a l a d d I n c o m copy2008 Aladdin Knowledge Systems Ltd
Corporate Presentation
April 2008
a l a d d I n c o m
Safe Harbor Statement
Except for statements of historical fact the information presented herein constitutes forward-looking statements within the meaning of and subject to the safe harbor created by the PrivateSecurities Litigation Reform Act of 1995 In some cases you can identify forward-lookingstatements by terminology such as expect estimate anticipate intend predictbelieve and similar expressions and variations thereof Such forward-looking statementsinclude statements regarding the intent belief current expectations or projections about futureevents of Aladdin Knowledge Systems Ltd Readers are cautioned that these forward lookingstatements are not guarantees of future performance and involve known and unknown risksuncertainties and other factors which may cause the actual results performance orachievements of Aladdin Knowledge Systems Ltd to be materially different from any futureresults performance or achievements expressed or implied by such forward-lookingstatements Such factors include without limitation general economic and business conditionsthe loss of market share changes in the competitive landscape failure to keep up withtechnological advances and other factors over which Aladdin Knowledge Systems Ltd has littleor no control Aladdin Knowledge Systems Ltd undertakes no obligation to revise or updatethese forward-looking statements to reflect events or circumstances after the date hereof
a l a d d I n c o m
Headquarters Tel Aviv Israel
Global Presence
Strong Financial Momentum
Founded 1985 publicly traded since 1993
Employees Worldwide 468
Q108 revenues $300M Q108 profits $25M (Non-GAAP)2007 revenues $1059M2007 profits $176M (Non-GAAP)
World Renowned Products
Global leader in Software DRM (Digital Rights Management) fast growth innovative EnterpriseSecurity products
USA UK Germany France The Netherlands India Spain Italy Japan and China
Aladdin Snapshot
a l a d d I n c o m
Aladdin Securing the Global Village
Our Missionbull To create value by enabling the secure use
and distribution of digital content
Our Visionbull To be the leading provider of innovative
security solutions to protect digital assets and enable secure business
a l a d d I n c o m
Aladdin Product Lines
Software Rights Management ndashcopy protection IP protection
and secure licensing solution for software vendors
SoftwarePublishers and System
Vendors
Solutions for authentication and passworddigital identity
management
EnterpriseEducationBanking
PharmacyGovernment
TARGET MARKET
Web gateway content security and proactive email security
Enterprise
and ISPrsquos
DR
MEN
TER
PRIS
E SE
CU
RIT
Y
a l a d d I n c o m
Q1 2008 Earnings Results
bull Revenue $30 millionndash SW DRM Revenue $19m
ndash Enterprise Security Revenue $11m
bull Operating Income $22 million
bull Net Income $4 million
bull Earnings Per Share $029
bull Cash $95 million
Non-GAAP
+ 20
+ 32
AUTOMOTIVE
BANKING
B-TO-B
C-TO-C
ENTERPRISE SECURITY
EDUCATION
E-COMMERCE
GOVERNMENT
GAMING
HEALTHCARE
MANUFACTURING
PUBLISHING
LAW ENFORCEMENT
SPORTS
+ 19
+ 12
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Safe Harbor Statement
Except for statements of historical fact the information presented herein constitutes forward-looking statements within the meaning of and subject to the safe harbor created by the PrivateSecurities Litigation Reform Act of 1995 In some cases you can identify forward-lookingstatements by terminology such as expect estimate anticipate intend predictbelieve and similar expressions and variations thereof Such forward-looking statementsinclude statements regarding the intent belief current expectations or projections about futureevents of Aladdin Knowledge Systems Ltd Readers are cautioned that these forward lookingstatements are not guarantees of future performance and involve known and unknown risksuncertainties and other factors which may cause the actual results performance orachievements of Aladdin Knowledge Systems Ltd to be materially different from any futureresults performance or achievements expressed or implied by such forward-lookingstatements Such factors include without limitation general economic and business conditionsthe loss of market share changes in the competitive landscape failure to keep up withtechnological advances and other factors over which Aladdin Knowledge Systems Ltd has littleor no control Aladdin Knowledge Systems Ltd undertakes no obligation to revise or updatethese forward-looking statements to reflect events or circumstances after the date hereof
