Commtouch Reports Fourth Quarter And Full Year 2012 Results

PRESS RELEASE

Commtouch(R) (NASDAQ: CTCH), a leading provider of Internet security technology and cloud-based services, today announced its fourth quarter and full year 2012 financial results for the period ending December 31, 2012.

Fourth Quarter & Full Year 2012 Financial Highlights:

- Revenues in accordance with US Generally Accepted Accounting Principles

(US GAAP) totaled $6.8 million for the fourth quarter compared to $5.6 million for the

sequential third quarter of 2012 and $6.0 million in the fourth quarter of 2011. Full

year 2012 revenues totaled $23.9 million, an increase of 4.0% as compared to $23.0

million in 2011.

- Non-GAAP revenues totaled $7.0 million for the fourth quarter compared to $5.6

million for the sequential third quarter of 2012 and $6.0 million in the fourth

quarter of 2011. Full year 2012 non-GAAP revenues totaled $24.1 million, an increase

of 5.0% as compared to $23.0 million in 2011. The difference between non-GAAP and GAAP

revenue is derived from the fact that deferred revenues consolidated from acquired

companies are recorded based on fair value rather than book value for GAAP purposes.

- In the fourth quarter of 2012, Commtouch closed the previously announced

acquisitions of FRISK Software International's antivirus business as of October 1,