com .com
310.25 per
basic share and $0.

- Aladdin conducted an analysis of viruses that found over 70 percent
of virus writers are now creating targeted spyware.S.com/investor. Such forward-looking statements are subject to 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.

conventions gaining

CHICAGO, Aladdin Knowledge Systems
(Nasdaq: ALDN), the worldwide leader in Software Digital Rights Management
(DRM) and USB-based authentication solutions, and a leading innovator in
enterprise secure content management, today announced general availability of
its eToken Middleware for Linux 3.60 and eToken Middleware for MAC OS 3.
The Aladdin Token Management System (TMS) enables the deployment,
provisioning and maintenance of security Tokens, Smart cards and ID Badges
within an organization. is a global provider of security solutions
that reduce software theft, authenticate network users and protect against
unwanted Internet and e-mail content, including spam, viruses and spyware. Its
security products are organized into two segments: Software Digital Rights
Management (DRM) and Enterprise Security.36 per basic
share and $0.m. The call is being
simultaneously Web cast and can be accessed on the Aladdin Web site at
http://www. Please visit the Web site at least 15 minutes
prior to the scheduled call time to register for the Web cast and download any
necessary audio software.m. dollars, in thousands)

June 30, December 31,
2005 2004
Assets

Current assets:
Cash + cash equivalents 36,150 17,313
Marketable securities 34,004 8 ,598
Trade receivable, net of allowance for doubtful
accounts 12,487 12,637
Other accounts receivable 3,574 4,319
Inventories 6,720 5,788

Total current assets 92,935 48,655

Severance pay fund 2,526 2,357

Fixed assets, net 2,862 2,234

Other long-term assets, net 17,237 17,648

Total Assets 115,560 70,894

Liabilities and Shareholders' Equity

Current liabilities:
Trade payables 3,222 3,546
Deferred revenues 5,323 4,793
Other current liabilities 6,763 5,989

Total current liabilities 15,308 14,328

Accrued severance pay 3,333 3,129

Shareholders' Equity 96,919 53,437

Total Liabilities and Shareholders' Equity 115,560 70,894

S.

passwords illegal

16 per diluted share.NET application framework and is
the first to offer class-level security features. USB authentication tokens are gaining
an increasing share of the authentication device market and Aladdin,
as the U. By comparison, the Company reported
$16.

illegal fraud

newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO )
With the new release, Aladdin now provides unparalleled, broad support for
organizations that work with the MAC OS and Linux operating systems, enabling
them to easily implement secure PKI solutions for MAC OS and Linux users, as
well as Windows users. Enterprise Security revenues for
the second quarter of 2005 increased 43.59 million, or $0.50 million and diluted earnings per share are expected
to be in the range of $0.32
Diluted earnings per share 0.

Hacking is about gaining more knowledge through the use of computers.

cryptography ethics

It provides enhanced security and ensures safe
information access; improved password and ID management; and secure mobility
of digital credentials/certificates and keys.1 percent to $14. Net income for the second quarter of
2004 was $2."

-- eSafe (R) Integrated Proactive Content Security Solution

- Launched Aladdin eSafe 5, a unique multi-layered, gateway based
enterprise content security solution that combines innovative spyware
protection and web security, advanced spam management and email
security .

About Aladdin Knowledge Systems
Aladdin Knowledge Systems Ltd. is a global provider of security solutions
that reduce software theft, authenticate network users and protect against
unwanted Internet and e-mail content, including spam, viruses and spyware.

piracy hacker

Aladdin Knowledge Systems Reports Record Quarterly Earnings

91 million reported at December 31,
2004, with no outstanding debt.18, respectively, in the third quarter of 2004.Aladdin.
EDT on July 20 through 11:59 p.24 0.

newbies wardriving

Aladdin Announces eToken PKI Support for Linux and MAC OS

284. Software DRM
revenues for the second quarter increased 14.07 million from
$12.18
million in the same period in 2004. Revenues for the first six months of 2005
were $40.82 million or $0.24 million from $25.59
million .20, the latest version of Aladdin's HASP HL
Software Digital Rights Management solution .20 also
offers full support for protecting 64-bit Linux applications and
includes a Linux based license manager for multi-user enterprise
licensing.

- Aladdin announced that HASP is providing software anti-piracy
protection for applications running under Apple's new operating
system OS X 10.

Safe Harbor Statement
Certain information presented herein constitutes forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.

