German University Students in North Rhine-Westphalia Use Aladdin eToken for Strong Authentication

CHICAGO, March 7, 2006 - Aladdin Knowledge Systems (Nasdaq:ALDN), 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 universities in North Rhine-Westphalia, the most populous state in Germany, have set a new trend regarding data privacy and protection. Recently, the authority for information and communication technologies “IuK” and Aladdin Knowledge Systems agreed on offering Aladdin eToken USB smartcards to students. eToken provides a tamper-proof authentication solution for retrieving special service offerings and personal data. The agreement enables all universities, as well as other institutions subject to the Ministry for Schools, Science and Research, to purchase Aladdin eToken and the related software products at a special rate.

Having introduced a certificate-based logon system for several university administrations in North Rhine-Westphalia, it became more and more apparent over the last two years that students had to be provided with a similar security solution. It is essential that students be reliably identified as they access non-public, exclusive service offerings and Internet resources or retrieve personal data, exam papers and exam results. Aladdin eToken enables secure data access, password and ID management, and provides an exceedingly flexible and mobile solution.

Project Development

The agreement was preceded by extensive preparation and pilot projects at the FernUniversity Hagen (a leading university for distance learning in Germany), the Universities of Applied Sciences in Muenster and Bochum, and other educational institutions. The basic terms were set during an initial round table meeting in August 2005 with more than 20 university representatives. On January 27, the general agreement was presented at a final meeting in Hagen.

Special Conditions for Universities

The purchase terms for eTokens were adjusted to the universities’ special needs. Students can acquire their eTokens either at administrative offices of their university or via a Web shop where eTokens are available at the same special conditions. Aladdin and IuK placed NK Networks & Services GmbH in charge of these transactions. As an accredited Aladdin partner, as well as a long-term trade partner of many universities in North Rhine-Westphalia, NK Networks & Services (which recently changed the company name to Axians) offers the level of experience and expertise required. The Web shop is maintained by NK Networks & Services in collaboration with Profi-Trade GmbH (www.profi-trade.de).

Aladdin hopes that the trend initiated by this agreement might reach other German states and their information and communication technology officials. The agreed regulations define a model that can easily be modified to differing state requirements.

Henning Mohren, project manager at FernUniversity Hagen, praises the decision. “We have been using the eToken system at the FernUniversity Hagen for several years now and are totally convinced of the quality and practicability of this authentication solution,” Mohren said. “Therefore, we are more than delighted to see that students at other universities can now benefit from enhanced data security.”

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 www.Aladdin.com.

©2002-2006 Aladdin Knowledge Systems, Ltd. All rights reserved. eToken, Aladdin Knowledge Systems and the Aladdin logo are trademarks or registered trademarks of Aladdin Knowledge Systems, Ltd. All other product and brand names mentioned in this document are trademarks or registered trademarks of their respective owners.

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Matthew Zintel

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