Annual Report on Form 20-F

CHECK POINT SOFTWARE TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In U.S. dollars

NOTE 4:- LONG-TERM INVESTMENTS (Cont.)

(a)	Composed as follows:

		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	$	427,051		$	19,077		$	(2,747	)	$	443,381		$	335,880		$	7,917		$	(1,624	)	$	342,173
	Government and corporate
	debentures – Floating
	interest rate		47,786			142			(13	)		47,915			27,253			23			(17	)		27,259
	Mortgage and Asset
	Backed Securities (*)		37,130			174			-			37,304			103,245			207			(444	)		103,008
	Deposits		16,888			334			-			17,222			-			-			-			-
		$	528,855		$	19,727		$	(2,760	)	$	545,822		$	466,378		$	8,147		$	(2,085	)	$	472,440

(*)	The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations without penalties.
(b)	The investment in a privately held company is stated at cost since the Company does not have a significant influence over that private company.

NOTE 5:- PROPERTY AND EQUIPMENT, NET

		December 31,
		2002				2003
	Cost:
	Computers and peripheral equipment	$	28,852		$	28,581
	Office furniture and equipment		5,555			4,896
	Leasehold improvement and other		3,275			3,139
			37,682			36,616
	Accumulated depreciation		27,229			29,222
	Depreciated cost	$	10,453		$	7,394

Depreciation and amortization expenses amounted to approximately $ 8,949, $ 7,390 and $ 6,030 for 2001, 2002 and 2003, respectively.

During 2003, the US subsidiary of the Company recorded a reduction of approximately $ 4,000 to the cost and accumulated depreciation of fully depreciated equipment no longer in use, primarily due to the relocation of facilities.