ALDN Aladdin Knowledge Systems Ltd (MM)

Aladdin Knowledge Systems (NASDAQ: ALDN) today announced that CAXA CO., LTD., the largest CAD/CAM/PLM provider in China, has selected Aladdin HASP SRM to secure its product design and lifecycle management software.

Aladdin HASP SRM, the only fully-integrated software- and hardware-based software protection and licensing solution, provides CAXA a secure solution for protecting, managing and deploying its products. HASP has enabled CAXA to create new business models for its software to reach a wider market and improve customer satisfaction. Using HASP's time-based licenses, potential customers are able to try CAXA's innovative software before purchasing without the risk of piracy or theft. HASP's remote update feature allows CAXA engineers to update licenses in the field, reducing time and cost.

"We were using DRM, but the solution could not keep up with customer demand for flexible licensing, and copies of our software were still being sold on the Internet. I estimate our losses were at least 2 million RMB ($200,000)," said Yu Ling, vice president at CAXA. "HASP offers us security and stabilization. We have already seen a 30 percent increase in the number of licenses purchased, and we have reduced our time spent updating licenses by 60 percent with Aladdin HASP SRM."

"CAXA and other leading software publishers turn to HASP SRM software protection and licensing because it provides more flexibility, saves time and money, and increases customer satisfaction," said Laila Arad-Allan, vice president of the Software DRM Business Unit at Aladdin Knowledge Systems. "We've seen tremendous growth in the Chinese market for software protection and licensing solutions and we anticipate this demand to increase as other organizations witness the success of companies like CAXA who are increasing revenues and reducing costs as a result of implementing HASP SRM."

About CAXA

CAXA is the largest domestic CAD/CAM/PLM provider in China, delivering integrated software solutions and services for innovative product design and collaborative data management. CAXA has developed a suite of CAD/CAM products and PLM solutions to address the complete spectrum of product lifecycle requirements, from early conceptual design, detailed design, process planning and shop-floor management to post-sale services. CAXA has received widespread industry recognition, including "Best-10 Domestic Software Awards" and the "Software Gold Award" from the China Software Industry Association. There are more than 200,000 installations of CAXA software in well-established channels throughout China. The Company has 35 regional sales and service offices, 300 training centers and 300 business partners. More than 1,200 domestic universities and vocational schools have selected CAXA for training courses. CAXA is also the standard testing tool for many government-sponsored certificate programs. Visit www.caxa.com.

About Aladdin

Aladdin Knowledge Systems (NASDAQ: ALDN) is an information security leader with offices in 15 countries, a worldwide network of channel partners, and numerous awards for innovation. Aladdin eToken is the world's #1 USB-based authentication solution, offering identity and access management tools that protect sensitive data. Aladdin SafeWord two-factor authentication technology protects companies' important information assets and applications. Aladdin HASP SRM boosts growth for software developers and publishers through strong anti-piracy protection, IP protection, and secure licensing and product activation. Aladdin eSafe delivers real-time intelligent Web gateway security that helps protect data and networks, improves productivity, and enables compliance. Visit www.Aladdin.com.

�2009 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.

Press Contact: Matthew Zintel Zintel Public Relations matthew.zintel@zintelpr.com 310.574.8888 Investor Relations Contact: Debbie Kaye Corporate Communications Manager debbie.kaye@aladdin.com 646.468.0481