Trend Micro Announces First Quarter Consolidated Results

Q1 sales increase 12% year over year reaching new record highs

Tokyo, Japan – April 21, 2003 – Trend Micro Inc (TSE: 4704; Nasdaq: TMIC), a leader in network antivirus and Internet content security software and services, reported results in US GAAP for the first quarter, ended March 31, 2003. Trend Micro posted consolidated net sales of 10.9 billion yen, (or US$ 91.0 million[1]) and operating income of 3.0 billion yen (or US$ 24.7 million). The figures reflect gains of 12% in sales and -2% in operating income compared with the same period a year ago.

All `major product lines grew compared to the same quarter in 2002. Enterprise products represented 82% of net sales in Q1, with Internet gateway and messaging groupware product revenue growing 15% year over year. Consumer product revenue grew 32% as compared with the same period a year ago.

“We are pleased to demonstrate growth over 2002, despite the global economic climate,” said Steve Chang, Chairman and CEO of Trend Micro. “And we intend to emerge out of these challenging times in a continued leadership position by continuing to invest and focus on delivering the building blocks of our Enterprise Protection Strategy (EPS). We are gaining recognition for this unique approach. We believe our rapid progress in delivering EPS to the market with our partners has given us a substantial lead in offering real product capabilities that are usable today, versus others in the industry who are trying to achieve the same result through integrating acquisitions.”

Consolidated net sales for the second quarter ending June 30th are expected to be 11.5 billion yen (or US$ 95.8 million). Operating income is expected to be 2.9 billion yen (or US$ 24.2 million).

The company also reported results for FY2002 in accordance with US GAAP of 43.0 billion yen (or US$ 358.2 million) in net sales, 13.9 billion yen (or US$ 115.6 million) in operating income, and 7.7 billion yen (or US$ 64.3 million) in net income.

First Quarter Highlights:

– Trend Micro(tm) Enterprise Protection Strategy was awarded PC Magazine’s Editors’ Choice for corporate antivirus software. Trend Micro was selected for the award due to its unique strength in outbreak containment, custom policies, remote administration, desktop-to-gateway solutions, and extensive support infrastructure.
Trend Micro Enterprise Protection Strategy was selected for the award over products from Symantec and Network Associates.
– In March 2003, META group named Trend Micro among the leaders in the antivirus space based on the company’s gateway position, strong centralized management, and focus on the outbreak lifecycle.
– Trend Micro introduced its Spam Prevention Service for enterprise customers, a service designed to block non-productive and malicious spam at the Internet gateway that utilizes heuristic technology. The new service was designed to interoperate seamlessly with Trend Micro’s other antivirus and content security products.
– In March, UBS Warburg ranked Trend Micro third in overall global channel satisfaction, making the company the highest ranked antivirus vendor in the study. The report also stated that customers of the channel partners surveyed preferred best-of-breed security solutions versus all-in-one, integrated security solutions.
– Major customer additions worldwide during the quarter include Seiko Epson and Cable and Wireless. Customers from the government, healthcare, and banking sectors worldwide were most significant among new customers this quarter.

Notice Regarding Forward Looking Statements
Statements included in this release contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding our expectations about future dividend payments. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:

– Customer acceptance of our new products and services
– The impact of competing products and services
– Difficulties in adapting our products and services to the Internet
– Difficulties in addressing new virus and other computer security problems
– The potential lack of attractive investment targets and difficulties in successfully executing our investment strategy
– Declining prices for our products and services

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, including our annual report on Form 20-F which was filed on July 1,2002.

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 at http://www.trendmicro.com