Check Point Software Technologies Ltd. Reports Another Record Fiscal Year

REDWOOD CITY, Calif. – January 18, 2000 – Check Point Software Technologies Ltd. (Nasdaq: CHKP) today announced record financial results for the fourth quarter and fiscal year ended December 31, 1999. For the fiscal year ended December 31, 1999, revenues were $219,567,000 compared to $141,941,000 for 1998, an increase of 55 percent. Net income for the year was $95,781,000 or $2.33 per share. This compares to net income of $67,296,000 or $1.74 per share in 1998 excluding a capital gain (reported net income was $69,877,000 or $1.81 per share), representing an increase of 42 percent in net income and 34 percent in net income per share over 1998.

Revenues for the quarter were $67,945,000 compared to $40,493,000 for the same period in 1998, an increase of 68 percent. Net income for the quarter was $29,821,000 or $0.70 per share compared to net income of $18,612,000, or $0.47 per share in the same quarter in 1998, an increase of 60 percent in net income and 49 percent in net income per share.

Our balance sheet performance continued to be strong. Our cash position at the end of the year was over $325 million. Cash grew $155 million during the year and $55 million in the fourth quarter.

"Check Point's market leadership was extended in 1999, reflected by our strong financial results," said Gil Shwed, chairman and chief executive officer of Check Point Software Technologies Ltd. "For the sixth consecutive year, Check Point achieved substantial growth in revenue and profits. We are now recognized as the leader in securing the Internet. Under our Secure Virtual Network (SVN) architecture, Check Point has brought robust and business critical solutions to the marketplace. Our strong performance and partnerships are evidence of our success."

Check Point achieved strong revenues around the globe, with solid revenue growth across all regions. In addition, revenues from Technical Services and software subscription reached 25 percent in the fourth quarter and 22 percent for 1999.

In 1999, Check Point introduced the Secure Virtual Network (SVN) architecture. SVN incorporates the critical elements for a secure Internet environment and provides for secure and seamless Internet connectivity between individual networks, systems, applications and users across the Internet, intranets and extranets. SVN is the basis for ensuring e-business and Business-to-Business (B2B) in a secure and reliable environment.

Highlights from 1999 include:

• VPN-1/FireWall-1- Major new release of our VPN-1/FireWall-1 suite for secure Internet communications that provides high availability, Public Key Infrastructure (PKI) interoperability and integrated bandwidth management
• New Product Introductions - including VPN-1 SecureClient, VPN-1 SecureServer, the Reporting System and expanded VPN-1 Appliance offerings
• 110,000 Customer Installations - Surpassed 110,000 customer installations, 34,000 VPN installations and now boasts over 40,000 customers
• 20 million Remote Business Users – 20 million new SecuRemote/SecureClient VPN users licensed in 1999
• Broadband Home Market - Creation of a new company, SofaWare, which leverages Check Point's core technology in security solutions for the home broadband market, including cable modem Internet access
• Product Awards - Continued industry recognition, including PC Magazine's Editor's Choice Award, Network Computing's Well Connected Award and more
• Leading Industry Partners – Partner announcements with Nokia, VeriSign, IBM, Microsoft, ODS, Texas Instruments, Intel and ISS
• Telco and Service Provider Leadership - Expanded relationships with the world's largest telcos and the industry's leading solutions for Service Providers by introducing MultiGate and a new version of Provider-1; creating the Check Point Certified Managed Service Provider (CCMSP) program and new partnerships with Application Service Providers (ASPs)
• Nokia – Expanded the Nokia relationship to cover the development and deployment of the market-leading VPN-1 Appliance product line
• OPSEC - Expanded Open Platform for Security (OPSEC) program, adding new OPSEC product categories and exceeding 200 OPSEC partners

"1999 was an eventful year for Check Point," continued Mr. Shwed. "We look forward to working to expand our markets and make SVN the de-facto business-to-business (B2B) security standard."

Safe Harbor Statement
Statements in this press release which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include statements regarding expanding our markets and making SVN the de-facto business-to business security standard. 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: the impact on revenues of economic weakness in geographic regions of the world; the inclusion of network security functionality in third-party hardware or system software; any unforeseen developmental or technological difficulties with regard to our products; changes in the competitive landscape including new competitors and/or the impact of competitive pricing and products; timely availability and customer acceptance of new and existing products, and other factors and risks discussed in our Report on Form 20-F for the year ended December 31, 1998, which has been filed with the Securities and Exchange Commission. The company assumes no obligation to update information concerning its expectations.

About Check Point Software Technologies
Check Point Software Technologies is the worldwide leader in securing the Internet. The company's Secure Virtual Network (SVN) architecture provides the infrastructure that enables secure and reliable Internet communications. SVN secures business-to-business (B2B) communications between networks, systems, applications and users across the Internet, Intranets and extranets. Check Point's Open Platform for Security (OPSEC) provides the framework for integration and interoperability with "best-of-breed" solutions from over 200 leading industry partners. For more information, please call us at (800) 429-4391 or (650) 628-2000 or visit us on the Web at http://www.checkpoint.com or at 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.

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CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amount)

					Year Ended			Three Months Ended
					December 31,			December 31,
					1998	1999		1998	1999
					(audited)			(unaudited)
Net revenues					$141,941	$219,567		$40,493	$67,945
Cost of revenues					13,623	22,423		4,387	6,567
Gross profit					128,318	197,144		36,106	61,378
Operating expenses:
Research and development, net					10,629	18,923		2,831	5,635
Sales and marketing					39,966	68,229		11,430	21,499
General and administrative					10,886	13,069		2,507	3,603
Total operating expenses					61,481	100,221		16,768	30,737
Operating income					66,837	96,923		19,338	30,641
Financial income, net					4,406	12,770		374	3,832
Capital gain					2,581	192		0	0
Income before income taxes					73,824	109,885		19,712	34,473
Income taxes					3,947	14,104		1,100	4,652
				69,877		95,781		18,612	29,821
Net income				69,877		95,781		18,612	29,821
Earnings per share (Basic)				$1.97		$2.58		$0.52	$0.79
Number of shares used in computing earnings per share (Basic)				35,435		37,155		36,045	37,860
Earnings per share (Fully diluted)				$1.81		$2.33		$0.47	$0.70
Number of shares used in computing earnings per share (Fully diluted)				38,694		41,076		40,014	42,784
Net income excluding capital gain				67,296		95,589		18,612	29,821
Earnings per share excluding capital gain (Fully diluted)				$1.74		$2.33		$0.47	$0.70

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

LIABILITIES AND
SHAREHOLDERS' EQUITY

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