measures" section and accompanying financial table for reconciliation of GAAP financial information to Non-GAAP).

Cash, cash equivalents and marketable securities totaled $80.6 million at March 31, 2006, up $3.4 million from $77.2 million reported at the end of 2005. The increase was mainly attributable to positive cash flow from operations during the first fiscal quarter 2006 of $3.6 million.

Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems said, "Aladdin recorded an excellent start to 2006, with balanced year-over-year growth across our core Software DRM and Enterprise Security business segments. Strong demand for all of our advanced security solutions has allowed Aladdin to deliver record revenues, operating income and first quarter net income. The primary driver behind our top and bottom line financial performance is our ongoing ability to deliver innovative products and security solutions which meet the evolving needs of our global customer base."


Financial and Operating Highlights
- Record quarterly revenues of $22.9 million.
- Non-GAAP net income of $4.3 million, excluding stock-based
compensation expense of $0.5 million.
- Cash flow from operating activities totaled $3.6 million.
- Cash, cash equivalents and marketable securities increased by $3.4
million to $80.6 million.

Product Highlights
- Software Security (DRM)
* Launched the latest version of HASP HL, Aladdin's Software DRM
solution. Advanced features include stronger software anti-piracy
measures, new developer tools, and broader support for operating
systems.
- eSafe® Integrated Proactive Content Security Solution
* Aladdin eSafe named "Best Anti-Trojan" solution at the 2006 SC
Magazine Awards.
* Aladdin gained strong traction with its ISP/Mobile initiative,
signing contracts with two ISPs and two cellular phone operators
from Europe, the Middle East and Asia who are deploying the new
eSafe Mobile Content Security Gateway (MCSG) solution.
- eToken(TM) User Authentication Solution
* Aladdin signed an OEM agreement, expanding its partnership with RSA
Security. Under the agreement, RSA Security will release a new RSA
SecurID® authenticator that incorporates the Aladdin eToken USB
technology.
* Aladdin announced two new patent licensing and OEM agreements for
its eToken technology.
* Presented eToken NG-FLASH, a device that combines the powerful
capabilities of strong authentication with the convenience of a
mass storage device, and demonstrated a new biometric
authentication technology based on cardiac patterns. The new
cardio-based biometric technology provides authentication using a
person's natural BioDynamic Signature (BDSTM).

For further information on product highlights, please refer to the press room on the Company's Web site which can be found at http://www.Aladdin.com/about/pressroom.asp .

Future Business Outlook

Aladdin continues to provide a business outlook on a quarterly basis. The Company undertakes no obligation to update its estimates. Based on current business activities and general economic conditions, Aladdin's management believes revenues for the second quarter of fiscal 2006 will be in the range of $21.7 million to $23.7 million. Non-GAAP diluted earnings per share for the second quarter of 2006 are expected to be in the range of $0.26 to $0.29, excluding the impact of stock-based compensation expense which is anticipated to be between $0.03 to $0.04 per diluted share. GAAP diluted earnings per share for the second quarter of 2006 are expected to be in the range of $0.22 to $0.26.

Use of Non-GAAP Measures

This press release provides financial measures for net income and basic and diluted earnings per share that exclude stock-based compensation expense and are therefore not calculated in accordance with generally accepted accounting principals (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare it with historical net income and earnings per share prior to the adoption of FAS 123R.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it important to make these non-GAAP adjustments available to investors.

Earnings Teleconference

The Company will hold a teleconference today, April 24th, at 9:00 a.m. EDT to discuss the quarterly results. To participate in the call, please dial (800) 399-0427 in North America, or +1 (706) 643-1624 internationally, approximately five minutes prior to the scheduled call start time. The call is being simultaneously Web cast and can be accessed on the Aladdin Web site at http://www.Aladdin.com/investor. Please visit the Web site at least 15 minutes prior to the scheduled call time to register for the Web cast and download any necessary audio software.

A replay of the call can also be accessed via telephone from 12:00 p.m. EDT on April 24th through 11:59 p.m. on May 1st by calling (800) 642-1687 in North America, or +1 (706) 645-9291 internationally, and entering the following access code: 7600190. A Web cast replay of the call will also be made and can be accessed on the Aladdin Web site at http://www.Aladdin.com/investor.

http://biz.yahoo.com/prnews/060424/nym161a.html?.v=1

Dubi

Aladdin eSafe 5 FR2 Offers Most Comprehensive Web Security and Spyware Protection for the Gateway

Monday April 17, 8:00 am ET

Aladdin eSafe 5 Feature Release 2 to be available May 1st - New URL Filtering Module and Spyware Neutralizer offer extensive protection against illicit Web sites containing dangerous spyware

CHICAGO, April 17 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced that Aladdin eSafe 5 Feature Release (FR) 2 will be released for general availability on May 1st 2006. This latest eSafe solution brings to market the most comprehensive Web security for organizations, together with a new URL Filtering Module and Spyware Neutralizer designed for protection against the fast-growing number of malicious Web sites containing dangerous spyware.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Prior to the growth in spyware, URL filtering was simply a tool for maintaining employee productivity. With the introduction and proliferation of spyware and Web surfing attacks, the weight shifted almost entirely to spyware blocking and security. eSafe 5 FR2's new URL filtering capabilities prove vitally important for an organization's security, since huge numbers of inappropriate Web sites clearly contain harmful spyware that can result in damaging information and identity theft. This security layer comes in addition to eSafe's unique four-layer anti-spyware protection with AppliFilter(TM) capabilities that identifies and blocks outbound spyware traffic.

"It is becoming increasingly more common for organizations to be infected with spyware and other threats simply by browsing the Internet -- something we did without thinking for years," said Matt Anderson, market analyst for The Radicati Group. "Now, it's clear that organizations must take stronger precautions and employ powerful, new tools such as those inside Aladdin eSafe 5 FR2 in order to greatly reduce the risk of these dangerous Web-borne threats."

"eSafe 5 FR2 represents a shift in the role of URL filtering -- now a critical component of Web content filtering in order to maintain security, safety and productivity," said Shimon Gruper, vice president of technologies for the Aladdin eSafe Business Unit. "In fact, traditional URL filtering companies are attempting to position themselves as security companies. However, there is a lot of expertise to gain in a short amount of time. Since 1997, Aladdin has been focused on Web browsing security, investing significant development into eSafe 5 FR2's unmatched spyware protection. eSafe 5 FR 2 stands as the clear answer to overall Web security, offering the most comprehensive set of tools for blocking the latest threats. We're pleased to harness Aladdin's specialty and security expertise through the release of eSafe 5 FR2."

eSafe 5 FR2 offers unmatched Web browsing security and Web filtering, eliminating threats common to Web sites that are usually categorized as not work related. eSafe employs the largest and most accurate database of classified URLs in the world, with over 20 million entries, 58 categories, and more than 100,000 daily updates -- five to ten times competing databases. Featuring the largest, most accurate, and most advanced URL filtering database eSafe uses sophisticated algorithms and intelligent crawling and analysis to guarantee that 97 percent of all browsed Web sites in an organization are indexed.


Numerous new features inside eSafe 5 FR2 include:

URL Filtering
-- LDAP/AD Integration -- LDAP integration allows directory
synchronization for users and groups and Microsoft Active Directory
support
-- URL Filtering Profiles -- Ability to define different URL filter
profiles for users/groups, Workstation hostname or IP and Subnets
according to IP range or VLAN (any profile can be active during all,
work or after-hours times)
-- Flexible User Identification -- Users can be identified using new
methods, including authentication by existing proxy, user-name
identification using LOGIN script and user-name identification using a
client installed agent -- useful for public computers, libraries,
schools, etc. that do not have LDAP or Active Directory

Spyware Protection
-- Spyware Infected PC Warning Message -- When a spyware infected PC is
detected by AppliFilter, the next time a user tries to surf the Web he
will be redirected to a special customizable warning Web page. This
Web page can optionally contain a link to Spyware Neutralizer's
ActiveX (see below) to disinfect his PC
-- Spyware Neutralizer ActiveX -- A stand alone Spyware Neutralizer
module can be embedded into any Web page (or downloaded manually) and
launched by the user to disinfect spyware-infected PCs. This is useful
for networks where users do not login to a domain server (e.g.
schools), or as a value-added service for xSPs

Management and Reporting
-- Outbound Traffic Logging and Reporting -- HTTP/FTP traffic direction
and attempts to open outbound connections on restricted ports are now
recorded in the session log. This will show important information
such as unauthorized file uploads or suspicious Trojan activity
-- User Identification in Reports -- Whenever possible, the user name
will be resolved via LDAP/AD and written to the report in addition to
the IP address. This is useful to quickly identify the violating user
without the need to figure out who is behind a certain IP address

Enhanced HTTP/FTP Security
-- FTP Upload Blocking -- Selectively blocking FTP uploads from
unauthorized PCs can reduce the chance of outbound Trojan traffic

For more detailed information on Aladdin eSafe 5 FR2 features and benefits, visit http://www.Aladdin.com/eSafe.

http://biz.yahoo.com/prnews/060417/nym084.html?.v=34

Dubi

Fidelity again an interested party in Aladdin

16.4.06 | 09:50 By Omri Cohen

Aladdin Knowledge Systems (TASE, Nasdaq: ALDN) can boast a prestigious new interested party: Fidelity, the American mutual funds giant.

