Virginia Tech Implements Aladdin eToken USB Smart Device for Secure Enterprise Technology Initiative

Goal to provide 25,000 students and staff with eTokens for secure digital certificate storage, strong security for growing PKI use

CHICAGO, December 4, 2006 - Aladdin Knowledge Systems (Nasdaq:ALDN), the leader in Software DRM, strong authentication and content security solutions, today announced that Virginia Tech, home of the state's largest full-time student population, selected the Aladdin eToken USB strong authentication device to begin its Personal Digital Certificate (PDC) initiative aimed at providing powerful security and easy implementation for fast-expanding use of Public Key Infrastructure (PKI) throughout campus.

The university's smart device selection team, responsible for evaluation and selection of a smart device, chose Aladdin eToken to begin their use of USB smart devices to securely store personal digital credentials issued for faculty and staff in the initial phase of deployment. The implementation of PKI began with the establishment of the Virginia Tech Certificate Authority (VTCA) in April of 2003, which was established to provide SSL server certificates to the campus community. Virginia Tech's next major phase of deployment includes 500 Aladdin eToken devices given to Information Technology faculty and staff during the last quarter of 2006. Each personal digital certificate to be issued by Virginia Tech is stored on an Aladdin eToken.

The eToken provides strong two-factor authentication by requiring a person to have both physical possession of the eToken (something you have) together with knowledge of the eToken's associated password (something you know) to use the identity credential stored on the eToken. eTokens provide a secure and portable solution for storing user private keys and digital certificate credentials. With the ability to use digital signatures, Virginia Tech plans to increase efficiencies and productivity for faculty and staff by moving business processes online in situations where pen and ink signatures are currently required. Other anticipated uses include the digital signing of emails, client SSL authentication, and Web Sign On (WSO).

"We needed a secure way for users to store their digital credentials and realized that the best way would be to use a portable, secure smart device that proves to be reliable, flexible and secure," said Frank Galligan, project manager of Virginia Tech's eProvisioning Group that is driving the university's PKI initiative. "After evaluating several token providers, we decided on Aladdin eToken. When looking at the device selection, an important consideration was multi-platform support. Aladdin's clear commitment to multi-platform support impressed us, as we're not a completely Windows shop and it was important to also accommodate Linux and MAC OS in a university environment."

Starting with the university's initial use within the Information Technology department, there are plans to expand personal digital certificate deployments to include other departments at the university. Eventually working toward the goal of providing a smart device to more than 25,000 students, faculty and staff, Virginia Tech's PKI initiative continues in multiple phases spanning two or more years of comprehensive, well-planned deployments.

"The highly flexible and durable nature of using Aladdin eToken PRO is ideal for higher education community," said Dan Pfeifle, senior director, eToken for Aladdin North America. "Faculty, students, administrators and alumni can seamlessly use the device in any USB port while ensuring strong two-factor authentication to gain access to protected resources. Virginia Tech's deployment of eToken further demonstrates Aladdin's experience in providing strong two-factor authentication solutions to the higher education community."

About Virginia Tech eProvisioning Group

The eProvisioning group, a unit within the office of Secure Enterprise Technology Initiatives (SETI) at Virginia Tech, Blacksburg, Virginia is responsible for leading the PKI initiative at the university. Secure Enterprise Technology Initiatives was formed within the Information Technology organization to focus on developing secure applications, middleware, and interfaces to support the university's computing and network services. The department works in conjunction with the IT Security Office to enforce auditable security standards that address privacy issues while providing a balance between system usability and system security. SETI consists of five units: Collaborative Technologies (CTU), e-Provisioning, Microsoft Implementation Group (MIG), Middleware, and Test and Deployment (TAD).

Founded in 1872 as a land-grant college named Virginia Agricultural and Mechanical College, Virginia Tech is now a comprehensive, innovative research university with the largest full-time student population in Virginia. Through its focus on teaching and learning, research and discovery, and outreach and engagement, Virginia Tech continually strives to accomplish the charge of its motto: Ut Prosim (That I May Serve). Visit www.vt.edu.

About Aladdin eToken

Aladdin eToken is the world leader for USB-based authentication solutions. It provides strong user authentication and cost-effective password management solutions enabling organizations to easily and effectively expand business opportunities with secure network access, improve data security through enhanced encryption and digital signing, and reduce costs and vulnerabilities through superior password management. For more information, please visit www.Aladdin.com/eToken.

About Aladdin

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), founded in 1985, is a global provider of security solutions. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. Aladdin's Software DRM products allow software developers and publishers to protect their intellectual property, increase revenues through licensing, and reduce losses from software piracy. Aladdin's Enterprise Security solutions enable organizations to secure their information technology assets by controlling who has access to their networks (identity and password management) and what content their users can utilize (proactive content security). Aladdin has offices in 10 countries, a worldwide network of channel partners and holds numerous industry awards for innovation and reliability. For more information, please visit the Aladdin Web site at www.Aladdin.com.

©2002-2006 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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