Aladdin Signs Distribution Agreement with Securematics

CHICAGO, January 19, 2005 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) today announced an agreement with Securematics Inc, a specialty security distributor, to distribute the Aladdin eSafe® and Aladdin eToken® products throughout North America.

The agreement enables Aladdin to expand its focus beyond security early adopters by educating and training resellers how to meet the growing security requirements of mainstream enterprise and SME customers. eSafe, a gateway-based, integrated proactive content security solution, and eToken, a USB based smart card authentication device for cost-effective password management and identity theft protection, are sold exclusively through Aladdin's network of resellers.

"We are excited to build a partnership with Aladdin," said Juhi Aswani, COO at Securematics. "The addition of Aladdin eSafe and Aladdin eToken products strengthens and augments our distribution of security products from Juniper and SonicWALL. Securematics works with a high-touch, value-added distribution model. Through sales-training, presales support , sales engineer training events and SecureAcademy rewards, we plan to help our resellers, sell ,support and build solutions around market-leading Aladdin security products."

"Our new relationship with Securematics enables Aladdin to reach new mainstream markets where network security solutions are essential to business growth, productivity and regulatory compliance," said Thomas Keane, vice president of sales at Aladdin North America. "We're encouraged by Securematics' value-added and focused security distribution model that emphasizes extensive training of their partners - a definite benefit for Aladdin eSafe and Aladdin eToken customers."

About Securematics

Securematics, a privately held company based in Santa Clara, Calif., is a specialty distributor of network security products that helps resellers build strong security offerings with complimentary security products from leading IT vendors. For its vendor partners, Securematics helps create greater demand for their products while educating resellers on emerging network security technology products. The company is an authorized distributor of Aladdin, Juniper Networks, Netscreen Technologies security appliances and SonicWALL network security products. More information about Securematics can be found online at http://www.securematics.com.

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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