Commtouch Sets Date for Annual Meeting of Shareholders.

Company Seeks Shareholder Approval of Gideon Mantel as Chairman

MOUNTAIN VIEW, Calif. -- Commtouch[R] (NASDAQ:CTCH), the leading OEM provider of real time anti-spam, Zero-Hour[TM] virus protection and IP Reputation technology, today announced that it will hold its annual meeting of shareholders on Friday, December 15, 2006. Among other matters, the company will seek shareholder approval of Gideon Mantel as Chairman (in addition to his duties as CEO), replacing Ian Bonner who held the Executive Chairman position for the past two years.

"During Ian's chairmanship, the Board successfully guided management's plan for and move to operational profitability," stated Lloyd E. Shefsky, Director and Chairman of the Nominating Committee. "Given Ian's other commitments, at this time, the Board feels that reducing its size affords the benefit of continuity. Having the same directors guide the further implementation of that profitability plan is extremely valuable. Furthermore, having Gideon Mantel serve as Chair at this time will further enhance the Board's coordination with management."

Gideon Mantel, CEO of the company added: "We are extremely grateful to have had Ian's presence on the board for the past two years, and certainly understand his need to devote his full energies to Inxight Software, Inc., where he serves as President and CEO. We wish him continued success going forward."

Ian Bonner remarked: "It has been a fulfilling two years for me at Commtouch. The company continues to successfully perform its business plan, and current management is well equipped to continue meeting the challenges to come. I look forward to assisting the company on an ad hoc basis as the need arises."

About Commtouch

Commtouch Software Ltd. (NASDAQ:CTCH) is dedicated to protecting and preserving the integrity of the world's most important communications tool -- e-mail. Commtouch has over 15 years of experience developing messaging software and is a global developer and provider of proprietary anti-spam, Zero-Hour virus protection and IP Reputation solutions. Using core technologies including RPD (Recurrent Pattern Detection[TM]), the Commtouch Detection Center analyzes billions of email messages per month to identify new spam and malware outbreaks within minutes of their introduction into the Internet. Integrated by more than 50 OEM partners, Commtouch technology protects thousands of organizations, with over 50 million users in over 100 countries. Commtouch is headquartered in Netanya, Israel, and has a subsidiary in Mountain View, Calif. For more information, see: www.commtouch.com. The site includes the Commtouch online lab detailing spam statistics and charts.

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; 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; and the failure of Commtouch to meet The Nasdaq Capital 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.