Commtouch Software Ltd

(NASDAQ: CTCH) December 2013

1 | Investor Overview: Company Confidential Real Security. In Real Time.

Shlomi Yanai, President

Shlomi.Yanai@commtouch.com

Brian Briggs, CFO

Brian.Briggs@commtouch.com

Commtouch, Inc., Headquarters

7927 Jones Branch Drive, Suite 2250

McLean, VA 22102, USA

Tel: 703-760-3320

Fax: 703-760-3321

2 | Investor Overview: Company Confidential Real Security. In Real Time.

Safe Harbor and Forward Looking Statements

This presentation 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 presentation; we assume no obligation to update any of them. The statements in this presentation 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; the ability of our OEM partners to successfully penetrate markets with products integrated with Commtouch technology; a slower than expected acceptance rate for our newer product offerings; availability of qualified staff; and technological difficulties and resource constraints encountered in developing new products, as well as those risks described in the text of this presentation and the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through www.sec.gov.

Commtouch Software Ltd. Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and Commtouch, Authentium, Command Antivirus and Command Anti-malware are registered trademarks, of Commtouch. U.S. Patent No. 6,330,590 is owned by Commtouch

3 | Investor Overview: Company Confidential Real Security. In Real Time.

Leading edge

technology

Recurring

revenue model

Unique go-to-

market strategy

The leading security company you’ve never heard of

Blue chip,

diversified

customer base

Leading market

position

• Patented statistical algorithms (Recurrent Pattern Detection) are future proof,

threat agnostic and enable real-time detection

• Pioneered behavior heuristics for anti-virus

• Security as a Service business model

• 100% of revenue recurring, 90% under multi-year contracts

• Partner revenue share - share in customers’ success

• Offer a complete cloud based private label security solution to OEMs, service

providers and distributors

• Own and operate cloud infrastructure with 12 data centers globally

• Over 180 OEM and service provider customers

• Antivirus solution powers Google’s Gmail and Microsoft offerings

• Messaging security underlies HP’s Unified Threat Management products

• ~30% of the mail security market runs on Commtouch software

• Market leading detection services see more than 12 billion transactions/day,

over 80x more than any other vendor

4 | Investor Overview: Company Confidential Real Security. In Real Time.

Vendors

Security Hardware | Antivirus | Network Devices | Client Software

Partner focus drives Commtouch success

Commtouch powers 30% of the mail security market

Web App Service Providers

Hosting | Saas | ISP/Telco

* Our top 10 customers represent 37% of Annual Revenue (2012)

5 | Investor Overview: Company Confidential Real Security. In Real Time.

• Patented anti-spam

technology

• Pioneered cloud-

assisted detection

• First to block image

based spam

• Language agnostic

• New threats distribution

unique diagnostics

Cloud-based detection a key competitive advantage

Commtouch Security Lab – 24X7 real time detection

6 | Investor Overview: Company Confidential Real Security. In Real Time.

Large, high growth market opportunity

“Good opportunities are being

made available in a number of

security segments to technology

and service providers with cloud

delivery capabilities”

Gartner, Market Trends: Cloud-Based

Security Services, September, 2012

2013 2016

“Security continues to be

something organizations can't do

without. This is especially true as

organizations, of all sizes, turn to

Security Software as a Service

(SaaS)”

IDC, Worldwide Security Software

as a Service 2012-2016 $1.8 B

$2.6 B

Email 11%

Web 18%

Email $1.2 B

Web $0.6 B

Email $1.6 B

Web $1.0 B

CAGR

Source: Gartner Market Trends: Cloud-based Security Services, September, 2012

7 | Investor Overview: Company Confidential Real Security. In Real Time.

