Aladdin Grants Giesecke & Devrient License to Use Patented USB Strong Authentication Technology

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CHICAGO, August 12, 2008 - Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced that it signed a license agreement with Giesecke & Devrient (G&D), a technology leader in the field of smart cards and IT-security solutions. The agreement recognizes Aladdin's USB smartcard patents used in G&D's authentication products and grants G&D the rights to use the protected technology for its well-established StarSign e-identity token solutions.

Aladdin will provide G&D access to its protected technology under U.S. patent US 6,748,541 , US 6,763,399 and European patent EP 1,001,329.

"With a worldwide license agreement in place, we expect that the agreement will enable growth in the U.S. and in Europe as well as in new regions of the globe," said Dr. Kai Grassie, head of G&D's New Business Division.

"We are delighted to partner with an esteemed identity and access management market player such as G&D," said Shlomi Yanai, vice president of the Aladdin eToken Business Unit at Aladdin Knowledge Systems. "With G&D using Aladdin's technology, organizations can now benefit from extensive and robust strong authentication solutions."

About StarSign® e-Identity Token Solutions:
The StarSign® product family is a flexible and modular e-Identity token solution for strong authentication, encryption, and digital signatures. StarSign e-Identity token secure access to virtual private networks (VPN) and online portals, and to online banking and can be used for single sign-on procedures. Users can choose from a full range of authentication devices, such as cards, USB token, card token, Bio Token, and Mobile Security Cards (MSC).

About Giesecke & Devrient:
Giesecke & Devrient (G&D) is a technology leader in the field of smart cards, providing smart card based solutions for telecommunications, electronic payment, healthcare, ID, transportation, and IT security (PKI). G&D is also a leading producer of banknotes and security documents and is dominant in the field of currency automation. Based in Munich, Germany, the G&D group has subsidiaries and joint ventures around the world. In fiscal 2007, the Group employed close to 9,000 people and generated revenue of more than €1.5 billion. For more information, visit our Web site at www.gi-de.com.

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' Software Rights Management products are the #1 choice of software developers and publishers to protect intellectual property, increase revenues, and reduce losses from software piracy. Aladdin eToken is the world's #1 USB-based authentication solution. The Aladdin eSafe secure Web gateway provides the most advanced protection against the latest Web-based threats and attacks. Aladdin has offices in 12 countries, a worldwide network of channel partners, and has won numerous awards for innovation. For more information, visit the Aladdin Web site at www.Aladdin.com.

©2008 Aladdin Knowledge Systems, Ltd. All rights reserved. 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. Juniper Networks is a registered trademark of Juniper Networks, Inc. in the United States and other countries.

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