Check Point Software Technologies Ltd. Reports Financial Results for First Quarter 1999

REDWOOD CITY, Calif. – April 19, 1999 – Check Point Software Technologies Ltd. (Nasdaq: CHKP) today announced financial results for the first quarter ended March 31, 1999. Revenues for the quarter were $43,772,000 compared to $31,956,000 for the same period in 1998, an increase of 37%. Net income for the quarter was $19,703,000, or $0.49 per share compared to net income of $15,149,000, or $0.39 per share in the same quarter in 1998, an increase of 30% in net income and 26% in net income per share.

Check Point experienced growth across all geographic regions, particularly in Japan. Revenues from the U.S. accounted for 45% of revenues, Europe 34% and Rest of World 21%. In addition, revenues from Technical Services reached 17% in the first quarter, due to the strength in our new maintenance contracts and renewals, and an increase in professional services. OEM revenues, including those from Nokia and Sun Microsystems, represented 11% of revenues.

"We delivered solid growth in both revenues and profits this quarter, while at the same time making investments in key areas of the company, including R&D and sales and marketing," said Gil Shwed, president and chief executive officer of Check Point Software Technologies Ltd. "We are very pleased with the continued market acceptance of our products and solutions. Market conditions were strong in the first quarter, and showed continued strength as we entered into the second quarter."

Check Point made a number of important announcements in the first quarter, including the formation of a new global accounts sales organization to meet the needs of enterprise-level customers and partners. The Company signed GE IT Distribution as a Check Point software distributor, gaining access to hundreds of new resellers. Check Point also entered into a distribution agreement with Fujitsu Limited, where Fujitsu will distribute all Check Point solutions in Japan, focusing on the VPN-1 product family. Fujitsu will also become a member of Check Point's OPSEC Alliance.

On the technology front, Check Point introduced important new technology, the industry's first User to Address Mapping technology. The UAM technology allows a user's identity to be automatically and transparently matched to a dynamically assigned IP address. The Company also maintained its momentum in the Managed Service Provider / Telco channel, with the first installations of Provider-1.

"Check Point's focus on integrated secure enterprise networking solutions for Virtual Private Networks continued to gain market acceptance and generate great results," continued Mr. Shwed. "In a time where point products and proprietary product suites have proven inadequate, we believe that our open platform approach of security integration and centralized policy management with best of breed technologies and products has provided the right foundation for the growth we've seen in the networking and electronic business. Our first quarter financial results and business trends confirmed the success of our strategy."

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) is the worldwide leader in secure enterprise networking solutions. The company's integrated architecture includes network security (FireWall-1, VPN-1, Provider-1, and Open Security Manager), traffic control (FloodGate-1 and ConnectControl), and IP address management (Meta IP). Check Point Software solutions enable customers to implement centralized policy-based management with enterprise-wide distributed deployment. Via the OPSEC Alliance, Check Point Software's products seamlessly integrate with "best-of-breed" products from nearly 200 leading industry partners. The company has U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel. For more information, please call (800) 429-4391 or (650) 628-2000 or visit http://www.checkpoint.com or http://www.opsec.com.

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(c) 1999 Check Point Software Technologies Ltd. All rights reserved. Check Point, the Check Point logo, FireWall-1, FloodGate-1, INSPECT, IQ Engine, Meta IP, Open Security Manager, Open Security Extension, OPSEC, Provider-1, User-to-Address Mapping, VPN-1 Accelerator Card, VPN-1 Certificate Manager, VPN-1 Gateway, VPN-1 RemoteLink, VPN-1 SecuRemote, and ConnectControl are trademarks or registered trademarks of Check Point Software Technologies Ltd. or its affiliates. All other product names mentioned herein are trademarks or registered trademarks of their respective owners.