Check Point Software Reports Financial Results for the Second Quarter of 2005

Second Quarter EPS Increased 30% Year over Year

REDWOOD CITY, Calif., — July 19, 2005 — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the second quarter ended June 30, 2005.

Financial Highlights for the Second Quarter of 2005:

• Revenues: $144.6 million, an increase of 14% compared to $126.9 million in the second quarter of 2004.
• Net Income: $78.0 million, an increase of 23% compared to $63.3 million in the second quarter of 2004. Net income excluding acquisition related charges¹ was $79.8 million, an increase of 21% compared to $65.9 million in the second quarter of 2004.
• Earnings per Diluted Share: $0.31, an increase of 30% compared to $0.24 in the second quarter of 2004. EPS excluding net acquisition related charges was $0.32, an increase of 28% compared to $0.25 in the second quarter of 2004.
• Deferred Revenues: increased by $4.0 million to a record $154.2 million.
• Share Repurchase Program: During the second quarter of 2005, Check Point purchased 4.7 million shares at a total cost of close to $103 million.

¹ "Acquisition related charges" refer to the impact of the amortization of intangible assets and stock-based compensation resulting from the acquisition of Zone Labs Inc., in March 2004.

"We are pleased with our second quarter results, which showed growth in profits and revenues from both existing and newly announced product lines. We have also seen an increase in the large deals we won during the quarter, including a few multi-year, multi-million dollar licensing deals," said Gil Shwed, chairman and chief executive officer of Check Point Software. "Additionally, Q2 marked a major milestone in Check Point history with the introduction of the NGX platform; the industry's only unified security architecture. As IT security remains a global focus, Check Point NGX is resonating in the marketplace because it unifies broad, intelligent security and delivers cost savings, reduced complexity and deployment adaptability to businesses of all sizes."

Business Highlights and Introductions during the Second Quarter Include:

• Introduced NGX™ Platform – Industry's only Unified Security Architecture – the NGX platform is a major upgrade to Check Point's core technology. It is the unified security platform for perimeter, internal and Web security solutions enabling enterprises of all sizes to reduce the cost and complexity of security and ensure that their security systems can be easily extended to adapt to new and evolving threats.
   
• Hosted Successful Check Point Experience™ events for Partners and Customers – held two major business and networking events to educate over 1,700 partners and customers on Check Point solutions. Participants benefited from valuable technology and market information via presentations, technical and business-focused tracks and product demonstrations provided by Check Point and its partners.
   
• Introduced Check Point Express CI™ Unified Threat Management (UTM) for Medium Business – an easy to deploy and manage platform that comprises multiple vital security features a mid-sized business needs, including: firewall, VPN, intrusion prevention, and integrated antivirus protection.
   
• Introduced Check Point VPN-1® Edge™ W Wireless Security Appliance for Branch Offices – a series of enterprise-level VPN/firewall wireless security appliances for remote site business locations, branch offices and partner sites. Provides flexible high-speed wireless access, unmatched security protection, simple and scalable management and business continuity.
   
• Achieved Industry Leader Position in METAspectrum^SM Report - Check Point was ranked as a market leader in META Group's METAspectrum report on Network Intrusion Control Systems. Of 12 vendors, Check Point ranked the highest for "performance" – a category that takes into account the company's technology, services pricing and financial standing.

List of Awards in the Second Quarter:

• SC Magazine Global Awards 2005 (UK) – The 2005 SC Magazine Global Awards Program reviewed over 1,000 security product and service nominations across 35 security-related categories and the publication's panel of judges voted on the best for 2005. Among others, Check Point products won Best Enterprise Security Solution for Integrity and Best SOHO Security Solution for ZoneAlarm Security Suite.
   
• VARBusiness Magazine's Midmarket "Products of the Year" 2005 for Check Point Express CI™ – Editors evaluated more than 400 nominated products to determine which products and services were best for midmarket customers with 100 to 999 employees.
   
• eWEEK Excellence Awards for Integrity 5.0 – recognized in the area of Vulnerability Assessment and Remediation. The eWEEK Excellence Awards recognize vendors that meet today's rigorous enterprise IT demands.
   
• PC World 2005 World Class Awards for ZoneAlarm® Antivirus – honored in the Antivirus and Firewall Software category.
   
• Computerworld Hong Kong Best Firewall Award for VPN-1®/FireWall-1® – award based solely on votes it receives from readers.

