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Annual Report on Form 20-F

Part I

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Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

     Not applicable.

Item 2. OFFER STATISTICS AND EXPECTED TIMETABLE

     Not applicable.

Item 3. KEY INFORMATION

     The following selected consolidated statement of income data for the years ended December 31, 2001, 2002 and 2003, and the selected consolidated balance sheet data as of December 31, 2002 and 2003, have been derived from the audited consolidated financial statements of Check Point Software Technologies Ltd. (together with its subsidiaries, the “Company” or “Check Point”) set forth elsewhere in this Form 20-F. These financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The selected consolidated statement of income data for the years ended December 31, 1999 and 2000 and the selected consolidated balance sheet data as of December 31, 1999, 2000 and 2001 have been derived from the Company's audited consolidated financial statements not included in this Form 20-F and have also been prepared in accordance with U.S. GAAP. The selected consolidated financial statements set forth below should be read in conjunction with and are qualified by reference to the Company's consolidated financial statements and the related notes as well as “Item 5 - Operating and Financial Review and Prospects” included elsewhere in this Form 20-F.

     On December 20, 1999, the Company's Board of Directors approved a two-for-one stock split in the form of a stock dividend effective January 23, 2000. On June 29, 2000 the Company's Board of Directors approved a two-for-one stock split in the form of a stock dividend effective July 14, 2000. On January 18, 2001, the Company's Board of Directors approved a three-for-two stock split in the form of a stock dividend effective February 1, 2001. All share and per share numbers herein reflect adjustments resulting from these stock splits.

  Year Ended December 31,
 
1999 2000 2001 2002 2003
  (in thousands, except share data)
Consolidated Statement of Income Data:
Revenues $ 219,567 $ 425,283 $ 527,643 $ 426,989 $ 432,572
Operating expenses:
  Cost of revenues   22,423   35,265   26,571   20,693   18,923
  Research and development   18,923   30,309   33,221   28,709   29,314
  Selling and marketing   68,229   110,003   109,086   104,606   111,007
  General and administrative   13,069   20,409   22,002   17,969   17,644
Total operating expenses   122,644   195,986   190,880   171,977   176,888
Operating income   96,923   229,297   336,763   255,012   255,684
Financial income, net   12,962   29,147   44,760   49,314   43,506
Income before taxes on income   109,885   258,444   381,523   304,326   299,190
Taxes on income   14,104   37,231   59,603   49,246   55,311
Net Income $ 95,781 $ 221,213 $ 321,920 $ 255,080 $ 243,879
   
 Basic net earnings per share (1) $ 0.43 $ 0.95 $ 1.34 $ 1.04 $ 0.98
  Shares used in computing basic
  net earnings per share (1)   222,930   232,611   240,008   244,097   247,691
Diluted net earnings per share (1) $ 0.39 $ 0.84 $ 1.25 $ 1.00 $ 0.96
  Shares used in computing diluted
  net earnings per share (1)   246,456   262,515   258,075   254,772   255,083

(1) See Note 2p of Notes to the Consolidated Financial Statements for an explanation of the determination of shares used in computing net earnings per share.

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