Aladdin-Miel Partnership Extends eToken Technology to India.

Business and High-Tech Editors

CHICAGO--(BUSINESS WIRE)--Aug. 29, 2000

Aladdin's eToken Technology Partnership Program continues to

expand the range of global solution providers and innovators

Aladdin Knowledge Systems (NASDAQ: ALDN), a global leader in the field of Internet content and software security, today announced its eToken Technology partnership with India-based Miel e-Security will provide the region's users with a variety of e-security solutions, including enhanced authentication and mobile computing.

"Our Technology Partnership with Miel e-Security recognizes the innovative PKI and e-commerce solutions Miel is developing for the exciting Indian Internet economy," said Joe Krull, CPP, Aladdin's Vice President, eToken. "As the premier center of research and development for e-security solutions in India, Miel e-Security is ideally suited to promote eToken's high security applications, portability and low cost of ownership."

With eToken Technology partners in the US, Europe, the Middle East and Asia, Miel e-Security is the latest edition to Aladdin's growing network of eToken implementation efforts. In addition to the endless possibilities with mobile authentication, Miel will help to provide the Indian marketplace with an inexpensive security alternative that fits the Indian market.

"In our pursuit to become the complete end-to-end e-Security provider, we believe in providing the best possible products & solutions to our clients," said Mr. V. L. Mehta, CEO of Miel e-Security. "The partnership with Aladdin will enable MIEL e-Security to distribute eTokens for storing passwords, PKI based private keys and electronic certificates for authentication as a secured peripheral device that gives the user mobility and a user centric identity. In a cost resilient market like India, eTokens can work as a viable & cost effective option."

"Miel e-Security and Aladdin's eToken Research and Development team will directly collaborate to build new functionality into the eToken family of products," Krull said. "This collaboration will capitalize on Miel's pivotal position in an exciting region poised for explosive e-commerce growth."

About eToken

The eToken R2 is a USB token about the size of a normal house key. It is the only token currently available which utilizes as its underlying technology the robust DESX symmetric encryption algorithm with a key length of 120 bits. Unlike other USB security tokens, the eToken R2 contains open, non-proprietary standards, making integration and security certification quick and smooth. R2's unique open architecture facilitates rapid customization and smooth integration of specialized algorithms. The product supports a wide range of standards including Microsoft CAPI, and PKCS No.11 v2.01, PC/SC, SSLv3 and S/MIME. Aladdin first announced R2 in May 2000 and is now shipping the token in commercial quantities to all major market areas of the world.

The eToken R2 also incorporates an improved USB connector and newly designed one-piece plastic housing, providing enhanced tamper evidence and increased reliability. The product's USB functionality and strong two-factor authentication enable companies and organizations to eliminate costly implementation and installation issues normally associated with deployment of smart cards and biometric devices. According to computer industry sources, more than 250 million desktop and laptop computers are already fitted with at least one USB port.

Because the eToken R2 contains no proprietary protocols and uses a published and tested encryption algorithm, it can be integrated easily into security solutions that currently support smart cards and other types of authentication devices. The ability to securely store private keys and digital certificates on the token position it well for integration with existing Public Key Infrastructure (PKI) products from all major PKI vendors. To underscore this capability, Aladdin actively participates in the PKI Forum (www.pkiforum.org) to further the development and acceptance of USB tokens as a key enabler for PKI solutions.

Also available with the eToken R2 is a feature-rich Software Development Kit (SDK) which enables solutions providers, systems integrators and applications developers to integrate the R2 into their projects and products. Soon, Aladdin plans to add further functionality to the token with eToken Enterprise, an off-the-shelf package of simple-to-use solutions which utilize the eToken R2 for secure e-mail, groupware password replacement, VPN support and full integration with Windows 2000's enhanced security features. The Enterprise product is currently being tested as a beta product in more than 20 countries.

Participation in the eToken Technology Partner Program offers companies who integrate with eToken or promote its implementation with streamlined technical support and joint sales and marketing opportunities. Additional information on the program can be obtained by e-mailing [e-mail].

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 website at www.eAladdin.com.

About Miel e-Security

MIEL e-Security has been established as a One-Stop-Shop for all e-Security solutions & products that will build concrete e-security platforms for enterprises in India. The modus operandi of MIEL is simple -- "e-Securing India". MIEL aims at standardizing e-Security in India by providing world-class solutions through its various Global Alliances. MIEL e-Security carries out Security Audits, advises on security products and services, implements global security solutions & integrates security solutions into business applications. Miel offers superior solutions, flexible business models and scalable product strategies.

This release and prior releases are available on the KCSA Public Relations Worldwide website at www.kcsa.com.