• Transforming from a technology service provider to a

complete cloud-based Security-as-a-Service provider

• New management team located in US, closer to customers

• New global salesforce focused on lead generation

• New leading-edge product portfolio:

• Q1 2013: introduced Mail SaaS, Mobile security for Android, and a

new on-premise solution for service providers

• Continued technology innovation:

• Web SaaS to be delivered in Q4 2013

Transforming for growth

8 | Investor Overview: Company Confidential Real Security. In Real Time.

SMB

Internet

Commtouch Detection services (OEM) offering

Vendor device/

Service Provider

Detection Services

8

Network Model Financial Impact

• Low % revenue share • Market user price - ~$50 • For Commtouch:

3-5% from user sell price

“is this spam?”

“Yes”

9 | Investor Overview: Company Confidential Real Security. In Real Time.

Commtouch Private label Security-as-a-Service offering

Network Model Financial Impact

SMB/

Enterprise

Detection and full Services

Internet • High % revenue share (Resell) • Market user price - ~$50 • For Commtouch:

55-75% from user sell price

10 | Investor Overview: Company Confidential Real Security. In Real Time.

Partner benefits:

• Significantly expands market opportunity beyond large

enterprises to SMBs

• Increases product and service capability

Enterprise/SMB benefits:

• Reduces costs (opex vs. capex)

• Supports service level agreements (SLAs)

• Enables faster upgrades

• Solves security issues for out-of-office employees

Cloud offering enhances partners value proposition

11 | Investor Overview: Company Confidential Real Security. In Real Time.

Commtouch product suite

Hig

h $

Lo

w $

Note: Roadmap Items in Blue

WEB AV/AM EMAIL

Security SaaS

Cloud-Assisted Detection Services

• Private Label • Web Service

• On Premise

• Private Label

• Web Service

• On Premise

$2.8B* $2.4B* $9.1B*

* 2013 Market sizes: Source: IDC 2012

• Web Filtering

• Messaging Suite

• On-premise for SPs

• AV SDK

• Mobile Security

• Endpoint apps • APT Detection

12 | Investor Overview: Company Confidential Real Security. In Real Time.

Cloud-based detection at the core of product portfolio

• Commtouch Owned & Operated

• 550M End Users

• 12B Transactions Daily

GlobalView Cloud

• Over 99% detection accuracy

• Language agnostic

• Internal Efficiencies High Margins

• 12 Global Data Centers

• Operational for 14 years

• Zero-hour detection of global threats

• Industry-leading performance

Recurrent Pattern Detection - Patented technology

Spam and

phishing

URLs

Zero-hour

virus

samples,

Malware

URLs

Malware

URLs

Web Antivirus

Email

Threat data sharing between

services: Sum is greater than

the parts

13 | Investor Overview: Company Confidential Real Security. In Real Time.

Email security

Industry-leading spam detection:

• Phishing message and virus outbreak detection

• Advanced heuristic malware defense

Benefits:

• Instant protection from new outbreaks

• High catch rates with almost zero false positives

• Language and content agnostic

• Simple integration

• High performance, low maintenance

• Reduced capital expenditure

14 | Investor Overview: Company Confidential Real Security. In Real Time.

Antivirus

Anti-malware solution for service provider email

and web security gateways:

• Cloud-based pattern detection

• Multi-layer file scanning

Benefits:

• High performance

• Superior detection

• Ease of integration and operation

• Reduced capital expenditure

• Lower total cost of ownership

15 | Investor Overview: Company Confidential Real Security. In Real Time.

Web security

URL Filtering (URLF) enables customers to provide

new levels of service for:

• Web security

• Parental control

• Business productivity management and compliance

• Mobile devices

Benefits:

• Cloud database provides broadest coverage

• Real-time, zero-hour security

• Highest categorization accuracy and quality of service

16 | Company Overview Real Security. In Real Time. 16 | Commtouch Web Security SaaS Real Security. In Real Time.

