CHECK POINT SOFTWARE TECHNOLOGIES LTD. REPORTS 1996 FINANCIAL RESULTS

REDWOOD CITY, CALIF., – January 29, 1997 – Check Point Software Technologies Ltd. (NASDAQ: CHKPF) today announced financial results for the fourth quarter ended December 31, 1996. Revenues for the quarter were $11,623,000, compared to $3,746,000 for the same period in 1995, an increase of 210%. Net income for the quarter was $5,498,000, or $0.15 per share, compared to net income of $1,551,000, or $0.05 per share, in the same quarter in 1995, an increase of 254% in net income and 200% in net income per share.

For the fiscal year ended December 31, 1996, revenues were $31,869,000 compared to $9,546,000 for 1995, an increase of 234%. Net income for the year was $15,237,000, or $0.43 per share, compared to net income of $4,847,000, or $0.14 per share in 1995, an increase of 214% increase in net income and 207% in net income per share over the prior year.

"The sequential quarter for quarter revenue growth of 45% is evidence of Check Point Software Technologies' increased momentum and acceptance in the marketplace, and also reflects a seasonally strong fourth quarter," said Gil Shwed, president and CEO of Check Point Software Technologies Ltd. "This past year's growth, combined with our successful initial public offering, clearly established the company as a worldwide market and technology leader in enterprise security. The company significantly expanded operations worldwide, more than quadrupling the number of offices from three at the end of 1995 to fourteen at year end 1996."

Units shipped in 1996 grew 200% over last year, and unit shipments during the quarter increased 37% over the prior quarter. The four-fold growth in total installed base in the past year is due in large part to the significant increase in resellers, distributors and systems integrators carrying Check Point Software's products, which broadened the company's reach worldwide. In addition, the company established national two-tier distribution through new partnerships with Westcon and Ingram Micro during the fourth quarter of 1996.

In the fourth quarter, the company saw strong growth in revenues from SunSoft, Inc., growing 41% in absolute dollar value over the previous quarter to reach record levels. Revenues from Sun accounted for 34% of overall revenues in the fourth quarter and 42% of the company's overall revenues in fiscal 1996, down from 58% in fiscal 1995.

"Our revenues reflect strong sales from all of our channels, including OEMs, distributors, VARs and systems integrators, which all grew in comparison to their sales in previous quarters," continued Shwed. "Additionally, we experienced increased customer demand for Check Point FireWall-1 for Windows NT, which accounted for 40% of all channel sales in the quarter, extending the company's leadership on UNIX to the NT platform."

In the fourth quarter, unit sales on the Windows NT platform grew over 250% over the prior quarter. In addition, LAN Magazine's comparative firewall review of Windows-NT-based systems declared FireWall-1 the ‘hands-down winner' of this comparison, further validating FireWall-1's technological leadership in NT-based enterprise security.

During the fourth quarter, the company unveiled its Open Platform for Secure Enterprise Connectivity, or OPSEC, architecture. OPSEC is designed to enable users to integrate a broad spectrum of security applications into the FireWall-1 enterprise security solution. Functions such as access control, address translation, authentication, auditing, accounting, encryption and content security are all defined and managed by a single, central enterprise-wide security policy. The OPSEC architecture will be first incorporated into FireWall-1 3.0.

"Our customers are trying to manage a multitude and ever-growing number of security products across their enterprise, including traditional firewalls, authentication products, encryption software, anti-virus scanners, and other content security such as Java applet and ActiveX scanning software," said Dr. Deborah Triant, chief executive officer and president of Check Point Software Technologies, Inc. "OPSEC will enable our customers to centrally manage and enforce their enterprise security policy within a rapidly evolving information security environment."

About Check Point Software Technologies Ltd.

Check Point Software Technologies Ltd. (NASDAQ: CHKPF) is the network security market share leader and inventor of the "Stateful Inspection" architecture. The company commanded a 40% share of the worldwide firewall market in 1995 according to an IDC study issued in February 1996. The company's flagship product, Check Point FireWall-1 , protects internal and external network communications for thousands of organizations of all sizes. Its products 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 (650) 482-4900, e-mail info@checkpoint.com or visit Check Point at http://www.checkpoint.com.

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INVESTOR RELATIONS CONTACTS:

Hagi Schwartz , Chief Financial Officer

Check Point Software Technologies Ltd.

011-972-3-6131-833 x 145

hagi@checkpoint.com

Angela Lee, Director of Finance

Check Point Software Technologies, Inc.

415-562-0400 x 237

angela@us.checkpoint.com

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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! and INSPECT are trademarks of Check Point Software Technologies Ltd. All other product names mentioned herein are trademarks of their respective owners.