ALDN Aladdin Knowledge Systems Ltd (MM)

Aladdin Knowledge Systems (NASDAQ: ALDN) today announced general availability of Aladdin HASP SRM� SaaS Pass(TM). Utilizing Aladdin's award-winning HASP SRM solution, SaaS Pass (see diagram) allows on-demand software providers to maximize their revenue by preventing users from sharing their username and password with unauthorized individuals.

SaaS Pass allows login access to software-on-demand only from specific, pre-activated machines -- ensuring the highest level of secure and controlled access to the hosted application and sensitive end-user data.

"The Software-as-a-Service (SaaS) model has grown tremendously in popularity as end-users enjoy the flexibility of subscription-based applications without the internal IT burden," said Mukul Krishna, global director of the digital media practice at Frost & Sullivan. "However, this also opens up a security loophole as user login information can be misused by being passed around or stolen. HASP SRM SaaS Pass will be very well received in the market as it closes such security holes and lets end-users and software vendors use SaaS applications in a highly secure environment."

How HASP SRM SaaS Pass Works

The SaaS Pass solution is based on a small client application installed on the end-user's PC that communicates over the Internet with the service provider's Web application. The client application, which was pre-activated for the specific PC (using a HASP SRM software key), collects and passes the user name and password to the Web application for validation. To ensure the highest level of security, the user's password and a server-generated, time-stamp validation string are encrypted using the HASP SRM AES 128-bit encryption engine before they are sent to service providers' Web application. Integrating SaaS Pass requires minimum changes to the service provider's Web application, and supports any existing username database.

What HASP SRM SaaS Pass Includes

Aladdin provides two additional components to HASP SRM that enable the SaaS Pass functionality: the SaaS Pass Login Application and the SaaS Pass Web Service Module.

The login application, which service providers distribute to their customers, is fully customizable. All operations, including distribution and pre-activation of the login application, can be handled over the Internet to minimize logistics costs. The HASP SRM SaaS Pass Web Service Module integrates with the SaaS provider's existing Web application. As a standard Web service, the module interoperates with any server platform.

"Aladdin strives to provide the most comprehensive solutions available to meet the needs of our customers, enabling them to advance their business and grow revenues," said Laila Arad-Allan, vice president of the Software DRM Business Unit at Aladdin Knowledge Systems. "Many of our customers offering SaaS cite shared username/password login information as a significant source of revenue loss. By integrating HASP SRM into their SaaS offering, ISVs can reclaim lost revenues by ensuring that only authorized users on authorized machines access their on-demand applications and data."

Pricing and Availability

Aladdin HASP SRM SaaS Pass is available now. The login application and Web Service module are available with HASP SRM at no additional charge. Current HASP SRM users can download the components at: www.aladdin.com/hasp/solutions/saas-solution.aspx. Product activations can be purchased on a "pay-as-you-grow" basis with variable pricing for software keys based on volume. Hardware keys can be used when portability is required. Pricing for hardware keys varies based upon model selected and volume. HASP SRM can be purchased through a worldwide network of Aladdin offices and authorized HASP distributors.

About Aladdin

Aladdin Knowledge Systems (NASDAQ: ALDN) is an information security leader with offices in 15 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 protect data and networks, improves productivity, and enables compliance. Visit www.Aladdin.com.

�2009 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP SRM, SaaS Pass, 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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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