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Software DRM Market Leader Sees Growth Potential in Response to Microsoft’s Anti-Piracy Announcement


CHICAGO, October 16, 2006 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, identity management and content security solutions, today announces its response to Microsoft’s enhanced anti-piracy measures slated for the upcoming Windows Vista operating system.

“We see Microsoft’s announcement detailing greater anti-piracy and licensing enforcement for Windows Vista as one of the single most influential drivers to ever affect the software protection industry,” said Avi Barir, vice president of Software Digital Rights Management at Aladdin Knowledge System. “We expect to see a significant number of software developers worldwide eventually react in a similar, more protected manner in order to fight unlicensed and pirated copies of their software. Seeing the world’s largest software company move to more stringent protection clearly entices others to do the same, and while doing so, work toward decreasing the enormous amounts of unlicensed or pirated software.”

“There continues a growing concern and need to prevent software piracy and re-enforce developers’ intellectual property rights, but with Microsoft’s recent announcement of its own strong anti-piracy policy for Windows Vista, it’s likely other developers will adopt technologies aimed at disabling key software abilities or features in unauthorized copies,” said Charles Kolodgy, research director for IDC. “It is a bold move, but pirated software is a huge security and economic problem, so IDC would expect to see more demand for software protection solutions.”

Aladdin is the world’s largest provider hardware-based “dongle” solutions for protecting and licensing software, with more than twenty years of experience in assisting developers protect against unauthorized software use. Aladdin HASP, the #1 software licensing authentication token according to IDC’s “Worldwide Hardware Authentication Token 2005-2009 Forecast and 2004 Vendor Shares” report. The report 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

About Aladdin HASP

The Aladdin HASP family of software DRM products is the number one choice of software publishers worldwide. It provides software developers and publishers with strong software protection, licensing and distribution solutions that enables them to prevent software piracy and increase revenues, protect valuable intellectual property, and expand licensing models to reach more customers. For more information, please visit

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


©2002-2006 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


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