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onsumers. "We are focused on expanding opportunities and are actively looking into new products and technologies to grow our markets," continued Kahn. "But we are still cautious about the overall economic outlook for the industry and remain diligent in controlling costs." Aladdin Systems Holdings, Inc.: The Leader in Access Management(tm) (OTC BB: ALHI) Aladdin operates two subsidiaries: Aladdin Systems, Inc. and Aladdin Enterprise Solutions, Inc. Founded in 1988, Aladdin Systems, Inc. develops and publishes award-winning business and consumer products, including StuffIt(r), the complete compression solution for Windows, Macintosh, Linux and Solaris platforms. Aladdin's software offers a range of solutions to increase user efficiency in the areas of information access, removal, recovery, security and Internet distribution. On the Web: http://www.aladdinsys.com and www.stuffit.com. Aladdin Enterprise Solutions' policy-based AES ActionPoint(tm) management solution aligns business objectives with enterprise computing requirements. On the Web: http://www.aladdinenterprise.com Forward Looking Statements: Any information contained within this news release which is not historical data may be deemed 'forward-looking statements.' Factors which could cause actual results to vary materially from the future results covered in such forward-looking statements include competition, business prospects and the management of our growth. Such forward-looking statements are subject to other risks and uncertainties, which are detailed in the Company's filings with the Securities & Exchange Commission. StuffIt, Ten for X, Internet Cleanup, Spring Cleaning, Easy Uninstall, Zip Magic, and the Aladdin logo are trademarks or registered trademarks of Aladdin Systems, Inc. All other product names are registered trademarks or trademarks of ALADDIN SYSTEMS HOLDINGS REPORTS 24% SALES GROWTH FOR FIRST SIX MONTHS OF 2003 WATSONVILLE, CA, August 13, 2003 Aladdin Systems Holdings, Inc. (OTC BB: ALHI) today announced financial results for the second quarter of 2003. Net revenues increased 10% to $1.83 million in the three months ended June 30, 2003 compared to $1.67 million in the same period in 2002. The Aladdin Systems' subsidiary was profitable for Q2 2003 although Aladdin Systems Holdings had a loss of ($246,015) or ($0.02) per basic and diluted share, due to continued costs for the Aladdin Enterprise Solutions subsidiary. For the six months ended June 30, 2003, Aladdin's subsidiary, Aladdin Systems, Inc., had a net income of $127,344 compared to a loss of ($55,542) in the same period in 2002. "Our new Internet software and Ten for X product suites are opening up new markets and gaining customer attention," said Jonathan Kahn, CEO of Aladdin Systems Holdings. "We are happy with the progress Aladdin Systems has made this first half of the year and hope to continue that momentum." Aladdin Systems shipped a new version of Spring Cleaning(r) and iClean(r) 6.0, and two new products for the Macintosh platform this quarter: Internet Cleanup(tm) (blocks banner ads and stops pop ups) and Ten for X(tm) Utilities, Volume 2, which includes the popular: Spamfire, anti-spam software. In other news, Aladdin won the ICE (Internet Commerce Excellence) award from Digital River in recognition for its best product launch for StuffIt in 2003- gaining a 143% revenue increase in just one month. The company also entered a partnership with SwiftCD to deliver, for the first time, on-demand, custom trial CDs to Aladdin customers. And in international news, Aladdin signed on a new UK distributor, Koch Media, to expand sales of its PC software line. Aladdin also announced its new online store for Japanese customers, serving its software directly to Japanese consumers. "We are focused on expanding opportunities and are actively looking into new products and technologies to grow our markets," continued Kahn. "But we are still cautious about the overall economic outlook for the industry and remain diligent in controlling costs." Aladdin Systems Holdings, Inc.: The Leader in Access Management(tm) (OTC BB: ALHI) Aladdin operates two subsidiaries: Aladdin Systems, Inc. and Aladdin Enterprise Solutions, Inc. Founded in 1988, Aladdin Systems, Inc. develops and publishes award-winning business and consumer products, including StuffIt(r), the complete compression solution for Windows, Macintosh, Linux and Solaris platforms. Aladdin's software offers a range of solutions to increase user efficiency in the areas of information access, removal, recovery, security and Internet distribution. On the Web: http://www.aladdinsys.com and www.stuffit.com. Aladdin Enterprise Solutions' policy-based AES ActionPoint(tm) management solution aligns business objectives with enterprise computing requirements. On the Web: http://www.aladdinenterprise.com Forward Looking Statements: Any information contained within this news release which is not historical data may be deemed 'forward-looking statements.' Factors which could cause actual results to vary materially from the future results covered in such forward-looking statements include competition, business prospects and the management of our growth. Such forward-looking statements are subject to other risks and uncertainties, which are detailed in the Company's filings with the Securities & Exchange Commission. StuffIt, Ten for X, Internet Cleanup, Spring Cleaning, Easy Uninstall, Zip Magic, and the Aladdin logo are trademarks or registered trademarks of Aladdin Systems, Inc. All other product names are registered trademarks or trademarks of