Acquisition to Bring Trend Micro into New Internet Infrastructure Markets

Tokyo, Japan - February 23, 2000 - Trend Micro, Inc. (Nasdaq: TMIC; Japan OTC: 4704) today announced its agreement to acquire a majority ownership interest in Nippon Unisoft Corporation, a Japanese Unix software solution provider in the networking communications and Internet domain. Trend Micro plans to acquire its interest in Nippon Unisoft through ipTrend Inc., a wholly-owned subsidiary of Trend Micro.

Trend Micro and Nippon Unisoft intend that, as a result of the acquisition, Trend Micro will have access to Unisoft's Internet core technology, including Linux and Unix-based software, network technology, and telecom protocols, as well as new infrastructure technology developed by its team of 60 Linux/Unix engineers. The parties intend that Nippon Unisoft, in turn, will be able to draw upon Trend Micro's global sales and marketing channels, its alliances with telecom providers and ISPs worldwide, and existing Internet security service technology.

Following the acquisition, ipTrend and Nippon Unisoft plan to jointly promote development of the Internet infrastructure technology and plan to offer Linux components and communication protocols to major ISPs, IT vendors, and communication companies.

"We're thrilled with this opportunity to expand into the fast-growing Internet infrastructure software market", said Steve Chang, chairman and CEO of Trend Micro. "Nippon Unisoft's technology in Linux and Unix-based communications software will create synergies with our Internet infrastructure service capabilities." Trend Micro has moved quickly to support Unix-related platforms, including Linux, which are gaining momentum in the Internet Age.

"The transaction with Trend Micro will allow Nippon Unisoft to pursue a global business strategy," said Unisoft president Tomo Yamada. "Our corporate cultures and management styles are well-matched and we are excited about the opportunity to capitalize on the boom in E-Commerce with Trend Micro."

Nippon Unisoft will become a 66.7%-owned subsidiary of ipTrend pursuant to the acquisition. Upon the closing of the transaction, Trend Micro will hold indirectly, through ipTrend, 1,600 shares of Nippon Unisoft, out of a total of 2,400 shares of Nippon Unisoft common stock. As a result of this transaction, ipTrend will own 66.7% of the outstanding voting shares of Nippon Unisoft. ipTrend will acquire the 1,600 shares from two current Nippon Unisoft shareholders, In4S Inc. and Tomo Yamada.

The parties intend to close the transaction by the end of February 2000.

About Nippon Unisoft

Tokyo-based Nippon Unisoft was established in 1983 and employs approximately 60 Unix/Linux engineers. It is one of Japan's leading Unix solution providers in the autonomous, distributed and collaborative network domain. Its net sales for the fiscal year ended October 31, 1999 were 1,484 million Japanese yen.

About ipTrend

ipTrend is a wholly-owned subsidiary of Trend Micro Inc. Established in January 2000, it is headquartered in Tokyo, Japan. Following the transaction, Nippon Unisoft President Tomo Yamada will become Chairman of IP Trend, and Steve Chang, CEO and Chairman of Trend Micro, will be CEO.

Amendment of Projections for the Fiscal Year 2000

  • As a result of the acquisition of its ownership interest in Nippon Unisoft, Trend Micro has amended its projections for the fiscal year ending December 31, 2000, which were previously announced in a press release dated February 17, 2000. 
  • Projections of Trend Micro's financial results for the fiscal year 2000 reported on February 17, 2000 were as follows: 

NetSales: 19,000 million yen
Ordinary Income: 6,300 million yen
Net Income: 3,900 million yen

  • The projections of Trend Micro's financial results for the fiscal year 2000, taking into account the addition of Nippon Unisoft as a subsidiary of Trend Micro, have been amended as of today as follows: 

Net Sales: 20,600 million yen
Ordinary Income: 6,300 million yen
Net Income: 3,900 million yen