Check Point Software Reports Financial Results for the Second Quarter of 2007

Company Exceeded Its High-End Revenue Projections with a 27 Percent Growth Year
over Year; Non-GAAP EPS Grew 20 Percent Year over Year

REDWOOD CITY, Calif., - July 24, 2007 — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced financial results for the second quarter ended June 30, 2007.

Financial Highlights for the Second Quarter of 2007

* Revenues: $176.2 million, an increase of 27 percent, compared to $138.9 million in the second quarter of 2006. In the second quarter of 2007, network security contributed $155.8 million to revenues, an increase of 12 percent, compared to the second quarter of 2006. Data security contributed $20.4 million to revenues, an increase of 17 percent, compared to the first quarter of 2007.
* Earnings Per Diluted Share – GAAP: $0.31, an increase of 13 percent, compared to $0.27 in the second quarter of 2006. GAAP earnings per share in the second quarter of 2007 included charges that were not included in the second quarter of 2006, in the amount of $0.03 per share, for equity based compensation expenses and acquisition related charges (net), in connection with the acquisitions of Protect Data and NFR Security.
* Earnings Per Diluted Share – Non GAAP1: $0.38, an increase of 20 percent, compared to $0.32 in the second quarter of 2006. Non-GAAP EPS exclude equity based compensation expenses and acquisition related charges2.
* Net Income – GAAP: $69.5 million, an increase of 6 percent, compared to $65.7 million in the second quarter of 2006. GAAP net income in the second quarter of 2007 included charges that were not included in the second quarter of 2006, in the amount of $7.5 million, for equity based compensation expenses and acquisition related charges (net), in connection with the acquisitions of Protect Data and NFR Security.
* Net Income – Non GAAP: $85.7 million, an increase of 13 percent, compared to $76.0 million in the second quarter of 2006. Non-GAAP net income excludes equity based compensation expenses and acquisition-related charges.
* Deferred Revenues: $236.2 million, an increase of $59.7 million, or 34 percent, over deferred revenues as of June 30, 2006.
* Share Repurchase Program: During the second quarter of 2007, Check Point purchased 2.1 million shares at a total cost of approximately $50.0 million.
* Operating Cash Flow: Cash flow from operations was $81.5 million, compared to $88.6 million in the second quarter of 2006.

1 See “Use of Non-GAAP Financial Information” and “Reconciliation between GAAP and Non-GAAP Statement of Income” below for more information regarding Check Point’s use of Non-GAAP financial measures.
2 “Equity based compensation expenses” refer to the amortized fair value of all equity based awards granted to employees. “Acquisition related charges” refer to the impact of the amortization of intangible assets and other acquisition related expenses.

“During the second quarter of 2007, we continued to generate strong financial results which exceeded our projections,” said Gil Shwed, chairman and chief executive officer of Check Point Software. “These results were driven by growth in our core enterprise network security business complemented by our data security business.”

During the second quarter of 2007, we introduced products aligned with our PURE focus on IT security and strengthened our unified security architecture. Recent key business highlights and product introductions included the following:

* CoreXL Acceleration Technology in VPN-1 Power Achieved Performance Breakthrough – Leveraging off-the-shelf multi-core processors, VPN-1 Power with CoreXL is the first network security gateway that enables security administrators to gain data center level performance without compromising on deep security inspection. Key performance statistics include 12 Gbps firewall inspection and 5.3 Gbps intrusion prevention inspection.

* IPS-1 Integrated into Check Point’s Unified Security Architecture – Check Point has successfully integrated IPS-1 into its key security event correlation and management components. Recently acquired dedicated intrusion prevention solution delivers accurate, real-time mitigation against known and unknown attacks.

* Data and Endpoint Security for Vista – Pointsec PC, Check Point’s full-disk encryption solution for laptop and desktop PCs, is now available to protect enterprise computers running the Windows Vista™ operating system. Check Point also introduced its consumer ZoneAlarm Internet Security Suite for Vista.

* Successful Check Point Experience Event for Partners and Customers in the Americas – Check Point held a major business and networking event to educate partners and customers on Check Point solutions. Participants benefited from valuable technical and business discussions and product demonstrations to improve technical know-how and expertise.