a l a d d I n c o m
Headquarters Tel Aviv Israel
Global Presence
Strong Financial Momentum
Founded 1985 publicly traded since 1993
Employees Worldwide 468
Q108 revenues $300M Q108 profits $25M (Non-GAAP)2007 revenues $1059M2007 profits $176M (Non-GAAP)
World Renowned Products
Global leader in Software DRM (Digital Rights Management) fast growth innovative EnterpriseSecurity products
USA UK Germany France The Netherlands India Spain Italy Japan and China
Aladdin Snapshot
a l a d d I n c o m
Aladdin Securing the Global Village
Our Missionbull To create value by enabling the secure use
and distribution of digital content
Our Visionbull To be the leading provider of innovative
security solutions to protect digital assets and enable secure business
a l a d d I n c o m
Aladdin Product Lines
Software Rights Management ndashcopy protection IP protection
and secure licensing solution for software vendors
SoftwarePublishers and System
Vendors
Solutions for authentication and passworddigital identity
management
EnterpriseEducationBanking
PharmacyGovernment
TARGET MARKET
Web gateway content security and proactive email security
Enterprise
and ISPrsquos
DR
MEN
TER
PRIS
E SE
CU
RIT
Y
a l a d d I n c o m
Q1 2008 Earnings Results
bull Revenue $30 millionndash SW DRM Revenue $19m
ndash Enterprise Security Revenue $11m
bull Operating Income $22 million
bull Net Income $4 million
bull Earnings Per Share $029
bull Cash $95 million
Non-GAAP
+ 20
+ 32
AUTOMOTIVE
BANKING
B-TO-B
C-TO-C
ENTERPRISE SECURITY
EDUCATION
E-COMMERCE
GOVERNMENT
GAMING
HEALTHCARE
MANUFACTURING
PUBLISHING
LAW ENFORCEMENT
SPORTS
+ 19
+ 12
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Headquarters Tel Aviv Israel
Global Presence
Strong Financial Momentum
Founded 1985 publicly traded since 1993
Employees Worldwide 468
Q108 revenues $300M Q108 profits $25M (Non-GAAP)2007 revenues $1059M2007 profits $176M (Non-GAAP)
World Renowned Products
Global leader in Software DRM (Digital Rights Management) fast growth innovative EnterpriseSecurity products
USA UK Germany France The Netherlands India Spain Italy Japan and China
Aladdin Snapshot
a l a d d I n c o m
Aladdin Securing the Global Village
Our Missionbull To create value by enabling the secure use
and distribution of digital content
Our Visionbull To be the leading provider of innovative
security solutions to protect digital assets and enable secure business
a l a d d I n c o m
Aladdin Product Lines
Software Rights Management ndashcopy protection IP protection
and secure licensing solution for software vendors
SoftwarePublishers and System
Vendors
Solutions for authentication and passworddigital identity
management
EnterpriseEducationBanking
PharmacyGovernment
TARGET MARKET
Web gateway content security and proactive email security
Enterprise
and ISPrsquos
DR
MEN
TER
PRIS
E SE
CU
RIT
Y
a l a d d I n c o m
Q1 2008 Earnings Results
bull Revenue $30 millionndash SW DRM Revenue $19m
ndash Enterprise Security Revenue $11m
bull Operating Income $22 million
bull Net Income $4 million
bull Earnings Per Share $029
bull Cash $95 million
Non-GAAP
+ 20
+ 32
AUTOMOTIVE
BANKING
B-TO-B
C-TO-C
ENTERPRISE SECURITY
EDUCATION
E-COMMERCE
GOVERNMENT
GAMING
HEALTHCARE
MANUFACTURING
PUBLISHING
LAW ENFORCEMENT
SPORTS
+ 19
+ 12
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Aladdin Securing the Global Village
Our Missionbull To create value by enabling the secure use
and distribution of digital content
Our Visionbull To be the leading provider of innovative
security solutions to protect digital assets and enable secure business
a l a d d I n c o m
Aladdin Product Lines
Software Rights Management ndashcopy protection IP protection
and secure licensing solution for software vendors
SoftwarePublishers and System
Vendors
Solutions for authentication and passworddigital identity
management
EnterpriseEducationBanking
PharmacyGovernment
TARGET MARKET
Web gateway content security and proactive email security
Enterprise
and ISPrsquos
DR
MEN
TER
PRIS
E SE
CU
RIT
Y
a l a d d I n c o m
Q1 2008 Earnings Results
bull Revenue $30 millionndash SW DRM Revenue $19m
ndash Enterprise Security Revenue $11m
bull Operating Income $22 million
bull Net Income $4 million
bull Earnings Per Share $029
bull Cash $95 million
Non-GAAP
+ 20
+ 32
AUTOMOTIVE
BANKING
B-TO-B
C-TO-C
ENTERPRISE SECURITY
EDUCATION
E-COMMERCE
GOVERNMENT
GAMING
HEALTHCARE
MANUFACTURING
PUBLISHING
LAW ENFORCEMENT
SPORTS
+ 19
+ 12
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Aladdin Product Lines
