September 12 2008 Aladdin Distributor Conference Laila Arad-Allan

September 12, 2008 Aladdin Distributor Conference Laila Arad-Allan VP Software DRM aladdin. com

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Agenda • Background • The Challenges • The Distributor Conference • The Event Sessions • The Results aladdin. com 3

About Aladdin Founded: 1985, publicly traded since 1993 Headquarters: Tel Aviv, Israel Global Presence: Offices in USA, UK, Germany, France, The Netherlands, India, Spain, Italy, Japan and China. 30 Distributors worldwide Employees Worldwide: 465 Strong Financial Momentum: 2007 revenues: $105. 9 M (+19%) 2007 profits: $17. 6 M (Non-GAAP) World Renowned Products: Global leader in Software DRM (Digital Rights aladdin. com Management), fast growth, innovative Enterprise Security products 4

About HASP SRM • A software protection and licensing system; innovative! • We are a market leader: 42%; +2% annually • We won 3 important awards • We target software publishers and system vendors • We offer flexible tools for increasing business and optimizing the protection and licensing lifecycle aladdin. com 5

About Aladdin’s Sales Channel • Sales offices in 10 countries – Direct sales – Sales offices are part of the Aladdin global organization – Our business unit works closely with them on a daily basis • Around 30 distributors in countries without an office – – – Some of them have been with us for over 2 decades Highly dedicated and professional Some are mom and pop shops Others are big organizations with small HASP sales teams We hold quarterly product webinars Traditionally we hold a distributor conference every 1. 5 to 2 years aladdin. com 6

What Happened 1. 5 Years Ago • Software protection and licensing needs have changed • We released HASP SRM – our new generation solution • Ground-breaking technology • No longer just a dongle • No longer an off-the-shelf product • We no longer target just software developers • Expanded target market: new segments, new players, broader audience • Solution became more complex in features and in sales cycle • New positioning, new messages to the market • More complex business and pricing model aladdin. com 7

The Challenges: Our Distributors • Doubt and uncertainty about the new HASP SRM solution • Still selling the old generation HASP: bad for Aladdin and the customers • Do not know how to target the new market segments; • Do not understand the new positioning and messages (e. g. homegrown) • Had to switch from selling a boxed product to selling value; not realizing the value • Had to switch from a very simple business model to a more complex • Bottom line: they couldn’t and weren’t selling HASP SRM aladdin. com 8

Distributor Conference January 2008 • Luke Hohmann – Enthiosys CEO - was the event facilitator • All sessions were planned with Luke Hohmann and Don Gray from Sales Engineering Group • Frontal presentations; group activities; innovation games; case studies • The Goals: – Gain confidence in HASP SRM – Realize the huge potential of HASP SRM – Learn how to sell the value – Learn how to target and sell into new markets aladdin. com 9

Distributor Conference: The Sessions • Customer Centric Selling – Different customers perceive value differently; different roles in a customer organization perceive value differently – How HASP SRM provides value to different customers and roles – Case Studies: • Aladdin sales reps presenting how they sold the value • Aladdin HASP SRM customers presenting how they perceived the value • Activity: identifying the key elements for success based on the presented case studies – Spider Web Innovation Games® – analyzing and discussing the case studies, identifying who was in the sales process on both sides; who values the solution aladdin. com 10

Distributor Conference: The Sessions • Customer Centric Selling – Strategies and tools for customer centric selling • Solution development prompter booklet: asking the right questions; offering the right solution • Opportunity assessment tactics – Choosing the opportunities to pursue – Managing the risk in each opportunity – Assessing the unknowns – Activity: score-based opportunity assessment aladdin. com 11

Distributor Conference: The Sessions • Product Box – Innovation Games® – Half day session in work groups – Each team chose a target customer and had to build a product box that communicated the value – Discussion between team members as they were working demonstrated that they absorbed and digested a lot during the previous day aladdin. com 12

Distributor Conference: The Sessions • Remember the Future – Innovation Games® – Distributors were asked to imagine it is one year later (January 2009) – They were at a party celebrating hitting their goal of a 20% increase in HASP SRM sales – They were asked to list what they will have done to enable their success and what Aladdin will have done to help them – Each distributor then had to present his/her future aladdin. com 13

The Results • Event was a great success • We’re following up on each distributor as per their “Remember the Future” commitments • Most distributors have already held local HASP SRM events • Their marketing materials are in line with our positioning and messaging • We see an increase in HASP SRM sales among our distributors • We get feedback from them which helps us tailor our messaging and pricing model • Aladdin is holding follow-up local events with some of the distributors to further strengthen their sales capabilities aladdin. com 14

Thank You aladdin. com