Web Security – The challenge

Branch office 1

Internet Email GW

Web GW

Branch office 2

Applications

FW

Email GW

Web GW

FW

User apps

Cloud

apps

Mobile

Users

Infected site sends malware/

phishing to user

17 | Company Overview Real Security. In Real Time. 17 | Commtouch Corporate Overview Real Security. In Real Time.

Branch office 1

Branch office 2

Applications

Mobile

Users

Web SecaaS

Infected site sends

malware to user

Malware blocked

Internet

Phishing site blocked

Commtouch Web SaaS – Q4 2013

18 | Investor Overview: Company Confidential Real Security. In Real Time.

• Product: ReadyNAS®

network attached storage

(NAS)

• Target Market: Small and

medium businesses as

well as enterprises

• Commtouch Service:

Antivirus

Customer case study: Netgear

“Security is a key factor in offering

efficient NAS solutions. With

Commtouch Antivirus, we can

provide our customers with state-

of-the art protection from both

known and new viruses, Trojans

and other malware threats.” Davin Oishi, senior product line manager for

NETGEAR Storage

19 | Investor Overview: Company Confidential Real Security. In Real Time.

• Product: Web hosting,

online marketing

• Target Market: Small

businesses

• Commtouch Services:

Inbound Anti-Spam,

Outbound Spam Protection,

Virus Outbreak Detection

Customer case study: Web.com

Jane Landon, Chief Technology Officer,

Web.com

“With the addition of Commtouch

services, we can now better safeguard

our customers from the nuisance of

spam emails, without the risk of having

their critical communications erroneously

blocked.”

20 | Investor Overview: Company Confidential Real Security. In Real Time.

World class, experienced management team

Pete Shah - Senior Vice President, Worldwide Sales

Joined in 2012, bringing over 20 years of experience with international

software organizations.

Haniel Ilouz - Vice President, Global Engineering

Has over 14 years of software development experience including extensive

management of large global engineering teams.

Brian Briggs - Chief Financial Officer

Joined in 2013, bringing more than 22 years of finance and operations experience building

and growing profitable companies.

Joy Nemitz - Chief Marketing Officer

Has over 20 years of technology and communications experience in the field of Cloud,

SaaS and Hosted Services marketing.

Mickey Avram - Vice President, Technology Services

Joined in 2012, bringing over 20 years of experience in the support and operations

management field, many of these in the security industry.

Lior Kohavi - Chief Technology Officer

Has more than 20 years of experience as a senior technology executive..

Lior Samuelson – Chairman and Chief Executive Officer Joined in 2010 as Chairman and became CEO in 2013.

Brett Wilson - Vice President, Products

Has over 20 years of technology and communications experience, including

more than 10 years of experience in the information security industry.

Eva Edwards Markowitz - Vice President, Human Resources Joined in 2013, bringing over 14 years of human resource experience.

Shlomi Yanai - President

Joined in 2011, bringing over two decades of experience in the information security industry.

Sue Perng Lee - Vice President, General Counsel &

Corporate Secretary Joined in 2013, bringing over 10 years of legal experience in both the private

law firm and corporate settings.

21 | Investor Overview: Company Confidential Real Security. In Real Time.

Assured backlog

100%

Strong business model

3 Years Higher rate renewal

Recurring revenue model

0 Months

Deal signed – 3 year revenue commitment

1.5 Years Increased sales

3.9 7.2

11.3 14.1 15.2

18.2

23.0 24.1

32-33

-5

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012 2013

$ in

mill

ion

s

Revenue

Operating Profit

Operating Cost

CoGs

• Recurring revenue and long term contracts provide stability and visibility

• Highly profitable core business supports investments in new growth initiatives

• Solid balance sheet - $4 million in cash and no debt as of September 30, 2013

• NOLs – no tax payments expected over coming years

22 | Investor Overview: Company Confidential Real Security. In Real Time.

Why Commtouch?

SAAS EXCELLENCE

PATENTED TECHNOLOGY

FINANCIALS

PARTNER FOCUSED

Thank You.