Software Rights Management ndashcopy protection IP protection
and secure licensing solution for software vendors
SoftwarePublishers and System
Vendors
Solutions for authentication and passworddigital identity
management
EnterpriseEducationBanking
PharmacyGovernment
TARGET MARKET
Web gateway content security and proactive email security
Enterprise
and ISPrsquos
DR
MEN
TER
PRIS
E SE
CU
RIT
Y
a l a d d I n c o m
Q1 2008 Earnings Results
bull Revenue $30 millionndash SW DRM Revenue $19m
ndash Enterprise Security Revenue $11m
bull Operating Income $22 million
bull Net Income $4 million
bull Earnings Per Share $029
bull Cash $95 million
Non-GAAP
+ 20
+ 32
AUTOMOTIVE
BANKING
B-TO-B
C-TO-C
ENTERPRISE SECURITY
EDUCATION
E-COMMERCE
GOVERNMENT
GAMING
HEALTHCARE
MANUFACTURING
PUBLISHING
LAW ENFORCEMENT
SPORTS
+ 19
+ 12
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Q1 2008 Earnings Results
bull Revenue $30 millionndash SW DRM Revenue $19m
ndash Enterprise Security Revenue $11m
bull Operating Income $22 million
bull Net Income $4 million
bull Earnings Per Share $029
bull Cash $95 million
Non-GAAP
+ 20
+ 32
AUTOMOTIVE
BANKING
B-TO-B
C-TO-C
ENTERPRISE SECURITY
EDUCATION
E-COMMERCE
GOVERNMENT
GAMING
HEALTHCARE
MANUFACTURING
PUBLISHING
LAW ENFORCEMENT
SPORTS
+ 19
+ 12
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Aladdin Growth Strategy 2008-2009
GEOGRAPHIES SEGMENTS PRODUCTS
China
India
Emerging Markets
Education
Banking
FORTUNE 100s
xSPs
SRM for Licensing
Compliance-driven
For xSPs
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Geographies in 2008-2009
bull Indiandash New Subsidiary with Sales and RampD facilitiesndash CIITE large eToken and eSafe deal with IT university studentsndash Certificate Authorities (CArsquos)
bull Chinandash New office in Shanghaindash Wicresoft A significant distribution agreement with joint
GovernmentMicrosoft venture
bull Emerging Territoriesndash Latin America
bull Current Territoriesndash Continued Growth in Europendash Improving Sales in USA and Japan
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Annual Revenues are Growing
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Quarterly Revenues are Growing
203
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Diversified Revenue Streams
North America
19
Europe
63ROW
18
Business Segments Geographical Segments
37
63
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Growth in Profitability
Net Income(non-GAAP)
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Growth in Profitability
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Consistent Margins
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Healthy Balance Sheet
US $mm 12312006 12312007 3312008
Cash and Cash Equivalents 39734 77 86044Marketable Securities 51147 13127 8981Held for Sale Investment 4423 2336Trade Receivables 16427 16918 17975Other Account Receivables 5779 7061 6727Inventories 7299 8763 11351Severance Pay Fund 3153 3853 4556Fixed Assets Net 5695 6501 7240Other Long Term Assets Net 19290 12195 20133TOTAL ASSETS 148524 150050 165343
Trade Payables 5794 8236 9636Deferred Revenues 5399 6635 6738Other Current Liabilities 8618 8583 10104Accrued Severance Pay 3921 4802 6027Other Long Term Liabilities 2143 2564 3358Non-controlling interest 6039Shareholders Equity 122649 119230 123441TOTAL LIABILITIES amp SHAREHOLDERS EQUITY 148524 150050 165343
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Strong Cash Flow From Operations
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
2008 Guidance
Revenuesbull $123 million to $130 million
Compared to $1059 million in fiscal year 2007
EPSbull GAAP $108 to $118
Compared to $102 in fiscal year 2007bull Non-GAAP $120 to $130
Compared to $120 in fiscal year 2007
Lowered EPS guidance is a result ofbull Strong Israeli shekelbull Consolidation of Athena Smartcards
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Software Digital Rights Management
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
HASP SRM Software Rights Management
bull Enables business growth by deliveringndash Strong copy protection
ndash Robust protection for Intellectual Property
ndash Secure and flexible licensing
bull Industryrsquos first fully integrated Software DRM solution
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Software DRM Market Growth
Software Digital Rights Management Market Revenue Forecasts (World) 2006-2013
Compound Annual Growth Rate (2006-2013) 121
Note All figures are rounded the base year is 2006 Source Frost amp Sullivan
Revenue Growth Rate ()
