Aladdin's software protection wins major new customers; Attachmate, Caere, Lucent Choose HASP

Business Wire, August 26, 1996

TEL AVIV, Israel--(BUSINESS WIRE)--Aug. 26, 1996--Aladdin Knowledge Systems Ltd. (NASDAQ/NMS: ALDNF), the world's leading developer of software security solutions, today announced that a number of industry leaders have recently chosen the Company's HASP software protection system.

Scott R. Schreiman, CEO of Aladdin Knowledge Systems Inc., said Attachmate, Caere and Lucent are among the leading companies which use HASP to protect their software products. Other top users include CA, DEC and IBM. Attachmate is a major supplier of information access software and services to major corporations. Caere is the industry's leading developer of OCR software and hardware systems. Lucent Technologies (formerly the systems and technology divisions of AT&T and Bell Labs) is one of the leading providers of communications solutions in the US.

Piracy is among the software industry's biggest challenges. The SPA and BSA estimate that illegal use of software costs the industry over $15 billion per year.

"Hand-in-hand with passive protection methods, such as consumer education and litigation, more and more software publishers have realized that the most effective solution to the problem of piracy is to actively protect their revenues with hardware-based software protection systems," Mr. Schreiman said.

Other industry leaders which have recently chosen HASP as their preferred protection solution are Graphisoft, a major vendor of architectural CAD software, and Verifone, a leader in the field of Transaction Automation solutions.

This announcement by Aladdin comes shortly after the introduction of HASP R3, the Company's next generation HASP "dongle." HASP R3 offers increased security, reliability, transparency and ease-of-use features.

For detailed information on the HASP product line, visit Aladdin's website at www.aks.com

Aladdin Knowledge Systems Ltd. (www.aks.com) is a leading supplier of advanced solutions for software developers. Aladdin develops, manufactures and markets proprietary software security and development systems, including HASP(R) and Hardlock(R), which combine hardware and software to prevent unauthorized use of computer programs, and ASE(TM) (The Aladdin Smartcard Environment), an integrated toolkit for developing PC-based smartcard applications. Aladdin, a public company traded on NASDAQ, has 5 international offices, distributors in more than 40 countries, and 20,000 clients in over 100 countries. Aladdin was recently described as "...the (software security) industry's rising star" by InformationWeek magazine. All names are trademarks or registered trademarks of their respective owners.

CONTACT: USA:

Aladdin Knowledge Systems Ind.

Scott R. Schreiman - CEO

Tel. 212-564-5678 Fax. 212-564-3377

E-mail: sales@us.aks.com

or

Int'l:

Aladdin Knowledge Systems Ltd.

Lisa Appelson - MarCom Manager

Tel. 972-3-636-2222 Fax. 972-3-537-5796

E-mail: sales@aks.com

or

Worldwide Investor Relations

Katerina Charalambous

The Anne McBride Co.

Tel. 212-752-0504