Aladdin and FAST Complete Merger

Shareholders Approved the Transaction

TEL AVIV, ISRAEL, MAY 28, 1996 -- Aladdin Knowledge Systems Ltd.
(NASDAQ/NMS: ALDNF) today announced that on May 26 it completed the merger
with FAST Software Security AG. The closing took place after the
shareholders of both companies approved the transaction in which Aladdin
exchanged 3.15 million Aladdin shares for all the outstanding shares of
FAST Software Security. The transaction is accounted for as a pooling of
interest.

FAST Software Security, 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.

FAST Security will continue to act as an independent German subsidiary,
assuming global responsibility for the development, marketing, service and
support for the Hardlock product line.

"Our decision to create a partnership with Aladdin demonstrates our faith
in Aladdin's future, its technological excellence and its management
team," said Matthias Zahn, the Founder and major shareholder of FAST
Software Security. "I am confident that, together, Aladdin and FAST
Security will build the world's foremost software security company, and
will benefit from their technological superiority, enhanced global market
share and sturdy financials." Mr. Zahn, who is also the chairman and CEO
of FAST Multimedia Inc, a leading provider of PC-based video editing
products, will join the Aladdin Board of Directors.

"Having had the opportunity to work with the FAST team, I was very pleased
to find out that apart from the business synergy, there is a great
cultural bonding between both companies," said Yanki Margalit, Aladdin's
Chairman and President. "By joining forces with FAST Security we will be
creating an exciting future for Aladdin."

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 and
Hardlock which combine 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
40 countries, and 20,000 clients in over 100 countries.
 
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