Check Point Software Technologies Ltd. Reports Record Results for Third Quarter 1999

SVN Architecture Addresses Growing E-Business' Internet Security Requirements

REDWOOD CITY, CALIF., – October 21, 1999 – Check Point Software Technologies Ltd. (Nasdaq: CHKP), the leader in securing the Internet, today announced financial results for the third quarter ended September 30, 1999. Net revenues for the quarter were $57,799,000, compared with $35,221,000 for the same period in 1998, an increase of 64%. Net income for the quarter was $24,725,000, or $0.60 per share, compared with net income of $16,937,000, or $0.45 per share for the same period in 1998, an increase of 46% in net income and 33% in net income per share.

"Business was strong in the third quarter as we continued to ride the growth in the Internet, extranet and intranet markets," said Gil Shwed, founder, chairman, president and chief executive officer of Check Point Software Technologies Ltd. "Our strong financial performance is evidence of our product success in providing critical infrastructure for e-Business and Internet security. These Check Point solutions are the foundation for the Secure Virtual Network (SVN) architecture launched this quarter."

Check Point continued its market strength around the world. Revenues from the U.S. accounted for 50% of revenues, Europe 33% and rest of world 17%. Revenues from the Company's OEM partners were 12% of revenues, with the largest contribution coming from Nokia. In addition, service revenues reached 23% of revenues, due to continued strength in software subscription and educational services.

The Company also announced that Hagi Schwartz, vice president finance and chief financial officer, will be leaving the Company in the coming months. "Hagi has been a tremendous asset to Check Point since he joined the company nearly four years ago," stated Mr. Shwed. "As CFO, he has seen the Company through incredible growth and market leadership. I certainly wish him the very best in his future endeavors."

In the third quarter, Check Point announced its Secure Virtual Network (SVN) architecture. SVN defines the scope of secure internetworking and goes beyond the point solutions that other Virtual Private Network (VPN) products provide. SVN is also an open and extensible architecture through Check Point's more than 200 Open Platform for Security (OPSEC) partners. The SVN approach provides secure and seamless Internet connectivity between networks, systems, applications and users across the Internet, intranets and extranets. In conjunction with the new SVN architecture, Check Point also announced a major new release of the VPN-1 product family, as well as new products that include a personal firewall/VPN client for an intranet/extranet environment and a reporting product.

Other news highlights include:

• Check Point continued its leadership with telecommunications companies and Managed Service Providers (MSPs) with a new release of Provider-1 and the introduction of MultiGate. Check Point's MSP members now include Cable and Wireless USA, GTE Internetworking, France Telecom, Sprint, Swisscom and UUNET, an MCI WorldCom company, as well as other telecommunication and Internet Service Provider companies
• Expanded relationship with Nokia covering the development and distribution of the VPN-1 Appliance product family. These products will be available exclusively from Check Point Software and its reseller partners
• Surpassed 10 million registered licenses for VPN remote access software, VPN-1 SecuRemote
• Check Point exceeded 100,000 customer installations with VPN installations now exceeding 27,000, an increase from approximately 10,000 from the beginning of the year. VPN products currently represent approximately 57% of the business
• Industry recognition continued as Check Point was once again named the market leader in firewalls by International Data Corp. (IDC) and in the VPN appliance market by Infonetics
• Check Point received numerous awards, including PC Magazine's Editors' Choice Award.

"The Company continued to excel in new product introductions, partnerships and sales," continued Mr. Shwed. "We will work hard to continue to serve our customers to secure the Internet."

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. is the worldwide leader in securing the Internet. The company's integrated architecture includes network security (VPN-1/FireWall, Provider-1 and Check Point RealSecure), 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 more than 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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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 Extension, OPSEC, Provider-1, User-to-Address Mapping, VPN-1, VPN-1 Accelerator Card, VPN-1 Appliance, VPN-1 Certificate Manager, VPN-1 Gateway, VPN-1 SecuRemote, VPN-1 SecureServer, Secure Virtual Network 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. The products described in this document are protected by U.S. Patent No. 5,606,668 and 5,835,726 and may be protected by other U.S. Patents, foreign patents, or pending applications.