Aladdin Enhances Privilege Licensing System.

Business and High Tech Editors

CHICAGO--(BUSINESS WIRE)--Nov. 30, 2000

New version of Privilege generates and manages software licenses

with innovative license monitoring options and security features

Aladdin Knowledge Systems (NASDAQ: ALDN), a global leader in the field of Internet content and software security, today announced the release of Privilege 1.6, the latest version of the world's first integrated electronic software licensing system.

Adding to Privilege's flexible licensing capabilities, version 1.6 provides advanced subordinate licensing options that allow terms of the license to be changed with minimal effort, allowing software vendors and publishers to easily distribute and alter licenses via the Internet. New license flexibility tools can either automatically or manually cancel licenses, granting vendors additional license management choices and allowing returns and changes to be completed with ease. Privilege gives vendors the ability to cancel licenses remotely to facilitate returns and move licenses in the event of hardware changes in the field.

"Licensing is among the most important strategic imperatives that software vendors face, not only from a program-building perspective, but also on the technology front," says Steve McHale, Director of Software Partnering and Alliances Research at IDC. "Aladdin's understanding of how vendors can make it easier for end-users to acquire usage rights easily and efficiently, while protecting vendors against unauthorized usage of their software, makes it a key partner candidate for software vendors across the IT spectrum."

Privilege 1.6 strengthens protection by adding new API calls that enable secure storage of up to 10K bytes of data that vendors can read, write and retrieve on a disk. For software vendors who want the added security for locking licenses to a dongle, Privilege 1.6 has new encrypt/decrypt features in the Privilege Client API to enable access to the on-key encryption engine in Aladdin's trusted HASP4 hardware key. Security features within Privilege 1.6 empower the software e-commerce sector with the ability to license software in a simple and flexible format, yet protecting it just as easily. Enhanced security options allow vendors the choice of locking licenses to an IP address or a Privilege Host ID (computer hardware), eliminating the risk of affecting license integrity with future hardware updates.

"Aladdin's new set of offerings within Privilege 1.6 is a significant step in making software e-commerce more efficient, flexible and secure," said Avi Barir, Aladdin's Vice President of Software Security. "Privilege supplies simple, versatile license management tools that serve as a strong foundation for Electronic Licensing Distribution (ELD) and Electronic Software Distribution (ESD). These important tools are enhanced even further through the release of its latest version."

About Privilege

Privilege is an integrated electronic licensing system (IEL) that allows software vendors, publishers and providers to securely sell and license software via the Internet. Aladdin's Privilege is the first software licensing system to enable the integration of both traditional and electronic sales and distribution models, providing both flexible, secure electronic software distribution (ESD), as well as the ability to distribute licenses electronically (ELD). The Privilege Licensing System allows new, flexible licensing technology that enables software vendors to:

-- Create unique software licenses for renting, leasing, demo,
try-before-you-buy, pay per use, or time-based solutions

-- Protect applications in a licensing environment that enforces license terms,
regardless of how the applications is distributed

-- Secure licenses with unique locking mechanisms

The Privilege eShop is a fully implemented software sales web site. The site can be used as a template to quickly implement a customized ESD solution. The eShop also includes support for credit card clearing and settlement using Cybersource.

The Privilege Administrator monitors and manages installed licenses. The Administrator features an easy-to-use management console that allows installation, upgrading, and deleting of licenses. Customers can see an online list of all users running the application, and they can monitor for license status and terms of use.

About Aladdin

Aladdin (NASDAQ: 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 our Web site at www.eAladdin.com.