Aladdin Announces Development of MacHASP-USB Next Generation Software Protection for Mac Developers.

NEW YORK--(BUSINESS WIRE)--May 27, 1998--Aladdin Knowledge Systems Ltd. (NASDAQ: ALDNF), a leading developer of solutions for the secure licensing and distribution of digital content, today announced the development of the next generation software protection keys for the new iMac(R) product line. The prototype of MacHASP-USB, as the new key will be named, was shown at Apple's WorldWide Developers Conference (WWDC), in San Jose, CA, on May 11th.

"We are confident that the new Apple iMac will reach a new generation of computer consumers and offer great opportunities for our software developers," said Philip Schiller VP of worldwide product marketing at Apple. "Aladdin's announcement of the MacHASP-USB copy protection key is a welcome add-on for Macintosh software developers and further demonstrates the growing support for the iMac's adoption of the Universal Serial Bus interface."

"With Apple's decision to adopt the USB standard in its new line, it was natural that we would expand our USBHasp software protection to include a Macintosh version," said Rami Kasterstein, Aladdin's VP R&D. "This decision is in line with Aladdin's policy of keeping its technology at the forefront of software security."

Aladdin's R&D team began working on MacHASP-USB following the successful launch of the PC-based version protection key, USBHasp, at Cebit in March. Externally the new key will be identical to the USBHasp, and will be fully compatible with the current MacHASP range of keys. Only a minor software update will be required to enable both generations of keys to offer secure and transparent protection.

"Aladdin has always been committed to Macintosh developers," said Peter Felgentreff, HASP Sales Director for the USA. "They are a loyal and dedicated group both to Apple and to MacHASP. The new-generation Internet-ready Macintosh systems, and the new MacHASP-USB will make a great team in fighting software piracy and preserving the revenues of our developers."

Software piracy is the biggest challenge facing the software industry today. Both the SPA and BSA estimate that illegal use of software cost the industry over $11.2 billion in 1996 alone, and that almost 50% of business applications in use today are unlicensed.

About Aladdin:

Aladdin Knowledge Systems is a global leader in the secure licensing and distribution of digital content. Aladdin's product range includes HASP(R) and Hardlock(R), key-based software security systems which monitor software licensing and prevent unauthorized use of computer programs, Privilege(TM), a suite of software licensing and metering tools for developers and corporate IT managers, and ASE(R) - The Aladdin Smartcard Environment - a set of smart card application development tools for integrating smart cards with PCs. Aladdin is an ISO 9002 accredited company with headquarters in Tel Aviv, Israel, 5 international offices and distributors in more than 40 countries, serving over 25,000 clients worldwide. For more information, visit the Aladdin home page at http://www.aks.com.

CONTACT: USA

Aladdin Knowledge Systems Inc.

Peter Felgentreff - HASP Sales Director (US)

Phone [phone]

Fax [phone]

E-mail peter.felgentreff @us.aks.com

or

Int'l

Aladdin Knowledge Systems Ltd.

Lisa Appelson - MarCom Manager

Phone [phone]

Fax [phone]

E-mail [e-mail]