Check Point Software Technologies Reports 2001 Financial Results

EPS Grew 49% in a Challenging Year

REDWOOD CITY, Calif. - January 15, 2002 - Check Point Software Technologies (Nasdaq: CHKP), the worldwide leader in securing the Internet, today announced financial results for the fourth quarter and fiscal year ended December 31, 2001.

The fourth quarter of 2001 showed an upward trend in the business environment, resulting in a sequential increase of revenues and net income. Net income was $77 million or $0.30 per share (diluted), an increase of 4% and 3% respectively over the third quarter 2001. Demand for Check Point products and services brought total revenues for the quarter to $123 million, a 4% increase over the third quarter.

Net income for the year was $322 million or $1.25 per share (diluted), compared to net income of $221 million or $0.84 per share (diluted) during fiscal year 2000, an increase of 46% and 49% respectively. Revenues for the fiscal year ended December 31, 2001 increased 24% to $528 million, compared to $425 million for fiscal year 2000.

During the fourth quarter, the company generated net cash flow of $84 million, bringing total net cash flow for the year to $372 million. Total cash and interest bearing investments at December 31, 2001 was $1.03 billion.

"In 2001 we increased our earnings per share 49% and enhanced our technology and market leadership, in a year of unusual macro-economic challenges" said Gil Shwed, chairman and chief executive officer of Check Point Software Technologies. "This is a testament to the Check Point team and our focus on customers and innovation."

Highlights from 2001 include:

• Check Point Next Generation - unveiled Check Point Next Generation (NG), using our next generation architecture for the VPN-1/FireWall-1 product suite. NG sets new standards for VPN and firewall manageability, reliability, scalability and performance and incorporates new "One-Click" technologies that greatly simplify VPN deployment and management.
  
  
• New Levels of Performance and Price/Performance - introduced SecureXL performance architecture that leverages technology from Check Point and leading chip, appliance and computer system partners to enable the highest performance at a variety of price points. Currently-shipping products deliver speeds in excess of 3 Gbps. Also set new levels of VPN and firewall price/performance with Check Point NG. Benchmarks delivered over 1.7 Gbps throughput on $4,000 open midrange PC and "Secured by Check Point" appliances and over 200 Mbps on $400 PC.
  
  
• Expanded Nokia Alliance - deepened longstanding partnership with Nokia by tightly aligning development strategies to jointly deliver the industry's most advanced security solutions for wired and wireless environments.
  
  
• Extended Breadth of "Secured by Check Point" Appliance Offerings - increased number of partners to over 15 and delivered new "Secured by Check Point" appliances. Introduced the jointly-developed Compaq, Celestix (sub-$1000) and Intrusion.com appliances. Partnered with Nortel Networks, CoSine Communications, Crossbeam Systems and Cubix Corporation for data center and subscriber management high-end platforms.
  
  
• Revolutionized Security for the Broadband SOHO market - a sub $300 security device - SofaWare Technologies, a Check Point company, announced the S-box™ Safe@Home software and security appliance. S-box revolutionizes home office and general home computer Internet security with extreme ease-of-use, the highest levels of security, and management capabilities for ISP, enterprise and self-managed environments.
  

Mr. Shwed continued: "I am proud of the accomplishments we achieved this year and look forward to the challenges of 2002. We will continue to focus on our customer needs and introduce new technologies and innovative products. These solutions will drive our vision of making internet communication available and secure everywhere." 

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. It is the confirmed market leader of both the worldwide VPN and firewall markets. The company's Secure Virtual Network (SVN) architecture provides the VPN and security infrastructure that uniquely enables secure and reliable Internet communications. SVN solutions, as delivered in the company's Next Generation product family, secure business communications and resources for corporate networks, remote employees, branch offices and partner extranets. Extending the power of SVN is Check Point's Open Platform for Security (OPSEC), the industry's framework and alliance for integration and interoperability with "best-of-breed" solutions from over 300 leading companies. Check Point solutions are sold, integrated and serviced by a network of 2,000 certified partners in 203 countries. 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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© 2002 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.