Commtouch RPD Technology Licensed by ParetoLogic to Enhance its Security Products for Over 1 Million Home PCs; Private PC Users to Enjoy Enterprise-Level Anti-Spam Protection.

MOUNTAIN VIEW, Calif. -- Commtouch(R) (NASDAQ:CTCH), the developer of ground-breaking RPD(TM) technology for real time anti-spam and zero-hour virus protection, announced today that it signed an agreement with ParetoLogic Inc. leading to the integration of Commtouch RPD technology into ParetoLogic's security and privacy software applications for PCs.

ParetoLogic CEO Don Wharton said, "By integrating Commtouch's RPD technology into our software applications, we are giving our users the highest possible anti-spam protection. Your home, office, or small business can now have the same level of protection achieved by large corporate enterprises -- and we are talking about detection levels that are well above 97%, with virtually no false positives."

Avner Amram, executive vice president at Commtouch, said, "RPD technology has been integrated into many of the leading enterprise security solutions. This new agreement with ParetoLogic shows that Commtouch technology is equally suitable for off-the-shelf solutions for private users."

About ParetoLogic

ParetoLogic Inc. specializes in privacy and security software, offering leading-edge integrated application solutions that protect private users from unwanted spyware and other intrusions into their network privacy and security. ParetoLogic applications are designed to search and eliminate all known computer parasites that bog down the speed and capabilities of PCs: spyware, adware, malware, keyloggers, toolbars, browser hijacking, pop-ups and more. The company's advanced software applications give individuals peace of mind that their computer is secure and their privacy is protected.

ParetoLogic is headquartered in Victoria, British Columbia, Canada. For more information visit www.ParetoLogic.com.

About Commtouch

Commtouch Software Ltd. (NASDAQ:CTCH) is dedicated to protecting and preserving the integrity of the world's most important communications tool -- email. A global developer and provider of proprietary anti-spam solutions, Commtouch has an installed base of over 25 million users. The company's core technologies, including RPD(TM) -- Recurrent Pattern Detection, reflect Commtouch's 14 years of experience developing messaging software. Commtouch solutions are incorporated into OEM applications and are also sold through channels and resellers. Commtouch is headquartered in Netanya, Israel and has a subsidiary in Mountain View, CA. For more information, see 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; fewer than expected license agreements resulting from Commtouch's exclusive rights to market DCC; competitive factors including pricing pressures; technological developments, and products offered by competitors; the ability of our OEM partners to successfully penetrate markets with products integrated with Commtouch technology; a slower than expected acceptance rate for real time AV solutions in general and the Commtouch Zero Hour(TM) Virus Protection product in particular; availability of qualified staff for expansion; technological difficulties and resource constraints encountered in developing new products, such as the Zero Hour solution; and the failure of Commtouch to meet The NASDAQ SmallCap Market's listing standards in the future; as well as those risks described in the text of this press release and 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, RPD and Zero-Hour are trademarks, and Commtouch is a registered trademark, of Commtouch Software Ltd. U.S. Patent No. 6,330,590 is owned by Commtouch.