Sunnyvale, Calif. – December 17, 2007 – Commtouch® (NASDAQ: CTCH) today announced that all proposals presented to shareholders on its proxy statement for the annual meeting of shareholders held on December 14, 2007 were overwhelmingly approved, including the reverse stock split (by over 92% of the voting shares).
The company expects the reverse split to be effective on or shortly after January 2, 2008. As a result of the reverse stock split, each three ordinary shares of the Commtouch’s authorized ordinary shares (both issued and non-issued) will be combined and reclassified into one ordinary share, par value NIS 0.15, and the total number of shares outstanding will be reduced from approximately 76 million shares to approximately 25.3 million shares.
Gideon Mantel, CEO and Chairman of the Board, remarked: “We are extremely appreciative of our shareholders who demonstrated high levels of support for the reverse split proposal. The company will continue to work hard to prove that this vote of confidence is warranted. We have built a solid foundation, and it is from this position that we will continue to increase our value proposition to both our customers and the investment community.”
As of the opening of the Nasdaq Capital Market on or shortly after January 2, 2008, the company’s ordinary shares will begin trading at the split-adjusted level. For a period of 20 trading days, it is expected that the company’s common stock will trade on a post-split basis under the trading symbol “CTCHD.” After this 20-trading-day period, the company’s trading symbol should revert back to “CTCH.”
About Commtouch
Commtouch Software Ltd. (NASDAQ: CTCH) is dedicated to protecting and preserving the integrity of the world's most important communications tool -- e-mail. 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 Reputation Service solutions. Using core technologies including RPD (Recurrent Pattern Detection™), the Commtouch Detection Center analyzes billions of email messages per week to identify new spam and malware outbreaks within minutes of their introduction into the Internet. Integrated by scores of OEM partners, Commtouch technology protects thousands of organizations, with hundreds of millions of users in over 100 countries. Commtouch is headquartered in Netanya, Israel, and has a subsidiary in Sunnyvale, Calif. For more information, see: http://www.commtouch.com. The site includes the Commtouch online lab detailing spam statistics and charts.
Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and Commtouch is a registered trademark, of Commtouch Software Ltd. U.S. Patent No. 6,330,590 is owned by Commtouch.
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 our newer product offerings including our GlobalView Mail Reputation Service; availability of qualified staff; 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.
Company Contact
Ron Ela
Chief Financial Officer
Tel: (US) 650-864-2291
(int’l) +972-9-8636813
ron.ela@commtouch.com
Investor Relations Contact
Ehud Helft / Kenny Green
GK Investor Relations
Tel: (US) 1 866 704 6710
(Israel) 03 607 4717
info@gkir.com
