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

  
    
  
  
    
      Commtouch® (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™ 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™ (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.