Standout Law Firm Recipient of 'InfoWorld 100 Award' in 2003 Selects Commtouch Anti-Spam Solution.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 17, 2004

Commtouch's Recurrent Pattern Detection(TM) Patent-Pending Technology

Selected after Multiple Anti-Spam Approaches Were Tested

Call it an injunction against spam intrusion. Commtouch(R) (Nasdaq:CTCH), a global developer and provider of proprietary anti-spam solutions, today announced that Keesal, Young & Logan (KYL), a full-service law representing businesses throughout the United States, Europe and Asia, selected Commtouch's anti-spam solution to detect and block spam and has achieved a 97 percent reduction in spam with zero false positives.

According to KYL, before Commtouch's anti-spam solution was implemented it was not uncommon for a particular email user at the firm to receive nearly 250 spam messages daily. "In a law firm, client service is held at a premium above all else," said KYL founding partner Skip Keesal. "Commtouch gave us back time that had been lost to unsolicited email and improved our ability to focus on our clients."

Commtouch Anti-Spam Solution Selected after Multiple Anti-Spam

Approaches Were Tested

KYL Director of Information Justin Hectus, a 12-year veteran of the law firm, said KYL, honored by InfoWorld magazine among its 'InfoWorld 100" in 2003 this past November, has high standards when it comes to implementing IT solutions to enhance the law firm's employees productivity.

"Prior to selecting Commtouch, we tested several software solutions, none of which struck the appropriate balance between stopping spam and recognizing and allowing 100% of valid email to be passed on to users," Hectus said. "We also tried gateway solutions, which not only added a new single-point-of-failure, but also impacted users that didn't have a spam problem to begin with."

"Then S&L International, an integrator based in Los Angeles, proposed a new solution. They had rigorously tested multiple anti-spam solutions and they were confident in recommending Commtouch as 'the best of the best'," said Hectus. "S&L introduced the Commtouch anti- spam solution to us over breakfast and users stopped getting spam after lunch. It was amazing."

An Anti-Spam Solution Transparent to IT and Email Users Excels

When Left to Its Own Devices

According to KYL's Hectus, the Commtouch anti-spam solution is almost completely transparent from both a network administrator and end-user perspective.

"Users can personalize their email setting as much as they want, but the solution is so effective and accurate that they don't even need to know it's there," said Hectus. "They just know that their life has suddenly become a lot less complicated. And the way that Commtouch's anti-spam solution is integrated with Active Directory and Exchange, it's a snap to administer and we haven't experienced any impact in the performance of our mail server."

A Need for 'Strong, Intelligent and Extremely Precise Medicine to

Cure Our Spam Disease'

According to Hectus, one of the biggest challenges for KYL was that while the firm was receiving over 200,000 spam messages per month, less than 20 percent of email users at the law firm had reported that they receive more than a few spam messages per day. Furthermore, noted Hectus, more than 50 percent of email users at the law firm had reported that they receive zero spam. For the users with a spam problem, life was made even more frustrating by the implementation of wireless devices to provide attorneys with a competitive advantage. Although pumped up about being armed with mobile communications devices to send and receive email while they are on-the go, some attorneys at KYL were now being bombarded by hundreds of spam messages invading their mobile devices. "We were dealing with an overwhelming volume of traffic, a very smart and devious adversary in a variety of tricky spammers, and a limited number of impacted users," said Hectus. "Commtouch's approach significantly reduced unsolicited mail without creating a problem for users who weren't previously impacted by spam."

KYL's Hectus estimates conservatively that if only 10 attorneys out of 80 at KYL are experiencing the spam intrusion, Commtouch's anti-spam solution will recover a minimum of $75,000 annually in attorney time that was previously wasted while dealing with spam.

"Commtouch's solution was strong, intelligent and extremely precise medicine to cure our spam disease," said Hectus.

Unsolicited Email Praise Sent from Employees to the KYL IT

Department

After the first weekend that the Commtouch anti-spam solution was in action, Hectus received emails from a wide range of employees at KYL. Here's just a sample of the many he received:

    --  "The anti-spam program was 100% accurate in separating spam
        from real email over the weekend."
        - Neal S. Robb, Partner

    --  "Generally when I come in on Mondays, I have at least 100 or
        more incoming messages (most of which are spam). This morning
        I had 11 and none of them were spam! I love this new
        program!!!"
        - Sandy Parker, Legal Secretary

    --  "Good job guys. I only had two spam emails get in over the
        weekend! Normally there would be a ton. Thanks!"
        - Glen R. Piper, Associate

    --  "Awesome!"
        - Al Peacock, Partner

    --  "This new solution has made my life 100% less complicated."
        - Jose A. Villalobos, systems engineer.

    --  "I never would've believed that such an effective solution was
        possible. Thanks so much!"
        - Janice Jaco, Legal Secretary

Hectus noted that over the many years he's been involved with IT projects at KYL, he hasn't seen the kind of unsolicited praise he received after Commtouch's anti-spam solution was implemented. "From the day we were introduced to Commtouch, it's been a total pleasure," he said.

About Commtouch

Commtouch Software Ltd. is a global developer and provider of proprietary anti-spam solutions. Its mission is to protect and preserve the integrity of the world's most important communications tool -- email. The company's core technologies reflect its 13 years of experience as a leading vendor of email software applications and provider of global messaging services. Commtouch's patent-pending technologies are employed in solutions that are sold through channels and resellers and also sold directly to enterprises. In addition, Commtouch anti-spam technologies are incorporated in software applications of security and messaging OEMs. 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 visit 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; 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.

Recurrent Pattern Detection is a trademark and Commtouch is a registered trademark of Commtouch Software Ltd.