Fidelity last week reported to the U.S. Securities and Exchange Commission that it owns 1.8 million shares in Aladdin, which makes hardware-software data security systems. Its shareholding is equivalent to 12.4% of the Israeli company's share capital.

Market sources called it a show of faith in the company, which is run by Yanki Margalit.

Fidelity is not mentioned as an interested party in Aladdin's expanded financial statement for the year 2004. At the time it held less than 5% of the company, if anything at all. Market sources surmise that the mutual funds company therefore built up its shareholding in recent months, which could help explain why Aladdin stock has jumped 30% from the start of 2006.

It isn't Fidelity's first fling with Aladdin. In February 2000, it reported reducing its Aladdin shareholding from 5.5% to 3.9%.

http://www.haaretz.com/hasen/spages/706232.html

Dubi

Aladdin eSafe's New 'HOFA' Technology Offers World's First Proactive Cell Phone Virus Protection

Wednesday April 12, 8:02 am ET

Major Italian cellular provider and largest Israeli cellular provider choose Aladdin eSafe Mobile Content Security Gateway

CHICAGO, April 12 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced that the Aladdin eSafe Mobile Content Security Gateway (MCSG) for mobile operators now includes a new, patent pending Hostile Operation Flow Analysis (HOFA(TM)) technology that stands as the first proactive virus protection for cell phones. The release of this new technology accompanies fast-increasing adoption among mobile operators. A major Italian cellular provider and the largest Israeli cellular provider recently selected Aladdin eSafe MCSG for comprehensive, gateway-based content protection for their customers.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Unlike most mobile antivirus solutions which reside on the handset, eSafe MCSG is situated in the mobile operator's center between the Internet and the cellular provider network. Aladdin's eSafe inspects the content of mobile MMS messages and mobile WAP traffic as well as HTTP and SMTP content before it reaches the cellular phone. Testing of eSafe MCSG with the new HOFA technology resulted in 100 percent proactive detection and blocking of the three most common Symbian malware families: SymbOS.Cabir, SymbOS.Skulls and SymbOS.Commwar.

The HOFA technology, based on research by the Aladdin eSafe Content Security Response Team (CSRT), is a new addition to eSafe's existing sophisticated code emulation that inspects executable code in real time. HOFA adds proactive security by identifying malicious code with the first variant, blocking all of its descendents. Instead of creating regular signatures, HOFA creates a strict logic model of the malware's execution flow. This guarantees nearly 100-percent proactive recognition of a malware family.

"eSafe MCSG's new HOFA technology empowers cell phone carriers with a new level of confidence by providing proactive blocking of mobile malware," said Shimon Gruper, vice president of technologies for the Aladdin eSafe Business Unit. "HOFA technology eliminates the lag time between detecting a new outbreak, and releasing an update -- a service never-before available to the industry. While most anti-virus and other security vendors remain reactive in their approach to this fast-growing mobile threat, Aladdin eSafe once again stands as an innovative solution that provides unmatched, zero-day protection."

About Aladdin eSafe MCSG

Aladdin eSafe MCSG is an integrated gateway content security solution specifically designed to protect cellular networks against new and emerging virus threat.


Among Aladdin eSafe MCSG features are:
-- Anti-virus engine that identifies and blocks all Symbian, J2ME,
PalmOS, and Windows Mobile/CE malicious code
-- Identifies and blocks malicious code in all MMS formats
(MM1/MM3/MM4/MM7)
-- Full WAP traffic inspection for mobile and PC malicious code
-- Multi-layered anti-spam and phishing prevention for email messages
-- High throughput to support millions of subscribers
-- Built-in load balancing and fail-over
-- OutbreakSentry system for MMS and mobile Internet traffic
-- 24x7 security service with timely updates for new mobile threats

For more information on Aladdin eSafe, visit http://www.Aladdin.com/eSafe.

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 http://www.Aladdin.com.

http://biz.yahoo.com/prnews/060412/nyw037.html?.v=49

Dubi

Aladdin's Market-Leading HASP Software Licensing Authentication Token Offers Full Support for Universal Applications

Wednesday April 12, 8:00 am ET

Aladdin HASP named leader in Software Licensing Authentication Token market for third straight year

CHICAGO, April 12 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced that its Aladdin HASP hardware-based software protection and licensing solutions now offer support for Universal Applications. The HASP HL and HASP4 software protection keys now support OS X.4 (Tiger) on both Intel/Mac and PowerPC. The new support follows a recent IDC report that named Aladdin as the #1 worldwide provider of Software Licensing Authentication Tokens (SLAT) for the third straight year.

(LOGO: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Software developers using HASP can now allow their customers to enjoy the improved performance of the Intel-based Mac machines, while still allowing their software to run on existing PowerPC-based Mac machines. For added convenience, C API with an Xcode sample and a Daemon GUI-based installer are also provided.

Expanded Support Illustrates Aladdin's SLAT Leadership Position

HASP's overall reliability and continued innovation and support for the latest operating systems reinforce its ever-expanding market leadership. Published in December 2005, IDC's "Worldwide Hardware Authentication Token 2005-2009 Forecast and 2004 Vendor Shares" report places Aladdin's HASL HL ahead of all other providers, noting $50.4 million in revenue for 2004 and 37.2 percent of the market. The report also highlights Aladdin's 20.9 percent increase in HASP HL sales from 2003 to 2004 -- more than double the percentage growth of the next largest competitor for the same period. An abstract of the IDC report (Doc # 34452) is available online at http://www.idc.com .

"We're pleased to announce this new Universal Applications support from HASP," said Avi Barir, vice president of Software Digital Rights Management (DRM) at Aladdin Knowledge Systems. "This new support allows developers to offer software that supports the latest performance-oriented operating systems available, while consistently providing the same level of convenience to customers using other platforms. Demonstrating our expanded market leadership since 2002, the IDC report also underscores Aladdin's long-term commitment to provide unmatched security, reliability and ease-of-use for software developers in need of powerful piracy protection and licensing enforcement. We continue to gain market share because we listen to our customers and offer the most reliable, most robust solution available."

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware- and software-based anti-piracy solutions engineered for software publishers to ensure that their intellectual property is protected and they get paid for each product they ship. Aladdin HASP provides the highest level of anti-piracy protection available to combat unauthorized copying and use. HASP also delivers powerful new tools to enable innovative software licensing schemes and flexible pricing models that allow publishers to bring their products to market with confidence while increasing sales and profits:


* HASP for Single-User: A hardware-based (HASP HL) or software-based (HASP
SL) solution for protecting and licensing software running on stand-
alone computers.
* HASP for Enterprise: A hardware-based (HASP HL Net) solution for
protecting and licensing software used by multiple users in network
environments and the enterprise.
* HASP for Trialware: A software-based solution (HASP TT) for creating
secure, controlled software trialware.
* HASP for Documents: A hardware-based system (HASP DocSeal) for
protecting intellectual property and sensitive information in HTML
files.

HASP is the worldwide market leader in software DRM solutions and is used by more software developers than any other product. In a recent head-to-head comparison conducted by independent testing lab KeyLabs, HASP finished far ahead of its closest competitor with a large lead in key categories including security, ease-of-use, flexibility of tools and functionality, and compatibility across platforms and environments.

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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060412/nyw036.html?.v=49

Dubi

Aladdin Granted Important U.S. Patent for Proactive Protection Against Spyware and Viruses

Tuesday April 11, 9:36 am ET
New Patent Supports Industry-Leading Proactive Technology Within Aladdin eSafe

CHICAGO, April 11 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced it has been granted U.S. patent 7,013,483, titled "Method for emulating an executable code in order to detect maliciousness." The new patent covers the detection of viruses, spyware and other kinds of malicious code by emulation -- one of the most powerful methods for identifying malicious activity.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

An emulator, as described in the patent, creates a virtual environment under which the code of the tested sample is examined instruction-by- instruction. The viral activity is then detected by correlating the changes with the viral behavior. Emulation features several advantages in comparison to other methods of detecting and/or preventing viral damage, since it helps to detect polymorphic viruses, encrypted viruses and unknown viruses, which cannot be detected by other methods.

The new patent further supports the uniquely proactive capabilities within the award-winning Aladdin eSafe solution. Recently awarded Information Security Magazine's Hot Pick Award and named the Best Anti-Trojan Solution in the 2006 SC Magazine Awards, eSafe stands as one of the most reliable gateway- based content security solutions that routinely blocks zero-day malicious code. eSafe's proactive capabilities serve as a significant differentiator from competing solutions that initially leave organizations vulnerable during the crucial first few hours of a new malicious code discovery. Aladdin's 2005 Content Security Response Team Report concluded that eSafe proactively detected 96 percent of virus outbreaks.

