Aladdin Estimates that Seventy Percent of Virus Writers Now Focused on Creating Contracted Spyware

    CHICAGO, April 4, 2005,
    Aladdin Knowledge Systems Ltd.
    (NASDAQ: ALDN) today announced it now estimates that
    more than 70 percent of
    virus writers worldwide are now focused on creating contracted spyware.

    The announcement follows detailed analysis conducted by the Aladdin
    Content Security Response
    Team (CSRT)
    evaluating recent viruses and virus writer
    activity. Aladdin CSRT research concludes that spyware is the favorite
    among malicious code
    writers, as it allows them to wrap their “technology” and sell it or
    even introduce their own
    money-making ventures.

    “Our analysis over the last several months confirms that the majority of
    virus writers are
    shifting away from creating complicated viruses purely aimed at causing
    havoc, and instead,
    are creating spyware that is linked to organized crime and illegal
    money-making opportunities,”
    said Shimon Gruper, vice president of technologies for the Aladdin
    eSafe Business Unit. “Aladdin is
    confident that it will
    continue to see a growing number of spyware applications linked to
    organized crime, jointly
    created by those with the resources to create the applications and those
    with the resources to
    quickly utilize the data stolen. This is a major change from the types
    of threats that we saw
    emerging just a few years ago.”

    Aladdin Responds by Adding Gateway Protection for
    Spyware

    Forrester Research predicts that spyware will reach at least 25 percent
    of all business
    computers within the next 12 months. In response to this fast-growing
    threat, Aladdin recently
    added gateway protection signatures to its Aladdin eSafe
    product to identify hundreds of new spyware components and spyware
    communications. An
    integrated, proactive content security and anti-virus protection
    solution for large
    organizations, Aladdin eSafe now guards against spyware, password
    stealing Trojans, and
    multipurpose automated zombie bot networks that are used for various
    malicious activities
    such as spamming, phishing, denial of service and using victim PCs as
    attack proxies.

    Aladdin eSafe is the only gateway product providing four layers of
    spyware protection, as well
    as multiple content security layers against other malicious code — all
    at the entrance to the
    organization. Other solutions in the market focus on only one or two
    layers of spyware
    protection, leaving organizations susceptible to “smart” users who can
    circumvent desktop
    policy, but not gateway enforcement. Desktop solutions may also not be
    effective against
    “driveby” spyware, while also lacking enterprise-wide real-time spyware
    activity monitoring.

    “In the past malicious code writers were motivated by technological
    challenges and the urge to
    cause damage. Today the motivation is money — and there is no greater
    motivator. Malicious
    code writers get organized and even traditional organized crime
    organizations now want a piece
    of the cake,” Gruper said. “Aladdin eSafe is the only product that
    quickly addresses this
    dangerous threat that can easily enter organizations through something
    as basic as employee
    Web browsing.”

    Significant Aladdin eSafe benefits:

    • No other gateway products covers all 4 layers of anti-spyware
      security
    • Anti-virus gateway solutions only provide signatures, a reactive
      solution
    • URL filtering products only block access to spyware download servers
      on port 80
    • Firewalls and IDS products only block limited spyware protocol data
      or URLs
    • eSafe blocks all ‘driveby’ spyware infections while Web surfing
    • Real-time spyware activity monitoring
    • Proactive anti-spyware, anti-virus, anti-spam, and malicious code
      protection in one
      integrated solution
    • Full content security at over 32Mbps speeds – up to 10 times faster
      than competing
      products

    Proactive Aladdin eSafe Protection

    Aladdin’s eSafe features
    high-performance, proactive
    content inspection that stops threats and increases employee
    productivity while reducing the
    load on corporate bandwidth. eSafe features the Proactive Security
    Engine (PSE). Using
    multiple technologies, the PSE enables eSafe to even block most zero-day
    malicious code.
    Performance is essential to content security – slow, inefficient
    solutions cannot be tolerated
    in today’s fast-paced networks. eSafe’s NitroInspection&#153 provides a
    high-speed solution
    that efficiently combines operation of all core technologies at the
    gateway to the organization.
    Aladdin’s eSafe product suite includes eSafe Gateway, eSafe Mail and
    eSafe Appliance. For
    more information on eSafe, and the entire family of eSafe content
    security and anti-spam
    solutions, visit www.eSafe.com.

    About Aladdin Knowledge Systems

    Aladdin is a global provider of software digital rights management (DRM)
    and enterprise security.
    Aladdin products include: the HASP® family of hardware
    and software-based products that flexibly
    protect, license and distribute software and intellectual property; the
    USB-based eToken
    device
    for strong user authentication and e-commerce security; and the eSafe® line of integrated
    content
    security solutions that protect networks against malicious,
    inappropriate and nonproductive
    Internet-borne content. Visit the Aladdin Web site at http://www.Aladdin.com.

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