Shwed continued, "We have embarked on a major initiative with NGX, and in Q3, we will remain focused on one thing: execution. We anticipate the delivery of new NGX-based versions of our security products in the perimeter, internal, Web and endpoint product categories as we continue architecting a secure future for our customers."

Conference Call and Webcast Information
Check Point will host a conference call with the investment community on July 19, 2005 at 8:30 AM ET/5:30 AM PT. A replay of the conference call will be available through August 2, 2005 at the Company's website http://www.checkpoint.com/ir or by telephone at (973) 341-3080, pass code 6235460.

Safe Harbor Statement
Certain statements in this press release are forward-looking statements. Forward-looking statements include statements regarding Check Point's anticipated delivery of new NGX-based security products. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results could differ materially from Check Point's current expectations. Factors that could cause or contribute to such differences include, but are not limited to: timely availability and customer acceptance of Check Point's new NGX-based products and other products; the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism; the inclusion of network security functionality in third-party hardware or system software; any unforeseen developmental or technological difficulties with regard to Check Point's products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; a shift in demand for products such as Check Point's; unknown factors affecting third parties with which Check Point has formed business alliances; timely availability and customer acceptance of Check Point's new and existing products, and other factors and risks discussed in Check Point's Annual Report on Form 20-F for the year ended December 31, 2004, which is on file with the Securities and Exchange Commission. Check Point assumes no obligation to update information concerning its expectations.

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is the worldwide leader in securing the Internet. It is the market leader in the worldwide enterprise firewall, personal firewall and VPN markets. Through its NGX platform, the company delivers a unified security architecture for a broad range of perimeter, internal and Web security solutions that protect business communications and resources for corporate networks and applications, remote employees, branch offices and partner extranets. The company's ZoneAlarm product line is one of the most trusted brands in Internet security, creating award-winning endpoint security solutions that protect millions of PCs from hackers, spyware and data theft. Extending the power of the Check Point solution is its Open Platform for Security (OPSEC), the industry's framework and alliance for integration and interoperability with "best-of-breed" solutions from over 350 leading companies. Check Point solutions are sold, integrated and serviced by a network of more than 2,200 Check Point partners in 88 countries.

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©2003-2005 Check Point Software Technologies Ltd. All rights reserved.
Check Point, Application Intelligence, Check Point Express, the Check Point logo, AlertAdvisor, ClusterXL, Cooperative Enforcement, ConnectControl, Connectra, CoSa, Cooperative Security Alliance, Eventia, Eventia Analyzer, Eventia Reporter, FireWall-1, FireWall-1 GX, FireWall-1 SecureServer, FloodGate-1, Hacker ID, IMsecure, INSPECT, INSPECT XL, Integrity, InterSpect, IQ Engine, NGX, Open Security Extension, OPSEC, Policy Lifecycle Management, Provider-1, Safe@Home, Safe@Office, SecureClient, SecureKnowledge, SecurePlatform, SecuRemote, SecureXL Turbocard, SecureServer, SecureUpdate, SecureXL, SiteManager-1, SmartCenter, SmartCenter Pro, Smarter Security, SmartDashboard, SmartDefense, SmartLSM, SmartMap, SmartUpdate, SmartView, SmartView Monitor, SmartView Reporter, SmartView Status, SmartViewTracker, SofaWare, SSL Network Extender, Stateful Clustering, TrueVector, Turbocard, UAM, User-to-Address Mapping, UserAuthority, VPN-1, VPN-1 Accelerator Card, VPN-1 Edge, VPN-1 Pro, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 VSX, VPN-1 XL, Web Intelligence, ZoneAlarm, ZoneAlarm Pro, Zone Labs, and the Zone Labs logo, 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, 5,835,726, 6,496,935, 6,873,988 and 6,850,943 and may be protected by other U.S. Patents, foreign patents, or pending applications.

  Products and licenses

  Software subscriptions

  Services

  Cost of revenues

  Research and development

  Selling and marketing

  General and administrative

  Amortization of intangible assets
  and deferred stock compensation

  Acquisition related in-process R&D

$79,808

$65,865

$155,598

$130,891

$0.32

$0.25

$0.61

$0.50

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Decrease (increase) in trade and other receivables, net

Increase in trade payables and other accrued liabilities

Other adjustments

Amortization of intangible assets and deferred stock compensation

Acquisition related in-process R&D

Cash paid in conjunction with the acquisition of Zone Labs, net

Investment in property and equipment

Net cash used in investing activities

Proceeds from issuance of shares upon exercise of options

Purchase of treasury shares

Net cash used in financing activities