Tokyo, Japan – May 16, 2001 - Trend Micro Inc. (NASDAQ:TMIC, Tokyo TSE:4704), a leading provider of antivirus and Internet content security software, today resolved on certain conditions for the subscription warrants in connection with the issuance of the bonds with subscription warrants at the meeting of its Board of Directors held on May 8, 2001. The Company also resolved on the issue price and other conditions in connection with the grant of stock option which was resolved at the 12th ordinary general meeting of its shareholders held on March 27, 2001 and at the meeting of its Board of Directors held on May 8, 2001. This stock option is to be granted by means of subscription rights for new shares of the Company, pursuant to Article 280-19 of the Commercial Code of Japan, to certain directors and employees of the Company and its subsidiaries qualifying for the special related business as defined in Paragraph 1 of Article 9 of the Corporate Rehabilitation Law of Japan.

1. Conditions for Exercise of Subscription Warrants

1. Conditions for exercise of subscription warrants (Exercise Price):
   ¥5,760 per share
   Date on which the Exercise Price is calculated and decided:
   May 16, 2001
   Closing price per share of the shares of common stock of the Company on the Tokyo Stock Exchange on the above-mentioned date:
   ¥5,760 per share
   Upward difference (percentage) between the Exercise Price and the closing price, which is calculated by the formula —
   (Exercise Price- 1 x 100): 0.00%
   Closing Price
2. Amount to be transferred to stated capital:
   ¥2,880 per share
3. Price for the offering of the subscription warrants:
   ¥10.65 per the face value of ¥100 
4. Price for the offering of the portion after detaching the subscription warrants from the bonds with subscription warrants:
   ¥100 per the face value of ¥100
5. Interest rate for the bonds:
   1.50% per annum
6. Period during which applications will be accepted:
   From May 17, 2001 through May 31, 2001

2. Conditions of Secondary Offering of Subscription Warrants

1. Number of certificates to be sold:
   1,420
2. Aggregate offering prices:
   ¥151.23 million
3. Number of certificates to be sold by seller:
   Seller: Trend Micro Incorporated
   Number: 1,420
4. Offering price per certificate:
   ¥106,500
5. Period during which applications will be accepted:
   From May 17, 2001 through May 31, 2001

1. Date of resolution:
May 8, 2001

2. Date of payment:
June 4, 2001

3. Date of delivery of certificates representing subscription warrants:
June 5, 2001

3. Conditions for Grant of Stock Option by Means of Subscription Rights

1. Issue price per share of shares to be issued upon exercise of the subscription rights:
   ¥5,760 per share (This is the closing price per share of the shares of common stock of the Company as reported by the Tokyo Stock Exchange on the day on which the subscription rights were granted.)
2. Amount to be transferred to stated capital:
   ¥2,880 per share (The amount to be transferred to stated capital shall mean an amount obtained by multiplying the above-mentioned issue price by 0.5, with any fraction of one yen occurring as a result of such calculation to be rounded up to a full yen.)
3. Date of grant of the subscription rights:
   May 16, 2001
4. Number of shares to be issued upon exercise of the subscription rights:
   713,500 shares in total (If the Company issues new shares of its common stock for consideration less than the current market price, the number of shares to be issued upon exercise of the subscription rights shall be adjusted.)
5. Period during which the subscription rights are exercisable:
   From April 1, 2002 to March 31, 2009