Aladdin and IdenTrust Partner to Strengthen Security for Online Banking

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CHICAGO, July 15, 2008 - Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced a partnership with IdenTrust, who possesses the only global bank-centric identity network, to provide identity authentication solutions for secure online banking and financial transactions.

Aladdin and IdenTrust are collaborating to offer certificate-based two-factor authentication for unmatched security, enabling financial organizations in the United States, Europe and Asia to implement next-generation technology to improve the security of e-commerce, fight identity theft, increase customer trust and drive revenue.

Aladdin and IdenTrust will develop joint initiatives to drive future innovation and expand the options available for secure online banking and other industries requiring globally interoperable certificate-based transactions. A premier provider of authentication solutions to global financial institutions and the United States government, IdenTrust has won numerous awards and received global recognition from Ernst and Young, Bank Technology News and Financial-i.

Aladdin eToken PRO is certified by IdenTrust to be compliant with the IdenTrust Rule Set, which provides a standards-based approach for identity authentication and validation developed by the global financial services community and accepted in more than 175 countries. The IdenTrust Rule Set delivers an interoperable framework that enables regulatory compliance for high-assurance identities which are legally binding and universally applicable for all forms of electronic transactions.

"IdenTrust is partnering with Aladdin to complement our bank-issued identity credentials, providing high-quality and robust smartcard technology that financial institutions and their customers can trust and rely upon." said Karen Wendel, Chief Executive Officer at IdenTrust. "

Authentication, Encryption and Digital Signatures

IdenTrust validates the identity associated with the transaction, but not the data associated with the transaction - preserving the integrity and confidentiality of transmitted data. Online banking conducted while authenticated with the Aladdin-IdenTrust solution is encrypted, making data inaccessible to unauthorized persons as well as eliminating phishing and man-in-the-middle attacks. Secure digital signatures authorize electronic documents, emails and transactions to the same level of legal protection as traditional ink-and-paper signatures.

Compliance

Combining authentication, encryption and digital signing, the Aladdin-IdenTrust solution assists organizations in complying with a multitude of regulatory requirements including Sarbanes-Oxley (SOX), HIPAA, PCI, and FFIEC initiatives for Anti-Money Laundering (AML) and Know Your Customer (KYC).

"IdenTrust certification of Aladdin eToken is a testament to the strength of eToken in the global authentication market," said Phil Pavay, vice president of global business development at Aladdin Knowledge Systems. "By partnering with IdenTrust, Aladdin is able to expand the range of eToken services to incorporate IdenTrust's globally-recognized Trust Network certificates for the highest security in online financial transactions."

About IdenTrust

IdenTrust is a leader in trusted identity solutions recognized by financial institutions, government agencies and businesses around the world. The only bank-developed identity authentication system, IdenTrust provides a legally and technologically interoperable environment for authenticating and using identities in more than 175 countries. IdenTrust enables end-users to have a single identity that can be used with any bank, any application, and across any network. IdenTrust identities are globally interoperable under uniform private contracts. For more information, visit www.identrust.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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