ALADDIN KNOWLEDGE SYS LTD

Aladdin Board Comments on Vector Capital Assertions Regarding Shareholder Data Highlighted Links Aladdin Knowledge Systems TEL AVIV, ISRAEL--(Marketwire - September 11, 2008) - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today issued the following statement in response to assertions recently made by Vector Capital regarding the Company's disclosure of shareholder data in connection to Vector's attempt to take control of the Company: The Aladdin Board of Directors and management team are confident that the Company's actions comply with applicable Israeli law and with their fiduciary duty to serve the best interests of all Aladdin shareholders. Aladdin believes that Vector's assertions that the Company has not fully complied with Israeli law or its duties to its shareholders are unnecessary posturing intended solely to help Vector pursue its opportunistic proposals to the detriment of all other Aladdin shareholders. Aladdin has met and will continue to meet its obligations to provide Vector with a shareholder list that reflects the most up to date publicly available information. To the extent that large shareholders materially change their holdings, they, not the Company, are obligated under SEC rules to update their holdings, through Schedule 13-F, 13-G and 13-D filings, all of which are publicly available. The list provided to Vector is the same list the Company received from its transfer agent. The further information Vector has requested regarding non-objecting beneficial owners and DTC participants are considered non-public information. Providing such any material non-public information to a single shareholder, especially one who is also a direct competitor of our Company through its wholly owned subsidiary, SafeNet Inc., would not provide "a level playing field" and is not in the best interests of all shareholders. In its response to Vector's unsolicited proposal and the proxy contest Vector has initiated, the Company is well-advised by experts in law, finance, proxy solicitation and communications. Vector has asserted that hiring a proxy solicitation firm is a violation of Israeli law, yet their lawyer has not provided a single citation either to a law or court ruling to justify this baseless claim. The assistance of a proxy solicitation firm is vital in order for the Company to fulfill its fiduciary duties to communicate with shareholders and to compile a timely and accurate register of shareholders. It is ironic that Vector claims that the Company falls short in a duty to keep track of its shareholder base, yet makes baseless complaints that hiring an expert to assist it is illegal. Aladdin fully intends to continue to meet its legal obligations while protecting its shareholders' interests.

Sep 03, 2008 06:30 ET

Aladdin eToken and eSafe Win Network Products Guide Reader Trust Awards

Aladdin eToken Wins "Best in Tokens" and Aladdin eSafe Wins "Best Secure Web Gateway" in the 2008 Best Products and Services Awards Aladdin eSafe and Aladdin eToken win 2008 Best Products and Services Awards from Network Products Guide Highlighted Links Aladdin Knowledge Systems 

- Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced that Network Products Guide, a Silicon Valley Communications publication and a world leading publication on technologies and solutions, named Aladdin eToken NG-FLASH winner of the 2008 Best Products and Services Award for "Best in Tokens" and named Aladdin eSafe "Best Secure Web Gateway."

The respected awards program honors products and services that represent the rapidly changing needs and interests of the technology end users worldwide. As part of the tech industry's leading global awards program, 2008's Best Products and Services were nominated from all over the world.

"Increased end-user awareness and ongoing advances in technology are helping shape better products and services," said Rake Narang, editor-in-chief, Network Products Guide. "Aladdin eToken is bringing improvements in strong, two-factor authentication using smartcard technology and encrypted flash memory for secure storage of data and certificates. Aladdin eSafe is advancing Web filtering with its real-time, multi-layered inspection of Web traffic that goes beyond 'good' and 'bad' sites to identify zero-day attacks."

"These awards recognize the best technology products and Aladdin is honored that eSafe and eToken have each gained the Network Products Guide Reader Trust," said David Collins, vice president of sales for enterprise security at Aladdin North America. "We are committed to aiding our channel partners by providing them with the very best security products."

About Network Products Guide Awards Network Products Guide, published from the heart of Silicon Valley, is a leading provider of products, technologies and vendor related research and analysis. The guide provides a wealth of information and tools including the best products and services, roadmaps, industry directions, technology advancements and independent product evaluations that facilitate in making the most pertinent technology decisions impacting business and personal goals. The guide follows conscientious research methodologies developed and enhanced by industry experts. To learn more, visit www.networkproductsguide.com.

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 eToken

Aladdin eToken is the world leader for USB-based authentication solutions. eToken provides strong user authentication and cost-effective password management solutions, enabling secure network access, improved data security through enhanced encryption and digital signing, as well as compliance with a wide range of regulatory requirements worldwide.

Visit www.Aladdin.com/eToken.

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 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, improve productivity, and enable compliance.

Visit www.Aladdin.com.

©2008 Aladdin Knowledge Systems, Ltd. All rights reserved. eSafe, 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.

