Check Point Software Technologies Ltd. Reports Record Results for Second Quarter 2000

Strong Financial Results and New Initiatives Highlight the Second Quarter

REDWOOD CITY, Calif. – July 19, 2000 – Check Point Software Technologies Ltd. (Nasdaq: CHKP) today announced financial results for the second quarter ended June 30, 2000. Net income for the quarter was $43.7 million or $0.50 per share (diluted) compared to net income of $21.5 million or $0.27 per share (diluted) for the same quarter last year. This represents an increase of 103% in net income and 85% in fully diluted earnings per share. Revenues for the quarter were $90.7 million compared to $50.1 million for the same period in 1999, an increase of 81%.

For the six months ended June 30, 2000, net income was $78.6 million or $0.89 per share (diluted), an increase of 91% and 75% respectively over the six months ended June 30, 1999. Revenues for the first six months of 2000 were $168.8 million, an increase of 79% over the prior year period.

Our balance sheet performance continued to be strong, with cash, cash equivalents and financial investments increasing by $75.7 million in the quarter, totaling $464 million as of June 30, 2000. Deferred revenues increased by $20.7 million to a total of $93.2 million at the end of Q2.

"Check Point is pleased to announce continued strong results in another record quarter," said Gil Shwed, Chairman and CEO. "The exceptional strength in our core enterprise business, combined with our new product introductions and strengthened partnerships, highlight the second quarter."

Second quarter highlights/business drivers:

• Strong sales across all geographic regions

• Broad acceptance of the SVN architecture - Check Point has grown its installed base to over 143,000, with over 54,000 VPN networks and 37 million remote VPN users, serving over 50,000 customers.

• High-end enterprise and MSP markets demonstrated success, with strong demand for Provider-1, our service provider management infrastructure product. We also announced several new ISPs that are deploying our products, including IIJ – Japan's largest ISP.

• Partnerships – continued to strengthen partnerships and held two international PartnerExchange events this quarter – one in Europe and one in Asia, attracting over 800 of Check Point's international partners. The success of our partnership philosophy was also recognized by winning the "Best Partnering Alliance" industry award from Software Business Magazine.

Continued execution on strategic roadmap to provide fully integrated Internet security solutions. Highlights for Q2 included:

• eBusiness security – expanded the Secure Virtual Network (SVN) architecture into securing the eBusiness application framework with the introduction of SVN Phase II. SVN Phase II includes the UserAuthority product and UserAuthority API (Application Programmers Interface) which provides the first comprehensive Internet security infrastructure integrating the network security with B2B applications. As part of the announcement, 30 industry leaders have announced their support for the SVN architecture and have joined Check Point's OPSEC partnership program.

• Check Point Everywhere – executed on the vision of providing Check Point's products and technologies to additional markets. Continued the expansion into the branch office and small and medium sized business market segments with the introduction of SiteManager-1 and a low-cost integrated DSL security appliance. SiteManager-1, which is already shipping, offers service providers a new level of price performance and encompasses all of Check Point's management enterprise capabilities. The Company also announced support from three major MSPs for SiteManager-1 (Maxon Services, Inflow and Internet Security Systems).

"Q2 demonstrated our best performance ever, as we continued to execute on our vision of securing the Internet," concluded Mr. Shwed.

Safe Harbor Statement
Statements in this press release which 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 weakness 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; 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 200 leading industry 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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2000 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.

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

		Three Months Ended June 30					Six Months Ended June 30
		(unaudited)					(unaudited)
		1999		2000			1999		2000
Net revenues		$50,051		$90,668			$93,823		$168,834
Cost of revenues		5,092		8,006			9,803		15,650
Gross profit		44,959		82,662			84,020		153,184
Operating expenses:
Research and development, net		4,353		6,659			8,396		12,834
Sales and marketing		15,744		27,733			28,387		51,951
General and administrative		3,219		4,502			6,081		9,701
Total operating expenses		23,316		38,894			42,864		74,486
Operating income		21,643		43,768			41,156		78,698
Financial income, net		2,705		6,411			5,329		11,905
Capital gain		192		0			192		0
Income before income taxes		24,540		50,179			46,677		90,603
Income taxes		3,008		6,508			5,442		12,053
Net income		21,532		43,671			41,235		78,550
Earnings per share (Basic)		$0.29			$0.57		$0.56		$1.02
Earnings per share (Fully diluted)		$0.27			$0.50		$0.51		$0.89
Number of shares (Basic)		73,638			77,721		73,408		76,986
Number of shares (Fully diluted)		81,118			87,879		80,754		87,770

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

ASSETS

LIABILITIES AND
SHAREHOLDERS' EQUITY

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