Commtouch Reports June Spam Trends: Small Countries are Big on Spam; Porn is on the Rise.

MOUNTAIN VIEW, Calif. -- Commtouch(R) (Nasdaq: CTCH), the developer of ground breaking RPD(TM) technology for real time anti-spam and Zero-Hour(TM) virus protection, today announced spam trends and statistics for the month of June. The announcement was based on data from the Commtouch Spam Detection Center, which analyzes 1.5 billion messages each month. More detailed quotable statistics and graphs on global spam trends can be downloaded from Commtouch's Online Lab (http://www.commtouch.com/Site/ResearchLab/statistics.asp).

Almost A Million New Outbreaks Per Day

The Commtouch Spam Detection Center recorded about 28,260,000 new spam outbreaks during the month of June, or 942,000 new outbreaks per day. "Spam volumes have held steady during the past few months, at just under a million new outbreaks per day," said Oren Drori, director of product marketing at Commtouch. "However, there has been a marked increase in the past year. We recorded 30% more spam outbreaks in Q2/2005 than during the same period last year."

Small Countries Picking Up Speed

South Korea, China and the United States continue to distribute the lion's share of global spam, but Commtouch analysis shows that smaller countries are gaining ground. In only three or four months, the three spam superpowers' share of global spam dropped from a full 70% to about 50%. The other half of global spam originates from diverse locations, including Europe, South America and Taiwan.

Origin of Spam
South Korea                20.19%
China                      17.86%
United States              14.31%
France                     5.14%
Taiwan                     4.16%
Brazil                     4.13%
Spain                      3.21%
Japan                      2.73%
Germany                    2.38%
United Kingdom             2.13%
Portugal                   1.84%
--------------             ------
Others                     20.84%

Spam Topics

The ebb and tide of spam content is now moving in favor of pornography, at the expense of pharmaceutical and software content. In June 2005, porn accounted for a hefty 19% of all spam, up from only 10% in May. Nevertheless, pharmaceuticals have continued to hold the top category since last year--particularly offerings of Viagra, other sexual stimulants, and tranquilizers.

Category                  Prevalence  Typical themes
------------------------- ----------- --------------------------------
Pharmaceutical            40.57%      Viagra, Xanax, Cialis
Porn & Dating             19.06%      Teen webcams, Bored housewives
Software                  10.45%      Microsoft and Macromedia
                                      (Windows, Photoshop, Freehand)
Sex enhancers             9.63%       "Surprise your girlfriend today"
Financing                 9.11%       Mortgage, Generic loans
Gifts & Shopping          3.07%       Watch replicas
Computer hardware &
 Electronics              2.87%       Cameras, iMac, iPod
Stocks                    2.05%       Pump-and-dump schemes
------------------------- -----------
Other                     3.18%

About Commtouch

Commtouch Software Ltd. (Nasdaq:CTCH) is dedicated to protecting and preserving the integrity of the world's most important communications tool--email. Commtouch has 14 years of experience developing messaging software, and is a global developer and provider of proprietary anti-spam and Zero-Hour(TM) virus protection solutions. Using core technologies including RPD(TM)-Recurrent Pattern Detection, the Commtouch Detection Center analyzes 1.5 billion email messages per month to identify new spam and malware outbreaks within minutes of their introduction into the Internet. Integrated by 28 OEM partners, Commtouch technology protects thousands of organizations, with 35 million users in 100 countries. Commtouch is headquartered in Netanya, Israel and has a subsidiary in Mountain View, CA. For more information, see: www.commtouch.com.

For coverage of Commtouch technology by industry analysts such as IDC and Osterman Research, see: http://www.commtouch.com/site/ResearchLab/research.asp.

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.