"Aladdin's newly patented technology positions eSafe not only as a security solution that proactively detects malicious code in executable files, but also one of the most efficient solutions available today -- prioritizing throughput and speed without compromising on security," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "We're pleased to announce this patent, as it illustrates our constant drive for innovation."

About Aladdin eSafe 5

Aladdin eSafe is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:


-- Layered anti-spyware
-- Spam management
-- Application filtering
-- Proactive anti-virus technologies

Unlike other products which focus on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most -- at the gateway front line. For more information on Aladdin eSafe, visit http://www.Aladdin.com/eSafe .

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 http://www.Aladdin.com .

eSafe, 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.


Press Contact: Investor Relations Contact:
Matthew Zintel Mark Jones
Zintel Public Relations Global Consulting Group
matthew@zintelpr.com mjones@hfgcg.com
310.574.8888 646.284.9414

Source: Aladdin Knowledge Systems Ltd.

http://biz.yahoo.com/prnews/060411/cgtu024.html?.v=50

Dubi

Aladdin eSafe Virtual Appliance Receives Checkmark Anti-Spyware Gateway Certification from West Coast Labs

Tuesday April 11, 9:35 am ET
West Coast Labs' Anti-Spyware Solutions Technology Report Highlights eSafe's Simple Installation, Easy Configuration and User-Friendly GUI

CHICAGO, April 11 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the leader in Software DRM, identity management and content security solutions, today announced its award-winning eSafe Virtual Appliance received West Coast Labs' Checkmark Anti-Spyware Gateway Certification. Accompanying the certification, West Coast Labs also released an Anti-Spyware Solutions Technology Report highlighting eSafe's numerous benefits.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

In the West Coast technology report, the lab outlines the strict requirements for its Anti-Spyware Gateway certification and notes numerous positive conclusions for the eSafe Virtual Appliance, including:


-- "eSafe Virtual Appliance is a comprehensive gateway solution, with
each machine being able to cope with thousands of users; running
clusters of up to eight appliances can cater for even larger
organizations."
-- "The GUI will be familiar to any users of Aladdin's eSafe Gateway
product ... It is a lively and colored display, topped by a grid
showing what the product has seen, classified by source ... "
-- " ... the administrator is left with a console providing essential
information at a glance, and a detailed but easily navigable set of
options."
-- "Multiple options for detection and reaction exist, but it can be run
effectively using default options. Especially useful is the ability
to set differing setting for separate protocols."
-- "eSafe Gateway's easily understood graphics cover individually the
different protocols in use, instantly highlighting any arriving
malware in a way designed to attract attention to the particular area
of the gateway under attack. This information is of vital importance
to any administrator and its presentation here could hardly be
better."

"eSafe Virtual Appliance is a comprehensive gateway solution which deals effectively with a variety of spyware threats at this critical point in the network," said Chris Thomas, operations director at West Coast Labs.

"Today, Spyware is the number one security problem for enterprise users," said Shimon Gruper, vice president of technologies for the Aladdin eSafe Business Unit. "The Checkmark Anti-spyware certification and the West Coat technology report provide independent verification of eSafe as a best-of-bread Web browsing security solution that protects our customers against the ever- growing spyware threat."

To download the West Coast Labs Technology Report, please visit http://www.aladdin.com/esafe/westcoast_report.asp . For more information on West Coast Labs, visit http://www.westcoastlabs.org .

About Aladdin eSafe 5

Aladdin eSafe is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:


-- Layered anti-spyware
-- Spam management
-- Application filtering
-- Proactive anti-virus technologies

Unlike other products which focus on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most -- at the gateway front line.

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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060411/cgtu025.html?.v=49

Dubi

Aladdin shares rise over 6.4% on NASDAQ following upgrade

09.4.06 | 11:35 By TheMarker

Shares of Aladdin Knowledge Systems (NASDAQ: ALDN) rose over 6.4% on Friday after an analyst upgraded the stock and said the company's digital rights management (DRM) software could pick up in the first quarter
DRM, technology used to protect intellectual property, represents about 70% of Aladdin?s revenues.

Andrey Glukhov, an analyst with Brean Murray, Carret & Co. upgraded the stock to "Strong Buy" from "Accumulate," and lifted his price target from $21 to $26.
"We believe the company's DRM business, is likely to return to solid growth in the first quarter of 2006, after posting disappointing 4% year-over-year growth in the fourth quarter of 2005," Glukhov wrote in a note.

Glukhov also noted that the stock trades at a discount to its peers, and suggested the company's eToken business is undervalued. Aladdin's eToken is a USB device used to generate secure passwords to access protected networks.

Glukhov expects the company to earn $1.13 per share for the year, a penny higher than the average estimate of analysts polled by Thomson Financial.
Aladdin reported a record $81.8 million in sales in 2005.The figures represented a growth rate of only 18.4%, following a rise of 26.3% in 2004. Similarly, while profits grew by $6.1 million in 2004, the firm ended 2005 with profits of $5.6 million, after taking out a one-time charge of $2 million to settle lawsuits.
Aladdin ended 2005 with $12.4 million in profits, as opposed to $8.8 million recorded in 2004.

http://www.haaretz.com/hasen/spages/704040.html

Dubi

>>The McAfee managers came to Israel with a clearly defined goal. The company has adopted a strategy built around mergers and acquisitions and set aside $1 billion for buy-outs. This is a lot of money and would be enough to do more than just acquire a few start-ups. This was the trigger behind the rumors circulating at the beginning of the week about the possibility that McAfee might acquire Israeli security company Aladdin Knowledge Systems (Nasdaq: ALDN; TASE: ALDN). >>

(#msg-10435541)

Dubi

Aladdin Offers Technical Session at SD West 2006: Best Practices for Maximizing Software Security & Protecting Your IP

Monday March 13, 8:00 am ET

CHICAGO, March 13 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that Chen Arbel, vice president of development and support, will offer an advanced technical session during Software Development Conference & Expo 2006 in Santa Clara, CA on Wednesday, March 15th from 8:30 to 10 a.m. at the Santa Clara Convention Center.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Titled "Best Practices for Maximizing Software Security & Protecting Your IP," Arbel's session will provide an in-depth description of best practices in software security. Through technical demonstrations, the session will illustrate how software developers are using Digital Rights Management (DRM) to secure their software and intellectual property, as well as enable secure licensing and distribution.

Arbel offers extensive security experience, serving in key roles in development teams for HASP, Aladdin's market-leading software protection and licensing solution. Prior to joining Aladdin, Chen held a classified technology position for the Israeli government and served as Captain in the Special Forces for the Israeli Defense Force (IDF) where he gained extensive experience in high technology security. Chen holds a Bachelor's degree in Computer Science from Polytechnic University and a Master's degree in Computer Science from the New York Institute of Technology.

For more information on SD West 2006, visit http://www.sdexpo.com.

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware- and software-based anti-piracy solutions engineered for software publishers to ensure that their intellectual property is protected and they get paid for each product they ship. Aladdin HASP provides the highest level of anti-piracy protection available to combat unauthorized copying and use. HASP also delivers powerful new tools to enable innovative software licensing schemes and flexible pricing models that allow publishers to bring their products to market with confidence while increasing sales and profits:


* HASP for Single-User: A hardware-based (HASP HL) or software-based (HASP
SL) solution for protecting and licensing software running on stand-
alone computers.

* HASP for Enterprise: A hardware-based (HASP HL Net) solution for
protecting and licensing software used by multiple users in network
environments and the enterprise.

* HASP for Trialware: A software-based solution (HASP TT) for creating
secure, controlled software trialware.

* HASP for Documents: A hardware-based system (HASP DocSeal) for
protecting intellectual property and sensitive information in HTML
files.

HASP is the worldwide market leader in software DRM solutions and is used by more software developers than any other product. In a recent head-to-head comparison conducted by independent testing lab KeyLabs, HASP finished far ahead of its closest competitor with a large lead in key categories including security, ease-of-use, flexibility of tools and functionality, and compatibility across platforms and environments.

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 http://www.Aladdin.com.

http://biz.yahoo.com/prnews/060313/nym077.html?.v=33

Dubi

Aladdin eSafe and eToken Solutions Named Finalists for the SC Magazine European Awards 2006

Wednesday March 8, 8:00 am ET

CHICAGO, March 8 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced it has been named a finalist for four categories of the SC Magazine European Awards 2006.

Aladdin eSafe, an integrated gateway content security solution providing proactive email security and Web browsing security, stands as a finalist for the Best Anti-Trojan, Best Anti-Virus and Best Anti-Spyware categories. Aladdin eToken, a cost-effective, strong user authentication and password management solution, also stands as a finalist for the Best Security Solution for Healthcare category.

Considered the leading annual awards program for the information security industry, SC Magazine's SC Awards highlight the leading companies, products and services in the field. Winners will be announced during a gala event on April 25th at The Grosvenor House Hotel, Park Lane, London.

