Commtouch Technology Integrated by G DATA Security, Germany's Leading Anti-Virus Software Expert.

MOUNTAIN VIEW, Calif. -- Commtouch(R) (Nasdaq:CTCH), the developer of ground breaking Recurrent Pattern Detection(TM) (RPD) technology for real-time anti-spam and Zero-Hour(TM) virus protection, announced today a licensing agreement with G DATA Security, Germany's top Anti Virus (AV) software provider. RPD(TM) will boost the overall performance of G DATA Security's offerings by providing immediate real-time virus protection as well as top quality anti-spam service.

A Necessary Complement to Any AV Product

"Most new virus outbreaks proliferate rapidly, rather than spreading slowly and silently," said Richi Jennings, email security practice lead at Ferris Research. "In the face of this trend, there's now a clear need for zero-hour virus protection. Traditional signature-based approaches will not be able to protect users fully from these new rapid-fire outbreaks. AV vendors urgently need to build or buy a signature-independent protection technology."

Taking Virus Protection One Step Further

"Partnering with Commtouch is significant because it enables us to take our anti-virus capabilities even further. In addition to providing the most sterile signature-based protection available, G DATA AntiVirusKit now protects users, right from the first moment when threats appear," said Dr. Dirk Hochstrate, G DATA's Publishing Director. "Implementing RPD reflects our commitment to providing 100% threat protection. Our client base will now enjoy unprecedented protection levels, in a way that no classic anti-virus approach can provide."

"We are extremely pleased to have been chosen by a high-profile AV vendor such as G DATA Security. This is a significant vote of confidence and we believe the partnership will be highly successful," said Ronni Zehavi, Commtouch's VP International Business Development. "Given that Commtouch technology has been adopted and integrated by over 30 security vendors -- in the US, UK, France, Korea, Japan, China, Israel, and now Germany -- it is clear that the 'Commtouch Inside' strategy is rapidly becoming the industry's de-facto standard. We believe that within 12 months, no top-rated security product will be complete without integrated Commtouch technology for spam and virus outbreak detection."

About G DATA Security

G DATA Security is Germany's front-running anti-virus software company and also has a strong presence throughout Western Europe and Japan. The company's AntiVirusKit (AVK) emerged the winner in more tests and received more accolades since the introduction of its DoubleScan(R) technology than any other PC virus protection software in Germany. G DATA Security also has a strong presence in the Internet security market. In February 2005, AVK InternetSecurity was awarded top marks compared to other Internet security packages in the most recent survey carried out by Germany's leading independent consumer watchdog, Stiftung Warentest.

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 virus protection solutions. Using core technologies including RPD 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 about 30 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.

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 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.