It does not list links to sites that are offering passwords , or anything else which is illegal in the U.

fake hacker

"

Financial and Operating Highlights
-- Revenues increase 21.25. Visit the Aladdin Web
site at http://www.36 0.30

Weighted average number
of shares outstanding
for Basic EPS 14,368 11,902 13,380 11,767
Weighted average number
of shares outstanding
for Diluted EPS 15,095 13,013 14,126 12,941

Aladdin Knowledge Systems Ltd.

emp anarchy

Aladdin's product vision and
innovation is evidenced by the company being awarded two key patents covering
this security technology: USB devices with a smart card and USB devices as
portable storage for credentials.99 million from $4.0 percent from the $33.82
million or $0.

Product Highlights
-- Software Security (DRM)

- Launched HASP HL V1. patent holder for USB based tokens with embedded smart
cards, is well positioned to benefit from this growth.com/about/pressroom. Aladdin's Software DRM products
allow software publishers to protect their intellectual property and increase
revenues by reducing losses from software theft and piracy.com. Such factors include general economic and
business conditions, the loss of market share, changes in the competitive
landscape and other factors over which the company has little or no control.

cracking newbies

"

About Aladdin eToken
Aladdin eToken provides cost-effective strong user authentication and
password management solutions. eToken USB and traditional smart card form factors are available
with physical access (RFID) capabilities and one-time password technology. In addition , TMS offers seamless, and reliable
management for Enterprise security services combining both PKI and non-PKI
systems.06
million from $16.40 million
recorded over the same period in 2004.com /investor. Its Enterprise
Security solutions enable organizations to secure their information technology
assets by controlling who has access to their networks (authentication) and
what content their users can utilize (content security).

malicious ethics

"Aladdin sees support of the MAC OS and Linux platforms, in addition to
our broad support for the Windows environment, as an important strategic
initiative that will enable us to expand our business in key markets.8888 646.59 million for second quarter 2005, representing 73.06 million, representing 21. Aladdin continued to
experience double digit year -over-year growth rates in both of the Company's
operating segments, Software DRM and Enterprise Security .
Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems said, "I am
delighted to report Aladdin achieved another strong quarterly performance.

conventions else

Record net income of $3.32 per basic and $0.

- Aladdin reached a favorable settlement with a distributor of USB
tokens that store personal identification credentials produced by a
China-based company against whom Aladdin has commenced litigation for
patent infringement. The
Company undertakes no obligation to update its estimates.

This category contains links to sites about hacking, cracking, anarchy, credit card fraud and the like.

hacker identification

com/eToken . The increase includes the receipt of $38.4 percent year -over-year to $20.
-- Net income increases 73. Instead of
seeking to inflict damage , virus writers are now often linked to
organized crime and illegal money making opportunities .

-- eToken(TM) User Authentication Solution

- Aladdin's eToken NG-OTP, a hybrid universal serial bus (USB) token
that integrates a smart card with a one-time password generating
feature, was chosen by Frost + Sullivan (a global growth consultancy)
as the winner of its 2005 product innovation award in the hardware
authentication devices market .Aladdin.

anarchy gaining

eToken now supports the following PKI operations on the MAC OS and Linux
systems:
* Importing digital certificates to eToken
* Email signing and encryption
* Certificate -based (SSL v3) secure Web authentication
* Certificate-based VPN authentication
* Thin client authentication

PKI keys are securely generated onboard the eToken smart card chip .Aladdin. All other product and
brand names mentioned in this document are trademarks or registered trademarks
of their respective owners.4
percent growth year-over-year

Revenues of $20.4 percent growth year-over-year

NEW YORK and TEL AVIV, Israel, Aladdin
Knowledge Systems Ltd. (Nasdaq: ALDN), the worldwide leader in Software
Digital Rights Management (DRM) and USB-based authentication solutions, and a
leading innovator in enterprise secure content management (Enterprise
Security), today announced financial results for the second quarter of fiscal
year 2005 ended June 30, 2005. The
ongoing global challenge of preventing software piracy continued to drive
double digit growth in our core Software Digital Rights Management segment.Aladdin.
Consolidated Statement of Income
(U.

herf illegal

Visit the Aladdin Web
site at http://www.30 per diluted share for the first six
months of 2004.

For further information on product highlights, please refer to the press
room on the Company's Web site which can be found at
http://www.20
and $0. A Web cast replay of the call will also be
made and can be accessed on the Aladdin Web site at
http://www.

hacking gaining

This new software enables interaction between the eToken smart card
authentication token and computers running on the MAC OS or Linux, and
provides full support for secure token-based strong authentication and PKI
solutions.574.39 million, an increase of 21.24 per diluted share. The distributor agreed to pay royalties to
Aladdin and to destroy all remaining inventory of the offending
product.80 million to $20.22 to $0.m.S.

exploits activism

60.
(LOGO: http://www.
About the size of an average house key, the award-winning Aladdin eToken
is easy to use and highly portable, providing users with powerful
authentication by requiring something they have, the tamper-proof eToken, and
something they know, a password.Aladdin.9414

78
million in net proceeds, following the successful completion of the Company's
offering of ordinary shares which closed on March 30, 2005. At
the same time, an expanding number and type of content security issues and
malicious code threats faced by enterprises continues to lead to increased
demand for our strong, multilayered protection.
A replay of the call can also be accessed via telephone from 11:00 a.

wardriving hacktivism

Cash, cash equivalents and marketable securities totaled $70.asp .

