Aladdin Inks Significant Chinese Distribution Deal with Shanghai Wicresoft, Co. Ltd.

Shanghai Wicresoft Co., Ltd., a joint venture between Microsoft Corporation and the Shanghai Municipal Government, to distribute eToken and HASP – Aladdin CEO attends signing ceremony today in Shanghai

Aladdin (NASDAQ: ALDN) and Shanghai Wicresoft Co., Ltd., a joint venture between Microsoft and the Shanghai Municipal Government in China, signed a significant distribution agreement today at the Regal International East Asia Hotel in Shanghai.

Left to right:
Murphy Chan, Business Director, Aladdin Asia Ltd.
Warren Stein, Director, Aladdin Asia Ltd.
Uri Gutman, Consul General of Israel in Shanghai
Ingrid Wang, President, Shanghai Wicresoft Co., Ltd.
Yanki Margalit, CEO, Aladdin Knowledge Systems Ltd.
Kathy Chen, General Manager, Microsoft, East and Central China
Yang Yao, Vice President, Shanghai Wicresoft Co., Ltd.
Frances Fang, Senior Vice President, Shanghai Wicresoft Co., Ltd.

CHICAGO, June 6, 2006 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), the leader in Software DRM, identity management and content security solutions, today announced that Shanghai Wicresoft Co., Ltd., a joint venture between Microsoft Corporation and the Shanghai Municipal Government in China, now serves as a significant distribution partner for the Aladdin eToken identity management solution and HASP software protection and licensing solutions. Aladdin CEO Yanki Margalit attended a signing ceremony today at the Regal International East Asia Hotel in Shanghai.

Designed to strongly promote China's software industry, Wicresoft is considered a powerful influence in China's adoption of the latest technologies and IT management methodologies, as well as one of the most strategic investments in China. Aladdin's distribution agreement with Wicresoft comes as Aladdin's Software Digital Rights Management (DRM) and enterprise security sales continue to climb throughout the region, positioning China as an important step in Aladdin's growing Asian presence. In January 2004, Aladdin announced its first China-based office in Hong Kong, citing the ever-growing demand for software anti-piracy and enterprise security solutions.

"The cooperation between Aladdin and Wicresoft is based on the great perspective of information security industry in China," said Ingrid Wang, President of Shanghai Wicresoft Co., Ltd. "While the 'why' of security may be quite clear nowadays, the 'how' is an entirely different story. Wicresoft is now taking a more active role as a catalyst, coordinator, and the 'bridge' to introduce leading DRM and enterprise security technology into the local market. This enriches our own service system to benefit customers and also accelerates the development of the industry."

"We're pleased to now work hand-in-hand with one of the leading forces in the Chinese IT industry," said Yanki Margalit, CEO of Aladdin Knowledge Systems. "This distribution agreement stands as one of our most strategic efforts in better serving our customers in China. We look forward to increasing our HASP and eToken sales in China through Wicresoft's distinguished position within the country."

About Wicresoft

Shanghai Wicresoft Co., Ltd. is a leading IT and Business Process Outsourcing company in China. Established as a joint venture between Microsoft Corporation and Shanghai Municipal Government in 2002, Wicresoft has spent the last four years dedicated to the success of our customers by leveraging high-quality people and leading-edge technology.

Shanghai Ex-Mayor Chen Liangyu's presence at the signing ceremony of the joint venture between Shanghai Alliance Investment Co Ltd. and Microsoft Corporation signifies Shanghai Municipal Government's full support of the new company. Both investors show full expectations on the cooperation that will introduce advanced concepts of management and latest technology from international industry fields to China, and build up local software companies' competencies for joining in competition in the global IT industry.

Based on the long-term vision, "To be a trusted world-class IT & Business Process Outsourcing Service Provider through Agility, Integrity and Responsibility", Wicresoft offers a wide range of integrated business, technology and process solutions to enable its customers to achieve their business aims and potential. With deep expertise and more than 800 IT professionals, we serve hundreds of government projects and enterprises around the globe, including many Fortune 500 corporations. Having acquired certifications in COPC-2000, ISO-9001 and CMM Level III, Wicresoft aims to be a trusted world-class IT & Business Process Outsourcing Service Provider. Visit www.wicresoft.com.

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.

©2002-2006 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP, 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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