Aladdin Announces Development of MacHASP-USB
Next Generation Software Protection for Mac Developers

New York, NY, May 27th, 1998 -- Aladdin Knowledge Systems Ltd. (NASDAQ:
ALDNF), a leading developer of solutions for the secure licensing and
distribution of digital content, today announced the development of the
next generation software protection keys for the new iMac product line.
The prototype of MacHASP-USB, as the new key will be named, was shown at
Apple's WorldWide Developers Conference (WWDC), in San Jose, CA, on May
11th.

"We are confident that the new Apple iMac will reach a new generation of
computer consumers and offer great opportunities for our software
developers,: said Philip Schiller VP of worldwide product marketing at
Apple. "Aladdin's announcement of the MacHASP-USB copy protection key is a
welcome add-on for Macintosh software developers and further demonstrates
the growing support for the iMac's adoption of the Universal Serial Bus
interface."

"With Apple's decision to adopt the USB standard in its new line, it was
natural that we would expand our USBHasp software protection to include a
Macintosh version," said Rami Kasterstein, Aladdin's VP R&D. "This decision
is in line with Aladdin's policy of keeping its technology at the forefront
of software security."

Aladdin's R&D team began working on MacHASP-USB following the successful
launch of the PC-based version protection key, USBHasp, at Cebit in March.
Externally the new key will be identical to the USBHasp, and will be fully
compatible with the current MacHASP range of keys. Only a minor software
update will be required to enable both generations of keys to offer secure
and transparent protection.

"Aladdin has always been committed to Macintosh developers," said Peter
Felgentreff, HASP Sales Director for the USA. "They are a loyal and
dedicated group both to Apple and to MacHASP. The new-generation
Internet-ready Macintosh systems, and the new MacHASP-USB will make a great
team in fighting software piracy and preserving the revenues of our
developers."

Software piracy is the biggest challenge facing the software industry
today. Both the SPA and BSA estimate that illegal use of software cost the
industry over $11.2 billion in 1996 alone, and that almost 50% of business
applications in use today are unlicensed.

About Aladdin:

Aladdin Knowledge Systems is a global leader in the secure licensing and
distribution of digital content. Aladdin's product range includes HASP and
Hardlock, key-based software security systems which monitor software
licensing and prevent unauthorized use of computer programs, PrivilegeTM, a
suite of software licensing and metering tools for developers and corporate
IT managers, and ASE - 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.