New Aladdin and PGP Partnership Strengthens Protection of Corporate Proprietary Information on Lost or Stolen Laptops

CHICAGO, August 16, 2005 Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), the worldwide leader in Software Digital Rights Management (DRM) and a leading innovator in enterprise content security and strong authentication solutions, and PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced a partnership that greatly minimizes the vulnerability of proprietary information for employees relying heavily on laptops.

Organizations using PGP® Desktop Professional are now able to securely store their PGP keys on an Aladdin eTokenâ„?, the only authentication device of its type offered to PGP customers using PGP Whole Disk Encryption. Users simply store their PGP keys on the Aladdin eToken and plug in the token, requiring users to remember only one password – the eToken password. This partnership between PGP Corporation and Aladdin allows customers from around the world to purchase both their PGP Desktop Professional software and Aladdin eToken devices directly from PGP authorized partners, providing powerful security, an unparalleled level of convenience, flexibility, and productivity, as well as huge cost-savings.

“Just as executives carry the keys to their car, they are now able to gain peace of mind by literally carrying the key to their laptop,” said Leedor Agam, vice president of the Aladdin eToken Business Unit. “Data and laptop theft remains a massive concern for organizations. Aladdin’s new partnership with PGP Corporation provides users with the eToken key, adding the much-needed layer of additional physical security – both generating and storing PGP encryption keys on the token itself.”

Using the integrated PGP encryption suite, organizations can leverage a single, automated information security management solution that offers a wide range of functionality and deployment options, including disk security, email security, unified administration, and IM security. The new Aladdin-PGP partnership allows users to easily and securely carry numerous PGP credentials to multiple machines, also using Aladdin eToken for any number of security applications, including network logon, VPN/Web access, password management, PKI solutions, and more.

“Our strategic partnership with Aladdin allows enterprise customers to add another layer to laptop security without sacrificing ease of use,” said Steven Schoenfeld, vice president of products and strategy for PGP Corporation. “With the Aladdin eToken, access to laptops protected by PGP Desktop Professional with PGP Whole Disk Encryption requires the user to both know the password and have possession of the Aladdin eToken. Together, these ensure that laptops protected with proven, industry-standard PGP technology can be accessed only by authorized individuals.”

For more information on the Aladdin-PGP solution, contact an authorized PGP reseller at http://www.pgp.com/partners/channel/contact_reseller.html.

About Aladdin eToken
Aladdin eToken provides cost-effective strong user authentication and password management solutions. It provides enhanced security and ensures safe information access; improved password and ID management; and secure mobility of digital credentials/certificates and keys.

About the size of an average house key, the award-winning Aladdin eToken is easy to use and highly portable, providing users with powerful authentication by requiring something they have, the tamper-proof eToken, and something they know, a password. It is used for secure network logon, secure VPN, Web Sign-On, Simple Sign-On, secure email, and numerous other applications. eToken is available in smart card and USB form factors featuring physical access (RFID) capabilities and one-time password technology.

The Aladdin Token Management System (TMS) enables the deployment, provisioning and maintenance of security Tokens, Smartcards and ID Badges within an organization. In addition, TMS offers seamless, and reliable management for Enterprise security services combining both PKI and non-PKI systems. For more information, visit http://www.Aladdin.com/eToken.

About Aladdin
Aladdin Knowledge Systems Ltd. is a global provider of security solutions that reduce software theft, authenticate network users and protect against unwanted Internet and e-mail content, including spam and viruses. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin’s Software DRM products allow software publishers to limit revenue loss from software theft and piracy. Its Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (authentication) and what content their users can utilize (content security). Visit the Aladdin Web site at www.Aladdin.com.

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