TEL AVIV, ISRAEL, March 24, 2005,– Aladdin
Knowledge Systems (NASDAQ and TASE: ALDN) (the “Company”) today announced the
pricing of a public offering by the Company of 2,000,000 ordinary
shares at U.S.
$21.45 per share. The closing of the offering is scheduled to take
place on March 30,
2005. The Company expects to receive net proceeds from the offering of
U.S. $39.2 million, after deducting the underwriting discount and
estimated offering
expenses. The underwriters have been granted an option to purchase at
the public
offering price up to 300,000 additional shares from certain selling
to cover over-allotments, if any.

UBS Securities LLC is acting as sole-book running manager and UBS
Securities LLC,
CIBC World Markets Corp., Friedman, Billings, Ramsey & Co., Inc., Piper
Jaffray & Co.,
C.E. Unterberg, Towbin, LLC, Dougherty & Company LLC, First Analysis
Corporation and Southwest Securities, Inc. are the representatives of
the underwriters.
Copies of the final prospectus relating to the offering may be obtained
from UBS
Securities LLC, Prospectus Department, 299 Park Avenue, New York, NY

A registration statement relating to these securities was filed and
effective by the Securities and Exchange Commission. This press release
shall not
constitute an offer to sell or the solicitation of an offer to buy, nor
shall there
be any sales of these securities in any state or other jurisdiction in
which such
offer, solicitation or sale would be unlawful prior to registration or
under the securities law of any such state or other jurisdiction.

About Aladdin Knowledge Systems

Aladdin Knowledge Systems Ltd.
is a global provider of security solutions that reduce software theft,
network users and protect against unwanted Internet and e-mail content,
spam and viruses. Its security products are organized into two segments:
Digital Rights Management (DRM)
and Enterprise
. Aladdin’s Software DRM
products allow software publishers to limit revenue loss from software
theft and
piracy. Its Enterprise Security solutions enable organizations to secure
information technology assets by controlling who has access to their
and what content their users can utilize (content security).
Visit the Aladdin Web site at