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TWST: Shall we begin with a quick introduction to RADWARE (Nasdaq: RDWR) including an historical sketch?

Mr. Moshe: The Company was established in April 1997 and two and half years later in September 1999 went public on NASDAQ. We raised $65 million in the IPO. Then, in January 2000, we had a second offering, half to the company and half to the shareholders, and all in all we raised $130 million. We have positive cash flow and we do not spend the money. In fact, right now we have $125 million in cash. We are one of only a few companies that can show an increase in assets in 2001 versus 2000, and in this very problematic market situation, I believe this is a very impressive picture. Also, if we compare our market share to our competitors, we can see that we gained market share over the last two and a half years in what is a very competitive landscape, which I believe is also very impressive. Our assets were around $43.3 million last year. We have about 270 employees worldwide, with about 150 of them dedicated to sales and marketing and tech support. The space we are active in is Internet traffic management.

TWST: What are the advantages and strengths that contributed to this performance in, as you say, a tough environment?

Mr. Moshe: Actually, we have the broadest caliber product line in the industry. We have products where we are the only one in the market, such as the Link Proof, for example, which we introduced to the market about two years ago. This solution can offer load balancing for customers who have more than one access to the Internet. It manages and optimizes their lines and provides the fastest answering time to the users. None of our competitors have similar products, and therefore this has been another tool that has enabled us to increase our penetration to clients. Just to give you an example, Reuters was not initially one of our clients, but we were the only company that could offer them a solution such as Link Proof. They not only bought this product line, but then, having been exposed to other product lines of RADWARE, they purchased additional products. We really have the leading technology. We have won more prizes in the industry than everyone else combined. But of course the main prizes come from the customers. In the first quarter, for example, we announced that Akamai Technologies Inc (Nasdaq:AKAM) has decided to choose RADWARE for the solution of traffic redirection of all its sites. They have more than 10,000 servers to collect all over the world and the traffic redirection between them is absolutely critical for their business, so they really need the best of breed. We were the best company in their mind to provide the best solutions for their needs.

TWST: And the balance sheet is in good shape?

Mr. Moshe: Yes, we have very strong balance sheet. First of all I would like to mention that we don’t capitalize anything. If you take the balance sheet, you get what you see. We have $ 125 million in cash. We have no debts, and we have operating positive cash flow. So all-in-all this is a very strong balance sheet. The DSO is only 76 days. So again we sell and give unlimited down payments to the client. All in all this is 76 days and this is the lowest that you can find in our competitive landscape. We say that all our accounting stays conservative and we leave the creativity to the R&D.