2002

Aladdin Press Contact: Henry Feintuch/Ed Sweeney KCSA Worldwide hfeintuch@kcsa.com / esweeney@kcsa.com 212.896.1212/896.1265		NTRU Press Contact: Cheryl Delgreco www.PRstartup.com delgreco@prstartup.com (617) 723-4004
Company Contact: www.eAladdin.com Matthew Zintel Aladdin Knowledge Systems, Inc. Matthew.Zintel@eAladdin.com 847.495.3020		Investor Relations Contact: Adam Rosen KCSA Worldwide arosen@kcsa.com 212.896.1220

NTRU Cryptosystems and Aladdin Strategic Partnership Offers Secure Solution For the Music Industry

eToken's strong authentication to compliment NTRU's advanced algorithm

CHICAGO, Ill. and Burlington, Mass., July 19, 2000 - Aladdin Knowledge Systems (NASDAQ: ALDN), a global leader in the field of Internet content and software security, today announced that NTRU, a leading provider of wireless solutions delivering secure communications and content for next generation Internet connectivity, will provide customers with unmatched security solutions by combining eToken, Aladdin's USB authentication token, with NTRU's advanced security algorithm. NTRU has signed on as an Aladdin strategic eToken Technology Partner.

In response to the music industry's recent concern over Internet distribution of music, both Aladdin and NTRU joined forces to provide a secure method of using the web for legitimate digital content transactions. Both companies consider this the first step in working towards the secure distribution of music, films and other digital media downloaded from the Internet.

"Aladdin's eToken is the perfect complement to NTRU's innovative and highly efficient cryptographic algorithm," said Joe Krull, Aladdin's Vice President, eToken. "The combination of NTRU's speed and eToken's portability will open up exciting new markets and business opportunities for distributors wishing to secure music, video or other digital content on the Internet. We're extremely pleased to be working with the NTRU team."

"Our partnership with Aladdin enables new security models for both business and consumer applications, including secure music and video delivery," said Scott H. Crenshaw, CEO of NTRU. "The Aladdin/NTRU solution brings secure, tamper resistant public key security - including encryption and authentication -- to any consumer device, including portable MP3 players. A consumer's electronic identity can be carried on a key chain, and plugged in to devices to enable secure commerce, communication and music or video playback. We are extremely pleased to be working in partnership with Aladdin."

The NTRU Solution

NTRU's public key cryptography system fills a critical gap in today's security architectures, delivering high security on constrained devices. Older technologies were designed for resource rich computers, not inexpensive consumer devices, and are inefficient and too resource intensive to be used effectively in consumer applications.

For music and video protection applications, NTRU delivers new security paradigms addressing the needs of copyright owners and consumers alike. Using NTRU's disposable keys, a three-minute digital music file can be encrypted using 180 unique keys - one key for each second of music. A thief would have to compromise 180 keys to steal the clip. Furthermore, NTRU's speed enables encryption on the fly, customized for each user and each player. This enables security architectures that eliminate the risk of unauthorized music copying.

About eToken

The eToken R2 is a USB token about the size of a normal house key. It is the only token currently available which utilizes as its underlying technology the robust DESX symmetric encryption algorithm with a key length of 120 bits. Unlike other USB security tokens, the eToken R2 contains open, non-proprietary standards, making integration and security certification quick and smooth. R2's unique open architecture facilitates rapid customization and smooth integration of specialized algorithms such as NTRU's. The product supports a wide range of standards including Microsoft CAPI, and PKCS#11 v2.01, PC/SC, SSLv3 and S/MIME. Aladdin first announced R2 in May 2000 and is now able to ship the token in commercial quantities to all major market areas of the world.

The eToken R2 also incorporates an improved USB connector and newly designed one-piece plastic housing, providing enhanced tamper evidence and increased reliability. The product's USB functionality and strong two-factor authentication enable companies and organizations to eliminate costly implementation and installation issues normally associated with deployment of smart cards and biometric devices. According to computer industry sources, more than 250 million desktop and laptop computers are already fitted with at least one USB port.

Because the eToken R2 contains no proprietary protocols and uses a published and tested encryption algorithm, it can be integrated easily into security solutions that currently support smart cards and other types of authentication devices. The ability to securely store private keys and digital certificates on the token position it well for integration with existing Public Key Infrastructure (PKI) products from all major PKI vendors. To underscore this capability, Aladdin actively participates in the PKI Forum (www.pkiforum.org) to further the development and acceptance of USB tokens as a key enabler for PKI solutions.

Also available with the eToken R2 is a feature-rich Software Development Kit (SDK) which enables solutions providers, systems integrators and applications developers to integrate the R2 into their projects and products. Later this year, Aladdin plans to add further functionality to the token with eToken Enterprise, an off-the-shelf package of simple-to-use solutions which utilize the eToken R2 for secure e-mail, groupware password replacement, VPN integration and full integration with Windows 2000's enhanced security features. The Enterprise product is currently being tested as a beta product in more than 20 countries.

Aladdin is also recruiting additional companies and organizations for its eToken Technology Partner Program. Program participation offers companies who integrate with eToken or promote its implementation with streamlined technical support and joint sales and marketing opportunities. Additional information on the program can be obtained by e-mailing etoken@eAladdin.com.

About Aladdin

Aladdin (NASDAQ: ALDN) is a global leader in securing digital content, from applications software to Internet use and access. Aladdin's products include HASP and Hardlock, software security systems that protect the revenues of developers and publishers; Privilege, a software licensing platform for the Internet; the eSafe line of anti-vandal, anti-virus and content filtering software for PCs and networks connected to the Internet; and eToken for Internet security and authentication. Aladdin serves its customers through eight offices located in the world's major software markets as well as a network of 50 distributors serving more than 100 countries. For more information visit our website at www.eAladdin.com.

About NTRU

NTRU delivers the fastest, most secure public key cryptography solutions to secure communications and content for the next generation of Internet connectivity. Applications include securing wireless data communications, digital music and video distribution, mobile e-commerce and Internet applications. Developed by a team of Brown University mathematics professors, NTRU operates more than 100 times faster than competitive systems at equivalent security levels and is easily implemented even in low-cost hardware devices NTRU is pronounced "En' true." For more information visit our website at www.ntru.com.

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