"Following on the heels of five finalists spots and Aladdin eSafe's 2006 SC Magazine Award for "Best Anti-Trojan Solution" in the U.S. Awards, this significant European recognition is a continued honor," said John Gunn, vice president of global marketing for Aladdin Knowledge Systems. "Being named a finalist in four SC Magazine European Awards categories is an illustration of Aladdin's ongoing drive to meet customer demands through constant innovation."

About SC Awards

With over 1,300 product and service nominations from over 330 competing companies globally, the SC Awards are the world's leading awards program for the information security industry. The SC Awards program spans US, Asia, and UK. The SC Awards are composed of both the Reader Trust Technology Awards -- voted on by SC readers in each region and the SC Awards Council, a group of carefully selected senior CSOs -- and the Professional Awards that are judged by a panel of the industry's top talents.

Recognizing technical excellence and professional achievement across a variety of different categories, the SC Awards is a truly unique program developed to bring attention to the industry's top products and highlight the professionals that have both created them and use them within their companies. For more information, visit http://www.scmagazine.com.

About Aladdin eSafe 5

Aladdin eSafe, recently named a finalist for four 2006 SC Magazine Awards, is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:


-- Layered anti-spyware
-- Spam management
-- Application filtering
-- Proactive anti-virus technologies

Unlike other products which focus on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most -- at the gateway front line.

For more information on Aladdin eSafe, visit http://www.Aladdin.com/eSafe.

About Aladdin eToken

Aladdin eToken provides cost-effective strong user authentication and password management solutions. It provides enhanced security and ensures safe information access; improved password and ID management; and secure mobility of digital credentials/certificates and keys. Aladdin's product vision and innovation is evidenced by the company being awarded two key patents covering this security technology: USB devices with a smart card and USB devices as portable storage for credentials.

About the size of an average house key, the award-winning Aladdin eToken is easy to use and highly portable, providing users with powerful authentication by requiring something they have, the tamper-proof eToken, and something they know, a password. It is used for secure network logon, secure VPN, Web Sign-On, Single Sign-On, secure email, and numerous other applications. eToken USB and traditional smart card form factors are available with physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smart cards and ID Badges within an organization. In addition, TMS offers seamless, and reliable management for Enterprise security services combining both PKI and non-PKI systems. For more information, visit http://www.Aladdin.com/eToken.

http://biz.yahoo.com/prnews/060308/nyw079.html?.v=42

Dubi

Aladdin Announces Third Annual Series of U.S. Luncheon Events: 'Maximizing Software Security & Sales'

Thursday March 2, 8:00 am ET

Eight Regional Events Designed for Software Developers, Sales and Product Managers and Current Users of Aladdin HASP Focus on Protecting and Licensing Software

CHICAGO, March 2 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced its third annual series of complimentary luncheon events titled "Maximizing Software Security & Sales: Solutions for Protecting and Licensing Software."
(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

The series is uniquely designed to provide fresh insight into methods of protecting and licensing software and intellectual property. Each regional event includes a roundtable discussion over lunch, as well as presentations on best practices in IP protection and secure licensing, the latest hacker tools and technology, eleven steps to maximizing your protection against hackers, innovative secure licensing technology and technical demonstrations of key Aladdin HASP features and implementations.

"Aladdin's luncheon events prove to be very informative," said Juan Herrera, Software Developer for Orlando, Florida-based Security Information Systems. "The multiple presenters not only showcased their latest products, but also informed on how to leverage these products and what best practices should be followed when using them. It was a very worthwhile event."

The Aladdin series is scheduled to visit the following locations throughout 2006:


Dallas, TX -- Wednesday, March 8th - Maggiano's North Park
Montreal, CANADA -- Tuesday, April 18th - Montreal Casino
Mississauga, CANADA - Wednesday, April 19th -- Ruth's Chris Steakhouse
Philadelphia, PA -- Tuesday, May 16th - Maggiano's
Boston, MA -- Wednesday, June 14th - Legal Seafoods
Orange County, CA -- Wednesday, September 13th - FOX Sports Grill
New York, NY -- Tuesday, October 10th - Ruth's Chris Steakhouse
Washington, DC -- Wednesday, November 8th - Chevy Chase - Maggiano's


For more information and event registration, visit http://www.hasphl.com/events .

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware- and software-based anti-piracy solutions engineered for software publishers to ensure that their intellectual property is protected and they get paid for each product they ship. Aladdin HASP provides the highest level of anti-piracy protection available to combat unauthorized copying and use. HASP also delivers powerful new tools to enable innovative software licensing schemes and flexible pricing models that allow publishers to bring their products to market with confidence while increasing sales and profits:


-- HASP for Single-User: A hardware-based (HASP HL) or software-based
(HASP SL) solution for protecting and licensing software running on
stand-alone computers.
-- HASP for Enterprise: A hardware-based (HASP HL Net) solution for
protecting and licensing software used by multiple users in network
environments and the enterprise.
-- HASP for Trialware: A software-based solution (HASP TT) for creating
secure, controlled software trialware.
-- HASP for Documents: A hardware-based system (HASP DocSeal) for
protecting intellectual property and sensitive information in HTML
files.


HASP is the worldwide market leader in software DRM solutions and is used by more software developers than any other product. In a recent head-to-head comparison conducted by independent testing lab KeyLabs, HASP finished far ahead of its closest competitor with a large lead in key categories including security, ease-of-use, flexibility of tools and functionality, and compatibility across platforms and environments.

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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060302/cgth026.html?.v=47

Dubi

Aladdin HASP HL v1.30 Offers Unmatched Software Security, Ease-of-Use

Wednesday March 1, 8:00 am ET

HASP HL v1.30 becomes the industry's 'de-facto' standard for 64bit operation systems

CHICAGO, March 1 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced Aladdin HASP HL v1.30, the latest version of its family of hardware-based software protection and licensing solutions that offers a powerful combination of enhanced security for software developers and greater ease-of-use.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Recently named a finalist for the coveted SIIA CODiE award for the Best Digital Rights Management (DRM) solution, Aladdin HASP HL stands as the most widely used hardware-based Software DRM solution worldwide. The release of HASP HL v1.30 furthers software publishers' ability to grow their revenues through the highest level of protection against piracy and intellectual property theft and unrivaled ease-of-use.

Stronger Software Anti-piracy Measures

The new HASP HL Envelope features enhanced anti-hacking measures for both .NET and Win32 files, adding an additional layer of protection to the most secure wrapping technology on the market today.

New Developer Tools

Software vendors facing even the most aggressive schedules enjoy new tools that allow for effectiveness and quick time to market:


* A new Envelope offers unmatched ease and simplicity in protecting .NET
classes and offers protection for a broader range of applications by
supporting combined Win32 and .NET projects.

* Data file encryption is applied by a few mouse clicks with a new
DataHASP Encryption utility.

* A special Converter tool enables hiding vendor-specific codes within
seconds.

Broader Support for Operating Systems
As Windows x64 becomes the industry's "de-facto" standard for 64bit operation systems, HASP HL V1.30 promises unmatched protection for native Windows x64 applications. In addition, vendors that create embedded devices enjoy HASP HL protection for embedded software running on the Windows XP Embedded operating system.

"The release of HASP HL v1.30 once again demonstrates Aladdin's growing, market-leading position by continually enhancing security, ease-of-use, and providing the most extensive platform options available," said Avi Barir, vice president of Software Digital Rights Management (DRM) at Aladdin Knowledge Systems. "Aladdin offers software developers a uniquely powerful combination of security, flexibility and convenience - empowering them to find even more ways to sell their products, target new market segments and increase revenues. We're extremely pleased to announce worldwide general availability of HASP HL v1.30."

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware- and software-based anti-piracy solutions engineered for software publishers to ensure that their intellectual property is protected and they get paid for each product they ship. Aladdin HASP provides the highest level of anti-piracy protection available to combat unauthorized copying and use. HASP also delivers powerful new tools to enable innovative software licensing schemes and flexible pricing models that allow publishers to bring their products to market with confidence while increasing sales and profits:


* HASP for Single-User: A hardware-based (HASP HL) or software-based (HASP
SL) solution for protecting and licensing software running on stand-
alone computers.

* HASP for Enterprise: A hardware-based (HASP HL Net) solution for
protecting and licensing software used by multiple users in network
environments and the enterprise.

* HASP for Trialware: A software-based solution (HASP TT) for creating
secure, controlled software trialware.

* HASP for Documents: A hardware-based system (HASP DocSeal) for
protecting intellectual property and sensitive information in HTML
files.


HASP is the worldwide market leader in software DRM solutions and is used by more software developers than any other product. In a head-to-head comparison conducted by independent testing lab KeyLabs, HASP finished far ahead of its closest competitor with a large lead in key categories including security, ease-of-use, flexibility of tools and functionality, and compatibility across platforms and environments. For more information on HASP, visit www.Aladdin.com/HASP.

