CHECK POINT SOFTWARE TECHNOLOGIES LTD. REPORTS THIRD QUARTER 1997 RESULTS

REDWOOD CITY, CALIF., – October 15, 1997 – Check Point Software Technologies Ltd. (NASDAQ: CHKPF) today announced another record quarter of financial results for the third quarter ended September 30, 1997. Revenues for the quarter were $22,405,000 compared with $8,030,000 for the same period in 1996, an increase of 179%. Net income for the quarter was $11,956,000, or $0.32 per share, compared with $3,748,000 or $0.10 per share in the same quarter in 1996, an increase of 219% in net income and 220% in net income per share. Operating margins were particularly high as a result of the higher than anticipated revenue levels.

"The company experienced exceptionally strong demand for FireWall-1^TM version 3.0 this quarter, which resulted in a banner quarter for Check Point," said Gil Shwed, president and CEO of Check Point Software Technologies Ltd. "The demand for version 3.0 is indicative of the industry's acceptance of Check Point's Open Platform for Secure Enterprise Connectivity, or OPSEC^TM , security management framework, as well as the need for strong virtual private networking solutions."

"In the third quarter, Check Point continued to see strong growth in revenues from products which extend basic product functionality," continued Shwed. "Specifically, the company has seen high demand for encryption products to create VPNs that use the Internet to conduct secure business communications, experiencing a significant increase in the sales of encryption products in the first half of 1997 over fiscal 1996."

As evidence of Check Point's leadership in the VPN market, the company was recently awarded the "Tester's Choice" award from Data Communications magazine for its powerful and easy-to-use VPN solution. During the quarter, the company also announced SecuRemote^TM version 3.0, an enhanced version of its popular client encryption software that extends the corporate VPN to desktop and laptop systems.

Product shipments on both Windows NT and UNIX platforms continued to show solid growth, with Windows NT shipments accounting for 57% of worldwide channel units shipped in the third quarter (excluding OEMs). Revenues from SunSoft, Inc. accounted for 14% of overall revenues in the quarter, reflecting Sun's traditional seasonality and high levels of growth in other Check Point channels. This compares with 31% of overall revenues in the second quarter. Check Point's total installations now number over 32,000 worldwide.

Worldwide distribution and market penetration continued to be an important differentiator for Check Point, with approximately one-half of all channel revenues coming from outside North America. Significantly, in the third quarter, Check Point announced that SOFTBANK Corporation has selected the FireWall-1 product suite as an integral part of its Security Bank service, offering security products and training to the Japanese market. The company held a 74% share of the firewall market in Japan in 1996, according to Gartner Group, Inc./Dataquest.

The third quarter was a significant milestone for Check Point, as the company advanced its long-term business strategy of secure enterprise connectivity. "Check Point is leveraging its market and technology leadership in enterprise security to secure a leadership position in the nascent enterprise traffic management market with the recently-announced FloodGate-1 bandwidth management solution," said Deborah Triant, president and CEO of Check Point Software Technologies, Inc. "The company's continued evolution into new markets is based on a singular goal: to bring customers the best solutions to secure and manage their enterprise networks and the information that travels within these networks and across the Internet."

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. is a leading provider of policy-based enterprise security and traffic management solutions. Through its patented Stateful Inspection technology, the company is uniquely positioned to deliver Secure Enterprise Connectivity solutions that protect information assets and enhance the performance of enterprise networks. Check Point offerings include the world's leading enterprise security suite, Check Point^TM FireWall-1, and the industry's premier policy-based bandwidth management solution, Check Point FloodGate-1^TM. The company has U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel. For product information, please visit us on the World Wide Web at 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, FireWall-1, FireWall-1 SecuRemote, FireWall-First!, OPSEC, INSPECT, FloodGate-1 and IQ Engine are trademarks or registered trademarks of Check Point Software Technologies Ltd. All other product names mentioned herein are trademarks of their respective owners.

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amount)

* Including $486,000 related to follow-on offering
** Net of $436,000 non-royalty-bearing government grants

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)

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