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Technology Stocks : Check Point Software (CHKP) -- Ignore unavailable to you. Want to Upgrade?

To: Analog Kid who wrote (2802)	6/17/1998 6:09:00 PM
From: tcd	Read Replies (1) \| Respond to of 7150

i just sent you a private message.

To: Analog Kid who wrote (2802)	6/17/1998 6:29:00 PM
From: tcd	Read Replies (2) \| Respond to of 7150

p. 23 is "tax exemption for a period of two years and to reduced tax rate of 15%-25% for an additional period of five to eight years, based on the percentage of foreign ownership in the company. The aforementioned benefits are in respect of the taxable income which the Company derives from the expansion program. See Note 9 of Notes to Consolidated Financial Statements. All of the Company's Israeli income has been generated from its Approved Enterprise. To date, all of the Company's sales have been made from Israel. The Company's United States subsidiary, which started in July 1995, operates pursuant to a cost plus agreement with the Company. The Company's United States subsidiary incurred income taxes of $ 360,000 and 982,000 in 1996 and 1997 respectively. In addition, as the Company expands its international operations, a portion of revenues generated in foreign jurisdictions may be subject to taxation ny such jurisdictions at rates higher than those to which the Company is subject in Israel. If an Israeli Company distributes a cash dividend to its shareholders from the tax-exempt income of its Approved Enterprise, it will be required to pay tax at the rate that would have been applicable to income without the tax exemption (generally 25%), on the amount distributed plus the applicable tax on such amount. See Note 9 of Notes to Consolidated Financial Statements. end of page