Aladdin Finalizes Acquisition of Eliashim; Introduces New OpenHASP Anti-Piracy Software.

TEL AVIV, Israel--(BUSINESS WIRE)--March 7, 1995-- Aladdin Knowledge Systems Ltd. (NASDAQ/NMS: ALDNF), a leading international provider of software security products, today announced that it has finalized acquisition of the software protection business of Eliashim Microcomputers Ltd. following completion of its due diligence process.

Aladdin also said it is introducing OpenHASP, a new product designed for software developers creating applications for open systems, PCs and Macintosh computers. OpenHASP effectively protects developers programs from piracy and other illegal and unauthorized use.

David Glassman, Aladdin's Vice President for Marketing and Sales, said on closing of the Eliashim acquisition: Aladdin intends to continue supporting Eliashim s existing customer base. CodeSafe customers are a strategic contribution to Aladdin s growth, especially in the US and Russia.

Aladdin management expects to discuss both the Eliashim acquisition and the new OpenHASP product in their presentations to US equity analysts and fund managers during the week of March 27.

OpenHASP is the first of what will be a full line of advanced software protection products for open systems that we will be announcing throughout 1995, Mr. Glassman declared. We are confident that our extensive experience in software protection technology will be appreciated by open system software developers who produce highly specialized applications.

OpenHASP is a hardware key featuring an advanced microprocessor chip that contains a unique electronic algorithm which is recognized by the protected software. During runtime, the protected software verifies whether an OpenHASP key with the correct algorithm is connected to the computer s RS-232 port. If the correct OpenHASP key is recognized, the software continues to execute. If it is not, the software can be run in a limited demonstration mode or disabled altogether.

OpenHASP keys contain 84 bytes of non-volatile memory, including 20 bytes of developer-privileged memory, enabling developers to custom-program individual keys for purposes such as user identification, software demonstrations, version control, storage of sensitive data and more. And with all the OpenHASP access codes and passwords programmed into the key by the developer, fast delivery times and efficient stock management are assured.

Aladdin Knowledge Systems Ltd. is a world leader in the field of software security. Aladdin designs, develops, manufactures and markets HASP(R), a family of proprietary software security products that combine hardware and software to prevent unauthorized use of computer programs.

CONTACT: Nurit Benjamini,

Aladdin Knowledge Systems, Tel. [phone]

or

Robert Rinderman,

The Anne McBride Co., Tel. [phone]