CHECK POINT SOFTWARE TECHNOLOGIES LTD. REPORTS SECOND QUARTER 1997 RESULTS

REDWOOD CITY, CALIF., – July 30, 1997 – Check Point Software Technologies Ltd. (NASDAQ: CHKPF) today announced record financial results for the second quarter ended June 30, 1997, the company's twelfth consecutive quarter of profitability. Revenues for the quarter were $17,258,000, compared with $7,377,000 for the same period in 1996, an increase of 134%. Net income for the quarter was $7,716,000, or $0.21 per share, compared with net income of $3,228,000 or $0.10 per share in the same quarter in 1996, an increase of 139% in net income and 117% in net income per share.

"The combination of strong demand for enterprise-level security solutions, as well as the increasing acceptance of Check Point FireWall-1 version 3.0, fueled this record quarter of revenues for Check Point Software Technologies," said Gil Shwed, president and CEO of Check Point Software Technologies Ltd. "This quarter also marked the initial availability of Check Point's Open Platform for Secure Enterprise Connectivity, or OPSEC, framework, for which over 85 companies from all facets of the computer industry have announced support, moving it closer to an industry standard for enterprise security."

"The second quarter of 1997 was a record quarter for all channels worldwide, including SunSoft, from which we realized the highest bookings volume in the history of our relationship," continued Shwed. "This past quarter was also a record quarter for Check Point in Europe, with the region experiencing 66% sequential quarter-for-quarter growth in bookings, a clear demonstration that our investment in sales and support infrastructure in Europe late last year is paying off." International channel bookings now account for 45% of Check Point's channel bookings worldwide, with the remaining 55% generated in the United States.

Continuing the trend that began in the first quarter of 1997, the Windows NT platform again outpaced the total of UNIX platforms, accounting for 59% of worldwide channel bookings in the second quarter, up from 49% in the previous quarter. Overall installations now number over 26,000 worldwide.

In the second quarter, Westcon and Ingram Micro solidly positioned themselves among Check Point's top distributors and resellers, with bookings from these two distributors increasing 76% over the first quarter. Revenues from SunSoft, Inc. accounted for 31% of overall revenues in the quarter. The second quarter is the last quarter of Sun's fiscal year and has historically resulted in the highest revenue levels to the company from Sun. This compares with 26% of overall revenues in the first quarter, equaling sequential quarter-for-quarter growth of 49%.

Significant relationships announced during the quarter include UUNET, Olivetti and Alcatel Telecom, furthering Check Point's position as the preferred network security solution for Internet Service Providers and telecom providers worldwide. UUNET, the world's largest Internet Service Provider, is integrating FireWall-1 into its extranet ExtraLink Remote offering as well as customer enterprise sites. Both Olivetti Solutions (OLSY) and Alcatel Telecom are reselling and delivering FireWall-1 as part of their managed enterprise security solutions for Internet and intranet security.

In the second quarter, Check Point announced new OEM relationships with IBM and AST and expanded its existing OEM relationship with Hewlett-Packard Company. IBM is including FireWall-1 for AIX as part of IBM's PowerSolutions and is placing Check Point's product line on the IBM price list. Check Point also inked an OEM relationship with AST for its FireWall-First! network security solution which will be bundled on AST's Manhattan^TM Commerce Pro and Presence Pro Internet servers, providing a turn-key solution for the small-to-medium business market that AST serves.

Extending the company's existing relationship with HP, Check Point was selected as a key solution provider for Hewlett-Packard's Praesidium Enterprise Security Framework for Internet and Intranet Computing. Under the terms of the agreement, FireWall-1 will be placed on HP's price list, enabling HP customers and authorized resellers to purchase FireWall-1 directly through HP. With the addition of the IBM and HP relationships to Check Point's existing OEM relationship with Sun Microsystems, FireWall-1 becomes the only network security solution that is available from all major UNIX hardware vendors.

"With OPSEC, Check Point has successfully transitioned from being the firewall market leader to being a key player in enterprise security management," said Deborah Triant, president and CEO of Check Point Software Technologies, Inc. "As customers continue to adopt the OPSEC framework and realize the value of a consolidated enterprise security policy, Check Point's position at the forefront of the policy-based enterprise management market will be enhanced."

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. is the global network security software market share leader and inventor of the patented Stateful Inspection technology. The company's suite of network security products enables Secure Enterprise Connectivity for leading organizations worldwide. Check Point products, including its flagship product, Check Point^TM FireWall-1^TM, are sold worldwide through OEM partners, distributors, VARs, systems and network integrators and Internet Service Providers. The company has U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel. For product information, please call (800) 429-4391 or +972-3-6131-833, e-mail info@checkpoint.com or visit http://www.checkpoint.com

All of the statements contained in this press release that are not historical are forward looking statements. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results could differ materially from the company's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, dependence upon a limited number of key resellers, dependence upon a single product line, increases in competition, rapid technological change, timely availability and acceptance of new products, the impact of competitive pricing and products, the inclusion of network security functionality in hardware or system software, the failure to manage growth and/or potential acquisitions and other factors and risks discussed in the company's registration statement on Form F-1 dated May 6, 1997 and the other reports filed from time to time with the Securities and Exchange Commission including the company's annual report on Form 20-F.

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1997 Check Point Software Technologies Ltd. Check Point, the Check Point logo, Check Point FireWall-1, FireWall-1, FireWall-1 SecuRemote, FireWall-First!, OPSEC and INSPECT are trademarks of Check Point Software Technologies Ltd. All other product names mentioned herein are trademarks of their respective owners.

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