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Software DRM ndash Competitive Positioning
Software Digital Rights Management Market Competitive Landscape (World) 2006
High
Ability to Deliver DRM
Solutions
Low
Low Market Penetration High
Wibu
Macrovision
SafeNet
Aladdin
Source Frost amp Sullivan
Niche Player EmergingReceding Player Contenders Challenger Market Leader
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
SW DRM Growth Potential with HASP SRM
bull Existing HASP customers using SW-based solutions (All-in-one)
bull Competitive dongle users using SW-based solutions (All-in-one)
bull Vendors using commercial SW-based solutions (HASP SL)
bull Vendors using home-grown solutions (HASP SL)
bull Vendors not protecting (ease of implementation)
bull Additional growth potentialndash High-end consumer applications
ndash Limited size enterprise applications
ndash System vendors (applications embedded in hardware)
ExistingHASPHardlock
customers
Not Protecting or Licensing
UsingHomegrown
Solutions
CompetitorCustomers
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Your Key to eSecurity
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Disk encryption
Boot Protection
EnterpriseSSO
File encryption Dig SigSSV VPNSecure
Net logonVPN
Focusing on Enterprise Solutions
PKI Client OTPAuthentication
Single Sign On
Secure NetworkLogon SDK
All devices can include RFID
Secure network access Data security Password management
The eToken Product OfferingToken M
anagement System
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Authentication Market ndash Key Growth Drivers
bull Business enablementndash Strong authentication is increasingly
regarded as a must
bull Regulatory compliancendash HIPAA SOX Basel II and more
bull Increasingly mobile workforce
bull Digital signature usage and lawsndash European Dig Sig laws MCA 21 in India
SAFE
bull Expanding global market ndash BRIC
bull Reduction of password-related costs
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Authentication Market Growth
Source Frost amp Sullivan ldquoWorld USB and One Time Password Authentication Marketsrdquo 2007
$76 M
$522 M
Total USB + OTP market in 2012 - $15 B
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
LAW ENFORCEMENT
BANKING
ENTERPRISE
EDUCATION
eToken Market Success ndash Key Verticals
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Extreme Capacity Maximum Security
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
ldquoThe market is demanding a secure-Web gateway (SWG) solution that provides not only traditional URL-filtering but also malicious software (malware) filtering as well as application control for Web applications such as instant messaging (IM)rdquo
Peter Firstbrook
Demand for Secure Web Gateways
Publication 20 March 2007 ID Number G00146229Secure Web Gateway
ldquoMalware filtering in the Web gateway will increase from a penetration level of 10 to 15 of enterprises in 2006 to 70 of enterprises by 2011rdquo
Publication 20 March 2007 ID Number G00146229
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Firewall
VPN
IDSIPS
Network SecurityAnti-spyware
Web Content Inspection
URL Filtering
Phishing prevention
IM P2P tunneling etc
Anti-spam
Phishing prevention
Email antivirus
Email security
Web
Sur
fing
Emai
lSecuring The Enterprise Perimeter
Management
amp Reporting
Firewall takes care of Network Security
eSafe takes care of Messaging and Web security
Content Security
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
bull Real Time Security ndash Analyze and correlate in real time multiple attack vectors to identify amp control malicious content in web mail and internet applications
bull Industry Leading Performance amp Scalability ndash The only deep web inspection technology to scale to service provider capacities
eSafe ndash Real Time Content Security
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
SERVICE
PROVIDERS
FINANCIAL
EDUCATION
ENTERPRISE
eSafe Market Success ndash Key Verticals
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
xSP Segment
bull Solution Pioneerndash Product amp Technologyndash Delivery models and business models
bull Service providers acceptancebull Unique Technology amp Product Offering
ndash Security ndash Scalability ndash Transparency - SOA
bull Successful SMB and Consumer focused launchesbull Continuous product and offering innovationbull Platform partnerships (Cisco IBM Allot Comverse)
Aladdin strategically positioned to take a leadership role
a l a d d I n c o m
Securing the Global Village
a l a d d I n c o m
Securing the Global Village