Trend Micro Reports Second Quarter Results 2

PRESS RELEASE

TOKYO, Aug. 10, 2011 /PRNewswire/ -- Trend Micro Inc. (TYO: 4704; TSE: 4704), a global cloud security leader, today announced earnings results for the second quarter 2011.

For the second quarter, Trend Micro posted consolidated net sales of 24,333 million Yen (or US $297 million, JPY81.72 = 1USD). The company posted operating income of 6,655 million Yen (or US $81 million) and net income of 3,934 million Yen (or US $48 million) for the quarter.

"Amidst media reports of multiple data breaches, Trend Micro expanded its real-time threat management solutions portfolio with the introduction of Trend Micro(TM) Threat Intelligence Manager and a major new release of Trend Micro(TM) Threat Management System," said Eva Chen, CEO. "In conjunction with cloud-based vulnerability management services, virtual patching capability and specialized Trend Micro(TM) Risk Management Services, these new products are designed to reduce the risk and impact of targeted advanced persistent threats in the enterprise."

Based on information currently available to the company, consolidated net sales for the third quarter ending September 30, 2011 is expected to be 24,600 million Yen (or US $315 million, based on an exchange rate of JPY78 = 1USD). Operating income and net income are expected to be 6,800 million Yen (or US $87 million) and 5,400 million Yen (or US $69 million), respectively.

Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in US Dollar comparisons owing to fluctuations in currency conversion rates.

Business Highlights for Q2 2011

Trend Micro announced a new risk management portfolio to combat Advanced Persistent Threats.

Trend Micro Deep Security software is now validated in the HP Cloud Operating Environment, part of the HP AllianceONE partner program.

Trend Micro announced an expanded relationship with Ingram Micro that will offer Trend Micro products and cloud security services through Ingram Micro Cloud.

Trend Micro announced SafeSync for Business to help small companies securely save, manage and access their digital files from anywhere, at anytime.

Awards and Recognition for Q2 2011

Trend Micro was named by Canalys to be the world's fastest growing leading content security vendor.

Trend Micro was named by Technavio to be the virtualization security market management leader.

Trend Micro was named VMware Technology Alliance Partner of the Year in Australia and New Zealand.

Trend Micro SafeSync garnered its first review in Italy by Computer Magazine Pro, which gave the product a score of 91 out of 100 and a "recommended by Computer Magazine Pro 2011" rating.

SC Magazine gave Trend Micro Mobile Security 5 out of 5 stars and noted that "this product is an excellent value for the money in environments that may have Windows Mobile or Symbian devices that need protecting."

SC Magazine gave Trend Micro Enterprise Security for Gateways 5 out of 5 stars and a "Recommended Buy" in the publication's group testing of anti-malware gateway solutions.

PC World Australia reviewed Trend Micro SafeSync, called it "an easy to use and good value cloud-based backup service," and gave it 4 out of 5 stars.

Patents

Trend Micro was awarded the following patents in Q2 2011:

Patent 7926108, SMTP Network Security Processing in a Transparent Relay in a Computer Network Patent 7930747, Host Intrusion Prevention Server Patent 7933231, Configuration of Devices Using Layer 2 Protocol Patent 7934261, ODC (odyssey) - On-Demand Clean-up Patent 7941830, Authentication Protocol for Network Security Services Patent 7945586, Methods and Apparatus to Protect Data Patent 7949603, Secure Online Transaction System and Method Patent 7949771, Authentication of Unknown Parties in Secure Computer Communications Patent 7950062, Fingerprinting Based Entity Extraction Patent 7953984, Enhanced Malware Detection Utilizing Transparently Integrated Searching Patent 7958555, Protecting Computer Users from Online Fraud Patent 7962956, Evaluation of Incremental Backup Copies for Presence of Malicious Codes in Computer Systems Patent 7971258, Methods and Arrangement for Efficiently Detecting and Removing Malware

Notice Regarding Forward-looking Statements

Certain statements that we make in this release are forward-looking statements. These forward-looking statements are based upon management's current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:

--Difficulties in addressing new virus and other computer security problems --Timing of new product introductions and lack of market acceptance for our new products --The level of continuing demand for, and timing of sales of, our existing products -- Rapid technological change within the antivirus software industry -- Changes in customer needs for antivirus software --Existing products and new product introductions by our competitors and the pricing of those products -- Declining prices for products and services --The effect of future acquisitions on our financial condition and results of operations -- The effect of adverse economic trends on our principal markets --The effect of foreign exchange fluctuations on our results of operations * An increase in the incidence of product returns

-- The potential lack of attractive investment targets and -- Difficulties in successfully executing our investment strategy

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 U.S. Securities and Exchange Commission.

About Trend Micro:

Trend Micro Incorporated, a global leader in Internet content security, focuses on securing the exchange of digital information for businesses and consumers. A pioneer and industry vanguard, Trend Micro is advancing integrated threat management technology to protect operational continuity, personal information, and property from malware, spam, data leaks and the newest Web threats. Visit TrendWatch at www.trendmicro.com/go/trendwatch to learn more about the latest threats. Trend Micro's flexible solutions, available in multiple form factors, are supported 24/7 by threat intelligence experts around the globe. Many of these solutions are powered by the Trend Micro(TM) Smart Protection Network(TM) infrastructure, a next-generation cloud-client innovation that combines sophisticated cloud-based reputation technology, feedback loops, and the expertise of TrendLabs(SM) researchers to deliver real-time protection from emerging threats. A transnational company, with headquarters in Tokyo, Trend Micro's trusted security solutions are sold through its business partners worldwide. Please visit www.trendmicro.com.