Commtouch (NASDAQ: CTCH), a leading provider of email defense systems, announced today that Check Point Software (NASDAQ: CHKP) has entered into a licensing agreement with the email firm. Commtouch's defense works on a three-pronged approach. Reputation service for blocking unwanted mail traffic at the perimeter, significantly reducing the necessary IT resources for handling email; Zero-Hour(TM) Virus Outbreak Protection to complement traditional anti-virus solutions; and Anti-spam, which works against all formats and languages including Asian languages, image spam and attachment spam.

Speaking to the importance of this deal, CEO Gideon Mantel said, "Check Point's choice of Commtouch as the best solution for its customers after a period of rigorous testing further validates our technology and is an important milestone for Commtouch. Commtouch is the only technology provider of three layers of email defense that, together, ensure continued effectiveness in the face of constantly changing threats. We believe this important and strategic agreement will positively impact our business."

Commtouch's business has been growing rapidly. The company had set a goal for 30 new deals for all of 2007, and it had almost achieved that goal by the end of October. Clearly there is a need for email spam protection; for investors looking at a small company making headway in this field, the stock may be a very attractive long-term play.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer owns stock and is long both CTCH and CHKP , as of 12/10/07.