Commtouch Signs Eleven New Licensing Agreements in the First Quarter of 2007.

SUNNYVALE, Calif. -- Commtouch[R] (Nasdaq:CTCH) announced today that the Company has signed 11 new licensing agreements during the first quarter of 2007.

"It has been a remarkable quarter in terms of new deals signed, and we are pleased to see our business progressing according to plan," commented Gideon Mantel, Commtouch's chief executive officer and chairman of the board. "Eleven successful wins in one quarter are a strong testament to the superiority of our Recurrent Pattern Detection[TM] technology."

The companies that signed with Commtouch are based in North America, Europe and Asia, and include:

* Network security providers;

* Managed service providers; and

* Messaging Security providers.

The number of companies licensing Commtouch technology reached 66 at the close of the first quarter of 2007, taking into account two older deals that were discontinued.

"We expect that several of these new licensing partners will open up new markets for Commtouch, leading the way to increased market share overall," Mantel said. "Many of these licensing partners will be launching our solution integrated into their products in the post-summer period, so we anticipate seeing the main revenue impact in the fourth quarter of 2007 and into 2008."

Commtouch typically announces specific deals when the integrated product is being launched, assuming prior agreement of the licensing partner. However, Commtouch does not individually announce every licensing agreement, due to a number of considerations including confidentiality agreements.

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 over 16 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[TM] (Recurrent Pattern Detection), 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 60 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 Sunnyvale, CA. For more information, see: www.commtouch.com, including the Commtouch online lab detailing spam statistics and charts.

This press release contains forward-looking statements, including projections about Commtouch 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 our newer product offerings; 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 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.