Aladdin Knowledge Systems Ltd. announced a strategic alliance with SecureSynergy Pvt Ltd. to offer Secure Surfing and Secure mailing services to Enterprises and SME sector across India. This is the first time that such comprehensive services are being offered to organizations at very affordable rates. The offering will give the clients a centralized, value-added security service that inspects and filters Web traffic as well as Email traffic before it reaches the organization or the web surfer. The service aims to give subscribers the freedom from maintaining and managing any kind of appliances at their site to thwart threats such as spam mails, spy-ware and phishing attacks.

Aladdin Knowledge Systems Ltd. announced that Internet Xpress, a Northeast Washington-based ISP, will begin offering its residential and business ISP customers Aladdin's eSafe Secure Surfing solution in July. eSafe Secure Surfing provides customers with 'clean-pipe' Internet access, centrally protecting them against Web-based malware and freeing them of the need to manage desktop- based security solutions to fight spyware, phishing and other threats. Internet Xpress customers will gain unparalleled peace of mind while surfing, benefiting from real-time Web surfing security with four-layer spyware blocking; real-time Web surfing Trojan and worm blocking with full inspection of all Web page content; real-time Web surfing exploit, vulnerability, and AJAX client-attacks blocking; and Web email security and antivirus effective for almost any Web- based email service.

Aladdin Knowledge Systems Ltd. announced earnings results for the first quarter ended March 31, 2007. Revenues for the first quarter of 2007 were a record $25.2 million, an increase of 10% from $22.9 million for the same period in 2006. Net income in accordance with Generally Accepted Accounting Principles (GAAP) for the first quarter of 2007 was $3.9 million or $0.26 per basic and diluted share and compared to first quarter of 2006 GAAP net income of $3.8 million or $0.26 per basic share and $0.25 per diluted share. GAAP net income for the first quarter of 2007 included $0.4 million for stock based compensation expenses compared to $0.5 million in the first quarter of 2006. Aladdin's management reiterates its previously announced guidance. Revenues for fiscal year 2007 are estimated at $95 million to $102 million. Fiscal year 2007 GAAP diluted earnings per share are also expected to be in line with the Company's previously stated guidance range of $0.90 to $1.09.