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Tuesday January 27, 8:55 am Eastern Time
Company Press Release
Aladdin and Wave Complete Security Technology Integration
TEL AVIV, Israel and NEW YORK--(BUSINESS WIRE)--January 27, 1998--Aladdin Knowledge Systems Ltd. (Nasdaq: ALDNF; www.aks.com), the leading developer of solutions for the secure licensing and distribution of digital content, and Wave Systems Corp. (OTC BB: WAVX; www.wave.com) today announced that they have completed the integration of Aladdin's software execution control system -- the Aladdin Shell -- and HASP(R) and Hardlock(R) key technologies into Wave's WaveMeter(R) chip. This technology integration, resulting from the two companies' June 1997 partnership agreement, provides the foundation for a new model of electronic commerce and distribution of digital content in a secure and flexible environment.
In December, Wave and IBM announced an agreement to ''find ways to inexpensively incorporate (the) WaveMeter into PC products (and) to support each other in achieving industry-wide adoption of the WaveMeter technology by systems manufacturers.'' (See Wave-IBM announcement excerpts below.)
The first stage of the Aladdin-Wave technology integration provides the Aladdin security shell for the WaveMeter, and the second stage ensures that Aladdin's developer customers are fully compatible with the future installed base of WaveMeters, whether used for security or distribution. Wave's agreement with IBM will potentially enable consumers to rent and purchase digital content directly from their desktops using the WaveMeter, and Aladdin's technology will allow developers of said digital content to secure their intellectual property against unauthorized access, use and piracy.
Aladdin's Shell, HASP and Hardlock technologies offer industry-leading licensing and distribution solutions enabling persistent protection of software against unauthorized access, use and copying. Wave's WaveMeter technology enables flexible business models for purchasing digital content, including rental, pay-per-use and rent-to-own. The WaveMeter measures the usage of software and digital content at the user's site, and enables users to securely try, use, rent and purchase software and other digital content. Broad deployment of the WaveMeter technology is expected by Wave towards the end of 1998.
''The IBM-Wave agreement is an important step in a process that will bring the integrated Aladdin/Wave technology to market. We look forward to working with Wave in order to achieve broad penetration of PC platforms distributed by both IBM and other system manufacturers,'' said Aladdin President and CEO Yanki Margalit. ''Wave's collaboration with IBM also represents a significant tribute to Aladdin's technology leadership in the field of secure software licensing and distribution.''
Wave-IBM Dec. 18 Announcement Excerpts
''Wave Systems Corp. today announced an agreement with IBM Corporation to find ways to inexpensively incorporate Wave Systems' WaveMeter chip into PC products. Wave and IBM will work on product ideas to allow users to access digital content directly from their desktops through a variety of purchase models, including rental, pay-per-use and rent-to-own. Wave and IBM have also agreed to support each other in achieving industry-wide adoption of the WaveMeter technology by systems manufacturers. Detailed terms of the relationship were not disclosed.''
''The Wave System is a unique turnkey solution for electronic content distribution and transaction processing that can turn PCs into digital cash registers for secure renting or purchasing of software. The system combines triple DES encryption to secure content being sold with a local WaveMeter chip that accomplishes content decryption and metering, and records user credit and transaction data.''
For a complete version of the Wave-IBM announcement, see Wave's corporate web site at wave.com.
About Aladdin
Aladdin Knowledge Systems is a global leader in the secure licensing, management and distribution of digital content. Aladdin's product range includes HASP(R) and Hardlock(R), key-based software security systems which monitor software licensing and prevent unauthorized use of computer programs, Privilege(TM), a suite of software licensing and metering tools for developers and corporate IT managers, and ASE(R) - The Aladdin Smartcard Environment - a set of smart card application development tools for integrating smart cards with PCs. Aladdin is an ISO 9002 accredited company with headquarters in Tel Aviv, Israel, 5 international offices and distributors in more than 40 countries, serving over 20,000 clients worldwide. For more information, visit the Aladdin home page at aks.com.
About Wave
Wave Systems Corp., formed in 1988 by Peter Sprague, former Chairman of National Semiconductor, has developed a unique distributed information metering and transaction processing service, called the Wave System, for use in the sale and distribution of a wide range of electronic content for consumer entertainment and education applications. In December 1997, Wave entered into an agreement with IBM to collaborate on industry-wide adoption of Wave's WaveMeter technology by systems manufacturers which would enable consumers to access digital content directly from their desktops through a variety of purchase models including rent-to-own. The Wave System gives content providers security and flexible transaction models and consumers the convenience and control of obtaining content via the Internet, and eventually CD-ROM and broadband transmissions. For more information about Wave or to use the Wave System, please visit Wave's corporate web site at wave.com.
Safe Harbor for Forward-Looking Statements
Except for the statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to fund operations, the loss of market share, changes in consumer buying habits and other factors over which Aladdin Knowledge Systems Ltd. and Wave Systems Corp. have little or no control. |
