Trend Micro Incorporated (Trend Micro) is primarily engaged in the development, production and sale of anti-virus software, and provision of management solutions for corporate computer systems. The Company also develops, markets and supports Internet content security software and services. Trend Micro offers solutions to prevent the invasion of viruses and other malicious content into corporate networks, small and medium business (SMB) networks, and individual personal computers (PCs). It helps and enables information technology (IT) managers to manage the outbreak lifecycle. This lifecycle consists of four phases, vulnerability prevention, outbreak prevention, virus response, and assessment and restoration. The Company's products and services are designed to deliver coordinated protection at the file, application, data and network layers to manage the outbreak lifecycle. Its solutions operate across a range of computer operating system platforms, including Windows Server 2003, Windows NT, Windows 98/XP/2000, Linux, Sun Solaris and several versions of UNIX. The Company's products protect all entry points in the network. Some of Trend Micro's products include Trend Micro Control Manager, Network VirusWall 2500, Network VirusWall 1200, Trend Micro Network VirusWall 300 and InterScan Messaging Security Suite. During the year ended December 31, 2005, the Company acquired Trend Micro Braintree Inc. (formerly known as InterMute, Inc.) and Trend Micro San Jose, Inc (formerly known as Kelkea Inc.). As of December 31, 2005, these subsidiaries were merged with Trend Micro Inc., a wholly owned subsidiary of Trend Micro. During 2005, it also acquired InterMute Inc., which provides anti-spyware technologies, and Kelkea Inc., which provides Internet protocol (IP) filtering reputation services. The Company develops its software in Japan, Taiwan, the United States, Germany, the United Kingdom and China, and its products are marketed by its sales subsidiaries throughout the world. Management Products The Company's product, Trend Micro Control Manager, is a centralized outbreak management console designed to simplify enterprise-wide coordination of outbreak security actions and management of Trend Micro products and services. Trend Micro Control Manager acts as a central command center for deployment of the Company's threat-specific capabilities across the network and to select third-party products to manage outbreaks. Trend Micro Control Manager offers a multi-tier management structure with a range of customization options for expanded control. Trend Micro offers Network VirusWall 2500, which delivers security by stopping network worms and vulnerability exploits. To prevent infection, it enforces security policies by blocking non-compliant devices from network access (for remediation). It isolates infected network segments and automates remote clean up in case of outbreak. Network VirusWall 2500 is deployed inline with network traffic to address the threat to network security from network worms. It protects up to 4096 concurrent users with a 10/100/1000 gigabit Ethernet copper and fiber interface, and features flexible configurations for high availability and redundancy to protect enterprises and mission-critical applications from attack. Four additional ports allow Network VirusWall 2500 to protect multiple network segments or servers. Trend Micro offers Network VirusWall 1200, which delivers security by stopping network worms and vulnerability exploits. To prevent infection, it enforces security policies by blocking non-compliant devices from network access (for remediation). It also isolates infected network segments and automates remote clean up in case of outbreak. Network VirusWall 1200 is deployed inline with network traffic at a local area network (LAN) or virtual private network (VPN) segment to addresses the threat to network security from worms. It features a 10/100 Base-T Ethernet interface to protect up to 256 users with two ports and one inline segment. The Company offers Trend Micro Network VirusWall 300, whic

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