Eutronsec Spa, a leading company in the field of software protection and authentication, under today’s date announces the go-ahead to the procedures for its total acquisition by Aladdin Knowledge Systems (NASDAQ: ALDN), a world-wide known player for its DRM, authentication and content security solutions.

Within a global market it is necessary to enter into strong alliances by starting up new business realities for copying with a diversified and widespread demand. The quality of Eutronsec’s production and the uniqueness of some devices developed by the Italian company have been appreciated by Aladdin who, thanks to this operation, aims at strengthening its presence in the authentication sector by creating a major commercial centre in Italy and possessing consolidated rights in support of its own intellectual property.

The two companies were established within two years of each other, Aladdin in 1985 and Eutronsec in 1987 respectively; they boast a similar history and background characterized by the concentration of their development, production and marketing activities. It was easy to foresee that their efforts would join soon, owing to their analogous multiyear experiences.

Financially speaking the transaction will amount to 10 million euro based on Eutronsec 2007 annual revenue relevant to Aladdin’s primary business just under 5 million Euro. The successful outcome of the transaction is scheduled for September 2008.

From this consolidation a joint production range will ensue for the confluence of the outstanding solutions of both companies. Production continuity and technical assistance will be guaranteed to Eutronsec’s faithful Customers; the commercial concerns will merge for creating newer and wider prospects.

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