Commtouch Ships First Comprehensive Enterprise Anti-Spam Solution.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 24, 2003

Early enterprise customers welcome speed, accuracy of Anti-Spam

Adaptive Protection (ASAP!(TM)) plus ease of implementation

Commtouch (Nasdaq:CTCH), a developer and provider of proprietary enterprise anti-spam solutions, today announced that it has begun shipping the first full commercial implementation of its enterprise anti-spam solution, Anti-Spam Adaptive Protection (ASAP!(TM)).

ASAP! eliminates the problem of spam in the enterprise by delivering a solution that not only meets the needs of IT departments - by integrating into the existing e-mail infrastructure and requiring no client installations - but also the needs of end users by enabling them to set their own personal definitions for spam within the users' e-mail client, permitting them to interact with e-mail as they are accustomed to.

Drawing on its extensive experience as a pioneer of messaging applications and platforms, Commtouch has developed patent-pending technology that sets ASAP! apart from existing anti-spam solutions. ASAP!'s architecture combines an Enterprise Gateway application with a remote Service Center to deliver the benefits of in-house installation and outsourced service in a single solution.

"Because spammers use a variety of methods to defeat spam blocking technologies, the most effective anti-spam solution is one that uses a multi-pronged approach, adapting its detection tactics to the changing nature of spam and the changing tactics of spammers", says Michael Osterman, founder of Osterman Research. "Commtouch's ASAP! uses this multi-pronged approach to block spam".

The Service Center enables Commtouch to analyze the characteristics of tens of millions of e-mail messages every day, so that a spam attack can be identified and blocked in real time, before the attack can reach the destination corporation. The Enterprise Gateway provides IT with the ability to customize ASAP!'s detection to the needs of the organization and its employees. ASAP! adapts to the needs of end users - no change in email behavior is required - and the needs of IT - centralized control with customizable application of policies - and additionally adapts to the changing nature of spam attacks themselves. This combination enables ASAP! to offer more than 95% detection and effectiveness as well as near-zero false positives.

StarBand, a provider of consumer high-speed, two-way Internet satellite services, has been using ASAP! internally for several months. "As a leader in providing high-speed satellite Internet services, we've been impressed with Commtouch's approach to spam prevention," said StarBand IT Director Jacky Aharon. "It's easy to implement and manage, fast, and accurate. Plus, it's quick and simple for employees to manage their own junk mail folders."

Said Commtouch CEO Gideon Mantel, "Our long experience in e-mail products and services has taught us how vital e-mail is as a business communication medium and, while spam is insidious, stopping spam should not create more problems than it solves. We don't read the content of e-mail messages, we don't alter the MX record, nor do we quarantine mail outside the corporate firewall. Because ASAP! integrates directly into the corporate e-mail infrastructure, IT resource usage is minimized, and users can set their own local rules to decide what is and is not spam."

A recent study published by The Radicati Group (www.radicati.com) re-emphasizes the magnitude of costs attributable to spam in the corporation today. The study projects that, if nothing is done to stop spam, the worldwide losses for companies, in terms of additional servers they have to deploy and manage to process spam, will amount to $20.5 billion in 2003, growing to $198 billion in 2007. In 2003, a company of 10,000 users with no anti-spam protection will spend, on average, $49 per mailbox per year processing spam messages.

ASAP! pricing ranges from $13 to $20 per seat, depending on the number of users within the enterprise.

ASAP! is available now through a growing network of Value Added Resellers (VARs) across North America. According to Mantel, Commtouch also plans to begin shipping during the summer a software development kit that allows vendors to integrate ASAP! capabilities with anti-virus, firewall and specialized network appliance solutions.

Sales inquiries can be directed to [e-mail].

About Commtouch

Commtouch Software Ltd. is a developer and provider of proprietary anti-spam solutions. The company's core technologies reflect its decade of experience as a leading vendor of email software applications and provider of global messaging services. 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:CTCH). To learn more about Commtouch's solutions visit our web site at http://www.commtouch.com.

Note: Commtouch(R) is a registered trademark and ASAP!(TM) is a trademark of Commtouch Software Ltd. Other terms and product names in this document may be trademarks of others.

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.