Correction of Earnings Announcement Report for the fiscal year ending December 31, 2007

Tokyo, Japan – March 25, 2008 - Trend Micro (TSE: 4704), a leader in network antivirus and Internet content security software and services, today is restating its Consolidated Financial Statements for the fiscal year ending December 31, 2007, which were previously announced on February 14, 2008.

Amendments (Revised figures are underlined.)

1. Management Policy and Business Performance

5. RISK FACTORS;

BECAUSE OF THE INFLUENCE OF OUR PRINCIPAL SHAREHOLDERS, OUR OTHER SHAREHOLDERS MAY BE UNABLE TO INFLUENCE OUR BUSINESS

<As Originally Reported> 
Our principal shareholders, including major shareholders who beneficially own more than 5% of the issued shares of our common stock and directors, beneficially owned approximately 39.5% of our outstanding shares as of December 31, 2007. These shareholders, if they act together, would be able to significantly influence all matters requiring approval by our shareholders, including the election of directors and the approval of mergers or other business combination transactions. Our principal shareholders may have strategic or other interests that conflict with the interests of our other shareholders. As a result, the concentration in our shareholdings may have the effect of delaying or preventing a change in control of Trend Micro, which could result in the loss of a significant financial gain to our shareholders. 

<As Amended> 
Our principal shareholders, including major shareholders who beneficially own more than 5% of the issued shares of our common stock and directors, beneficially owned approximately 34.6% of our outstanding shares as of December 31, 2007. These shareholders, if they act together, would be able to significantly influence all matters requiring approval by our shareholders, including the election of directors and the approval of mergers or other business combination transactions. Our principal shareholders may have strategic or other interests that conflict with the interests of our other shareholders. As a result, the concentration in our shareholdings may have the effect of delaying or preventing a change in control of Trend Micro, which could result in the loss of a significant financial gain to our shareholders.

4. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED BALANCE SHEETS

<As Originally Reported>

(Thousands of yen)

Account
December 31, 2006
December 31, 2007
Amount
%
Amount
%
(Assets)
       
II
Non-current assets
       
  1. Property and equipment
       
    (1) Office furniture & equipment
2,595,401
  3,855,314
 
    (2) Others
841,881
  954,447
 
  Total Property and equipment
3,437,282
  4,809,760
 
Account
December 31, 2006
December 31, 2007
Amount
%
Amount
%
(Liabilities)
       
II
Long-term liabilities
       
  1. Deferred revenue
7,681,730
  12,833,730
 
  2. Allowance for retirement benefits
1,005,785
  1,098,343
 
  3. Other
39,784
  17,859
 
  Total long-term liabilities
8,727,299
5.3
13,949,932
6.9
  Total liabilities
75,313,546
45.4
90,321,464
44.9

<As Amended>

(Thousands of yen)

Account
December 31, 2006
December 31, 2007
Amount
%
Amount
%
(Assets)
       
II
Non-current assets
       
  1. Property and equipment
       
    (1) Office furniture & equipment
2,595,401
  3,855,313
 
    (2) Others
841,881
  954,446
 
  Total Property and equipment
3,437,282
  4,809,760
 
Account
December 31, 2006
December 31, 2007
Amount
%
Amount
%
(Liabilities)
       
II
Long-term liabilities
       
  1. Deferred revenue
7,681,730
  12,833,730
 
  2. Allowance for retirement benefits
997,688
  1,098,343
 
  3. Other
47,881
  17,859
 
  Total long-term liabilities
8,727,299
5.3
13,949,932
6.9
  Total liabilities
75,313,546
45.4
90,321,464
44.9

 

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.

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