Aladdin Announces Second Share Repurchase Program in 1999.

TEL AVIV, Israel/NEW YORK--(BUSINESS WIRE)--Sept. 27, 1999--

Aladdin Knowledge Systems (NASDAQ: ALDN), a global leader in the field of Internet content security, today announced that its Board of Directors has authorized funding for the repurchase of up to an aggregate of 200,000 of the Company's ordinary shares (approximately 2 percent of the Company's outstanding shares as of June 30, 1999). The shares will be purchased in open market and privately negotiated transactions at prevailing prices and will be held by a trustee to facilitate grants of employee stock options.

This is the second share repurchase for Aladdin, which did a stock buy back program in 1998. The Company believes that its cash reserves allow for flexibility in funding its business and repurchasing Aladdin shares.

Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems, commented, "We believe that Aladdin's long term prospects make the repurchase of our shares not only a good investment for our company but also a good investment in our employees through our stock option grant program. The board's decision to fund the share repurchase reflects the confidence we have in our newest Internet security offerings - eSafe Protect 2.1 for Internet security and eToken for network and digital content security - as well as our industry-leading software security solutions, HASP and Hardlock."

About Aladdin

Aladdin (NASDAQ/NMS: ALDN) is a global leader in securing digital content, from applications software to Internet use and access. Aladdin's products include HASP and Hardlock, software security systems that protect the revenues of developers and publishers; Privilege, a software licensing platform for the Internet; the eSafe line of anti-vandal, anti-virus and content filtering software for PCs and networks connected to the Internet; and eToken for Internet security and authentication. Aladdin serves its customers through eight offices located in the world's major software markets as well as a network of 50 distributors serving more than 100 countries. For more information, visit the Aladdin Website at www.eAladdin.com

Safe Harbor for Forward-Looking Statements Except for the statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the loss of market share, changes in consumer buying habits and other factors over which Aladdin Knowledge Systems Ltd. has little or no control.