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a l a d d I n . c o m ©2008 Aladdin Knowledge Systems, Ltd. Corporate Presentation April 2008

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Page 1: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 2: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 3: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 4: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 5: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 6: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 7: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 8: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 9: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 10: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 11: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 12: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 13: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 14: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 15: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 16: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 17: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 18: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 19: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 20: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 21: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 22: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 23: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 24: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 25: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 26: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 27: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 28: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 29: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 30: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 31: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 32: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 33: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 34: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

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

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village
Page 35: April 2008 - SafeNet · Cash and Cash Equivalents 39,734 77 86,044 Marketable Securities 51,147 13,127 8,981 Held for Sale Investment 4,423 2,336 Trade Receivables 16,427 16,918 17,975

a l a d d I n c o m

Securing the Global Village

  • Corporate Presentation
  • Safe Harbor Statement
  • Aladdin Snapshot
  • Aladdin Securing the Global Village
  • Aladdin Product Lines
  • Q1 2008 Earnings Results
  • Aladdin Growth Strategy 2008-2009
  • Geographies in 2008-2009
  • Annual Revenues are Growing
  • Quarterly Revenues are Growing
  • Diversified Revenue Streams
  • Growth in Profitability
  • Growth in Profitability
  • Consistent Margins
  • Healthy Balance Sheet
  • Strong Cash Flow From Operations
  • 2008 Guidance
  • Software Digital Rights Management
  • HASP SRM Software Rights Management
  • Software DRM Market Growth
  • Software DRM ndash Competitive Positioning
  • SW DRM Growth Potential with HASP SRM
  • Your Key to eSecurity
  • The eToken Product Offering
  • Authentication Market ndash Key Growth Drivers
  • Authentication Market Growth
  • eToken Market Success ndash Key Verticals
  • Extreme Capacity Maximum Security
  • Slide Number 29
  • Securing The Enterprise Perimeter
  • eSafe ndash Real Time Content Security
  • Aladdin eSafe is a leading visionary in Gartner Magic Quadrant
  • eSafe Market Success ndash Key Verticals
  • xSP Segment
  • Securing the Global Village