Aladdin Knowledge Systems Ltd.17 0.

anarchy ethics

With full support for PKCS#11, eToken can be integrated with any
applications running over the PKCS#11 cryptographic module , providing
numerous, powerful security capabilities. Aladdin's Software DRM products
allow software publishers to protect their intellectual property and increase
revenues by reducing losses from software theft and piracy. Its Enterprise
Security solutions enable organizations to secure their information technology
assets by controlling who has access to their networks (authentication) and
what content their users can utilize (content security).
(Logo: http://www.newscom.17 per basic and $0.

Future Business Outlook
Aladdin continues to provide a business outlook on a quarterly basis. on July 27 by calling (800) 642-1687 in
North America, or +1 (706) 645-9291 internationally , and entering the
following access code: 7574848.

hacktivism cracking

Security is not compromised because the user 's private keys never leave the
token. It is used for secure network logon, secure
VPN, Web Sign -On, Single Sign-On, secure email, and numerous other
applications. For more information, visit http: //www.

About Aladdin
Aladdin Knowledge Systems Ltd.com/cgi-bin/prnh/20040416/CGALADDINLOGO )
Revenues for the second quarter of 2005 increased 21.4 percent to $20.34 million in the same period in 2004. For the
first six months of 2005, net income was $4.06 million. To participate in the call, please dial (800)
399-0427 in North America, or +1 (706) 643-1624 internationally, approximately
five minutes prior to the scheduled call start time.Aladdin.

conventions cryptography

15 million at
June 30, 2005, up $44 . The new version offers
enhanced protection for Microsoft's . HASP HL V1. dollars, in thousands - except for per-share amount)

Three months period ended Six months period ended
June 30 June 30
2005 2004 2005 2004
Revenues:
Software Security (DRM) 14,073 12,335 28,466 25,123
Enterprise Security 5,985 4 ,184 11,928 8,273
Total Revenues 20,058 16,519 40,394 33,396

Cost of revenues 3,704 3,056 8,069 6,644
Gross profit 16,354 13,463 32,325 26,752

Research + development 2,877 3,158 5,780 6,236
Selling + marketing 7,263 5,737 13,728 11,551
General + administrative 2,639 2,024 5,677 4,581
One time lawsuit charge - - 2,000 -

Total operating expenses 12,779 10,919 27,185 22,368

Operating income 3,575 2,544 5,140 4,384
Financial income
(expenses), net 367 (258) 83 (169)
Other income (expenses),
net (10) (10) 8 (40)

Income before taxes 3,932 2,276 5,231 4,175

Taxes on income 338 203 407 354

Net Income 3,594 2,073 4,824 3,821

Basic earnings per share 0.25 0.16 0.

fraud hacking

"We see a major increase in organizations that use the MAC OS and Linux
platforms and are seeking to implement strong authentication security
solutions," said Shlomi Yanai, vice president of the Aladdin eToken Business
Unit.34 per diluted share, as compared with net income of $3. The strength of these
fundamental business drivers and an ongoing focus on operating efficiency
allowed us to translate our solid top line growth into record quarterly net
income this quarter.

- Announced that HASP HL offers full support for Microsoft's Windows XP
Professional x64 edition and Windows Server 2003 x64 edition, both
leading platforms for next generation applications.4, known as "Tiger.

Earnings Teleconference
The Company will hold a teleconference today, July 20, at 9:00 a.34 0 .
Condensed Consolidated Balance Sheets
(U.

anarchy cryptography

90 million in revenue and basic and diluted earnings per share of $0.S.

It also lists information about exploits and the hacker culture.

conventions hacktivism

Press Contact: Investor Relations Contact:
Matthew Zintel Mark Jones
Zintel Public Relations Global Consulting Group
mjones@hfgcg .0 percent to $5.
Net income for the second quarter of 2005 was $3.07 million or $0.4 percent year-over-year to a record $3. Its
security products are organized into two segments: Software Digital Rights
Management (DRM) and Enterprise Security.

malicious hacktivism

eToken, Aladdin Knowledge Systems and the Aladdin logo are trademarks or
registered trademarks of Aladdin Knowledge Systems, Ltd.52 million for the same period in 2004. Based on current
business activities and general economic conditions , Aladdin's management
believes revenues for the third quarter of fiscal 2005 will be in the range of
$19. EDT to
discuss the quarterly results.