Trend Micro Reports First Quarter Results

Trend Micro posted consolidated net sales of 17.3 billion Yen (or US $165.4 million, 104.59 JPY = 1USD), operating income of 7.3 billion Yen (or US $69.8 million) and net income of 4.6 billion Yen (or US $43.6 million) for the first quarter 2005.  These figures reflect gains of 27% in net sales, 42% in operating income, and 45% in net income compared with the same period a year ago.

Continued demand for Trend Micro's multi-layered network protection led to product sales in enterprise and consumer environments, particularly for Internet gateway, client/server, and desktop solutions. Gateway products, including Trend Micro InterScan Web Security and InterScan Messaging Security suites, experienced a 73% gain in sales over the previous year, while consumer desktop and client/server products grew a record 35% and 28%, respectively.

"Our continued strength in delivering Internet gateway solutions and the momentum we are gaining in capturing desktop share demonstrates that our corporate customers want a layered approach to defend against increasingly complex threats," said Eva Chen, CEO of Trend Micro. "We also forged key partnerships this quarter that will help us continue our growth in strategic markets like China and have enabled us to expand our offerings to the consumer market through integration with partners like NETGEAR. These developments enable us to deliver the right solutions to our customers around the world."

Based on information currently available to the company, consolidated net sales for the second quarter ending June 30, 2005 is expected to be 17.5 billion Yen (or US $163.6 million, based on an exchange rate of March 31, 2005; 107JPY = 1USD). Operating income and net income are expected to be 7.0 billion Yen (or US $65.4 million) and 4.2 billion Yen (or US $39.3 million), respectively.

First Quarter Business Highlights

* SINA and Trend Micro
Through an agreement with SINA, China's top portal and most frequently visited Web site, Trend Micro began providing advanced security protection for more than 100 million email users in China and among the global Chinese community. The partnership establishes Trend Micro as a security leader for one of the world's most rapidly developing economies and highlights the company's intention to grow its business by capitalizing on opportunities in emerging markets. Trend Micro, which considers China a strategic growth opportunity, provides antivirus scanning services for SINA's email customers, and in the near future it will offer online virus scanning for PCs, anti-spam protection, and antivirus security for mobile devices.

* NETGEAR and Trend Micro
Through an agreement with NETGEAR, a world provider of technically advanced, branded networking products, Trend Micro will provide comprehensive antivirus, spyware, and anti-spam network security solutions for NETGEAR's home and small business customers globally. The first collaborative solution will feature the integration of Trend Micro Home Network Security with NETGEAR's wireless and broadband firewall routers for the home.

* Awards and Recognition
Leadership
CEO Eva Chen was named by Network World magazine as a "Network Sentinel", and Trend Micro was featured among the magazine's list of the "Ten Most Power-Hungry Companies in Networking".

Channel
Trend Micro was recognized by VARBusiness magazine as one of North America's top information technology vendors for the breadth and depth of its channel partner programs. The acknowledgement included a "5-Star" rating in the magazine's 11th annual Partner Programs Guide survey.

Chairman and founder Steve Chang was named among the Top 10 Channel Advocates by Computer Reseller News (CRN). Nancy Reynolds, director of national resellers for North America, was named among CRN Channel Champion's Top 50 Local Leaders.

Products
Trend Micro Home Network Security, which is integrated in Zyxel routers, achieved the Protectstar "Excellent Security" Award in Germany. Trend Micro PC-cillin Internet Security 2005 was named "Best Value" and given a 5-Star rating by NetGuide Australia.

Support & Service
Trend Micro's Premium Support was awarded the STAR Award 2005 for Best Practices in the category "Growing the Business". The award, delivered by the Service and Support Professional Association (SSPA), acknowledges Trend Micro for its outstanding achievement in the technical customer support field. Trend Micro is the first company to win this new award.

* Products & Innovation
Trend Micro Mobile Security v.2.0 was announced to provide enhanced antivirus and SMS anti-spam protection for data-centric mobile wireless devices. Additional platforms supported include Microsoft Windows Mobile 2003/2003SE for Smartphone and Pocket PC and Symbian OS 7.0.

* Global Business Highlights
In Europe, Trend Micro and D-Link, the leading global manufacturer of broadband, wireless, and networking solutions to the small office/home office, SMB, and enterprise environments, announced an agreement to offer a free three-month trial of Trend Micro PC-cillin Internet Security v.12 with the purchase of select D-Link products. The agreement provides D-Link's home and small office customers with the benefits of gained antivirus and content security.

In Australia, new business was closed with Vodafone, one of the world's leading mobile telecommunications companies. In Japan, Network VirusWall implementations were completed for Rikkyo University, one of Japan's major private universities.

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 antivirus software industry
* Changes in customer needs for antivirus software
* Existing products and new product introductions by our competitors and the pricing of those products
* Declining prices for 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 U.S. Securities and Exchange Commission.

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Over Trend Micro
Trend Micro is leider op het gebied van netwerkantivirus- en internet-content-beveiligingssoftware en -diensten. Het wereldwijde hoofdkantoor is gevestigd in Tokio, het Europese hoofdkantoor in Marlow, Engeland. De producten worden wereldwijd geleverd door Value-Added Resellers en service providers. Voor meer informatie: http://nl.trendmicro-europe.com/

Voor meer informatie of het volledige persbericht, inclusief cijferoverzichten voor de eerste kwartalen van 2005 en 2004:

Trend Micro      
Mireille Boetje    
Tel: +31 (0)30 2106 333    
E-mail: Mireille_Boetje@trendmicro.co.uk  

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