Aladdin Knowledge Systems Limited

Our legal and commercial name is Aladdin Knowledge Systems Ltd. We were incorporated in Israel in 1985. Our principal executive offices are located at 15 Beit Oved Street, P.O. Box 11141, Tel Aviv, Israel 61110, and our telephone number is 972-3-636-2222. Our Internet address is: http://www.Aladdin.com. Information on our web site is not incorporated by reference in this annual report. Capital Expenditures During the past three years, our capital expenditures amounted to approximately $4.5 million. The focus of our capital expenditure program primarily included investment in IT systems, equipment for research and development and testing purposes as well as general computer software and hardware. We continue to make capital investments of a similar nature in our Israeli facilities and also in connection with our production activities.