Annual Report on Form 20-F

CHECK POINT SOFTWARE TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In U.S. dollars

NOTE 3:- MARKETABLE SECURITIES

		December 31,
		2002																2003
		Amortized cost				Gross unrealized gains				Gross unrealized losses				Market value			Amortized cost				Gross unrealized gains				Gross unrealized losses				Market value
	Government and corporate
	debentures - Fixed
	interest rate	$	225,617		$	2,750		$	(152	)	$	228,215		$	414,558		$	2,813		$	(1,017	)	$	416,354
	Government and corporate
	debentures - Floating
	interest rate (**)		58,700			1,863			(6	)		60,557			226,695			4,351			(2,192	)		228,854
	Mortgage and Asset
	Backed Securities (*)		12,855			6			(72	)		12,789			49,871			304			(2,108	)		48,067
	Auction rate securities		19,997			3			-			20,000			92,550			342			(11	)		92,881
	Money Market
	Instruments		-			-			-			-			8,596			-			(1	)		8,595
		$	317,169		$	4,622		$	(230	)	$	321,561		$	792,270		$	7,810		$	(5,329	)	$	794,751

(*)	The expected maturities dates may differ from the contractual maturities because debtors may have the right to call or prepay obligations without penalties.
(**)	As of December 31, 2003, the Company holds investments in structured notes in the amount of $202,646. The structured notes include mainly inverse floaters and range accruals.
	Ranges accruals are bonds where the coupon is paid only if a specified interest rate stays within a pre-established range, otherwise the bond pays 0%. Inverse floaters are bonds where the coupon varies in accordance with changes in specified interest rates or indices (for example, LIBOR).
	The unrealized gains on structured notes amounted to $ 2,241.

NOTE 4:- LONG-TERM INVESTMENTS

	Long-term investments due within one to five years, are as follows:
		December 31,
		2002				2003
	Government and corporate debentures (a)	$	511,967		$	466,378
	Bank deposits (a)		16,888			-
	Investments in a privately - held company (b)		552			469
		$	529,407		$	466,847