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.

http://biz.yahoo.com/prnews/060301/clw505.html?.v=30

Dubi

>>Aladdin Knowledge Systems is a digital security business that provides solutions for digital rights management and internet security. One of their products, eToken, allows users to generate and provide secure storage for passwords, digital certificates, secure strong authentication, digital signing and encryption.
This data security is based on smart cards but requires no special readers.
The company has two headquarters, one in Tel Aviv and another in Arlington Heights, Illinois. It has customers all over the world, including corporations such as ExxonMobil and Adobe, and governmental agencies such as the US Department of Defense. The company has no debt and $73m in cash on the books. Over the past 12 months it has generated $12.5m in operating cash flow.
Check Point Software Technologies is another internet security business. Its products include firewalls and virtual private networks. Based in Ramat-Gan, Israel, and in Redwood City, California, it has been somewhat beaten up over the past year but remains a heavyweight in internet security. With more than $1bn in cash and zero debt, I am confident it will work out a way to expand successfully in the future.>>

(#msg-9907888)

Dubi

Aladdin to Participate in Three Investor Conferences

Wednesday February 22, 8:00 am ET


CHICAGO, Feb. 22 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced it is scheduled to participate in three investor conferences:

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

-- CIBC 10th Annual Israeli Technology Equities 1-on-1 Conference - New
York, New York - Monday, February 27th
Speaker: Yanki Margalit, CEO, Aladdin Knowledge Systems

-- Wedbush Morgan Small Capitalization Investor Conference - New York,
New York - Thursday, March 2nd
Speaker: Yanki Margalit, CEO, Aladdin Knowledge Systems

-- Deutsche Bank 2006 Technology Conference - Miami, Florida - March 13th
at 3:05pm
Speaker: Steve Langerock, CEO, Aladdin North America


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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060222/cgw027.html?.v=47

Dubi

The Tell-Tale Heart

Dan Frommer, 02.16.06, 1:10 PM ET

Have trouble recalling your passwords or PIN codes? Try using your heart.

That's the suggestion from Tel Aviv-based Aladdin Knowledge Systems (nasdaq: ALDN - news - people ), which this week showed off a prototype security system that identifies users based on their heartbeats.

And whether you find that kind of proposition novel or creepy, you're going to have to get used to it. Biometric security systems, which use unique body measurements to verify identity instead of--or in addition to--passwords, are a big business that is growing every year. An industry trade group pegs annual sales at $2.2 billion, and predicts they will hit $6 billion by 2010, as companies add biometric security to everything from ATMs to cell phones.

See our slide show of biometric devices.
Numerous players want a piece of the business, including flash memory manufacturer SanDisk (nasdaq: SNDK - news - people ), which makes USB fingerprint readers. And shares of Identix (nasdaq: IDNX - news - people ) went up almost 60% in January, when the company announced a merger with rival Viisage Technology (nasdaq: VISG - news - people ) to form an identity management juggernaut.

In Aladdin's case, the proposed device looks like a small computer mouse with two metal contacts. When touched for a few seconds--using one finger from each hand, to complete the circuit--the device measures several factors in your heartbeat to record your "biodynamic signature."

The company says the signature includes a combination of electrical signals from the heart and central nervous system. The sensors measure these signals, run them through an algorithm on a computer and create a digital representation of the signature. Aladdin says individual signatures can identify people more accurately than fingerprints, based on preliminary testing.

And because the signature includes both genetic and physiological components, it's not significantly altered by activity--a brisk walk up stairs or a cup of coffee, for example--says Daniel Lange, chief technology officer for IDesia, which designed the device and licensed it to Aladdin. Lange says only a major medical event--a heart attack, for example--would throw the machine off. "With fingerprints, a scratch on your finger might change your reading," Lange says. "Fortunately for us, heart attacks are much less frequent."

But are biometric devices ready for the big leagues? Michigan State University professor Anil K. Jain, who runs the school's biometric research program and has six patents in fingerprint matching, says companies and governments who use the devices need to be careful; like any technology, it is susceptible to both machine and human error, and any biometric database runs the risk of being hacked.

Yet biometrics are gaining acceptance. PC-maker Lenovo has sold more than 1 million biometric laptops with built-in fingerprint readers. Some fitness clubs, like Equinox in New York, now lock down parts of some gyms with eye scanners, so only elite members who pay steep premiums can access them.

The devices are also becoming increasingly exotic. Some biometric shops are now playing with seemingly far-fetched devices that purport to identify people by the shape of their ears, their walk or their smell.

But the most common biometric technology is still the oldest: fingerprinting, which dates back to the 19th century. At almost 44% of the market, fingerprints more than double the next-most-common technology--face scanning--according to the International Biometric Group.

Beyond fingers and face scans, other technologies can tell people apart by measuring hand dimensions, scanning irises and retinas, handwriting, keyboard typing patterns and blood vessel imaging. And as phone- and voice-over-Internet Protocol-based business transactions become even more ubiquitous, vocal biometrics may become more popular--a research topic at IBM's (nyse: IBM - news - people ) human language technologies group.

http://www.forbes.com/2006/02/16/ibm-aladdin-biometric-cx_df_0216biometric.html?partner=daily_newsle...

Dubi

Aladdin eSafe Named Best Anti-Trojan Solution by SC Magazine

Wednesday February 15, 12:25 pm ET

Aladdin eSafe provides unparalleled Gateway-based Web browsing security with anti-spyware and application filtering

CHICAGO, Feb. 15 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that Aladdin eSafe, an integrated, proactive content security, spyware and virus protection solution for the Internet gateway, received the 2006 SC Magazine Award in the "Best Anti-Trojan" category.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Presented February 14, 2006 during the SC Awards ceremony at the Fairmont Hotel in San Jose, California, the award stands as a prestigious honor within the information security industry. Aladdin was selected over four other competitors in the category.

"Featuring a unique package of best-of-breed security for Web browsing, anti-spyware and application filtering, Aladdin eSafe consistently outperforms the competition," said Shimon Gruper, vice president of the Aladdin eSafe Business Unit. "It is a great honor to receive the 2006 SC Award for Best Anti-Trojan Solution, as it reinforces our dedication to providing truly unmatched, zero-day protection for the top threats facing organizations today."

About Aladdin eSafe 5

Aladdin eSafe is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:


-- Layered anti-spyware
-- Spam management
-- Application filtering
-- Proactive anti-virus technologies

Unlike other products which focus on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most - at the gateway front line. For more information on Aladdin eSafe, visit http://www.Aladdin.com/eSafe .

About SC Awards

With over 1,300 product and service nominations from over 330 competing companies globally, the SC Awards are the world's leading awards program for the information security industry. The SC Awards program spans US, Asia, and UK. The SC Awards are composed of both the Reader Trust Technology Awards -- voted on by SC readers in each region and the SC Awards Council, a group of carefully selected senior CSOs -- and the Professional Awards that are judged by a panel of the industry's top talents.

Recognizing technical excellence and professional achievement across a variety of different categories, the SC Awards is a truly unique program developed to bring attention to the industry's top products and highlight the professionals that have both created them and use them within their companies. For more information, visit http://www.scmagazine.com .

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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060215/cgw040.html?.v=42

Dubi

Aladdin to launch Flash version of eToken product

The eToken NG-FLASH gives users secure access to the back office and allows them to carry personal data on the same device.

Globes correspondent 14 Feb 06 16:47

Software digital rights management (DRM) and USB-based authentication solutions provider Aladdin Knowledge Systems (Nasdaq: ALDN; TASE: ALDN) a Flash version of its eToken system. The new eToken NG-FLASH is scheduled for general availability by April 2006.
Aladdin's eToken system is used for secure network logon, secure VPN, Web Sign-On, Single Sign-On, secure email, and numerous other applications. About the size of an average house key, eToken USB and traditional smart card form factors are available with physical access (RFID) capabilities and one-time password technology.

The new eToken NG-FLASH will combine the system's powerful capabilities of strong authentication with the convenience of a mass storage drive. eToken NG-FLASH will allow users to possess their secure, personal credentials, encrypted data and the personal information needed to access that data all on the token.

The USB-based eToken NG-FLASH will be initially introduced in three sizes -- 128 MB, 512 MB and 1 GB.

Aladdin VO eToken business unit Shlomi Yanai said, "The eToken NG-FLASH is yet another illustration of Aladdin's continued commitment to innovation. The device will enable major cost savings for our customers, allowing their users to utilize eToken for secure access to the back office, and at the same time, carry personal information with them on the same device."

Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, February 14, 2006

Dubi

Aladdin Announces Two New eToken Patent Licensing and OEM Agreements

Monday February 13, 12:02 pm ET
OEM and Licensing Agreements Yield Additional Opportunities for the Market Leader in USB Authentication

CHICAGO, Feb. 13 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced the completion of two new Aladdin eToken technology licensing agreements this month. These latest deals spawn from Aladdin's strengthening effort to vigorously enforce its patent rights worldwide.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Japan-based Athena Smartcard Solutions, a leading provider of smart card enabling technology, and Israel-based Algorithmic Research (AR), a worldwide provider of digital signature and data-security solutions for financial, commercial, and governmental sectors, have signed agreements with Aladdin to secure licenses to Aladdin's patents 6,763,399 and 6,748,541. The agreements also provide for the companies to OEM the Aladdin eToken USB authentication key.

