Vector Completes Aladdin Acquisition

Vector Capital has completed its $160 million take-private buyout of Aladdin Knowledge Systems, an Israeli maker of security software. Aladdin stockholders received $11.50 per share.

PRESS RELEASE

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) today announced that it has completed its previously announced merger with an  investor group led by Vector Capital, a leading private equity firm specializing in the technology industry.

The merger was approved by a majority of Aladdin’s shareholders at an Extraordinary General Meeting
held on February 20, 2009. Under the terms of the merger, Aladdin shareholders will receive $11.50 per
share in cash for each ordinary share they hold.

Commenting on the announcement, David Fishman, Partner at Vector Capital, said, “We are thrilled that
we have successfully brought this transaction to completion.  It is now time for all of us to focus on
Aladdin’s future, leverage the Company’s strong products and take advantage of the combination with
SafeNet’s business to create growth opportunities. We remain incredibly impressed with the quality of
Aladdin’s management and employees and look forward to working together to build one of the great
information security companies.”

“We are very excited to close this transaction and begin to move forward on the integration with
SafeNet,” said Aviram Shemer, CFO at Aladdin. “Our customers will benefit from the strength of the
combined companies as we continue to provide our award-winning, innovative security solutions across
the globe. Together with our employees, we remain fully committed to the long-term success of Aladdin
and SafeNet.”

Mr. Shemer continued: “I would especially like to thank Yanki Margalit, our Founder and outgoing CEO
and Chairman of the Board. Aladdin’s success is a tribute to his vision and his dedication to our
customers, shareholders and employees.”

In connection with the closing, trading of Aladdin’s shares on the NASDAQ Global Market and Tel Aviv
Stock Exchange will cease March 24th and Aladdin will de-list the shares from both exchanges.
Shareholders who possess Aladdin share certificates will receive a letter of transmittal with detailed
instructions, along with a tax declaration form, from the appointed paying agent, Bank of New York
Mellon, regarding the surrender of their certificates for the merger consideration.  For shares held in
street name by a broker, bank or other nominee, the broker, bank or other nominee will handle the
exchange of shares for the shareholders and will provide them with any relevant instructions for effecting
the exchange and providing the tax declaration form.

About Aladdin
Aladdin Knowledge Systems (NASDAQ: ALDN) is an information security leader with offices in 15
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 SafeWord two-factor authentication technology protects
companies’ important information assets and applications. 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, improves productivity, and enables compliance. Visit www.Aladdin.com.

About Vector Capital
Vector Capital is a leading private equity firm specializing in spinouts, buyouts and recapitalizations of
established technology businesses. Vector identifies and pursues these complex investments in both the
private and public markets. Vector actively partners with management teams to devise and execute new
financial and business strategies that materially improve the competitive standing of these businesses
and enhance their value for employees, customers and shareholders. Among Vector’s notable
investments are LANDesk Software, Savi Technology, SafeNet, Corel Corporation (Nasdaq: CREL),
Printronix, Register.com, Tripos, WinZip and Watchguard Technologies. For more information, visit
www.vectorcapital.com.