Privilege 6, FR2 Continues to 'Change the Rules' as a Turn-Key System for
Licensing, Protecting and Distributing Software Through Electronic (ESD)
And Traditional (Brick and Mortar) Distribution

CHICAGO, Oct. 1 -- Aladdin Knowledge Systems, Inc. (Nasdaq: ALDN ) today
announced general availability of Privilege 6, Feature Release 2, the
latest release of its secure software ecommerce platform that provides the
highest level of flexibility available for developers, distributors, online
retailers and end users. With Privilege 6, FR2, software vendors and
distributors are able to realize greater revenue by changing the rules of
software distribution -- leveraging security to gain new revenue
opportunities from ESD and passed-along copies of applications (Super
Distribution), while reducing piracy in the traditional (brick and mortar)
channel.

(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20021118/CGM018LOGO )
Privilege 6, FR2 includes six new features that add to its unmatched
collection of security, distribution and licensing capabilities while
creating a new feature-based licensing system. Combining both electronic
and physical distribution efforts, Privilege 6, FR2 now offers:

Macintosh Application Support

The Macintosh developer and user community now have access to Privilege
licensing, protection, and ESD capabilities. Privilege 6, FR2 supports
applications running on OS X, allowing Mac publishers to protect their
applications with the same tools and assurances as their Windows
counterparts.

Trial Start Notification

Software vendors can now record the start of software trials, capturing the
marketing campaign or reference sales information at the beginning of
trials. This lets developers, distributors and retailers see which
campaigns generate the most trial-to-sales conversions.

Extended Trial and Beta Protection

Software publishers gain complete control over betas and limited trials of
high-value software. Especially helpful for publishers of games or other
products expecting high revenue over a short period, Privilege gives
publishers confidence that their pre-release software will not " "escape"
into the broad market.

Expanded Trialware Options

Publishers have a need to distribute large volumes of trialware without
purchase or activation options. Trade shows, magazine inserts and other
venues involving large quantities become easy to manage with the new
license. Additionally, publishers find this type of license useful when
they need to distribute trialware but are sensitive to channel conflicts in
the buying cycle.

Feature Licensing

Publishers are now able to embed Privilege APIs directly into applications
using the Privilege Software Developer's Kit. This enables feature-level
interaction with the Privilege Licensing Framework to control application
behavior. Developers can place license business logic outside of their
applications - allowing them to modify application behavior by changing
licenses - without touching the application.

Electronic License Distribution (ELD)

Using Privilege 6, FR2, publishers may send updated licenses and add
capabilities to previously-licensed products, etc. If a user wishes to
purchase extended features or the publisher would like to extend licenses,
the publisher pushes a secured license to replace the license already
installed on their machine without a change to product code or
reinstallation.

"Privilege 6, FR2 changes the rules and liberates new options for
publishers and customers alike, creating a purchase environment filled with
features and flexibility never before available in the industry," said Avi
Barir, vice president of software commerce at Aladdin Knowledge Systems.
"Combined with Aladdin's anti-piracy expertise, the distribution and
licensing options within Privilege 6, FR2 continue to revolutionize the way
publishers run their business."

Privilege builds on Aladdin's 18 years of software protection experience
and market-proven anti-piracy technology by providing the world's leading
software developers with an array of efficient, performance-oriented
features that create and preserve revenue streams, reduce operational costs
and contribute to end-user value including:

-- Secure, Efficient Distribution
-- Flexible Licensing
-- Complete Interface Customization
-- Performance-Oriented Architecture
-- Easy Storefront Integration

For more information, visit Aladdin's Web site at
http://www.eAladdin.com/Privilege .

About Aladdin Knowledge Systems

Aladdin (Nasdaq: ALDN ) is a leader in digital security, providing
solutions for software commerce and Internet security since 1985. Aladdin
serves over 30,000 customers worldwide. Aladdin's products include: the
USB- based eToken device for user authentication and e-commerce security;
the eSafe line of content security solutions that protect PCs and networks
against malicious, inappropriate and nonproductive Internet-borne content;
HASP and Hardlock, hardware-based software security systems that protect
the revenues of developers; and Privilege, a software licensing and
distribution platform. Visit Aladdin's Web site at http://www.eAladdin.com .