October, 2000      Diablo Blue      Page 9

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is a comprehensive solution.

Easy and intuitive to use, StuffIt for Windows requires no "wizards." Only StuffIt gives users a one-step process to compress a file -- simply drag a file onto the Aladdin DropStuff desktop shortcut to compress. That is it. Decompressing files is just as easy. With one drag-n-drop motion or by simply double-clicking on a compressed file, the user is instantly given the decompressed file to work with. Another new flexible feature helps StuffIt users manage files within the StuffIt Browser application. This function displays a Windows Explorer-like interface to easily manage groups of files to be compressed, encoded, archived, and accessed. With the StuffIt Browser, users can add to or delete from groups of archived files, as well as view archive file documents, copy, move, rename, and synchronize directories. StuffIt Browser also lets users quickly create self-extracting files and user-adjustable segmented archives.

As the Internet bridges international waters, those that deal with overseas users applaud StuffIt's complete 2-byte/Unicode compliance. Unlike .zip compression utilities, StuffIt archives allows users who send/receive compressed files in non-Roman based character languages, such as Japanese, Chinese or Russian, to send/receive compressed files in their native language without distorting or damaging the file integrity.

User Group pricing is available from the UG Online Store: http://www.aladdinsys.com/company/usergroups/ugvalid.html. Refer to the code: UG 91000 (ALL CAPITALS). StuffIt 5.5 works with Windows(tm) 95, 98, NT 4.0 and Windows 2000, and requires a minimum of 16MB RAM, 9MB of hard disk space and 486/100MHz or greater processor. Boxed retail versions will be available in most major PC retail outlets by October 2000. The MSRP for StuffIt for Windows is $29.95, and a $9.95 limited time upgrade will be available for any Windows compression utility owner starting September 14. See the Aladdin Web site for more information: http://www.aladdinsys.com.

Helping Transmit, Access and Organize Information(tm) Founded in 1988, Aladdin Systems, Inc., a wholly owned subsidiary of Aladdin Systems Holdings, Inc. (OTC BB: ALHI), is in its second decade of developing and publishing award-winning business and consumer products. Aladdin provides computing solutions that help people transmit, access and organize their information. Aladdin Systems is located at 165 Westridge Drive, Watsonville, CA 95076, USA; telephone: (831)761-6200; Fax: (831)761-6206. For more information about Aladdin, visit the company web site at: http://www.aladdinsys.com or e-mail: info@aladdinsys.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 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 and Exchange Commission.

StuffIt, StuffIt Browser, Aladdin Expander, DropStuff, DropZip, and the Aladdin Logo are trademarks of Aladdin Systems, Inc.. Windows is a trademark of Microsoft Corporation. All other products, brand names or companies are trademarks or registered trademarks of their respective companies.