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Aladdin is a global provider of security solutions that reduce software theft, authenticate network users, and protect against unwanted Internet and e-mail content, including spam and viruses. Serving more than 30,000 customers worldwide, Aladdin derived 54% of its sales in the first nine months of 2007 from Europe, 24% from the United States and 22% from the rest of the world. Aladdin sells its products through direct sales and marketing efforts, indirectly through distributors, partnerships and joint-selling arrangements and through OEM agreements with a few major partners. Currently, the company has OEM agreements with VeriSign, Cisco Systems and RSA Security. Its security products are organized into two segments: Software Digital Rights Management (DRM) and Enterprise Security. The company is headquartered in Tel Aviv, Israel and operates in the United States, the United Kingdom, Israel, Germany, Spain, Hong Kong and Japan.

Aladdin's Software Security (DRM) products, called HASP, comprised 68% of revenues in the full year 2006 and 63.8% of revenues in the first nine months of 2007, compared to 69.1% in 2005. These products allow software publishers to limit revenue loss from software theft by using an advanced encryption engine that uses 128 bit Advanced Encryption Standard (AES) technology, and a hardware-based real-time clock that enables time-based licensing and security. The company's HASP product line consists of two different solutions HASP HL and HASP SL, and offer software publishers many options to meet their protection, licensing and distribution needs. HASP HL a security solution that uses a hardware-based key or token that must be plugged into a computer or electronic device through either a USB port, parallel port or a PC Card to authenticate and decrypt the data or program. The program can only be used while this key is plugged into the machine and is very effective in protecting software against illegal use and limiting the number of users. HASP SL is a software-based solution that protects software copyright and intellectual property while reducing costs for secure distribution of software via CD-ROM, ESD or peer-to-peer networks. The company recently announced the general availability of HASP SRM version 2.5, its latest Software Rights Management solution that integrates hardware- and software-based anti-piracy and intellectual property protection with secure licensing. HASP SRM consists of Cross-LockingTM technology that enables software publishers to choose the security key after protection is implemented: a hardware key HASP HL or a software (electronic) key HASP SL.

Aladdin's Enterprise Security solutions, which were 32% of the full year 2006 revenues and 36.2% of revenues in the first nine months of 2007, enable organizations to secure their information technology assets by controlling access to their networks (authentication) and what content their users can utilize (content security). The company has two product lines in the Enterprise Security market eToken and eSafe. The eToken products are fully portable solutions for strong user authentication and password management. The company's eToken USB-based smart card authentication devices are intended to ensure that only authorized users gain access to a network or PC by requiring that the user's token be inserted into the computers USB port combined with a pin to ensure two-factor authentication. eToken Pass is a compact and portable one-time password (OTP) token, enabling strong authentication to both web-based and client-based applications. eToken Pass is a clientless device, allowing zero-footprint user authentication from any machine with effortless back-end configuration. eSafe is a gateway-based, integrated content security solution that proactively protects networks against viruses, worms, spam and non-productive internet content. The company announced the general availability of eSafeWeb Threat Analyzer, a tool that exposes the content security vulnerability in the organization's network and provides a detailed audit report of potential and real threat that bypass existing security solutions. It also announced launch of eSafe 6, its new platform for spyware control and web security.




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