ALDN Aladdin Knowledge Systems Ltd (MM)

Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced that Aladdin has been positioned in the visionaries quadrant in Gartner's Magic Quadrant for Secure Web Gateway by Peter Firstbrook and Lawrence Orens, published September 11, 2008(1).

The Gartner report provides in-depth analysis of the Secure Web Gateway (SWG) market and evaluates vendors on their ability to execute, including viability, pricing, and product quality, as well as completeness of their vision, such as sales and marketing strategies.

"Having a malware-filtering capability is critical as the Internet and Web become the major infection channels. Almost all organizations that implemented a bidirectional malware-filtering SWG found numerous adware, spyware and other malicious content on their networks," the Gartner report stated.

Aladdin's strength in malware filtering is demonstrated by Aladdin eSafe's real-time, intelligent inspection capabilities. To combat the sophisticated cybercriminals targeting legitimate Web sites and Web 2.0 applications, Aladdin eSafe scans all Web traffic regardless of port, detecting and removing malware at zero hour without over-blocking legitimate content or sacrificing performance.

Aladdin eSafe includes an extensive list of unique application controls in more than 500 categories, numerous deployment options, and a wide platform offering. With a global presence, a diverse portfolio of customers, innovative technologies and extensive intellectual property and patents, Aladdin eSafe continues to be well positioned for ongoing growth and success in the content security market.

"We are delighted that Aladdin eSafe is positioned within Gartner's Magic Quadrant for Secure Web Gateway," said Tsion Gonen, vice president of the Content Security Business Unit at Aladdin Knowledge Systems. "In my opinion, Aladdin's placement in the Visionaries Quadrant confirms our strengths in technology innovation and our strategy in developing real-time, intelligent Web security solutions that enable organizations to protect information assets and enforce acceptable use policy."

According to the Gartner report, "Visionaries are distinguished by their technical and/or product innovations but have not yet achieved the record of execution in the SWG market to give them the high visibility of the leaders or those that lack the corporate resources of challengers. Expect state-of-the-art technology from the visionary vendors, but buyers should be wary of a strategic reliance on these vendors and should monitor the vendors' viability closely. Given the maturity of this market, visionaries represent good acquisition candidates. Challengers that may have neglected technology innovation and/or vendors in related markets are likely buyers of visionary vendors. Thus, these vendors represent a higher risk of business disruptions."

Recipient of numerous industry awards, Aladdin eSafe continues to experience strong business momentum on a global scale, which has resulted in significant growth in new customer acquisitions and strategic channel partner development.

About Aladdin eSafe

Aladdin eSafe delivers real-time intelligent Web gateway security solutions that help organizations protect data and networks, improve productivity, and enable compliance. Recognized as an industry innovator, Aladdin is positioned as a Visionary in Gartner's Magic Quadrant, and millions of users depend on eSafe to protect against the latest Internet threats. Visit www.Aladdin.com/eSafe.

About Aladdin

Aladdin Knowledge Systems (NASDAQ: ALDN) is an information security leader with offices in 12 countries, a worldwide network of channel partners, and numerous awards for innovation. Aladdin eToken is the world's #1 USB-based authentication solution, offering identity and access management tools that protect sensitive data. Aladdin SafeWord two-factor authentication technology protects companies' important information assets and applications. Aladdin HASP SRM boosts growth for software developers and publishers through strong anti-piracy protection, IP protection, and secure licensing and product activation. Aladdin eSafe delivers real-time intelligent Web gateway security that helps protects data and networks, improves productivity, and enables compliance. Visit www.Aladdin.com.

(1)The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

�2008 Aladdin Knowledge Systems, Ltd. All rights reserved. eSafe, Aladdin Knowledge Systems and the Aladdin logos 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.

Press Contact: Matthew Zintel Zintel Public Relations matthew.zintel@zintelpr.com 310.574.8888 Investor Relations Contact: Debbie Kaye Corporate Communications Manager debbie.kaye@aladdin.com 646.468.0481