Aladdin Study Uncovers Increase in Crime-Related Spyware

Aladdin eSafe Content Security Response Team analyzes top 2,000 spyware threats -- shows staggering volume of spyware specifically designed for identity theft

CHICAGO, September 14, 2005 - Aladdin Knowledge Systems (Nasdaq:ALDN), the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions, and a leading innovator in enterprise secure content management, today announced that the Aladdin eSafe Content Security Response Team (CSRT) conducted a two-month analysis of the top 2,000 known spyware threats.

The Aladdin eSafe CSRT study found that a staggering 15 percent of spyware threats actually steal passwords and log keystrokes, while also attempting to steal logged-on user names, the hash of administrator passwords, instant messaging usage and email addresses. The study illustrates that a growing amount of spyware is specifically designed for identity theft and continues to compromise both personal and commercial privacy, with potentially dangerous effects for large organizations in need of protecting proprietary information.

The study classifies spyware into three clear types:

• Severe Threat -- Fifteen percent of spyware threats send private information gathered from the end user currently logged on to the infected system: logging the user's keystrokes, logged-on user name, hash of administrator passwords, email addresses, contacts, instant messengers login and usage, and more.
• Moderate Threat -- Twenty Five percent of spyware sends information gathered from the victim's operating system, including the computer (host) name, domain name, logs of all processes running in memory, installed programs, security applications, client's internal IP address, OS version, the existence and versions of service packs and security updates, TCP ports the spyware is listening to, Computer Security Identifier (SID), default browser's homepage, browser plug-ins, etc.
• Minor Threat -- Sixty percent of spyware transmits gathered commercial-value information about the end user's browsing habits. This includes keywords used in search engines, browsing habits and ratings of frequently visited websites, shopping reports etc.

Spyware-Fighting Recommendations for Organizations

Aladdin eSafe CSRT recommends organizations take the following steps in order to more proactively protect against dangerous spyware:

1. Enumerate the network to determine the amount of spyware on the desktops. This will help evaluate the need for anti-spyware products.
2. Organizations should plan multi-layer spyware protection. This should include appropriate solutions to cover the flow path of spyware:
   • Enterprise gateway spyware blocking (covering 'driveby', download, and signature)
   • Spyware communications blocking
   • Spyware neutralizing
   • Desktop cleanup
3. Implement solutions beginning with the gateway, the clear point of entrance for infection and point of exit for spyware communications.

About Aladdin eSafe 5

Aladdin eSafe is an integrated gateway content security solution providing proactive email security and Web browsing security. As an in-line, transparent solution, eSafe offers the industry's highest content security performance, encompassing:

• Layered anti-spyware
• Spam management
• Application filtering
• Proactive antivirus technologies

Unlike other products which focus primarily on viruses, eSafe protects users and the enterprise from Web-borne content threats including spam, viruses, known and unknown worms, Trojans, Webpage malicious code, spyware, unauthorized P2P, Instant Messaging applications, and more. With eSafe, organizations take control before problems arise, saving valuable time as well as thousands of dollars in costly repairs, and providing content security where it counts most - at the gateway front line.

For more information on Aladdin eSafe 5, visit http://www.Aladdin.com/eSafe5.

About Aladdin

Aladdin Knowledge Systems Ltd. is a global provider of security solutions that reduce software theft, authenticate network users and protect against unwanted Internet and e-mail content, including spam, viruses and spyware. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin's Software DRM products allow software publishers to protect their intellectual property and increase revenues by reducing losses from software theft and piracy. Its Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (authentication) and what content their users can utilize (content security). Visit the Aladdin Web site at www.Aladdin.com.

©2002-2005 Aladdin Knowledge Systems, Ltd. All rights reserved. eSafe, Aladdin Knowledge Systems and the Aladdin logo are trademarks or registered trademarks of Aladdin Knowledge Systems, Ltd.

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