Special Offers Available to KEGS Members

Dear user group leaders,

Aladdin just released StuffIt 7, the easiest way to zip your files! NEW for StuffIt 7 is Windows XP compatibility, ArchiveSearch(tm), StuffIt Express(tm) Personal Edition, and more. Read the press release below for more details, or visit:
http://www.stuffit.com/stuffitwin.

SPECIAL PRICES AT THE USER GROUP STORE! User group members can purchase StuffIt 7 for ONLY $14.95 from the
Aladdin User Group Store. Go to: http://www.aladdinsys.com/support/usergroups/ugvalid.html
Use the code: PCUG 1001

FREE upgrade for registered owners of StuffIt 5.x:
http://www.aladdinsys.com/store/upgrades.html

UG Affiliates: Make sure your members enter your group's ID number (not the generic code above) in order to have their sales earn 5%
cash back for your group! Not an affiliate? Go to: http://www.aladdinsys.com/support/usergroups/affiliate.html to join!

REVIEW AND DEMO COPIES:
As always, I'm happy to provide review, member-demo and raffle copies to you for your group. Please contact me (and provide your address)
to receive StuffIt 7 for your group.

Best regards,
Nicole Rowland, Marketing and User Group Manager
usergroups@aladdinsys.com
Aladdin Systems
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StuffIt press release:

ALADDIN SYSTEMS SHIPS STUFFIT 7.0, IMPROVED COMPRESSION SOFTWARE ADDS ACCESS MANAGEMENT, AUTOMATION FEATURES, AND "DESIGNED FOR WINDOWS XP" LOGO CERTIFICATION

StuffIt Expands Offerings To Add Features To Search Contents Of Archives, Automate File Compression And Transfer Tasks

Watsonville, Calif., October 2, 2001 Aladdin Systems Inc., a wholly owned subsidiary of Aladdin Systems Holdings, Inc. (OTC BB: ALHI),
today announced that StuffIt (tm) 7.0 for Windows is now shipping. StuffIt provides users with innovative, easy-to-use compression tools that allow them to both create and expand archives and encoded files in a variety of widely used formats. With the ability to create
segmented archives, encrypted archives, and custom self-extracting archives, StuffIt provides a complete solution for users looking to
package files for distribution. StuffIt 7.0 was also awarded the "Designed for Windows XP" logo certification. The Designed for
Windows XP logo program makes it easy for customers to identify products that deliver the best possible computing experience when run
on a Windows XP system.

StuffIt 7 introduces two new applications, ArchiveSearch (tm) and StuffIt Express (tm) Personal Edition, which combine StuffIt Browser
(tm), DropStuff (tm), and StuffIt Expander(tm), to give users unprecedented control over the management and access of compressed
data. From individual users to network administrators, StuffIt 7 provides a solution to fit any file compression or transfer task.

"Even with larger hard drives, and broadband Internet access, compression software is a necessary part of any computer users
toolkit, not only for speed but also safety," said Matthew Covington, Senior Product Manager for StuffIt. "Using StuffIt is an effective
way to ensure the contents of your attachment is protected while in transit."

StuffIt's archiving features are built with the Internet in mind. StuffIt was the first product to provide users with convenient
one-step compress and email features, and StuffIt 7 is the first product to offer users one-click compress and FTP via StuffIt
Express, an innovative new tool designed to let users automate all of their file compression and transfer tasks.

"For most of our users file compression is just one step in what is often a more complex and time consuming file transfer process,"
Covington continued. "Using StuffIt Express you can archive files, login to an FTP server, upload the data, and send a custom
notification email, all with one click of the mouse."

StuffIt Express
By reducing the number of steps necessary to complete everyday file transfer tasks, StuffIt Express saves users time, and money, by
guaranteeing error-free file transfers every time. StuffIt Express works by allowing users to create custom file transfer applications that contain all the information necessary to complete a specific task. Users then double-click, or drag files onto, these applications to start the transfer process. Driven by a simple point and click interface, StuffIt Express requires no knowledge of programming or scripting, and its easy-to-use wizards allow users to start creating these time-saving applications within minutes of installing the software.

ArchiveSearch
StuffIt 7.0 also provides new features targeted at business users looking for new ways to access their archived data. ArchiveSearch, a feature exclusive to StuffIt, allows users to quickly find files that are buried deep within both Zip and StuffIt archives. ArchiveSearch supports searches over the network, and allows users to create and save custom search criteria. With its support of wild card characters in searches, ArchiveSearch makes it easy for users to quickly and easily find related groups of files without having to manually decompress and search through each archive.

"With StuffIt 7 we have extended the scope of what users expect from a compression product, without raising the price," Covington concluded. "This represents a tremendous value for customers."

StuffIt is the only solution for Windows XP that provides users with transparent access to all the files they download from the Internet, regardless of the format they are compressed in. StuffIt allows users to compress and expand the de facto standard file formats used on Windows, Linux, Solaris, and Macintosh computers. Aladdin also offers versions of StuffIt for all of these platforms, making StuffIt the only truly universal compression solution.

Key product benefits:
* Quickly find files buried in archives with ArchiveSearch
* Save time and reduce errors by automating all file transfer and compression tasks with StuffIt Express
* Encrypt files for greater security
* Protect files against corruption when transferring via the Internet
* Smart installation of Palm OS files
* Full-featured self extracting archive tool included for FREE
* Compress files up to 98%
* StuffIt compression format compresses larger files about 20% better than Zip
* Access any file, download, or email attachment
* One click compress and e-mail

System Requirement, availability, and pricing Supports Windows® 98, ME, NT 4.0, 2000 and XP, running on a Pentium class computer or better. Aladdin recommends at least 32MB of RAM be installed, with 20MB of disk space available for installation files.

StuffIt is available directly from Aladdin at http://www.stuffit.com/stuffit/win and in the channel at major PC retail outlets. The estimated MSRP for StuffIt is $29.95, and a special competitive upgrade offer of $14.95 is available to owners of other compression utilities. For more information visit StuffIt online at http://www.stuffit.com/.

Registered users of StuffIt 5.5, DropStuff, and DropZip(tm) for Windows qualify for a FREE upgrade to StuffIt 7.0 for Windows. For
more information visit the Aladdin Systems upgrade site: http://www.aladdinsys.com/support/updates.html#stuffit.

Aladdin Systems, Inc: The Leader in Access Management(tm) Founded in 1988, Aladdin Systems, Inc, a wholly owned subsidiary of
Aladdin Systems Holdings, Inc.. (OTC BB: ALHI), develops and publishes award-winning enterprise, and consumer solutions for
Windows, Macintosh, Linux, and Solaris. In addition to it's well known line of StuffIt consumer products, Aladdin offers StuffIt
technology to developers and business in the form of it's StuffIt Engine SDK and InstallerMaker products. Aladdin's software offers a
range of solutions to empower users in the area of information access, removal, recovery, security, and Internet distribution.

Aladdin is located at 245 Westridge Drive, Watsonville, CA 95076, USA. Telephone: (831) 761-6200; Fax (831) 761-6206. For more information visit the company web site at http://www.aladdinsys.com or email 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 & Exchange Commission

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