China's Largest Listed Networking Systems Provider Deploys Aladdin eToken for Strong Authentication

CHICAGO, February 27, 2008 - Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), an information security leader specializing in strong authentication, software DRM and content security, today announced that ZTE Corporation, the largest listed Chinese provider of telecommunications equipment and network solutions, chose the Aladdin eToken strong authentication solution to enhance its telecom class VPN access system.

ZTE will distribute a projected 22,000 Aladdin eToken devices in 2008. An integral part of ZTE's solution, Aladdin eToken will enable secure remote access to ZTE's customers using two-factor authentication. Aladdin eToken allows users to gain access to protected corporate networks anytime, anywhere with a highly portable USB-based device. To date, more than 2,000 eToken devices have been distributed with the remainder to be deployed throughout the year.

ZTE is one example of the IDC-forecasted 14.7 percent growth in the Asia Pacific identity and access management market in the next three years, as predicted in its July 2007 article "Worldwide Identity and Access Management 2007-2011 Forecast and 2006 Vendor Shares" (#207609). Following this trend towards strong authentication for secure remote network access, ZTE chose eToken for its simple integration into existing solutions.

"We tested many different authentication options, and finally we selected Aladdin eToken to enhance our VPN access system," said Mr. Zhang Wei, project manager of ZTE. "Aladdin eToken provides a secure, manageable solution that is easily incorporated into our existing solutions and provides the highest level of authentication available to our customers."

"Aladdin is constantly striving to provide our customers with security solutions that improve their business, and we are proud to see Aladdin eToken provide ZTE with strong authentication for its global customers," said Warren Stein, General Manager of Aladdin Asia. "ZTE's decision to include Aladdin eToken in their security solutions is yet another example of the fast-growing trend toward strong authentication for secure remote access among large organizations."

About ZTE Corporation

ZTE is a leading global provider of telecommunications equipment and network solutions. ZTE's product range is the most complete in the world, covering virtually every sector of the wireline, wireless, terminal and service markets. ZTE delivers innovative, custom-made products and services to major operators in the world, helping them to achieve continued revenue growth and to shape the future of the world's communications. For more information, visit the ZTE Web site at www.ZTE.com.cn.

About Aladdin eToken

Aladdin eToken is the world leader for USB-based authentication solutions. eToken provides strong user authentication and cost-effective password management solutions, enabling secure network access, improved data security through enhanced encryption and digital signing, as well as compliance with a wide range of regulatory requirements worldwide. Visit www.Aladdin.com/eToken.

About Aladdin

Aladdin Knowledge Systems' Software Rights Management products are the #1 choice of software developers and publishers to protect intellectual property, increase revenues, and reduce losses from software piracy. Aladdin eToken is the world's #1 USB-based authentication solution. The Aladdin eSafe secure Web gateway provides the most advanced protection against the latest Web-based threats and attacks. Aladdin has offices in 12 countries, a worldwide network of channel partners, and has won numerous awards for innovation. For more information, visit the Aladdin Web site at www.Aladdin.com.