These agreements follow Aladdin's announcement on February 9, 2006 outlining its eToken OEM and patent licensing deal with RSA Security Inc. Last year, Aladdin also announced it had reached a settlement with a U.S. distributor of China-based Feitian Technologies, in which the distributor agreed to not import, distribute, sell or offer infringing products. The agreement also provided for the payment of royalties to Aladdin.

"Aladdin patents continue to serve as significant tools for strengthening our market-leading position within the USB authentication market," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "Our recent line up of OEM and technology licensing agreements illustrates that we remain increasingly diligent in fortifying our portfolio of patents and intellectual property."

About Aladdin eToken

Aladdin eToken provides cost-effective strong user authentication and password management solutions. It provides enhanced security and ensures safe information access; improved password and ID management; and secure mobility of digital credentials/certificates and keys. Aladdin's product vision and innovation is evidenced by the company being awarded two key patents covering this security technology: USB devices with a smart card and USB devices as portable storage for credentials.

About the size of an average house key, the award-winning Aladdin eToken is easy to use and highly portable, providing users with powerful authentication by requiring something they have, the tamper-proof eToken, and something they know, a password. It is used for secure network logon, secure VPN, Web Sign-On, Single Sign-On, secure email, and numerous other applications. eToken USB and traditional smart card form factors are available with physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smart cards and ID Badges within an organization. In addition, TMS offers seamless, and reliable management for Enterprise security services combining both PKI and non-PKI systems. For more information, visit http://www.Aladdin.com/eToken .

http://biz.yahoo.com/prnews/060213/cgm076.html?.v=2

Dubi

Aladdin to Demonstrate New Cardio-based Biometric Authentication Technology at RSA Show Booth #1237

Monday February 13, 8:05 am ET

SAN JOSE, Calif., Feb. 13 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced it will demonstrate an innovative new biometric authentication technology based on cardiac patterns. The demonstration will take place at Aladdin's booth, #1237, at the RSA Conference 2006, February 14-16 in San Jose, CA.

(Photo: http://www.newscom.com/cgi-bin/prnh/20060213/NYM175 )

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Aladdin will present a live demonstration of new cardio-based biometric technology that provides authentication using a person's natural BioDynamic Signature (BDSTM) -- an electro bio-signature that is unique to each individual. The technology is being powered by IDesia, an Israeli-based biometrics company. Aladdin may offer the technology as early as 2007.

Unlike other biometric technologies that use fingerprints, pictures, or static bio-signals to identify a person, BDS is based on intrinsic human electro-biometric dynamic signals acquired by merely touching a small conductive surface. The signature is based on the electronic signals humans produce from their body, including the heart. These BioDynamic Signatures are as unique to an individual as fingerprints and retinal patterns. No two people have the same BDS. This new category of cardio-based biometric solutions opens a new dimension in biometric technology and offers superior performance, cost and reliability. It is highly accurate, user friendly and difficult to deceive.

"The market for strong authentication is set for tremendous growth over the coming years, and while biometric solutions are still in their infancy, we feel they will one day have broad acceptance," said Shlomi Yanai, vice president of the Aladdin eToken business unit. "Our technology demonstration at this year's RSA Conference is designed to give our partners a glimpse of an exciting new technology that we believe holds tremendous promise for the future."

Scheduling Demonstrations

To schedule your personal demonstration of the new technology at Aladdin's RSA 2006 booth (#1237), Feb 14-16, contact Matthew Zintel of Zintel Public Relations at 310-574-8888 or matthew.zintel@zintelpr.com.

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 http://www.Aladdin.com.

http://biz.yahoo.com/prnews/060213/nym175.html?.v=35

Dubi

Aladdin Announces eToken OEM Deal with RSA Security

Thursday February 9, 8:00 am ET

CHICAGO, Feb. 9 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced an OEM agreement with RSA Security Inc.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

This OEM agreement represents the second phase of the Aladdin-RSA Security partnership following the patent licensing agreement originally announced on January 31, 2005. Through this OEM agreement, RSA Security will release a new RSA SecurID® authenticator that incorporates the Aladdin eToken USB technology. The new device that will use Aladdin eToken technology will be based on a standard Javacard(TM) platform and combine the convenience of a portable plug-and-play USB device with the secure storage of digital certificates and passwords.

"Over the last year, we have continued to build a strategic relationship with RSA Security resulting in an OEM agreement for Aladdin that continues to extend our leadership in USB-based token technology and intellectual property," said Leedor Agam, vice president of business development for Aladdin Knowledge Systems. "We are pleased to expand our relationship with RSA Security, as we consider this a significant leap forward in our position within this fast-growing authentication market."

"As the worldwide leader in strong authentication, RSA Security is committed to providing customers worldwide with the broadest range of flexibility and choice in two-factor authentication," said Derek Brink, vice president of corporate development at RSA Security. "We look forward to leveraging this OEM relationship to further enhance our broad line of authenticators."

About Aladdin eToken

Aladdin eToken provides cost-effective strong user authentication and password management solutions. It provides enhanced security and ensures safe information access; improved password and ID management; and secure mobility of digital credentials/certificates and keys. Aladdin's product vision and innovation is evidenced by the company being awarded two key patents covering this security technology: USB devices with a smart card and USB devices as portable storage for credentials.

About the size of an average house key, the award-winning Aladdin eToken is easy to use and highly portable, providing users with powerful authentication by requiring something they have, the tamper-proof eToken, and something they know, a password. It is used for secure network logon, secure VPN, Web Sign-On, Single Sign-On, secure email, and numerous other applications. eToken USB and traditional smart card form factors are available with physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smart cards and ID Badges within an organization. In addition, TMS offers seamless, and reliable management for Enterprise security services combining both PKI and non-PKI systems. For more information, visit http://www.Aladdin.com/eToken.

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 http://www.Aladdin.com.

http://biz.yahoo.com/prnews/060209/nyth066.html?.v=40

Dubi

New Feebs Variant Identified by Aladdin CSRT Includes Elaborate eBay Fraud Attempt

Thursday February 2, 4:34 pm ET

CHICAGO, Feb. 2 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that its Aladdin eSafe Content Security Response Team (CSRT) has identified a new variant of the Feebs Trojan that includes a dangerous new fraud attempt. Aladdin identifies the new variant of JS.Feebs.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Barely a month in, 2006 has already been dubbed "The Year of Phishing." According to numerous reports, this year we are likely to see a sharp increase in phishing attacks. The evidence of this imminent threat is already apparent, with new phishing Web sites popping up every day. One of the latest additions to this growing epidemic is Aladdin's discovery of a new JS.Feebs variant. When executed, the new JS.Feebs variant usually displays a fake loading screen that looks like various popular search engines. This is followed by a false error message stating that there was no available connection. The scripts do this to mask their own activities which sometimes include disabling the system's antivirus and other security-related products as well as executing other malicious code. JS.Feebs usually arrives by email, but it could also exist in Web sites that would infect visitors upon access.

Elaborate New Fraud Attempt

This new JS.Feebs variant also initiates an elaborate fraud attack similar to phishing. Unlike "classic" phishing, no phishing email or a link to be clicked exists. Rather, certain network settings of the infected machine are modified in such a way that when surfing to sites such as eBay (the popular online auctions Web site), using any browser, clicking on an eBay link on the Web, or even accessing it from the Favorites shortcut, the victim is invisibly forwarded to a spoofed eBay site. All this time, the eBay Web address appears normally. This happens even if the user accesses the site days or even weeks after the original infection took place. Although the propagation of this new variant may be slow, its infection impact is high, as it steals personal information pertaining to regularly used sites.

The script modifies the HOSTS file found on the target PC. This file, when modified, can override the default DNS servers, thus allowing the user's Internet browser to receive one address and lead to another. JS.Feebs, in this case, redirects all attempts to enter eBay to its own, seemingly identical page. When a user attempts to follow any links or enter a search in the appropriate field, the script will ask for his username and password.

When personal information is entered, the user will be taken to the actual eBay Web site, completely unaware that the sensitive information just entered was, in fact, stolen. With this information a hacker can order goods for free, and let the infected user pay the price.

"We see this new fraud attempt as an illustration of the growing presence of dangerous phishing scams," said Shimon Gruper, vice president of technologies for the Aladdin eSafe Business Unit. "Although Web attacks are more difficult to measure than email-related attacks, we expect this JS.Feebs variant to have a significant impact for infected users, as their browser no longer indicates they are visiting a phishing site. Thus, users are even more likely to provide their personal data, which then lands in the wrong hands."

Aladdin eSafe users are completely immune to this attack since yesterday. Others may identify this same threat as the "Qhost" variant. For more information, visit http://www.aladdin.com/home/csrt/index.asp .

