Annual Report on Form 20-F

CHECK POINT SOFTWARE TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In U.S. dollars

NOTE 6:- ACCRUED EXPENSES AND OTHER LIABILITIES

	December 31,
	2002				2003
Income taxes payable	$	72,898		$	83,783
Marketing expenses payable		11,672			8,195
Others		14,321			11,762
	$	98,891		$	103,740

NOTE 7:- COMMITMENTS AND CONTINGENT LIABILITIES

a.	Lease commitments: The facilities of the Company are rented under operating lease agreements that expire on various dates.
	Aggregate minimum lease commitments under non-cancelable operating leases as of December 31, are as follows: 2004 $ 5,258 2005   3,733 2006   2,020 2007   317 2008   168   $ 11,496 Rent expenses for the years ended December 31, 2001, 2002 and 2003, were $ 6,842, $ 7,289 and $ 5,587, respectively.
b.	Litigation: In 1996, Checkpoint Systems, Inc. (“CSI”) a manufacturer of theft prevention devices for retail stores has taken legal actions in respect of trademark infringement and unfair competition against the Company. In 2002 a trademark opposition was filed by CSI with the Patent and Trademark Office. In February 2003 the respective parties entered into an agreement that settled all of the disputes by definitively setting forth each company's trademark description. The agreement permits both parties to use the mark “Check Point” and to seek registration consistent with the descriptive aspects of their respective businesses. As a result, the Company reversed the related provision.