Aladdin Announces HASP SRM – Industry's First Software Rights Management Solution Combining Hardware-Based and Software-Based Protection

CHICAGO, January 22, 2007 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, strong authentication and content security solutions, today announced a limited release of HASP SRM, the industry's first software protection and licensing system that offers customers both hardware- and software-based security from a single solution. An all-in-one product that matches software with its business-enabling type of protection, HASP SRM comprehensively addresses anti-piracy protection, intellectual property protection and secure licensing.

HASP SRM gives publishers choices for growing their business, easily allowing them to mix and match numerous protection, licensing and distribution capabilities to create a tailored, customized DRM process – one that addresses their security and business needs and is flexible in meeting purchasing requirements and usage patterns of their end users.

The Power of Cross-Locking™

The heart of HASP SRM is its Cross-LockingTM technology that empowers software publishers to choose the security key after protection is implemented: a hardware key – HASP HL or a software (electronic) key – HASP SL. Engineers protect the software once and release a single protected application binary. Business decision-makers can then apply licensing models and choose the security protection key with a click of the mouse.

HASP SRM – Fully Backward Compatible to Previous Generations

All HASP HL keys currently in the field are HASP SRM-ready, as their hardware supports HASP SRM's security enhancements. Full backward compatibility ensures immediate and smooth technology migration for all existing HASP HL customers.

Security Boosts for HASP HL Hardware Keys

Software publishers who choose to secure their software and licenses to the HASP HL hardware protection key enjoy major security enhancements. HASP SRM forms a secure communication channel between the HASP HL key and the application, preventing middle layer attacks. Multiple 128-bit encryption keys used with the on-chip AES encryption engine ensure exclusive and unsurpassed security for every protected application, module and feature. Unique HASP LicenseOnChip™ and UpdateOnChipTM technologies protect the licenses and their terms: all license logic is executed on the hardware chip itself, never leaving the key. The memory of HASP HL keys has also been quadrupled, enabling the protection of twice as many applications.

Complete DRM Product Life-Cycle Support

HASP SRM optimizes and facilitates the integration of Software Rights Management in the software publisher's organization, offering business flexibility at every stage of the software life-cycle. Role-based processes and tools targeted at developers, sales, marketing, fulfillment and IT staff, ensure effectiveness, quick time to market, and reduced costs. Engineers use the automatic HASP SRM Envelope that now supports HASP HL and SL locking within a single tool. Marketing managers use the HASP SRM Business StudioTM to determine software packages, apply license models and security protection keys and track customer orders, license terms and extensions.

"Software protection and licensing are all about flexibility - the ability to provide software developers with numerous distribution choices and options for securing their products while paving the way for increased sales," said Sally Hudson, research director at IDC. "With far fewer limitations surrounding the delivery of software, publishers and developers are armed with a confidence that licensing and protection are not an obstacle to success. Solutions such as the new Aladdin HASP SRM offer a mixture of hardware- and software-based protection choices. This creates a unique set of options for software security and license lifecycle management that can be combined and altered to fit specific customer and business needs."

"HASP SRM offers software publishers an unbeatable number of protection, licensing and distribution choices and brings them new, simple ways to increase sales," said Avi Barir, vice president of Software DRM for Aladdin Knowledge Systems. "As one of HASP's greatest leaps forward since its debut in 1985, HASP SRM truly enables ALL software publishers to deliver their products with full confidence, not only preventing loss of revenue, but also ensuring growth – regardless of their distribution and licensing method. Offering all of this from one vendor, within one product is an industry first."

For the latest information on Aladdin HASP SRM, visit http://www.aladdin.com/Special/Hasp/srm/default.aspx or call 800.562.2543.

About Aladdin

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), founded in 1985, is a global provider of security solutions. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin's Software DRM products allow software developers and publishers to protect their intellectual property, increase revenues through licensing, and reduce losses from software piracy. Aladdin's Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (identity and password management) and what content their users can utilize (proactive content security). Aladdin has offices in 10 countries, a worldwide network of channel partners and holds numerous industry awards for innovation and reliability. For more information, please visit the Aladdin Web site at www.Aladdin.com.

©2002-2007 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP, 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

####

All trademarks and registered trademarks are the property of their respective holders.