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Trend Micro Announces Second Quarter Consolidated Results

Tokyo, Japan - July 29th, 2003 - Trend Micro Inc (TSE: 4704; Nasdaq: TMIC), a leader in network antivirus and Internet content security software and services, today reported results in US GAAP for the second quarter 2003, ended June 30, 2003. Trend Micro posted consolidated net sales of 11.4 billion yen, (or US $95.7 million¹), operating income of 2.9 billion yen (or US $24.0 million) and net income of 1.6 billion yen (or US $13.2 million). The figures for the quarter reflect gains of 6% in sales compared with the same period a year ago and 4% sequentially.

Both of enterprise products and consumer products grew year over year, and all regions worldwide experienced growth compared to the same quarter a year ago.

"We are pleased to announce solid results considering the current landscape of overall IT spending," said Steve Chang, Chairman and CEO of Trend Micro. "This quarter, we continued to see revenue growth from large enterprise customers, as well as growth in deferred revenues primarily driven by the U.S. market.  We also continue to gain recognition for our Enterprise Protection Strategy (EPS), and remain committed to bringing new products and services to further deliver the value of EPS to our customers."

Consolidated net sales for the third quarter ending September are expected to be 11.5 billion Yen (or US $96.6 million). Operating income and net income are expected to be 3.1 billion yen (or US $26.1 million) and 1.75 billion Yen (or US $14.7 million), respectively.
 
Second Quarter Business Highlights

* Trend Micro Enterprise Protection Strategy received Network Magazine's 2003 Product of the Year Award in the antivirus category for corporate antivirus software. The company was also honored with e-Pro Magazine's Apex Award for ScanMail for IBM Lotus Notes. Trend Micro ServerProtect for Linux was rated best performing solution in Virus Bulletin's Red Hat Linux Comparative Review.

* Trend Micro earned certification from the National Information Assurance Partnership (NIAP) for InterScan VirusWall 3.5 for NT and InterScan VirusWall 3.6 for Solaris, HP-UX, and Linux. Trend Micro is the only vendor to earn NIAP certification for antivirus products, thereby meeting the rigorous global standards laid down in the new Government Guidelines, which specify that IT products be NIAP-certified for high security installations.

* In Japan, Trend Micro reached a milestone of 2.5 million users of VirusBuster, Trend Micro's consumer antivirus solution in Japan. Other major customer additions during the quarter included a 1.1 million-user deal with the U.S. Army Chief Technology Office. Worldwide, new revenues were primarily comprised of customers from the banking, finance, government and healthcare sectors.

* The company announced that it is expanding its alliance with NetScreen to deliver the industry's first best-of-breed antivirus, firewall, VPN and intrusion prevention appliance designed to help enterprise customers secure remote sites, branch offices and telecommuters.

¹ $1 US = 119 Japanese Yen

Notice Regarding Forward Looking Statements Certain statements that we make in this release are forward-looking statements. These forward-looking statements are based upon management's current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties.
Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:
* Difficulties in addressing new virus and other computer security problems;
* Timing of new product introductions and lack of market acceptance for our new products;
* The level of continuing demand for , and timing of sales of , our existing products;
* Rapid technological change within the anti-virus software industry;
* Changes in customer needs for anti-virus software;
* Existing products and new product introductions by our competitors and the pricing of those products;
* Declining prices for our products and services;
* The effect of future acquisitions on our financial condition and results of operations;
* The effect of adverse economic trends on our principal markets;
* The effect of foreign exchange fluctuations on our results of operations;
* An increase in the incidence of product returns;
* The potential lack of attractive investment targets; and
* Difficulties in successfully executing our investment strategy.
We assume no obligation to update any forward-looking statements.
For more details regarding risk factors relating to our future performance, please refer to our filings with the SEC.

# # #

About Trend Micro
Trend Micro, Inc. is a leader in network antivirus and Internet content security software and services. The Tokyo-based corporation has business units worldwide. Trend Micro products are sold through corporate and value-added resellers .For additional information and evaluation copies of all Trend Micro products, visit our website, http://www.trendmicro.com.

Voor meer informatie, bijvoorbeeld de resultatenrekening:

Trend Micro      
Anna Wright     
Marketing Program Manager
Trend Micro Europe
Tel: +44 (0)1628 400534    
E-mail: Anna_Wright@trendmicro.co.uk  

Lammers van Toorenburg PR
Francine Loos / Annegees van Linge
Tel: +31 (0)30 6565 070
E-mail: annegees@lvtpr.nl

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Verstreken tijd: 23 jaar en 88 dagen
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+31 (0) 20 399 8304
www.trendmicro.com

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