Israel Aircraft Industries LTD Selects Commtouch Anti-Spam 3.5 for Its Employees

Business Wire, May 10, 2004

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 10, 2004

Commtouch (Nasdaq:CTCH)

-- The Leader in Military and Commercial Aerospace Technologies

Says Commtouch's Patent-Pending Recurrent Pattern

Detection(TM) Technology Impressed Them

-- The Option for Different Groups Within the Multi-Divisional,

Multi-Departmental IAI Enterprise to Have a Choice of Placing

Spam in Junk Folders or Sending Spam to Site Quarantine Was a

Must-Have Feature

Commtouch(R) (Nasdaq:CTCH), a global developer and provider of proprietary anti-spam solutions, today announced that Israel Aircraft Industries LTD (IAI), the largest industrial company in Israel with over 14,000 employees, has selected Commtouch Anti-Spam 3.5 for use throughout the company as part of a two-year contract.

Over the years IAI has applied the skills and experience it has acquired in catering to Israel's security needs to become a world leader in aircraft conversion and modernization programs, unmanned air vehicles (UAVs), communication programs and defense electronics. Space is Israel's latest area of leadership, with the development of the Ofeq observation satellite, the AMOS communications satellite and the Shavit launcher.

"IAI's success in the marketplace has been based on technological systems, products and services of the highest quality, and likewise the IT solutions we use to help our employees maintain outstanding productivity are of the highest quality," said Yossi Yacovich, head of networking and servers department at Israel Aircraft Industries LTD. "Commtouch's Recurrent Pattern Detection technology is the smartest anti-spam technology available today. Commtouch Anti-Spam 3.5 provided us high level of security and privacy, with the flexibility and ease of use required for the employees of our multi-site organization."

Said Ronni Zehavi, Commtouch's VP of international sales and business development: "Commtouch Anti-Spam 3.5 is particularly well-suited to large enterprises with employees working in different divisions, departments, or groups. It's gratifying that IAI, a large enterprise at the forefront of technological ingenuity, would select our anti-spam approach and view it as the smartest approach to anti-spam available in the market."

Commtouch's anti-spam, in real-time, proactively identifies outbreaks of email messages sent en masse that possess inherent characteristics of unsolicited emails. All the messages in each spam outbreak have some recurrent patterns. Commtouch detects and classifies those patterns in real-time. Commtouch analyzes a large volume of real email traffic over the Internet and detects new recurrent spam patterns immediately once they break out, and maintains a database of spam outbreaks; Commtouch protects its customers by matching incoming messages against the spam outbreak database, in real-time.

    Unique benefits of Commtouch Anti-Spam 3.5:

        --  Message content independent - can detect spam in all
            languages and in all file formats

        --  Insensitive to content manipulation used by spammers -
            durable against spammer evolution

        --  Provides real-time protection from the very first moment a
            new spam outbreak is unleashed - especially effective
            against the recently growing trend of malicious and
            fraudulent spam messages

    Many key new features within Commtouch Anti-Spam 3.5 suit large
enterprises:

        --  A Spam Analyzer that enables the IT department to assess
            both the quantitative and qualitative aspects of spam
            bombarding the enterprise 24 hours a day, seven days a
            week.

        --  Integration with Enterprise resources e.g. existing SQL
            database and proxy server

        --  Differentiated configuration capability for enterprises
            with multiple departments - perfect fit for large and
            distributed organizations

        --  Full support of Exchange 2003, Windows 2003 and Outlook
            2003

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:CTCH). To learn more about Commtouch visit 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 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 www.sec.gov.