Partial List of Awards in the Second Quarter of 2007

* Gil Shwed Inducted to the CRN Industry Hall of Fame – CRN honored Shwed for his work as an early firewall pioneer and for recently diversifying Check Point into data security. The CRN Industry Hall Of Fame honors outstanding individuals who create breakthrough technology and propel the high-tech industry and channel to new heights.

* Amnon Bar-Lev Named as a CRN Channel Chief – Check Point’s vice president of field operations was recognized for creating, promoting and executing effective channel partner programs and strategies. This is the fourth award Check Point has received from CRN in the last three years for its channel and partner programs.

* Check Point Won Information Security Magazine and SearchSecurity.com 2007 Readers’ Choice Award in UTM Category – A gold award was given to VPN-1 UTM for the depth of security it provides under a single platform that can be centrally controlled and updated in real time.

Mr. Shwed continued, “The results in the first half of 2007 validate our strategy to be the leading pure-play IT security company, offering a Unified Security Architecture across the network-security and the data-security layers. We look forward to the second half of 2007 as we continue to focus on executing our strategy.”

Conference Call and Webcast Information
Check Point will host a conference call with the investment community on July 24, 2007 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 August 7, 2007 at the company's website http://www.checkpoint.com/ir or by telephone at (973) 341-3080, pass code 8987537.

Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of net income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation charges in accordance with SFAS 123R and acquisition related charges. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s on-going core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

Safe Harbor Statement
Certain statements in this press release are forward-looking statements. Forward-looking statements include statements regarding Check Point’s belief that its second quarter results validate its strategy to be the leading pure-play company in IT security offering a Unified Security Architecture across the network-security and data-security layers, and Check Point’s plans to continue to focus on executing its strategy in the second half of 2007. Because these statements pertain to future events they are subject to various risks and uncertainties, and actual results could differ materially from Check Point's current expectations and beliefs. Factors that could cause or contribute to such differences include, but are not limited to: whether customers purchase and adopt Check Point solutions for their IT security architecture, the mix of sales of new products and long-term subscriptions; economic and political uncertainties; the impact of political changes 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 foreseen and 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; rapid technological advances and changes in customer requirements to which Check Point is unable to respond expeditiously, if at all; a shift in demand for products such as Check Point's; 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, 2006, which is on file with the Securities and Exchange Commission. Check Point assumes no obligation to update information concerning its expectations.

Check Point Data Security Products Awarded New FIPS 140-2 Government Certification

Pointsec solutions continue to lead the market in key certifications, ensuring customers benefit from the strictest data encryption standards

REDWOOD CITY, CALIF., – July 16, 2007 – Check Point® Software Technologies Ltd. (Nasdaq: CHKP), the worldwide leader in securing the Internet, today announced that Pointsec Protector®, as well as a new, optimized cryptographic module utilized in Pointsec PC® and Pointsec Mobile®, have received the Federal Information Processing Standards (FIPS) 140-2 certification.

"Encryption of data on endpoint devices such as laptops, smartphones and thumb drives, where information is the most vulnerable, is essential to any organization’s data security plan," said Robert Egner, vice president of product management at Check Point. "These new FIPS certifications further solidify Check Point as a leading provider of data security solutions. Pointsec Protector, Pointsec PC and Pointsec Mobile continue to lead the industry with the highest number and level of security certifications, including Common Criteria, FIPS 140-2 and BITS."

To ensure that sensitive information remains secure, the U.S. National Institute of Standards Technology (NIST) developed the FIPS 140-2 data encryption standards, requiring data cryptograph modules and products to meet specific criteria and undergo rigorous testing. Certification is required before any vendor can offer encryption products to government entities, and because the FIPS-140-2 standard ranks among the most difficult to achieve, it is also often required by financial institutions and global organizations who handle sensitive data. Pointsec Protector, as well as the newly enhanced cryptography module for Pointsec PC and Pointsec Mobile, recently earned FIPS 140-2 certification, ensuring that Check Point customers benefit from the strongest and most advanced full-disk, mobile device and removable media encryption.

Check Point offers the most-widely deployed data protection solutions available today. The Pointsec products are quick and simple to deploy, scale to any size organization, proven in every type of industry and government agency around the world, and support the broadest set of mobile platforms. The company’s Pointsec solutions completely protect data on laptops, desktops, PDAs, smartphones, USB drives, and other removable media by combining strong encryption with access control. This ensures all data remains protected, regulatory requirements are addressed and company image stays intact.