Aladdin Systems and Activeworlds Corp Plan to Merge

Press release from the issuing company

Aladdin To Strengthen Internet Product Offerings With Possible Merger Acquisition of 3D Virtual Reality Internet Company WATSONVILLE, CA, May 6, 2002 - Aladdin Systems Holdings, Inc. and Activeworlds announced Friday that they have entered into a letter of intent regarding a non-binding proposal pursuant to which Aladdin would merge into Activeworlds, which would survive the merger, and Aladdin's outstanding common stock immediately prior to the merger would, as a result of the merger, be exchanged into such amount of Activeworlds common stock representing, subject to certain adjustments, 60% of Activeworlds' outstanding common stock immediately after the merger. Consummation of the merger is subject to numerous conditions, including the execution of a definitive merger agreement. There is no assurance that a definitive merger agreement providing for the merger and other transactions contemplated by the letter of intent will be executed or that the merger will occur, or that Activeworlds' common stock will not be delisted from trading on The Nasdaq SmallCap Market. Aladdin Systems, Inc: The Leader in Access Management Founded in 1988, Aladdin Systems, Inc, a wholly owned subsidiary of Aladdin Systems Holdings, Inc., develops and publishes award-winning software solutions for Windows, Macintosh, Linux, and Solaris. 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 [email protected]