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

Third Quarter EPS Increased 22% Year Over Year

REDWOOD CITY, Calif., - October 28, 2005 - Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the third quarter ended September 30, 2005.

Financial Highlights for the Third Quarter of 2005:

• Revenues: $141.1 million, an increase of 9% compared to $129.3 million in the third quarter of 2004.
• Net Income: $78.7 million, an increase of 18% compared to $66.8 million in the third quarter of 2004. Net income excluding acquisition related charges¹ was $80.5 million, an increase of 16% compared to $69.1 million in the third quarter of 2004.
• Earnings per Diluted Share: $0.31, an increase of 22% compared to $0.26 in the third quarter of 2004. EPS excluding net acquisition related charges was $0.32, an increase of 20% compared to $0.27 in the third quarter of 2004.
• Deferred Revenues: $144.3 million, an increase of $19.6 million or 16% over deferred revenues as of September 30, 2004.
• Share Repurchase Program: During the third quarter of 2005, Check Point purchased 2.6 million shares at a total cost of approximately $57 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.

"Our third quarter business continued to fuel strong earnings growth," said Gil Shwed, chairman and chief executive officer of Check Point Software. "We believe our focus on delivering an independent layer of comprehensive security solutions through a unified security architecture is driving our leading position as a provider of network security. During the quarter, we continued to upgrade products as part of the NGX platform launch. We strengthened our consumer presence by unveiling the highly anticipated ZoneAlarm® Internet Security Suite 6.0. Also, we recently announced plans to acquire Sourcefire to further extend the unified security architecture with next generation intrusion prevention solutions."

Recent Business Highlights Include:

• Business Expansion with Sourcefire Acquisition - Announced an agreement to acquire Sourcefire, Inc., the creator of Snort™, and a leading provider of intrusion prevention and real-time network access solutions for a total consideration of approximately $225 million. Check Point believes the pending acquisition will further enable the company to provide the most comprehensive internal security solutions portfolio and accomplish another milestone in achieving its vision of a unified security architecture.
  
  
• Significant Customer Traction for NGX™ Platform Upgrades - As the industry's only unified security architecture for perimeter, internal, Web and endpoint security, NGX continues to strengthen as we launch new NGX offerings, including VPN-1® VSX. NGX helps enterprises of all sizes reduce the cost and complexity of security management while ensuring their security systems can be easily extend to adapt to new and evolving threats. Since availability, the NGX platform has generated approximately 20,000 new licenses and upgrades.

Industry Honors Achieved in the Third Quarter:

• Check Point's VPN-1® Pro™ wins award - Windows IT Pro 2005 Readers' Choice Best Firewall Solution - for the best server/standalone firewall.
  
  
• Check Point's ZoneAlarm® Internet Security Suite 6.0 wins numerous awards
  • CNet Editors' Choice Award for Desktop Security - for best desktop security value for its firewall, anti-spyware, antivirus, and antispam features;
  • PC Magazine's Editors' Choice Award for Best Security Suite - for blocking spyware installation and delivering instant real-time protection against Internet threats;
  • LAPTOP Magazine Editor's Choice Award Best Security Suite - for the industry's best security suite.
    
    
• Check Point's Valued Partner Program wins award - 2005 VARBusiness Magazine "Annual Report Card" Winner - for achieving exceptional partner satisfaction.

Mr. Shwed continued, "Check Point's vision for the future of network security is a unified security architecture, functioning in all layers of the network, designed to address the unpredictability of potential threats with unified management and enforcement. We are offering customers a single architecture that serves as the framework for their security solutions."

Conference Call and Webcast Information
Check Point will host a conference call with the investment community on October 28, 2005 at 8:30 AM ET/5:30 AM PT. To listen to the live webcast, please visit Check Point's website at http://www.checkpoint.com/ir. A replay of the conference call will be available through November 11, 2005 at the Company's website http://www.checkpoint.com/ir or by telephone at (973) 341-3080, pass code 6558970.

Safe Harbor Statement
Certain statements in this press release are forward-looking statements. Forward-looking statements include statements regarding factors driving Check Point's position as a provider of network security and position for long-term success, and Check Point's beliefs regarding the benefits of the pending acquisition of Sourcefire. 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: 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; the parties' ability to consummate the Sourcefire transaction; the conditions to the completion of the Sourcefire transaction may not be satisfied, or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule; unanticipated expenses associated with the merger; the possibility that the parties may be unable to achieve all of the benefits of the merger within the expected time-frames or at all and to successfully integrate Sourcefire's operations and technology into those of Check Point; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; 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 a leader in securing the Internet. It is a 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, Web, and endpoint 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 the highest rated personal computer security suite, comprised of 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 and its customers include 100% of Fortune 100 companies and tens of thousands of businesses and organizations of all sizes.

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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

$200,032

Net income

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

Decrease in trade and other receivables, net

Increase (decrease) 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