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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060202/cgth069.html?.v=21

Dubi

Aladdin HASP HL Named a Finalist for SIIA CODiE Award

Wednesday February 1, 8:00 am ET

CHICAGO, Feb. 1 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (SW DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that its HASP HL software protection and licensing solution stands as a finalist in the Software & Information Industry Association's 21st Annual CODiE Awards.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Chosen among independent expert judges, Aladdin HASP HL is a finalist for the coveted "Best Digital Rights Management Solution" category. The SIIA CODiE Awards celebrate achievement and vision in software, education technology and digital content. For 21 years, SIIA CODiE Awards have remained the leading honor for the software and information industry's finest products and services. Each year, CODiE Awards judges work to identify the "best-of-the- best" from hundreds of nominees. Recipients of the 2006 CODiE Awards will be announced at a gala event on May 16, 2006 at the Westin St. Francis hotel in San Francisco, California.

"The 21st Annual CODiE Awards continue the tradition of honoring the best of the software, information and education technology industries," said Ken Wasch, SIIA President. "When one considers the number of outstanding companies that competed this year, being named a CODiE Awards Finalist is a significant achievement."

"It's a great honor for Aladdin HASP HL to be named a finalist for the prestigious SIIA CODiE Award, as this marks the fourth time Aladdin has received this recognition," said Avi Barir, vice president of Software Digital Rights Management (DRM) at Aladdin Knowledge Systems. "As the most widely used hardware-based Software Digital Rights Management solution available in the marketplace today, HASP HL allows software publishers to grow their revenues significantly by providing the highest level of protection against software piracy and intellectual property theft. In addition, HASP HL's secure licensing system provides software publishers new and creative ways to sell their products, allowing them to target new market segments and increase revenue (e.g. feature-based, concurrent multi-user, subscriptions, pay-per-use and many more)."

About Aladdin HASP

The Aladdin HASP family provides a suite of revolutionary hardware- and software-based anti-piracy solutions engineered for software publishers to ensure that their intellectual property is protected and they get paid for each product they ship. Aladdin HASP provides the highest level of anti-piracy protection available to combat unauthorized copying and use. HASP also delivers powerful new tools to enable innovative software licensing schemes and flexible pricing models that allow publishers to bring their products to market with confidence while increasing sales and profits:


-- HASP for Single-User: A hardware-based (HASP HL) or software-based
(HASP SL) solution for protecting and licensing software running on
stand-alone computers.
-- HASP for Enterprise: A hardware-based (HASP HL Net) solution for
protecting and licensing software used by multiple users in network
environments and the enterprise.
-- HASP for Trialware: A software-based solution (HASP TT) for creating
secure, controlled software trialware.
-- HASP for Documents: A hardware-based system (HASP DocSeal) for
protecting intellectual property and sensitive information in HTML
files.


HASP is the worldwide market leader in software DRM solutions and is used by more software developers than any other product. In a recent head-to-head comparison conducted by independent testing lab KeyLabs, HASP finished far ahead of its closest competitor with a large lead in key categories including security, ease-of-use, flexibility of tools and functionality, and compatibility across platforms and environments.

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 http://www.Aladdin.com .

http://biz.yahoo.com/prnews/060201/cgw012.html?.v=45

Dubi

Aladdin Knowledge Systems to Participate in Two Upcoming Investor Conferences

Thursday January 26, 8:00 am ET

CHICAGO, Jan. 26 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced it is scheduled to participate in two investor conferences, including:

* The Brean Murray, Carret Small Cap Institutional Investor Conference '06
-- New York, New York -- Wednesday, February 1st at 1 PM
Speaker: Yanki Margalit, Chief Executive Officer, Aladdin Knowledge
Systems

* Merrill Lynch Software and Services Conference -- Las Vegas, Nevada --
Thursday, February 2nd at 10:20 AM
Speaker: Yanki Margalit, Chief Executive Officer, Aladdin Knowledge
Systems

(LOGO: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

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 http://www.Aladdin.com .


Press Contact: Investor Relations Contact:
Matthew Zintel Mark Jones
Zintel Public Relations Global Consulting Group
matthew@zintelpr.com mjones@hfgcg.com
310.574.8888 646.284.9414

Source: Aladdin Knowledge Systems

http://biz.yahoo.com/prnews/060126/nyth064.html?.v=42

Dubi

Promisec Named an Aladdin eSafe Solution Partner
Promisec's clientless technology integrated into award-winning Aladdin eSafe content security solution to further protect organizations against threats gained from within the network

1/25/2006 8:10:28 AM

BOCA RATON, Fla., Jan 25, 2006 /PRNewswire via COMTEX/ -- Promisec, Ltd., a leading provider of clientless endpoint security management technology, today announced it has been named an Aladdin eSafe Solution Partner by Aladdin Knowledge Systems, Ltd. Promisec's technology is now integrated into the Aladdin eSafe proactive content security and anti-virus solution for gateways. Promisec's partner listing is available on the Aladdin Web site at http://www.aladdin.com/partners/.

Designed to enforce internal policy compliance, Promisec technology strengthens the Aladdin eSafe content security offering by providing a centrally-managed, highly cost-effective process for the previously burdensome task of constantly inspecting an organization's network and all of its end points. The Promisec-Aladdin combination of technologies makes it possible for the eSafe's Spyware Neutralizer to serve as a clientless tool that allows Microsoft Network administrators to remotely scan workstations on the local area network, and if infected, neutralize spyware, Trojans and other malicious code. The Promisec technology also allows eSafe to schedule the frequency at which the network will be scanned, or instantly invoke a manual scan.

"Promisec sees its OEM agreement with Aladdin as part of the company's natural development and as part of its business strategy for the upcoming years," said Hilik Kotler, executive vice president of Promisec. "We're happy to be selected an Aladdin eSafe Solution Partner, as it serves as a significant springboard to the growth and development of our business. Our unique technology stands as the only simple and transparent clientless end point security solution, with no client or agent software required. It provides highly-cost effective protection -- allowing organizations to share information without exposing it -- enabling trust through security."

"We're pleased to announce Promisec as an Aladdin eSafe Solution partner, as its powerful technology, coupled with the proven reliability and strength of Aladdin eSafe, provides organizations with the most powerful anti-spyware and policy compliance solution," said Shimon Gruper, vice president of technology for the Aladdin eSafe Business Unit. "Aladdin eSafe benefits from the agent-less architecture and speed of Promisec's technology. It proves to be a cost-effective and transparent process that is uniquely combined with eSafe's comprehensive and proactive content security solution."

About Spectator Professional

Spectator Professional(TM), the leading clientless endpoint security management solution, uses innovative patent-pending technology to check all network end-points for compliance with built-in and user-defined security criteria. Installed on a single security administrator workstation, Spectator Professional looks for the unexpected weak links in network security -- threats that circumvent gateway defenses, or originate from inside due to internal user errors or malicious activity.

Once a threat is identified, Spectator Professional allows immediate remote rectification of the problem -- eliminating processes or reversing harmful registry changes, without the overhead of technical staff or physical intervention. Threats are eliminated either automatically according to built-in rectification definitions or in accordance with user-defined company security policy. With no burden on network resources, Spectator Professional can be configured to periodically or on-line inspect all end points and network environment -- taking only seconds per device. Spectator Professional inspects for both pre-defined and user-defined threats -- ensuring that the network is in compliance with organization security policy. For more information on Spectator Professional, contact Promisec at 561-962-3189 or sales@promisec.com.

About Promisec

Promisec, Ltd. is a leading provider of clientless endpoint security management solutions. Promisec's Spectator Professional delivers always-on, comprehensive internal network protection that detects and eliminates pre-defined and user-specific internal threats without the installation of invasive client software on organizations' PCs. Spectator Professional also enables more effective enforcement of security policies and prevents the loss and theft of mission-critical information. Privately held and founded in 2004, Promisec is headquartered in Israel with U.S. offices in Boca Raton, Florida. Visit the Promisec Web site at http://www.promisec.com.

Dubi

Higher Education and Healthcare Technology Experts Gather to Discuss Identity Management Throughout Facilities

Wednesday January 25, 8:00 am ET
Aladdin Sponsors Advanced CAMP Med 'Identity and Access Management for Medical Applications' Event Set for January 25-27th at Hilton Houston Plaza/Medical Center in Houston, Texas

CHICAGO, Jan. 25 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced its sponsorship of the Advanced Campus Architecture Middleware Planning (CAMP) for Medicine event scheduled for January 25-27th at the Hilton Houston Plaza/Medical Center in Houston, Texas.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )

Hosted by the Association of American Medical Colleges, a nonprofit association of medical schools, teaching hospitals, and academic societies, and Internet2, provider of advanced network applications and technologies for research and higher education, Advanced CAMP for Med is designed to present real world examples of the challenges faced in implementing identity management solutions as well as advance attendees' knowledge of identity management terminology, models, and implementation rationale, as well as the challenges and opportunities faced by medical center organizations and how this can relate to other organizations. Full program and registration details are available at http://www.aamc.org/meetings/specmtgs/campmed06.

