2001 Finance Info

Trend Micro Announces Record Third Quarter Results

Sales climb 42% YoY and ordinary income rises 22% in 3Q 2001

For Immediate Release

Tokyo, Japan – October 25, 2001 – Trend Micro Inc. (TSE: 4704; Nasdaq: TMIC), a worldwide leader in antivirus and Internet content security solutions, reported consolidated sales of 7,548 million yen (63 million US $) and ordinary income of 2,305 million yen (19 million US $) for the third quarter of fiscal 2001, ended September 30, 2001. The figures reflect gains of 41.6% in sales and 22.1% in ordinary income compared with the same period a year ago. This increase was driven by solid, well-balanced growth in all three major markets: Japan, North America, and Europe. Europe led all regions with rapid sales growth of 85% over 3Q 2000. Japan remained the largest market, with sales rising 32% to 2,921 million yen from 2,217 million yen in 2000 Major account wins in Q3 included IBM, Sprint, Sony HSBC, US Deptt of Justice and Transportation, and City of SanFrancisco.

If the results were not adjusted in accordance with a new revenue recognition policy, sales would have shown annual growth of 49.6% to 7,973 million yen (66US $), and ordinary income would have risen 44.6% to 2,730 million yen (22million US $) in the quarter.

(Exchange rate 1US$= 119.40 JPY)

Further details can be obtained at http://www.trendmicro.com/us/about-us/investor-relations/index.html

Third Quarter FY 2001 (July 1 through September 30, 2001) unaudited

Consolidated Unaudited Results of Operations for Three Quarters Ending September 30, 2001

1. Consolidated Results of Operations

<Note> 1. Change in accounting principle: Please] see "Note on Change in Accounting Principle" below.

(2) Geographic segment information

Sales to third parties

(3) Affiliated companies:

Number of consolidated subsidiaries: 18

Number of unconsolidated subsidiaries: 0

Financial data for the third quarter of FY 2000 is provided solely for comparison purposes, as the Company did not prepare quarterly earnings statements last year. Moreover, the figures for Q1 FY 2001 and Q1 FY 2000 have not been audited by the Company's certified public accountants or independent auditors, and the financial results described in this release were prepared in accordance with Japanese generally accepted accounting principles (GAAP).

Note on Change in Accounting Principle

Until the end of FY 2000, the Company and Trend Micro Incorporated (Taiwan) booked revenue for Premium Support and other post-contract customer support services at the beginning of the support period. Effective from FY 2001, the method of recognizing this revenue recognition has been changed and sales revenues from customer support are deferred over the relevant support period.

The table below shows the year-on-year growth after restating the 2001 third quarter numbers to the revenue recognition policy in use during the corresponding quarter of Fiscal 2000.

(Note) 1. Quarterly financial information was not disclosed in 2000. The figures for the third quarter of

Fiscal Year 2000 in above table are prepared for management purpose and disclosed for

reference only.

2. The figures for the third quarter of Fiscal Year 2001 and Fiscal Year 2000 are not audited.

About Trend Micro:

Trend Micro Incorporated (TSE: 4704), a global cloud security leader, creates a world safe for exchanging digital information with its Internet content security and threat management solutions for businesses and consumers. A pioneer in server security with over 20 years' experience, we deliver top-ranked client, server and cloud-based security that fits our customers' and partners' needs, stops new threats faster, and protects data in physical, virtualized and cloud environments. Powered by the Trend Micro™ Smart Protection Network™ cloud security infrastructure, our industry-leading cloud-computing security technology, products and services stop threats where they emerge, on the Internet, and are supported by 1,000+ threat intelligence experts around the globe.

Additional information about Trend Micro Incorporated and the products and services are available at Trend Micro.com This Trend Micro news release and other announcements are available at http://trendmicro.mediaroom.com/ and as part of an RSS feed at www.trendmicro.com/rss Or follow our news on Twitter at @TrendMicro.