Check Point Software Technologies Ltd. Reports Record Financial Results for the First Quarter 2001

REDWOOD CITY, Calif. - April 24, 2001 - Check Point™ Software Technologies Ltd. (Nasdaq: CHKP), the worldwide leader in securing the Internet, today announced record financial results for the first quarter ended March 31, 2001.

Net income for the quarter was $83.7 million or $0.32 per share (diluted), an increase of 140% and 141% respectively over the same period last year. Revenues for the quarter were $145.0 million, an increase of 86% over the first quarter of last year.

Balance sheet performance continued to be strong, with deferred revenues growing $2.2 million in the quarter and $51.0 million from the first quarter of last year to total $123.4 million.

During the first quarter, the company generated positive cash flow of $108.6 million, bringing the total cash and interest bearing investments to $764.5 million as of March 31, 2001. Days Sales Outstanding (DSO) were 53 days compared to 54 for the same period last year.

"We delivered record results in challenging market conditions, demonstrating the importance of Internet security," said Gil Shwed, chief executive officer and founder of Check Point Software Technologies. "In today's markets, customers are looking for solutions that enable dependable, fast and secure connectivity that help them reduce operating costs," added Shwed.

Recent Highlights Include:

• Next Generation Internet Security - Began launching the next major version of the company's products, highlighting the Security Dashboard that delivers a new level of management and integration of security for enterprise-wide and telco based solutions.
• SecureXL Performance Architecture - we made available the next generation performance architecture that accelerates VPN and firewall operations to record levels. This includes partnerships with Nokia, Broadcom, Intel, Compaq, Intrustion.com, RapidStream and others. We began shipping the VPN-1 Accelerator II, a sub $1,000 device with over a 300mbps 3DES encryption engine and demonstrated multi-gigabit firewall and VPN speeds.
• Check Point Everywhere:
• Broadband Home Security - Through our subsidiary, SofaWare, we advanced our broadband Internet security solutions for the home through a partnership with Ericsson, integrating Check Point's security software into Ericsson cable modems and enabling an easy to use, out-of-the-box Internet security solution for the home.
• 
  
• Small and Medium Businesses - Began shipping the small office edition of the 
  VPN-1/FireWall-1 versions of the market leading security technology solution.
• Internet Security Users and Technical Conference - held it's second annual Internet security users and technical conference - the Check Point Experience - in Nashville Tennessee with record attendance of over 1,000 of the industry's leading security experts and customers.

  "As we look to the quarters ahead, we're excited to unveil and deliver the Next Generation (NG) VPN and firewall solutions which advances customer's abilities to use the Internet and conduct e-Business securely," continued Mr. Shwed. "Check Point NG focuses on meeting customer needs for scalable, dependable, fast and secure internet connectivity."

Conference Call Information
The Company will host a conference call with the investment community at 7:00 AM PT/10:00 AM ET. For information on the LIVE webcast and audio replay of the call, please visit Check Point's web site at http://www.checkpoint.com/ir. A replay of the conference call will be available through Tuesday, May 8, 2001, at the Company's website or by telephone at (719) 457-0820, confirmation code 603723.

Safe Harbor Statement
Statements in this press release that are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. 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 uncertainties and weaknesses 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; a shift in demand for products such as ours; unknown factors effecting the third parties with whom we have formed business alliances; 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, 1999, 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 270 leading industry partners. Check Point solutions are sold, integrated and serviced by a network of over 1500 certified 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.


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.

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amount)

	Three Months Ended March 31, (unaudited)
	2001		2000
Net revenues	$145,010		$78,166
Cost of revenues	10,078		7,644
Gross profit	134,932		70,522
Operating expenses:
Research and development, net	9,320		6,175
Sales and marketing	30,382		24,218
General and administrative	6538		5,199
Total operating expenses	46,240		35,592
Operating income	88,692		34,930
Financial income, net	10,101		5,494
Income before income taxes	98,793		40,424
Income taxes	15,115		5,545
Net income	83,678		34,879
Earnings per share (Basic)	$0.35		$0.15
Number of shares used in computing earnings per share (Basic)	236,357		230,256
Earnings per share (Fully diluted)	$0.32		$.13
Number of shares (Fully diluted)	261,779			262,941

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

ASSETS

LIABILITIES AND
SHAREHOLDERS' EQUITY