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

Record Net Profit Margin of 63%

REDWOOD CITY, Calif. - October 18, 2001 - Check Point Software Technologies Ltd.
(Nasdaq: CHKP), the worldwide leader in securing the Internet, today announced financial results for the third quarter ended September 30, 2001.

Net income for the nine months ended September 30, 2001 was $244.8 million, or $0.95 per share (diluted), an increase of 75% and 79% respectively over the same period last year. Revenues for the first nine months of 2001 were $405.1 million, an increase of 42% over the same period last year.

Net income for the quarter was $74.3 million, or $0.29 per share (diluted), compared to $61.6 million, or $0.23 for the third quarter last year. Revenues for the quarter were $118.0 million. As previously announced, Check Point experienced an interruption in business following the tragic events of September 11th in the U.S., which resulted in an estimated revenue loss of $15-$20 million for the quarter.

The company generated positive cash flow of $78.2 million in the third quarter, bringing total cash and interest bearing investments to $944.2 million as of September 30, 2001.

"I am proud of our business and financial performance this quarter, which was achieved under extremely challenging macro-economic market conditions," said Gil Shwed, chairman and chief executive officer of Check Point Software Technologies. "Our management team was able to drive down costs by $9 million from last quarter, while growing our headcount and adding 25 security specialists to the Check Point field operations. The strong and continued level of customer and industry support for Check Point products, combined with our management's precise focus and superior execution, enabled us to achieve record net profit margin of 63% this quarter."

Third quarter highlights include:

• Shipped Check Point Next Generation - Began shipping Check Point Next Generation (NG), the company's current version of its flagship Internet security software. Check Point NG has been met with great enthusiasm from customers and channel partners, and support from industry-leading platform vendors, including Compaq, IBM, Sun and Nokia.
  
  
• Record-Setting Security Performance - Check Point has achieved record security performance ranging up to 3.2 Gbps on a new "Secured by Check Point" appliance from Nortel Systems. "Secured by Check Point" appliances should reach up to 10 Gbps in 2002.
  
  
• Groundbreaking Price/Performance - Reached record-breaking levels of VPN and firewall price/performance with Check Point Next Generation. Benchmarks delivered over 500 Mbps throughput on $4,000 midrange PCs/servers and "Secured by Check Point" appliances and over 200 Mbps throughput on $400 open PC/servers.
  
  
• Expanded Breadth of Hardware Appliance Solutions - Added appliance partners such as Celestix (Branch office - under $1,000), Nortel and Crossbeam (High-end and Data Centers - over 3Gbps). These companies join a list of industry leaders such as Nokia with its IP security appliance series, Compaq and Intrusion.com.
  
  
• New Check Point User Center - Launched a new web-based business portal that provides partners and users with an efficient single source for enterprise licensing of Check Point products, software subscriptions and support programs.
  
  
• Asia Pacific Expansion - Established a subsidiary in China to take advantage of this fast-growing market. The new office adds to Check Point's direct presence in Asia Pacific, where the company has established subsidiaries in Singapore, Australia and Japan.
  
  
• Expanded OPSEC^™ Alliance - Check Point's Open Platform for Security (OPSEC) Alliance grew to more than 300 leading vendors.

"Internet security remains among the most important technology requirements for customers around the world, and Check Point continues to lead the industry with groundbreaking technology," Mr. Shwed continued. "In the fourth quarter, we plan to introduce our Next Generation (NG) Feature Pack 1 (FP1), the first major update to our NG product. NG FP1 extends the capabilities of our products to provide unparalleled VPN performance, availability and ease-of-management. This is just one example of Check Point's focus on continuing our leadership in the Internet security market." 

Conference Call Information
The company will host a conference call with the investment community on October 18, 2001 at 5:30 AM PT/8:30 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 November 1, 2001, at the company's website or by telephone at (719) 457-0820, confirmation code 565402.

Safe Harbor Statement 
Certain statements in this press release, such as the prospects for, and customers' acceptance of, Check Point products are forward-looking statements. 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 the Company of economic and political uncertainties and weaknesses in various 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 affecting the third parties with which we have formed business alliances; timely availability and customer acceptance of our new and existing products, and other factors and risks discussed in our Report on Form 20-F for the year ended December 31, 2000 or any other reports filed by us 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 300 leading industry partners. Check Point solutions are sold, integrated and serviced by a network of over 1,500 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.

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© 2001 Check Point Software Technologies Ltd. All rights reserved.
Check Point, the Check Point logo, FireWall-1, FireWall-1 SecureServer, FireWall-1 SmallOffice, FloodGate-1, INSPECT, IQ Engine, Meta IP, MultiGate, Open Security Extension, OPSEC, Provider-1, SecureKnowledge, SecureUpdate, SiteManager-1, SVN, UAM, User-to-Address Mapping, UserAuthority, Visual Policy Editor, VPN-1, VPN-1 Accelerator Card, VPN-1 Gateway, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 SmallOffice, and ConnectControl are trademarks, service marks, 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.