Commtouch Anti-Spam Wins Marquee Accounts in Financial Services Market.

MOUNTAIN VIEW, Calif. -- Commtouch(R) (Nasdaq:CTCHC), the innovator of anti-spam solutions featuring Recurrent Pattern Detection (RPD)(TM) technology, announced today that the company is helping a wide range of financial services-oriented companies detect and block spam -- from investment banks to stock brokerage houses; credit unions to accounting firms. The following are just some of the financial services-oriented companies benefiting from Commtouch Anti-Spam: Gelfand Rennert; Houlihan Lokey Howard & Zukin; Kleiner Perkins Caulfield & Byers; North Island Credit Union; and Credit Union of Southern California.

"Financial services understand very well the concept that time equals money, and how spam wastes the time of their professionals and eats into productivity," said Gideon Mantel, CEO of Commtouch. "Our resellers and system integrator channel partners tell us that financial services companies embrace Commtouch Anti-Spam because it offers the highest spam detection rate in the industry and near zero false positives, and does not require additional IT infrastructure investment."

Said Michael Sharp, IT manager at Houlihan Lokey Howard & Zukin, an international investment bank based in Los Angeles: "The amount of spam reaching our inboxes has been reduced dramatically thanks to the Commtouch solution. Senior executives have noticed the positive result of Commtouch by telling me that they are not bombarded by those annoying emails anymore."

Tom Osterman, manager of IT Services at Kleiner Perkins Caulfield & Byers, said, "Commtouch's Anti-Spam solution detects and blocks all forms of spam. No additional IT infrastructure was required to get the solution up and running, and email users within the organization don't have to change any of their behaviors whatsoever. We are very happy with Commtouch. It has had a significant impact on user productivity by reducing spam management (review and deletions). I'm looking forward to the future developments in the product."

Breakwater Security Associates -- a Seattle-based firm whose services include strategic consulting, compliance and regulatory guidance, managed security, and training and education -- said that Commtouch's Anti-Spam solution is a tremendous complement to the company's existing managed security services. "The impact of federally mandated security levels for financial services companies means that they are increasingly calling on full service security firms like ours," said Mike Miller, vice president of business development at Breakwater Security Associates. "And having a premier anti-spam component like Commtouch Anti-Spam that is integrated with our managed security solutions is putting a real smile on the faces of our customers."

About Commtouch

Commtouch Software Ltd. is a global developer and provider of proprietary anti-spam solutions featuring Recurrent Pattern Detection (RPD) (TM) technology. Its mission is to protect and preserve the integrity of the world's most important communications tool -- email. The company's core technologies reflect its 13 years of experience as a leading vendor of email software applications and provider of global messaging services. Commtouch's patent-pending technologies are employed in solutions that are sold through channels and resellers. In addition, Commtouch anti-spam technologies are incorporated in software applications of security and messaging OEMs. Commtouch is headquartered in Netanya, Israel and its subsidiary, Commtouch Inc., is based in Mountain View, CA. The company was founded in 1991 and has been publicly traded since 1999 (Nasdaq:CTCHC - News). To learn more about Commtouch visit www.commtouch.com.

This press release contains forward-looking statements, including projections about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, and statements including words such as "expect", "plan", "estimate", anticipate", or "believe" are forward-looking statements. These statements are based on information available to us at the time of the release; we assume no obligation to update any of them. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors, including business conditions and growth or deterioration in the Internet market, commerce and the general economy both domestic as well as international; fewer than expected new-partner relationships; competitive factors including pricing pressures; technological developments, and products offered by competitors; availability of qualified staff for expansion; and technological difficulties and resource constraints encountered in developing new products as well as those risks described in the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through www.sec.gov.

Recurrent Pattern Detection is a trademark and Commtouch is a registered trademark of Commtouch Software Ltd.