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Corrective notice

In the press release issued by the Company on July 21, 2008 with respect to its second quarter of 2008 financial results, there was an error in the second quarter of 2007 non-GAAP numbers. Non-GAAP net income in the second quarter of 2007 was $4.0 million or $0.28 per basic share and $0.27 per diluted share, and not $4.6 million or $0.31 per basic share and $0.31 per diluted share as reported on July 21, 2008.

Aladdin will hold a teleconference, July 21st, at 9 a.m. EDT to discuss its second quarter results. To participate in the call, dial +1 (800) 994-4498 in North America, or +972 (3) 918-0610 internationally, approximately five minutes prior to the scheduled call start time. The call is being simultaneously Web cast and can be accessed on the Aladdin Web site at www.Aladdin.com/investor.

Please visit the Web site at least 15 minutes prior to the scheduled call time to register for the Web cast and download any necessary audio software.

Web cast - Aladdin Knowledge Systems Second Quarter 2008 Financial Results
Date:	July 21, 2008
Time:	9:00 AM Eastern Time 4:00 PM Israel Time
	Register for web cast

August 1: Aladdin Analyst Day Webcast

Eutronsec Acquisition

On June 25, 2008 signed a definitive agreement to acquire Eutronsec, S.p.A., a provider of software protection and authentication products, for approximately €10.0 million in cash, including acquisition related expenses.

Corporate Profile

Aladdin (Nasdaq: ALDN) is a leader in digital security, providing solutions for software and Internet security since 1985.
Aladdin has been on NASDAQ since 1993 and began trading on the Israel exchange in April, 2004.

Vision & Mission Statement

Vision: We strive to be the leading provider of security solutions and services used by our customers to protect digital assets, enable secure e-business, and maximize the benefits from creating, selling, distributing and using digital content.

Mission: To enable the secure use and distribution of digital content.

Core Product Offerings

Serving more than 30,000 customers worldwide, Aladdin develops and markets the following products:

HASP® - A comprehensive family of hardware and software-based Digital Rights Management solutions, meeting software publishers' protection and licensing needs;
eToken ™ – a USB-based smartcard device and Token Management Software for strong user authentication and identity management;
eSafe ® – a proactive, integrated content security solution that protects against malicious, inappropriate and nonproductive Internet-borne content.

All trademarks and registered trademarks are the property of their respective holders.

Press Contact:

Matthew Zintel
Zintel Public Relations
310.574.8888

Investor Relations Contact:

Debbie Kaye
Aladdin Investor Relations
646 468 0481