South Korea's Largest Online Banking Community Offers Secured Banking Transactions with Aladdin eToken

CHICAGO, October 29, 2007 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced that South Korea's National Agricultural Cooperative Federation (NACF), known locally as NongHyup / NH Bank, will provide more than 10,000 of its customers with the USB-based Aladdin eToken strong authentication device to secure online banking transactions. Deployment is scheduled to begin this month. With more than 5,000 branches and cooperatives throughout the country, the NACF features the largest number of online banking customers in South Korea. The country boasts more than 40 million online banking customers across 19 banks.

For many NACF customers, Aladdin eToken will replace the traditional user name and password currently used to access their online accounts, allowing them to authenticate and prove their identity using something they have, the Aladdin eToken, and something they know, a password. This adds powerful levels of protection, while also providing great portability - securely accessing their online NACF accounts from virtually any Internet-enabled PC.

The NACF stands as the apex organization for 1,223 multipurpose member co-ops, representing 2.4 million member farmers in South Korea. The NACF and the member cooperatives have a 46-year history of working on behalf of farmers and for agricultural development. Prioritizing convenience and accessibility, the NACF features a continually growing online customer community that will benefit from strong authentication provided through the Aladdin eToken device.

The NACF chose Aladdin eToken due to its proven quality performance and standardized support of PKCS #11. The Korea Information Security Agency (KISA), together with the Korea Financial Telecommunications & Clearings Institute (KFTC), recently announced steps toward requiring the country's financial institutions to implement PKCS #11 support in the use of USB-based Hard Security Module (HSM) for Internet banking, further enhancing security authentication and universal use across banks. eToken's use at the NACF is the first of its kind in South Korea, providing the alternative choice on top of the One-Time Password (OTP) technology driven by the Financial Supervisory Service's (FSS) initial guidelines for stepping up Internet banking security.

By providing a significant number of the NACF online banking customers with Aladdin eToken, the NACF said it illustrates its ongoing commitment to fight online fraud and secure customers' financial data. Throughout the evaluation process by NACF's bid evaluation committee, eToken provided the strong authentication that is required - all while proving to offer easy integration without any inconveniences to valued online customers. NACF's evaluation committee said it is pleased to select Aladdin eToken to enhance the peace of mind both for NACF as a financial institution, as well as for its online banking customers.

"We see the NACF's deployment of Aladdin eToken as part of the larger shift toward greater awareness of USB-based HSM for online banking security in Korea," said Thomas Rhee, President and CEO of WiNoble, Inc., the Seoul-based enterprise solutions provider deploying NACF's Aladdin eToken solution. "By offering a strong authentication solution, the NACF increases its appeal to security-minded customers that may otherwise be leery of online dangers. eToken is a convenient and flexible tool that offers the mix of security and reliability that banks require. WiNoble is proud to assist in helping to establish a great security service the NACF will soon be providing its online customers."

"Aladdin is proud to provide the NACF with secure access to their online banking transactions for such a large number of users," said Shlomi Yanai, vice president of the Aladdin eToken Business Unit. "The NACF's implementation illustrates eToken's reliability and high level of security that financial institutions demand. eToken's strong authentication provides an extra layer of protection and added confidence for banks and their customers - a real win-win proposition that helps differentiate institutions."

About Aladdin eToken

Aladdin eToken is the world leader for USB-based authentication solutions. eToken provides strong user authentication and cost-effective password management solutions, enabling secure network access, improved data security through enhanced encryption and digital signing, as well as compliance with a wide range of regulatory requirements worldwide. Visit www.Aladdin.com/eToken.

About Aladdin

Aladdin Knowledge Systems' Software Rights Management products are the #1 choice of software developers and publishers to protect intellectual property, increase revenues, and reduce losses from software piracy. laddin eToken is the world's #1 USB-based authentication solution. The Aladdin eSafe secure Web gateway provides the most advanced protection against the latest Web-based threats and attacks. Aladdin has offices in 12 countries, a worldwide network of channel partners, and has won numerous awards for innovation. For more information, visit the Aladdin Web site at www.Aladdin.com.

©2007 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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