Commtouch Wins Exclusive Marketing Rights for DCC; Agreement

Enhances Commtouch Licensing Strategy 
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--March 31, 2005
Commtouch(R) (NASDAQ: CTCHC), the developer of RPD(TM)
technology for real time anti-spam and zero-hour virus protection,
announced today that it has signed an agreement to obtain exclusive
rights for worldwide commercial marketing of DCC. DCC, the leading
open source anti-spam software, is used by multiple anti-spam vendors,
security vendors and managed service providers (MSPs) to protect tens
of thousands of enterprises. 
Confirms Commtouch's Leadership in Anti-Spam Licensing 
Through licensing of RPD to over 20 commercial partners worldwide,
Commtouch is already a leading player in the anti-spam OEM arena. "As
the provider of both DCC and RPD, we expect to license anti-spam
technology to more security vendors than any other provider," said
Gideon Mantel, Commtouch CEO. "The DCC licensing business is an
important new revenue source and also a path to bolstering sales of
Commtouch's RPD-based anti-spam and virus outbreak detection
solutions." 
A Win-Win Proposition to Vendors and Service Providers 
For the numerous commercial users of DCC - anti-spam vendors,
security vendors and managed service providers (MSPs) - Commtouch will
offer a new DCC licensing program. Companies using DCC also will have
an easy upgrade path to RPD, Commtouch's industry-leading anti-spam
and virus outbreak detection technology. 
Commtouch is offering an "early bird" discount to companies that
sign up before the end of June 2004. In connection with the use
license to DCC, Commtouch's new commercial licensing program will also
make available for license certain elements of U.S. Patent No.
6,330,590. 
"We believe that once word spreads about this agreement,
commercial users of DCC will recognize the advantages of our
collaboration with DCC developers, and cooperate fully with the new
licensing program," said Gary Davis, Commtouch's Licensing Officer and
General Counsel. 
A Win-Win Situation for the DCC Community 
"By working with Commtouch, we expect to increase DCC's
effectiveness in fighting spam, providing better services for
commercial DCC users," said Vernon Scrhyver, author of the DCC code.
"At the same time, we will continue supporting free spam fighting. Use
of the DCC code and participation in the global network of DCC clients
and servers will remain free to all public network users and
organizations that are not reselling anti-spam services." 
About DCC 
DCC (Distributed Checksum Clearinghouse) is a system of millions
of users, tens of thousands of clients and more than 250 servers that
collect checksums related to more than 180 million messages per day.
It is based on cooperative information sharing. DCC clients can filter
spam by using data from the distributed database maintained by the
servers. In turn, DCC servers are informed automatically by DCC
clients about current spam. 
About Commtouch 
Commtouch Software Ltd. (Nasdaq:CTCHC - News) 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(TM) -- 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:
www.commtouch.com. 
For coverage of Commtouch technology by industry analysts such as
IDC and Osterman Research, see:
http://www.commtouch.com/site/ResearchLab/research.asp 
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; fewer
than expected license agreements resulting from Commtouch's exclusive
rights to market DCC; 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 real time AV solutions in general and the
Commtouch virus detection engine in particular; availability of
qualified staff for expansion; and technological difficulties and
resource constraints encountered in developing new products, such as
the Commtouch virus detection engine, 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
www.sec.gov. 
Recurrent Pattern Detection and RPD are trademarks and Commtouch
is a registered trademark of Commtouch Software Ltd. U.S. Patent No.
6,330,590 is owned by Commtouch. 
CONTACT:
Krems Public Relations for Commtouch
Michael Krems, 650-759-7133
krems@kremspr.com
 
 
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