Check Point Signs Agreement to Acquire Nokia's Security Appliance Business

Adding Nokia's security appliance portfolio into Check Point's broad range of Total Security solutions is the natural evolution of the long collaboration between the two companies.  This acquisition will assure a smooth path forward for mutual customers.

With Nokia security appliances, Check Point will expand its portfolio to provide customers and partners with an integrated product line developed, manufactured and supported by Check Point.

Two years ago, Check Point introduced its own line of security appliances with UTM-1 and augmented the line in 2008 with Power-1. With the acquisition of the Nokia security appliance business, Check Point will expand its security portfolio and continue to provide customers and partners with the industry's most comprehensive and integrated line of security appliances.

Is Check Point still committed to open choice?

Check Point is committed to providing a choice of platforms to customers and this dedication remains unchanged with this announcement. The acquisition will give customers a larger choice of industry leading security solutions from Check Point.

The expanded appliance portfolio would be delivered through the Check Point worldwide distribution channel. Shared partners would be able to sell a joint solution quickly and with increased ease. Until the transaction is closed both companies will continue to conduct business as usual, operating as two separate entities with separate sales channels.

The security appliance business currently exists as an independently operating unit within Nokia.

100 percent of the Fortune 100 companies and 98 percent of the Fortune 500 companies use Check Point security solutions. More than 700,000 Check Point solutions have been installed with over 100,000 customers worldwide.

About 85 percent of Fortune 500 companies have bought Nokia's security solutions. More than 220,000 Nokia appliances have been installed with over 23,000 customers worldwide.

The product portfolio consists of the IP Security platforms line, which is a series of security appliances running Check Point firewall, VPN and UTM software:

Check Point's international headquarters is located in Tel Aviv, Israel. The United States headquarters is located in Redwood City, California. Check Point also has more than 65 offices worldwide and two support centers which are located in the United States and Israel.

The security appliance business is located in over 25 countries in the Americas, Europe and Asia and about 60 percent of the employees are based in the United States.

Nokia security appliances' customers include enterprise companies and government organizations around the world. The Nokia security appliance business has sold over 220,000 security appliances worldwide to over 23,000 customers. The majority of these customers are also Check Point customers.

The agreement between Check Point and Nokia is expected to close in the first quarter of 2009, subject to regulatory approvals and customary closing conditions.

Check Point is expecting the deal to have positive impact on its EPS.

At this time it is premature to provide any direction about the product portfolio of the integrated company and division.  Going forward, Check Point will expand its security portfolio and is committed to providing customers and partners with the industry's most comprehensive and integrated line of security appliances, developed, manufactured and supported by Check Point.

Further details of the transaction are not being disclosed at this time.

Check Point Software Technologies Ltd. (www.checkpoint.com) is the leader in securing the Internet. Check Point offers total security solutions featuring a unified gateway, single endpoint agent and single management architecture, customized to fit customers' dynamic business needs. This combination is unique and is a result of our leadership and innovation in the enterprise firewall, personal firewall/endpoint, data security and VPN markets.