Aladdin Attains Gold Certified Partner Status in Microsoft Partner Program

Aladdin Recognized with Microsoft Competency in OEM Hardware Solutions

CHICAGO, September 5, 2006 - Aladdin Knowledge Systems (NASDAQ: ALDN), the leader in Software DRM, identity management and content security solutions, today announced it has achieved Gold Certified Partner status in the Microsoft Partner Program recognizing Aladdin’s impact in the technology marketplace. As a Gold Certified Partner Aladdin has both demonstrated expertise with Microsoft Technologies and proven ability to meet customers’ needs. Microsoft Gold Certified Partners receive a rich set of benefits, including training and support, giving them a competitive advantage with their customers.

In order to obtain Gold Certified Partner Status, the program’s most prestigious level, Aladdin declared a Microsoft Competency in OEM Hardware Solutions. The focus on a specific competency differentiates a partner’s capabilities with certain Microsoft products, setting requirements designed to represent the skills and services the partner offers. Aladdin’s HASP and eToken products based on Microsoft technologies provide powerful, proven solutions for data protection and identity management.

“Customers are looking for partner companies that can bridge the gap between their business demands and technology capabilities,” said Allison Watson, vice president of the Worldwide Partner Sales and Marketing Group at Microsoft Corp. “They need to trust in someone that can act as an expert adviser for their long-term strategic technology plans. Microsoft Gold Certified Partners, which have certified expertise and direct training and support from Microsoft, can build a positive customer experience with our technologies. Today, Microsoft recognizes Aladdin as a new Microsoft Gold Certified Partner for demonstrating its expertise in providing customer satisfaction with Microsoft products and technology.”

“Aladdin is pleased to obtain Gold Certified Partner status in the Microsoft Partner Program,” said Yanki Margalit, CEO of Aladdin Knowledge Systems. “Our customers continue to benefit from our ongoing cooperation with Microsoft and solid integration with Aladdin’s HASP and eToken solutions. Gold Certified Partner status clearly underscores our commitment to maximizing the Aladdin-Microsoft relationship.”

The Microsoft Partner Program was launched in December 2003 and represents Microsoft’s ongoing commitment to the success of partners worldwide. The program offers a single, integrated partnering framework that recognizes partner expertise, rewards the total impact partners make in the technology marketplace, and delivers more value to help their businesses be successful. For more information, visit https://partner.microsoft.com.

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.

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

####

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

Contact Information

Matthew Zintel

Press Contact

Zintel Public Relations

Contact via E-mail