Aladdin Releases HASP CD 6.0; Major New Features Offer Unparalleled Security.

TEL AVIV, Israel--(BUSINESS WIRE)--May 18, 1998--Aladdin Knowledge Systems Ltd. (NASDAQ: ALDNF), a leading developer of solutions for the secure licensing and distribution of digital content, today announced the release of HASP CD Release 6.0.

This is the latest version of the comprehensive software suite that makes HASP the most popular choice for developers seeking secure, transparent and versatile protection for their products. HASP CD 6.0 strengthens existing protection mechanisms and extends the range of applications and files that can be protected.

Aladdin's innovative technology has produced three key new features providing extra security and flexibility.

First is HASP's Multi-layer Envelope (MLE) which is a major improvement to the Win32 Envelope technology. With MLE, the Envelope wraps the application with several layers, each of which provides unique functionality. The operation of each layer is dependent on the layer proceeding it, with each sequence of layers varied for each protected file. This multi-layer scheme enhances security by establishing a series of obstacles virtually impossible to bypass, making HASP protection even stronger.

The second feature is a greatly reinforced HASP Device Driver that shields protected applications by enforcing system level anti-debugging and encryption functions. Bypassing protection now means penetrating substantially deeper into the complexities of HASP operation. The HASP Device Driver therefore grants protected applications the utmost in security, along with the compatibility and transparency features that have always been fundamental to the HASP protection system.

The third feature is full support for USBHasp via the upgraded HASP Device Driver. This ensures new and existing HASP-protected applications run with the recently launched USBHasp, the industry's first fully-approved software protection key using the Universal Serial Bus (USB) port.

"When the software industry's fifth biggest company admits to losing 50% of its revenues to piracy, it's no surprise that more developers turn to HASP than any other product. And as soon as they do so, they start to enjoy better revenue flow," says Aladdin's VP of Research and Development, Rami Kasterstein. He emphasizes Aladdin's commitment to keeping HASP at the cutting edge of software security:

"There is an industry dedicated to the organized theft of software and to hacking and we intend to maintain HASP as the number one protection system. HASP users already enjoying the financial benefits of software protection, and new users will welcome the even greater level of security now offered."

Other new features in HASP CD 6.0 include:

- Major Security Enhancement for the HASP DOS Envelope

The DOS Envelope introduces HASP background checks, and major

enhancements and improvements to the overall level of security

offered by HASP. The security enhancements are implemented to

support DOS applications running under DOS, Windows and Win32

environments.

- Multi-object HASP Sample Program: New Windows and Win32 HaspDemo

programs enable testing HASP with API versions as far back as

HASP CD Release 1.0. This enables support engineers to determine

whether problems which emerge when running older HASP versions

are solved with newer ones, in which case the remedy is to update

the HASP software.

- More Network Security with PCS Support for NetHASP:

Implemented via the HASP API, PCS significantly raises the

protection level because calls to the HASP device invoke multiple

and changing processes with values being `magically' updated. PCS

is available for DOS, Windows and Win32 applications, with

NetHASP support for Windows and Win32.

- MacHASP

Native Power PC API is available for all C compilers (for

stand-alone MacHASP keys).

- New and Upgraded HASP Interfaces

Win32: New: InstallShield V.5, Optima and Power++

Upgraded: Macromedia Authorware, Macromedia Director,

AutoCAD Rel.14, 4th Dimension

Win16: New: InstallShield V.5

Upgraded: Macromedia Director, Macromedia Authorware

HASP CD 6.0 software is available free of charge to HASP customers, who are invited to contact their local HASP distributor or to visit the Aladdin web site at www.aks.com for more details.

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 [e-mail]

or

Int'l

Aladdin Knowledge Systems Ltd.

Lisa Appelson - Marketing Communications Manager

Phone [phone]

Fax [phone]

E-mail [e-mail]