Aladdin Granted Significant U.S. Patent

Patent covers “sandbox” technology that protects against dangerous threats such as spyware

CHICAGO, June 27, 2006 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, identity management, and content security solutions, today announced it has been granted U.S. patent 7,047,369, covering an application operating environment in which dangerous, unacceptable and/or suspect activities of Internet-enabled applications may be defined and prevented from causing harm. The invention allows safe usage of computers connected to the Internet, efficiently thwarting common Internet-borne threats such as spyware, Trojans, exploits and more. This important patent, related to the Aladdin eSafe content security solution, significantly strengthens host-based and network security.

The invention covered by this patent allows automatic or manual learning of safe behavior for host-based applications, especially Internet-enabled applications. A special table of allowed activities is built in real-time for each monitored application, which is later used by the enforcement module to create a “sandbox” protection environment that blocks invalid access attempts to system resources.

The patent, dated September 25, 1997, states the protection process “is done by providing a definition table identifying the types of access and actions that the application is allowed and preventing it from carrying out other types of access and actions. The definition table may be built up using a learning process during use of the application. The environment also provides a means of checking information output to a network against a list of confidential information.”

This type of host-based security would be most relevant to systems that grant administrative privileges to applications launched by users, allowing them unlimited access to the operating system and/or hardware resources. Implementation of such security methodology would be commonly found in Operating Systems, Internet browsers, personal firewalls and anti- virus / anti-spyware products.

“Aladdin constantly strives to innovate and strengthen its technology and patent position,” said Leedor Agam, vice president of business development for Aladdin Knowledge Systems. “As one of the pioneers in the field of content security, Aladdin is pleased and encouraged to have received such a significant patent and will continue to assert its intellectual property rights in this rapidly evolving market.”

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 www.Aladdin.com.

©2002-2006 Aladdin Knowledge Systems, Ltd. All rights reserved. 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.

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