Aladdin eToken Gains FIPS 140-2 Level 2 and 3 Certification

CHICAGO, October 31, 2007 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced that its Aladdin eToken two-factor authentication solution officially received Federal Information Processing Standards (FIPS) 140-2 Level 2 and 3 validation certificates (#852 and #853) - a government standard managed by the National Institute of Standards and Technology (NIST) that accredits software and hardware cryptographic modules.

Achieving FIPS 140-2 Level 2 and 3 certifications is a significant mark for Aladdin eToken, as it sets itself apart from competition by meeting the highest possible requirements for its cryptographic module, as well as strict hardware requirements not met by all authentication token vendors. Aladdin eToken underwent a thorough testing process by the accredited cryptographic module testing lab at Electronic Warfare Associates - Canada. "FIPS 140-2 defines stringent requirements for providing cryptographic functions and protecting the associated keys," said Erin Connor, lab director at EWA-Canada. "The achievement of these cryptographic module validations demonstrates Aladdin's continuing commitment to the creation of secure tokens that meet strict requirements for security and integrity. Aladdin customers can be assured that use of the eToken will play an important role in the overall security posture of their day-to-day activities."

In order to expedite the FIPS 140-2 validation process, Aladdin also partnered with Corsec Security, Inc., a consulting firm with more than nine years of validation experience.

"Corsec is proud to have worked with Aladdin on the evaluation of its authentication solutions," said Matthew Appler, CEO and co-founder of Corsec Security. "Achieving FIPS 140-2 validation clearly demonstrates Aladdin's strong commitment to going above and beyond their customer's requirements."

"Through Aladdin eToken's FIPS 140-2 Level 2 and 3 certification, we show Aladdin's continual effort to hold the most up-to-date certifications on all of our eToken devices, maintaining our technological leadership in the market and meeting the important security requirements of government and enterprise customers," said Shlomi Yanai, vice president of the Aladdin eToken Business Unit. "We see FIPS certification as a pivotal milestone for eToken, opening many new growth opportunities to our already fast-paced presence worldwide."

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. laddin 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.

©2007 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.

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