Commtouch Unveils Image-Based Spam Defense.

MOUNTAIN VIEW, Calif. -- Commtouch(R) (NASDAQ:CTCH), the leading provider of real time anti-spam and Zero-Hour(TM) virus protection technology, today unveiled its new defense against spam containing images only (unsolicited email with pictures, but no text or web hyperlinks).

Image-based spam -- often in the form of stock "pump-and-dump" scams -- can cause loss of productivity as well as financial damage to organizations and individuals that do not block them effectively.

"Over the past several months, through processing billions of email messages, we identified an increase in this particular subset of spam, containing images only," said Amir Lev, Commtouch's Chief Technology Officer. "Traditional anti-spam technology -- such as content-based, Bayesian filtering, Heuristics and URL filtering -- is practically defenseless against this image-based spam, leaving organizations open to floods of these types of emails."

Spammers have created sophisticated methods of varying their images slightly with each spam attack, making it even more difficult for most anti-spam technologies to catch this type of spam.

Commtouch RPD(TM) Identifies Recurrent Patterns Even in Images

Commtouch's patented Recurrent Pattern Detection(TM) technology uses advanced algorithmic processes to match recurrent patterns across similar messages, regardless of the content or language of the message, and regardless of variations in the messages. The enhanced Commtouch solution can decode images in spam, allowing the proven RPD technology to block image-based spam at the high level Commtouch achieves with other types of spam.

"We are pleased that we were able to identify this trend at its start, and provide a unique RPD-based solution to our OEM partners and enterprise customers," Lev continued.

"We are thrilled with the new image spam defense capability, as it gives us the ability to compete and differentiate ourselves against traditional anti-spam technologies," said Michael Hyatt, CEO of BlueCat Networks. "With Commtouch's RPD technology integrated into our Meridius Email Security Gateway, our customers are saving time and money."

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 15 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 billions of email messages per month to identify new spam and malware outbreaks within minutes of their introduction into the Internet. Integrated by over 30 OEM partners, Commtouch technology protects thousands of organizations, with over 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, including 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, 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.