Aladdin Knowledge Systems Completes Merger With Vector Capital Affiliate

TEL AVIV, ISRAEL and SAN FRANSCISO, CA, Mar 24 (MARKET
WIRE) --
Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) today announced that it has
completed its previously announced merger with an investor group led by
Vector Capital, a leading private equity firm specializing in the
technology industry. The merger was approved by a majority of Aladdin's
shareholders at an Extraordinary General Meeting held on February 20,
2009. Under the terms of the merger, Aladdin shareholders will receive
$11.50 per share in cash for each ordinary share they hold.

Commenting on the announcement, David Fishman, Partner at Vector Capital,
said, "We are thrilled that we have successfully brought this transaction
to completion. It is now time for all of us to focus on Aladdin's future,
leverage the Company's strong products and take advantage of the
combination with SafeNet's business to create growth opportunities. We
remain incredibly impressed with the quality of Aladdin's management and
employees and look forward to working together to build one of the great
information security companies."

"We are very excited to close this transaction and begin to move forward
on the integration with SafeNet," said Aviram Shemer, CFO at Aladdin. "Our
customers will benefit from the strength of the combined companies as we
continue to provide our award-winning, innovative security solutions
across the globe. Together with our employees, we remain fully committed
to the long-term success of Aladdin and SafeNet."

Mr. Shemer continued: "I would especially like to thank Yanki Margalit,
our Founder and outgoing CEO and Chairman of the Board. Aladdin's success
is a tribute to his vision and his dedication to our customers,
shareholders and employees."

In connection with the closing, trading of Aladdin's shares on the NASDAQ
Global Market and Tel Aviv Stock Exchange will cease March 24th and
Aladdin will de-list the shares from both exchanges.

Shareholders who possess Aladdin share certificates will receive a letter
of transmittal with detailed instructions, along with a tax declaration
form, from the appointed paying agent, Bank of New York Mellon, regarding
the surrender of their certificates for the merger consideration. For
shares held in street name by a broker, bank or other nominee, the broker,
bank or other nominee will handle the exchange of shares for the
shareholders and will provide them with any relevant instructions for
effecting the exchange and providing the tax declaration form.

About Aladdin

Aladdin Knowledge Systems (NASDAQ: ALDN) is an information security leader
with offices in 15 countries, a worldwide network of channel partners, and
numerous awards for innovation. Aladdin eToken is the world's #1 USB-based
authentication solution, offering identity and access management tools
that protect sensitive data. Aladdin SafeWord two-factor authentication
technology protects companies' important information assets and
applications. Aladdin HASP SRM boosts growth for software developers and
publishers through strong anti-piracy protection, IP protection, and
secure licensing and product activation. Aladdin eSafe delivers real-time
intelligent Web gateway security that helps protect data and networks,
improves productivity, and enables compliance. Visit www.Aladdin.com.

About Vector Capital

Vector Capital is a leading private equity firm specializing in spinouts,
buyouts and recapitalizations of established technology businesses. Vector
identifies and pursues these complex investments in both the private and
public markets. Vector actively partners with management teams to devise
and execute new financial and business strategies that materially improve
the competitive standing of these businesses and enhance their value for
employees, customers and shareholders. Among Vector's notable investments
are LANDesk Software, Savi Technology, SafeNet, Corel Corporation
(NASDAQ: CREL), Printronix, Register.com, Tripos, WinZip and Watchguard
Technologies. For more information, visit www.vectorcapital.com.

Copyright 2009 Aladdin Knowledge Systems, Ltd. All rights reserved. HASP,
eToken, eSafe, Aladdin Knowledge Systems and the Aladdin logos are
trademarks or registered trademarks of Aladdin Knowledge Systems, Ltd.
All other product and brand names mentioned in this document are
trademarks or registered trademarks of their respective owners.

Vector Capital Press Contact:
Erin Becker
ebecker@BrunswickGroup.com
415-293-8461

Aladdin Company Contact:
Debbie Kaye
Corporate Communications Manager
debbie.kaye@aladdin.com
646.468.0481

Aladdin Press Contact:
Matthew Zintel
Zintel Public Relations
Matthew.zintel@zintelpr.com
310.574.8888

Copyright 2009, Market Wire, All rights reserved.

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