UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G/A

Under the Securities Exchange Act of 1934

(Amendment No. 7 )*

ALADDIN KNOWLEDGE SYSTEMS LIMITED
(Name of Issuer)

Ordinary Shares, nominal value 0.01 New Israeli Shekels per Share
(Title of class of Securities)

M0392N
(CUSIP Number)

December 31, 2007
(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

o Rule 13d-1(b)
x Rule 13d-1(c)
o Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the
subject class of securities, and for any subsequent amendment containing information which would alter the disclosures
provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18
of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be
subject to all other provisions of the Act (however, see the Notes).



CUSIP NO. M0392N 13G        Page    2    of    4    Pages   

1 NAME OR REPORTING PERSON
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

Dany Margalit (no social security number)
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) o
(b) o
3 SEC USE ONLY
 
4 CITIZENSHIP OR PLACE OF ORGANIZATION

Israel
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH REPORTING
PERSON WITH
5 SOLE VOTING POWER

924,195 Ordinary Shares
6 SHARED VOTING POWER

None
7 SOLE DISPOSITIVE POWER

924,195 Ordinary Shares
8 SHARED DISPOSITIVE POWER

None
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

924,195 Ordinary Shares
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

o
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

6.64%
12 TYPE OF REPORTING PERSON*

IN

*SEE INSTRUCTION BEFORE FILLING OUT!



CUSIP NO. M0392N 13G        Page    3    of    4    Pages   

Item 1.

(a) Aladdin Knowledge Systems Limited

(b) 35 Efal st . Kiryat Arye, Petach Tikva 49511, Israel

Item 2.

(a) Dany Margalit

(b) 35 Efal st . Kiryat Arye, Petach Tikva 49511, Israel

(c) Israel

(d) Ordinary Shares, nominal value 0.01 New Israeli Shekels per Share

(e) M0392N

Item 3.

Not applicable.

Item 4. Ownership.

(a) 924,195 Ordinary Shares

(b) 6.64%

(c) (i) 924,195 Ordinary Shares

  (ii) None

  (iii) 924,195 Ordinary Shares

  (iv) None

Item 5. Ownership of Five Percent or Less of a Class.

Not applicable.

Item 6. Ownership of More than Five Percent on Behalf of Another Person.

Not applicable.

Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company.

Not applicable.

Item 8. Identification and Classification of Members of the Group.

Not applicable.



CUSIP NO. M0392N 13G        Page    4    of    4    Pages   

Item 9. Notice of Dissolution of Group.

Not applicable.

Item 10. Certification.

        By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired in the ordinary course of business and were not acquired for the purpose of and do not have the effect of changing or influencing the control of the issuer of such securities and were not acquired in connection with or as a participant in any transaction having such purposes or effect.

SIGNATURE

        After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.


February 14, 2008
——————————————
Date



/s/ Dany Margalit
——————————————
Signature



Dany Margalit
——————————————
Name/Title



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