Aladdin eToken Customer Offers Hands-On Demonstration

The University of Texas Health Science Center at Houston, a customer of the Aladdin eToken strong user authentication and password management solution, will also host an exciting hands-on learning experience that permits attendees to encounter and use an actual university management system in multiple modes to accomplish real-world tasks.

The event also includes small group sessions where participants will have the opportunity to work collaboratively to resolve a case in one of three areas: education, research or clinical. At the end of the workshop, the small groups will share their solutions with the larger group and the attendees will come together to discuss several large projects and potential future directions.

"Identity Management is a huge issue in the Healthcare Industry," said William A. Weems, Ph.D. of the University of Texas Health Science Center at Houston. "We are constantly grappling with the challenges of finding a scalable solution that works in this type of complex environment. As one of the sponsors of this event, Aladdin will be demonstrating how some of their products have been applied to solve these problems. The overall objective of this event is to provide the attendees with the tools necessary to clearly define the issues and provide solutions to this critical challenge faced throughout Healthcare and Education."

Advanced CAMP for Med Topics

Advanced CAMP for Med offers opportunities to learn from industry experts regarding current initiatives in the middleware space, as well as important federal activities that impact academic medical campuses. The following are some of the topics and issues the camp will address:


* Learn more about the drivers behind the need for identity management and
why a federated approach is necessary.

* Find out first hand what it takes both technically and politically to
develop a quality identity management program and process.

* Work with the experts to explore the current middleware landscape and
what to look for in the future.

* Discover what the federal government is doing and how it might impact
your institution.
* Participate in small group discussions about how academic medicine can
meet the challenges of managing individuals across diverse
organizational boundaries.

"We're pleased to serve as the main sponsor of the Advanced CAMP for Med event, as it stands as an unique venue for medical schools to share their uses of strong authentication for protecting critical data," said Dan Pfeifle, senior director of eToken solutions for Aladdin North America. "The interactive event will provide live demonstrations of how the Aladdin eToken solution provides unique authentication capabilities that can be applied to the healthcare community as well as many other industries."

About Aladdin eToken

Aladdin eToken provides cost-effective strong user authentication and password management solutions. It provides enhanced security and ensures safe information access; improved password and ID management; and secure mobility of digital credentials/certificates and keys. Aladdin's product vision and innovation is evidenced by the company being awarded two key patents covering this security technology: USB devices with a smart card and USB devices as portable storage for credentials.

About the size of an average house key, the award-winning Aladdin eToken is easy to use and highly portable, providing users with powerful authentication by requiring something they have, the tamper-proof eToken, and something they know, a password. It is used for secure network logon, secure VPN, Web Sign-On, Single Sign-On, secure email, and numerous other applications. eToken USB and traditional smart card form factors are available with physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smart cards and ID Badges within an organization. In addition, TMS offers seamless, and reliable management for Enterprise security services combining both PKI and non-PKI systems. For more information, visit http://www.Aladdin.com/eToken.

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 http://www.Aladdin.com.

http://biz.yahoo.com/prnews/060125/nyw067.html?.v=42

Dubi

Margalit explains how Aladdin had a great year

25.1.06 | 10:20 By Omri Cohen
"The year 2005 was an excellent one for Aladdin Knowledge Systems (Nasdaq, TASE: ALDN)," declares the Israeli tech company's chairman and chief executive, Yanki Margalit. Okay, but its figures tell a story of slowing revenue and profit growth, in terms of percent and absolute figures, too.

The entire data security market, Aladdin's stamping ground, has been rather feeble of late, which may explain why Aladdin stock has lost 30% of its value since the end of 2004.
Aladdin reported record revenues of $81.8 million for 2005. But in 2004 its revenues grew by 26.3% and in 2005, by 18.4%.
In absolute terms, its revenues increased by $12.7 million in 2005, compared with $14.4 million in 2004.

As for profits, in 2004 they increased by $6.1 million while in 2005, the increase was $5.6 million, and that's after neutralizing $2 million in one-time costs on settling a claim. Including the costs reduces Aladdin's 2005 earnings to $12.4 million, against $8.8 million in 2004.

Yet Margalit feels 2005 was a good year. "According to the research company IDB Development Corporation, we increased our market share in the last year at the expense of the competition, which attests that the entire market grew less in 2005 than in the prior year," he explains.
"I measure myself in terms of the increase in profits, in cash flow generation and in their relation to the market. If the market grew less than in 2004, I want to know that I'm growing faster than the competition. The year 2005 was good for Aladdin in all three of these parameters and that trend is expected to continue, or even improve, in 2006."

The company managed to generate record revenues and high cash flow from regular operations, he continues, while leveraging its strategic positioning in the market of software to protect digital rights management (DRM) and data security for enterprises.

"I am highly satisfied with our ability to present rapid, significant profit growth and the momentum of our data security for enterprises unit, which was driven in the last year by demand for eSafe products," Margalit went on, referring to a hardware user identification key that grants access to the enterprise computer system.
Demand for eToken also rose high, that being a solution to secure digital content, he said.

Record profit as malware runs riot

Aladdin's technology addresses global threats such as software piracy, spam, hostile content (malware - malicious software, eg worms and viruses) and the like, which have been running riot around the world, frustrating surfers, home users, companies and governments.

The company's offerings for digital rights management (DRM) are mainly products to prevent illegal software copying from enterprise computer systems. That remains the company's main activity and supplies most of its income.

But Aladdin's DRM system sales increased by only 12% in 2005 compared with the year before, to $56.6 million. Fourth-quarter growth was just 4%, to $14.1 million.

Annual revenue from data security products for enterprises increased 36% to $25.2 million, while fourth-quarter sales of these grew 45% to $7.7 million.

Aladdin did meet its guidance for the last quarter of 2005, and slightly beat the Wall Street consensus. Sales increased 16% to $21.8 million, while net profit broke records at $3.9 million, or 26 cents per share. In the parallel quarter it had netted $2.6 million.

This quarter, the first quarter of 2006, Aladdin expects to achieve $21.3 million to $23.3 million sales, and to earn 25-28 cents per share. Wall Street expects it to make $22.9 million sales and to earn 26 cents per share.

Yanki Margalit, the global software sphere is in the throes of consolidation. Why aren't you part of that?

"The data security sector has a lot of trends. There is a constant battle between the one-stop-shop concept and the best-of-breed concept. The one-shop is accelerating mainly in the household sector, but in our market, which is companies and government institutions, the trend is the reverse - toward best of breed. This market demands more specific solutions, not one supplier to provide all solutions.

"We are also starting to work with bigger enterprises and institutions, which extended the sales cycle and delayed income in the last year."

Almost a year ago Aladdin raised $40 million and it hasn't done anything with the money.

No rush, Margalit explains: indeed, the company has a mind to acquire, but there's no gun to its head.

After two great years for investors, Aladdin stock lost 30% in 2005.

"All I can say about the stock is that I constantly compare the multiples Aladdin gets in the market compared with peer companies. In 2005, though we improved in all possible parameters, it didn't show up in the share price. We shall continue to do our work and wait for investors to understand Aladdin."

http://www.haaretz.com/hasen/spages/674698.html

Dubi

CIBC likes Aladdin's story: repeats Outperform rating

25.1.06 | 12:07 By Sharon Shpurer

Most of the investment banks left their investment ratings for Aladdin Knowledge Systems (Nasdaq, TASE: ALDN) unchanged after the company published its fourth-quarter results. Nor did most change their price objectives for the data security company's stock.
CIBC didn't either: its recommendation remains Outperform and its 12-month price target is $21, which is roughly 20% above Aladdin's share price on Nasdaq.

The investment bank wrote that the upswing in the enterprise software security market brought Aladdin strong results in the last quarter of 2005. Altogether, CIBC continues to believe in the long-term story of Aladdin, the analysts say.

The analysts were undeterred by the weakness in Aladdin's core market of digital rights management (DRM) systems for enterprises. It's a hiccup, not a change, they say and remain bullish on the company's lead in that segment.

Aladdin stock from 2002

Meanwhile, Jefferies & Co were rather less impressed by Aladdin's fourth quarter. Its 12-month price target is $17 and the investment rating is Hold.

The investment bank decided to lower its 2006 forecasts from $95.9 million revenues to $94.1 million.

Jefferies & Co lowered its earnings projection from $1.14 to $1.12 per share, and cut its first-quarter 2006 sales forecast from $23 million to $22.7 million.

It is concerned about the significant slowdown in Aladdin's DRM operations. Given that, and the caution the management headed by Yanki Margalit evinced regarding its strategic collaboration with Cisco Vision, the analysts opted to be cautious about investment in the Israeli company.

Deutsche Bank shares Jefferies & Co's concerns and also elected for a Hold rating, though its 12-month price target is $18. One quarter does not a trend portend, the German bank says, but it does increase the risk factor regarding 2006.

http://www.haaretz.com/hasen/spages/674744.html

Dubi