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Commtouch Signs Eight New Licensing Agreements in the Second Quarter of 2007

Sunnyvale, CA – July 2, 2007 – Commtouch® (Nasdaq: CTCH) announced today that the Company signed eight new licensing agreements during the second quarter of 2007.

“The new agreements reflect another strong quarter of growth in global markets,” commented Gideon Mantel, Commtouch’s chief executive officer and chairman of the board. “Market-leading companies continued to select the Commtouch Recurrent Pattern Detection technology to integrate into their security solutions.”

The total number of companies licensing Commtouch technology reached 73 at the close of the second quarter of 2007, making Commtouch one of the leading OEM vendors in the security industry.

“It is our task during the next two to three years to provide more products to our current licensing partners, while continuing to expand our partner base,” said Mantel. “Already in Q2 we saw a number of upgrades made by existing partners, who are now licensing additional Commtouch products beyond those of the initial agreements.”

Commtouch typically announces specific deals when the integrated product is being launched, and/or upon agreement of the licensing partner. Commtouch does not individually announce every licensing agreement due to a number of considerations, including confidentiality agreement restrictions.

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 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.

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
(Int'l) +972-3-607-4717
info@gkir.com