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

 

Aug 28, 2008 18:30 ET Aladdin Knowledge Systems Confirms Receipt of Request for Extraordinary General Meeting of Shareholders Aladdin Knowledge Systems TEL AVIV, ISRAEL--(Marketwire - August 28, 2008) - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today confirmed that it has received a request from Vector Capital to convene an Extraordinary General Meeting of Aladdin Shareholders to consider, among other things, certain changes to the composition of the Aladdin Board of Directors. Vector Capital is a shareholder and, through its wholly-owned subsidiary, SafeNet, Inc., a direct competitor of Aladdin. The Board is reviewing the request. Credit Suisse Securities (USA) LLC is serving as financial advisor to Aladdin. Kramer Levin Naftalis & Frankel LLP is serving as U.S. legal counsel and Herzog, Fox & Ne'eman is serving as Israeli counsel to the Company. 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 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, improve productivity, and enable compliance. Visit www.Aladdin.com. Safe Harbor Statement Certain information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, risks relating to our recent acquisition of Athena Smartcards and the pending acquisitions of SafeWord and Eutronsec, including the failure to realize expected synergies, failure to effectively integrate these businesses into our business and increasing unexpected liabilities, the loss of market share, changes in the level of business or anticipated business from a large customer or customers, failure to achieve anticipated customer orders, changes in the competitive landscape and other factors over which the company has little or no control. For more information, please refer to the Company's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov. ©2008 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP, eToken, eSafe, Aladdin Knowledge Systems and the Aladdin logo are trademarks or registered trademarks of Aladdin Knowledge Systems, Ltd.

Aladdin HASP SRM Adds Automatic File Wrapping to Secure Intellectual Property in Java-Based Applications 

HASP SRM v 3.50 ease-of-use updates include improved key memory management, Business Studio Application enhancements, and update handling improvements

- Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced the release of Aladdin HASP SRM™ v 3.50, adding automatic file wrapping for Java applications, enhanced security and ease-of-use to Aladdin's award-winning, fully-integrated hardware- and software- based copy protection and licensing solution.

Critical Protection for Proprietary Intellectual Property The HASP SRM Java Envelope provides advanced protection for Java Archive (JAR) files through strong encryption, protecting against reverse engineering at the class-level through the encryption of user-selected class files. Within just minutes, the HASP SRM v 3.50 Java Envelope automatically "wraps" Java applications in HASP SRM's award-winning copy protection without requiring any changes to the source code itself.

A cross-platform environment based on intermediate code, Java is highly prone to reverse-engineering, making Envelope protection critical to securing intellectual property. Unlike other software DRM solutions, the HASP SRM Java Envelope does not require the conversion of Java files into another format in order to implement HASP SRM software- or hardware-based locking. HASP SRM v 3.50 is the only automatic file wrapping system that supports both hardware and software locking.

"Aladdin's commitment to supporting all major development environments and operating systems is clearly displayed in the newest version of HASP SRM,"  said Laila Arad-Allan, vice president of software digital rights management at Aladdin Knowledge Systems. "Java applications are frequently used in mobile phones, smart card devices, and embedded software development for medical machinery, parking pay stations, Web cameras and games. The widespread use of Java poses an increased risk to these segments, making intellectual property protection an absolute necessity wherever Java applications are included."

Increased Security HASP SRM v 3.50 provides software developers with enhanced security, adding clone detection to software-based licenses to preserve revenue through detection of fraudulent software licenses. Once detected, software publishers can choose to cease functionality of the duplicate software license until the user contacts the software publisher to validate the license. Enhanced Convenience and Ease-of-Use Features New features and granular, role-based tools provide enhanced visibility, allowing software publishers to make informed decisions quickly and easily, and improve productivity by giving more independence to order entry and fulfillment roles:

* Improved Key Memory Management: Enhanced key memory management tools enable order entry representatives to use pre-defined default memory values or overwrite new information to the key memory when the order is placed with no fear of impacting the key's functionality.

* Business Studio™ GUI Enhancements: In response to customer requests, the Business Studio interface has been updated to include a number of new ease-of-use functions including the ability to multi-select from a list, search directly from the "Customer Name" field in the order form without the need to open a new search, new easy-to-find buttons that replace drop-down menus, and the ability to copy & paste product keys for use in emails, on labels, etc.

* Update Handling Improvements: Additional user-requested functionality has been added to the Business Studio API that enables order fulfillment staff to streamline simple updates to software in the field; including the ability to wipe licenses clean before installing a license update.

Pricing and Availability

Aladdin HASP SRM v 3.50 is available now and can be purchased through the worldwide network of Aladdin offices and authorized HASP distributors. The HASP SRM Developer Kit is available for download at no charge. Pricing for hardware- and software-based Protection Keys and product activations varies based on type and quantities selected. Current HASP SRM customers can upgrade at no charge by downloading the update from the Aladdin Web site at  

http://www.aladdin.com/support/hasp-srm/hasp_srm_v3_50.aspx.

The HASP SRM Java Envelope is available for download at http://www.aladdin.com/support/hasp-srm/vendor.aspx.

About Aladdin HASP SRM

Aladdin HASP SRM is the #1 choice of software publishers worldwide, boosting business growth and profitability through strong software copy protection, unmatched intellectual property protection, and secure licensing and product activation.

Fully aligned with the software product lifecycle, award-winning HASP SRM features easy-to-use role-based tools for developers, product managers, order processing, and production.

Visit  www.Aladdin.com/HASP.