Aladdin Signs Definitive Agreement to Acquire FAST Software Security AG

TEL AVIV, ISRAEL, NYC, USA, APRIL 16 , 1996 -- Aladdin Knowledge Systems
Ltd. (NASDAQ/NMS: ALDNF) today announced that it has signed a definitive
agreement to acquire FAST Software Security AG, a leading provider of
software protection products. The consideration will consist of 3.15
million Aladdin shares. The transaction is accounted for as a pooling of
interests.

FAST, a privately held company with headquarters in Munich, Germany, is one
of the three largest firms in the international software security market,
with 1995 revenues of approximately $13.5 million and operating income of
approximately $6 million. FAST's Hardlock products, which are marketed in
20 countries, combine hardware and software to prevent unauthorized use of
computer programs.

"The merger positions the joint company as the industry leader in
technology, product quality, growth and profitability, and as the leading
supplier in Europe of software security products," said Yanki Margalit,
Aladdin's Chairman and President. "In addition, the move adds considerable
critical mass to Aladdin in terms of global market presence, financial
strength and technological capabilities. These factors will be a solid
platform on which to build our success in the future. Our increased
resources will enable us to accelerate investments in the marketing and
development of new and existing products." Margalit added that the company
expects the deal to be accretive to its EPS.

"Aladdin now becomes the clear choice for all software developers in need
of software security", said Margalit. "We will continue to develop,
promote and support both the Hardlock and HASP product lines. We have a
lot of appreciation for FAST and we intend to keep FAST as an independent
German company. FAST customers will continue to enjoy the quality service
& support they are accustomed to, with the added benefit of the strong
financial backing of a US public- traded company, with increased resources
for R&D and marketing. Our Synergy with FAST will improve our technology
and support, worldwide," Margalit added.

The transaction is subject to the completion of a due diligence process,
shareholders' approval and other customary approvals and arrangements.
Robertson Stephens & Co. represented Aladdin in the transaction.

Aladdin Knowledge Systems Ltd. is a leading supplier of advanced solutions
for software developers. Aladdin develops, manufactures and markets
proprietary software security and development systems, including HASP
(Hardware Against Software Piracy), which combines hardware and software
to prevent unauthorized use of computer programs, ASE (The Aladdin
Smartcard Environment), an integrated toolkit for developing PC-based
smartcard applications, and HOPE (The Human-Oriented Programming
Environment), a revolutionary object-oriented team development
environment. Aladdin, a public company traded on NASDAQ, currently has 5
international offices, distributors in 26 countries, and 10,000 clients in
over 60 countries.
 
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