BackWeb Technologies Announces Preliminary Q4 Revenues, Earnings Results

SAN JOSE, Calif. — January 5, 2001 — BackWeb® Technologies (Nasdaq: BWEB), a leading provider of push communications infrastructure for e-business, today announced that it expects revenues for the fourth quarter ended Dec. 31, 2000 to be between $7.1 and $7.4 million, with a loss between $0.11 and $0.14 per share.

"The recent slowdown in IT-related spending among the Global 2000 companies has impacted the length of our sales cycle, especially for the larger-size enterprise solutions we offer," said Eli Barkat, chairman and CEO of BackWeb Technologies. "Although we are disappointed in our revenues for the fourth quarter, we believe our revised expectations for the quarter do not reflect any order cancellations or losses to competition.

"We believe that critical communications infrastructures will continue to be a priority, and we are confident in our superior technology and competitive positioning in the market. In fact, we were very pleased to have recently signed a $9.2 million contract – the largest in the company's history – with an existing partner. Revenue from this contract will be recognized ovethroughoutr 2001," he said.

Conference Call
BackWeb management will hold a conference call to discuss these preliminary results today, January 5 at 6 a.m. Pacific Time. Those wishing to join should dial (773) 756-4700, passcode "BackWeb" at approximately 5:45 a.m. A live webcast of the conference call will also be available via the company's website at www.backweb.com. A replay of the call will be available starting one hour after the completion of the call until Jan. 12, 2001. To access the replay, please dial (402) 998-0104.