BUSINESS WIRE, September 13, 2004
Commtouch Acquires Patent for Preventing Delivery of Unwanted Bulk Email

Acquisition augments the company's development and patenting of its Recurrent Pattern Detection technology

Commtouch(R) (Nasdaq:CTCHC), the innovator of anti-spam solutions featuring Recurrent Pattern Detection (RPD)(TM) technology, announced today that it has acquired from a private inventor Patent No. 6,330,590, issued by the United States Patent and Trademark Office (USPTO) on December 11, 2001, covering a system for preventing delivery of unwanted bulk email.

The patent represents a pioneering effort to identify and eliminate bulk (spam) email by way of a system that monitors live email, identifies certain characteristics of the email message that appear in more than one email, creates a special signature identification code for the email and uses the signature to prevent the delivery of unwanted email that is associated with the signature.

"We feel that this patent represents the foundation on which many of the more advanced anti-spam systems are being designed and built today," noted Amir Lev, Commtouch's President and Chief Technology Officer. "Based on our understanding of other patents and prior art applications, this patent stood out as the earliest and most important patent in the field. We look forward to cooperating with many of our colleagues in the war against spamming to make this process available to them as well."

The company is currently formulating the terms of a licensing program that it hopes to implement in the near future vis-a-vis appropriate candidates.

"As a worldwide leader in anti-spam technology, we remain committed to continuing to develop innovative technologies, such as RPD, and protecting the resulting state-of-the-art products that we are marketing," added Mr. Lev. "Certainly, with RPD proving to be a most effective anti-spam technology that routinely meets the rigorous success parameters most discerning customers are employing during the product evaluation stage, we look to continue expanding our patents portfolio for this technology."

About Commtouch

Commtouch Software Ltd. is a global developer and provider of proprietary anti-spam solutions featuring Recurrent Pattern Detection (RPD)(TM) technology. 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. 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:CTCHC). To learn more about Commtouch visit http://www.commtouch.com/. IDC recently wrote about RPD as a unique and potent approach to fighting spam in the firm's white paper titled, "Choosing the Best Technology to Fight Spam." For additional information, please see the following URL: http://www.commtouch.com/analysts_and_publications.shtml

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 http://www.sec.gov/.

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

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