Aladdin eToken Named Finalist for Two 2005 SC Magazine Global Awards

CHICAGO, January 12, 2005 - Aladdin Knowledge Systems, Inc. (Nasdaq:ALDN) today announced that Aladdin eToken, a USB-based smart card device for cost-effective strong authentication and password management, has been named a finalist for two prestigious 2005 SC Magazine Global Awards.

Aladdin eToken is slated as a finalist for the "Best Smart Card Solution" under Reader Trust Awards and "Best Security Solution for Government" under US Excellence Awards. As one of the security industry's most coveted awards, SC Magazine Global Awards recognize leading providers of innovative digital security products. Winners are scheduled to be announced during the Gala Dinner on February 16th at the Moscone Center in San Francisco.

Aladdin eToken is a former winner of SC Magazine's "Best Encryption Solution" Award in 2003 and the "Best Security Hardware" Award in 2002 and 2001. For more information in the 2005 SC Magazine Global Awards, visit http://www.scawards.com.

"Consistently ranking high among the industry's top authentication solutions, Aladdin eToken once again proves its leadership role through two finalist slots for two top awards," said Leedor Agam, vice president of the eToken Business Unit at Aladdin Knowledge Systems. "We're pleased to show a growing, dominant presence through Aladdin eToken's powerful password management capabilities and strong protection against identity theft."

About Aladdin

Aladdin (NASDAQ: ALDN) has been a leading innovator in digital security since 1985, focusing on solutions for Software Digital Rights Management and Enterprise security. Serving more than 30,000 customers worldwide, Aladdin's products include the USB-based eToken™ device for strong user authentication, password management, and protection against identity theft; the eSafe® integrated content security solution that proactively protects networks against blended threats, including malicious, inappropriate, and nonproductive Internet-borne content; and the HASP® family of hardware- and software-based products that flexibly protect, license, and distribute software and intellectual property. Visit the Aladdin Web site at http://www.Aladdin.com.

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