ALADDIN SYSTEMS RELEASES STUFFIT 7.0.1 FREE UPDATE

Update Improves Compression Speed

Watsonville, CA - October 23, 2002 -Aladdin Systems, Inc., an Aladdin
Systems Holdings, Inc. company (OTC BB: ALHI), today released StuffIt
Deluxe(tm) 7.0.1 and StuffIt Standard Edition(tm) 7.0.1, the latest
Macintosh versions of the industry-standard access and compression
utility. This release fixes bugs and compatibility issues with Mac OS
X 10.2 (Jaguar) and improves "Fast" compression speed option.

The new StuffIt X(tm) file format, incorporated in versions 7.0.x,
integrates compression with security and safety options to meet the
requirements of today's business and digital lifestyle. StuffIt X
provides stronger encryption (512 bit), improved compression (up to
30% over previous formats), error-correction, larger archive size,
and support for long file names. StuffIt Deluxe includes Microsoft
Word integration for fast access to the popular Stuff and Mail
feature and an array of features that help maximize disk space and
make it easy to exchange files between Mac, PC, Linux and Unix
computers..

Upgrade Discounts Still Apply
StuffIt Deluxe is $79.99 (USD) and is available directly from
Aladdin, all major retailers and mail order catalogs in the US and
Canada, and select dealers worldwide.
StuffIt Deluxe and other Aladdin products are available from
Aladdin's international partners at:
(http://www.aladdinsys.com/store/intlpartners.html).

Registered owners of previous StuffIt Deluxe, StuffIt Lite (now
called StuffIt Standard), DropStuff or DropZip versions can upgrade
to StuffIt Deluxe 7.0.1 for $29.99, directly from Aladdin at:
http://www.aladdinsys.com/store/upgrades.html or with retail mail-in
rebates. All customers with registered copies of StuffIt 7.0 can
update for free to 7.0.1. Users can register their copy of StuffIt
at: http://www.aladdinsys.com/register/index.html.

StuffIt is available for the Windows(r), Macintosh(r), Linux, and
Solaris(tm) platforms at: http://www.stuffit.com). Internet: StuffIt
information http://www.stuffit.com/.

System Requirements
StuffIt Deluxe 7.0 requires a Power Macintosh with Mac OS 8.6 or
higher (including Mac OS X, version 10.1 and later) with 32 MB of
available RAM and 20 MB available disk space.

Aladdin Systems, Inc: The Leader in Access Management(tm) Founded in
1988, Aladdin Systems, Inc., a wholly owned subsidiary of Aladdin
Systems Holdings, Inc. (OTC BB: ALHI), develops and publishes
award-winning business and consumer products. Aladdin's software
offers a range of solutions to increase user efficiency in the areas
of information access, removal, recovery, security and Internet
distribution.

Aladdin is located at 245 Westridge Drive, Watsonville, CA 95076,
USA; phone: +1(831)761-6200; Fax: +1(831)761-6206. Internet: Aladdin
info (http://www.aladdinsys.com) or e-mail: (info@aladdinsys.com).