TEL AVIV, ISRAEL and SAN JOSE, CA, July 30, 2008 – Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, and Secure Computing Corporation (NASDAQ: SCUR), a leading enterprise gateway security company, today announced a definitive agreement for Aladdin to acquire the Secure SafeWord product line for approximately $65 million in cash, including acquisition costs.

The acquisition of Secure SafeWord will position Aladdin as the premier strong authentication provider, adding highly innovative token technology as well as a strong market and channel presence to the existing Aladdin eToken family of solutions. To continue SafeWord’s worldwide growth, Aladdin plans to fully engage and support Secure Computing’s substantial, vibrant network of current SafeWord channel partners. Secure SafeWord added $32 million to Secure Computing’s revenue in 2007.

“This acquisition is a major corporate milestone, as it quickly brings sizeable revenues and growth opportunities that perfectly align with Aladdin’s business,” said Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems. “Through this acquisition, Aladdin stands as a worldwide leader in strong authentication technology. The incorporation of SafeWord into the Aladdin set of eToken authentication solutions will benefit customers by providing them a broader range of solutions for their security needs.”

“After considering a number of prospective buyers, Secure Computing chose Aladdin as the strongest partner, best suited to ensure a seamless transition and continued best-in-class services and support for our Secure SafeWord customers and partners,” said Daniel Ryan, president and CEO of Secure Computing. “The sale of Secure SafeWord enables Secure Computing to redouble its focus on its areas of greatest strength and expertise — delivering comprehensive and integrated Web, mail and network gateway appliances. The company believes the vast majority of customers and channel partners will both support and celebrate the company’s renewed focus.”

Secure Computing’s SafeWord business unit and all of its employees, including the SafeWord research and development group and SafeWord sales team, are expected to be incorporated into Aladdin Knowledge Systems. The sale of SafeWord to Aladdin Knowledge Systems by Secure Computing is subject to certain closing conditions which are contained in the asset purchase agreement entered into by the parties. The transaction is expected to be consummated in August or September 2008. Pending a successful completion of the transaction, the acquisition is anticipated to be accretive to Aladdin on a GAAP diluted earnings per share basis toward the last quarter of 2009.

Teleconferences & Web Casts

Aladdin will hold a teleconference today at 8:30 a.m. EDT to discuss the acquisition. To participate in the call, dial +1 (888) 281-1167 in North America, or +972 (3) 918-0691 internationally, approximately five minutes prior to the scheduled call start time. The call is being simultaneously Web cast and can be accessed on the Aladdin Web site at Please visit the Web site at least 15 minutes prior to the scheduled call time to register for the Web cast and download any necessary audio software. A replay of the call will be made available through August 6 th by accessing +1 (888) 254-7270 in North America, or +972 (3) 925-5954 internationally.

Secure Computing will hold a conference call today at 9:00 a.m. EDT to discuss the divestiture. To participate in the call, dial +1 (888) 324-2880 in North America, or +1 210-839-8792 internationally, approximately five minutes prior to the scheduled start time. The call is being simultaneously Web cast and can be accessed at the Investor Relations section of the Secure Computing Web site at In addition, a telephone replay will be made available through August 6th by accessing +1 (888) 566-0619 in North America or +1 (402) 998-0719 internationally.

About SafeWord

SafeWord two-factor authentication technology protects companies’ important information assets and applications. Secure SafeWord’s tokens and seamless integration with any existing Microsoft infrastructure make it simple to deploy remote access authentication for VPNs, Citrix applications, Web applications, Webmail, and Outlook Web Access. SafeWord allows users to deploy and protect more applications, use phones as a two-factor authenticator (2FA), and lower the overall total cost of ownership through tools that make the job of deploying two-factor authentication simple for administrators and users.

About Secure Computing Corporation

Secure Computing Corporation (NASDAQ: SCUR), a leading provider of enterprise gateway security, delivers a comprehensive set of solutions that help customers protect their critical Web, email and network assets. Over half the Fortune 50 and Fortune 500 are part of our more than 22,000 global customers, supported by a worldwide network of more than 2,000 partners. The company is headquartered in San Jose, Calif., and has offices worldwide. For more information, see

About Aladdin

Aladdin Knowledge Systems (NASDAQ: ALDN) is an information security leader with offices in 12 countries, a worldwide network of channel partners, and numerous awards for innovation. Aladdin eToken is the world’s #1 USB-based authentication solution, offering identity and access management tools that protect sensitive data. Aladdin HASP SRM boosts growth for software developers and publishers through strong anti-piracy protection, IP protection, and secure licensing and product activation. Aladdin eSafe delivers real-time intelligent Web gateway security that helps protect data and networks, improve productivity, and enable compliance. Visit

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