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String of Successes Places Commtouch Technology at Forefront of Messaging Security

7 new collaborations in Q4 bring total to 17

MOUNTAIN VIEW, Calif. – January 24, 2005 – Commtouch ® (NASDAQ: CTCHC) today announced that in Q4 it entered into new licensing agreements with seven additional messaging and security vendors. Commtouch’s RPD™ Engine is now one of the world’s most widely implemented anti-spam engines. Anti-spam and security vendors in the U.S., Japan, Germany, Hungary, Israel and the U.K. rely on Commtouch’s RPD technology to provide reliable protection to users around the globe. The company anticipates providing additional information about these new licensing deals in separate press releases as integrated products are rolled out.

“There is no question that our technology licensing strategy is meeting a crucial market need. This strategy will have a positive impact on our 2005 business, and we foresee making a similar or even larger number of new alliances during 2005,” commented Gideon Mantel, Commtouch’s CEO. “RPD is becoming more than an excellent technology to boost protection performance – it is rapidly becoming a technology that no best-of-breed security vendor can do without.”

A Leading Provider of Anti-Spam Technology

Commtouch recorded a number of achievements in 2004:

  • In Q4, Commtouch signed seven new OEM licensing agreements.
  • Of the world’s leading anti-spam and security vendors, 17 already integrate Commtouch technology.
  • 25 million mailboxes are protected by Commtouch partners using RPD.
  • Commtouch’s RPD technology is the basis of state-of-the-art products offered by six appliance vendors, including Mirapoint and BlueCat Networks.
  • Managed service providers with millions of users, such as Germany based Web.DE, already use Commtouch technology to protect their subscribers.
  • High-profile security software providers with global reach are already basing their anti-virus, anti-spam and messaging products on Commtouch technology – including Sybari Software, VirusBuster and others.
  • Desktop application vendors with millions of users have implemented Commtouch technology – validating its lightweight efficiency and ease of integration.
  • Independent evaluations have recognized RPD as a cutting edge anti-spam technology, noting it has “the best combination of spam capture and accuracy,” (Osterman Research, September 2004) and the ability to “detect and block spam in the first few minutes of an outbreak, unlike other approaches” (IDC, April 2004).

 

Superior to Conventional Approaches

Mantel explained the rapid acceptance of Commtouch’s RPD Engine by comparing it to other options. “Existing technologies are ineffective as the sole defense against the dangerous new breeds of spam and malware. For those who do not have a solution already, Commtouch’s RPD Engine offers iron-clad, real-time protection from existing and emerging threats, with a no hassle implementation process.  For those who already have an anti-spam technology in place, adding Commtouch’s RPD Engine as a complementary layer means immediately reaching top industry performance on all fronts.”

About Commtouch’s RPD Engine

Commtouch’s RPD Engine immediately adds real-time spam blocking capabilities to any existing messaging protection solution. Since it is based on identification of spam outbreaks as they are mass-distributed over the Internet, Commtouch technology immediately detects new types of spam, with no need for a specific signature or content-based filters. Independent testing has shown that Commtouch detects a full 97% of spam, while maintaining by far the highest accuracy levels in the industry (only one in 27,900 messages is unnecessarily labeled as spam). 

About Commtouch

Commtouch Software Ltd. (NASDAQ: CTCHC) is dedicated to protecting and preserving the integrity of the world’s most important communications tool – email. A global developer and provider of proprietary anti-spam solutions, Commtouch has an installed base of over 25 million users. The company's core technologies, including RPD™ - Recurrent Pattern Detection, reflect Commtouch’s 14 years of experience developing messaging software. Commtouch solutions are incorporated into OEM applications and are also sold through channels and resellers. Commtouch is headquartered in Netanya, Israel and has a subsidiary in Mountain View, CA. For more information, see: http://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 the failure to satisfy the conditions imposed by the Nasdaq Listing Qualifications Panel for the continued listing of Commtouch shares on The Nasdaq SmallCap Market; 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 text of this press release or the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through http://www.sec.gov.

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

Contact:
Krems Public Relations for Commtouch
Michael Krems, 800-860-6008 or 650-759-7133
krems@kremspr.com