Aladdin eSafe and eToken Named Finalists in Five Categories for 2006 SC Magazine Awards

Chicago, December 20, 2005 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management (Enterprise Security), today announced that it has been named a finalist for five of SC Magazine's 2006 award categories in the United States, including:

• Best Anti-Virus Solution
• Best Anti-Trojan Solution
• Best Anti-Worm Solution
• Best Integrated Security Software
• Best Authentication Solution

Considered the leading annual awards program for the information security industry, SC Magazine's SC Awards highlight the leading companies, products and services in the field. Winners will be announced during a gala event at the Fairmont Hotel in San Jose, California on February 14th.

"Winning five finalist spots for this year's SC Awards underscores our continuing commitment to delivering the most innovative and reliable security solutions for all types and sizes of organizations worldwide," said John Gunn, vice president of global marketing for Aladdin Knowledge Systems. "We're honored to be recognized by one of the industry's most prestigious award programs. Our eSafe secure content management and eToken authentication products have already done very well in reviews in this year, winning important awards and accolades from the media."

About SC Awards

With over 1,300 product and service nominations from over 330 competing companies globally, the SC Awards are the world's leading awards program for the information security industry. The SC Awards program spans US, Asia, and UK. The SC Awards are composed of both the Reader Trust Technology Awards - voted on by SC readers in each region and the SC Awards Council, a group of carefully selected senior CSOs - and the Professional Awards that are judged by a panel of the industry's top talents.

Recognizing technical excellence and professional achievement across a variety of different categories, the SC Awards is a truly unique program developed to bring attention to the industry's top products and highlight the professionals that have both created them and use them within their companies. These industry achievements are acknowledged during the exciting US Awards ceremony taking place this year at the Fairmont Hotel, San Jose on February 14th, 2006. For more information, visit www.scmagazine.com.

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 email content, including spam, viruses and spyware. 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 protect their intellectual property and increase revenues by reducing losses 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.

©2002-2005 Aladdin Knowledge Systems, Ltd. All rights reserved. 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

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