BackWeb Reports Fourth Quarter and Fiscal Year-End Results

Key Customer Wins and Global Brand Awareness Drive Annual Revenue Growth of 144 Percent

SAN JOSE, CA - January 26, 2000 - BackWeb® Technologies (Nasdaq: BWEB), the leading provider of push for e-business solutions, today announced fourth quarter and fiscal year-end results for the period ending December 31, 1999. The company achieved record revenues driven by escalating demand for its push for e-business solutions in the business-to-business, business-to-employee, and e-commerce markets.

Revenues for the fourth quarter increased 125 percent to $7.9 million, from $3.5 million in the same period a year earlier and up 27 percent from $6.2 million the previous quarter. Excluding amortization charges related to a previous acquisition and deferred stock compensation, net loss for the fourth quarter was $1.4 million, or $0.04 per share loss, compared to a net loss of $2.1 million or $0.10 per share loss for the same period a year earlier, and a net loss of $1.6 million, or $0.05 per share loss for the third quarter of 1999. Including special charges, net loss for the quarter was $2.1 million, or $0.06 per share loss compared to a net loss of $2.8 million, or $0.12 per share loss in fourth quarter of 1998, and a net loss of $2.4 million, or $0.07 per share loss in the prior quarter.

For the fiscal year ended December 31, 1999, BackWeb reported revenues of $23.3 million, an increase of 144 percent from $9.5 million reported for fiscal 1998. Excluding amortization charges, net loss for 1999 was $7.8 million, or $0.27 per share loss, compared to a net loss of $12.8 million or $0.60 per share loss for 1998. Including special charges, net loss for 1999 was $11.5 million, or $0.39 per share loss compared to a net loss of $14.6 million, or $0.69 per share loss in 1998.

"Our fourth quarter was distinguished by strong demand for our push solutions in the e-business marketplace, particularly as we inked key partnerships and benefited from the growing worldwide recognition of the BackWeb brand," said Eli Barkat, chairman and CEO of BackWeb Technologies. "With our Polite™ push technology building towards becoming a de facto Internet standard, we ended our first fiscal year as a public company with a greatly expanded market opportunity and are taking advantage of the rapid growth of the e-business market."

Fourth Quarter Highlights

BackWeb established new and expanding customer relationships with a growing number of industry-leading companies, including: Charles Schwab & Co., Inc., Bell Atlantic Mobile; SBC Communications and Hewlett-Packard Company.
BackWeb and RealNetworks, Inc. signed an agreement to integrate BackWeb's Polite push technology into RealJukebox™ to create a first of its kind, push-based, Internet music delivery service for consumers. RealNetworks also announced in January 2000, that it would make a $15 million minority investment in BackWeb Technologies.
In addition, BackWeb realized its first OEM license revenues from SAP AG's CRM package, which integrates BackWeb into every seat.
High-Profile Wins, Expanding Market Position, New Alliances and IPO Mark Fiscal 1999

BackWeb's push for e-business solutions made significant headway into the Global 2000 by adding over 100 new customers in 1999:

Customer wins included BancBoston Robertson Stephens, British Telecommunications PLC, Compaq Computer Corporation, Tech Data/Computer 2000, Charles Schwab and Co., Ericsson, Goldman Sachs & Co., Hewlett-Packard, ICG Communications, Lucent Technologies, Nortel Networks, Inc., Rogers Cantel, SBC Communications, SAP AG, Telenordia, Telecom Italia, and U S WEST.

BackWeb's push solutions expanded in 1999 from primarily focusing on solutions for direct sales forces to adding solutions for call centers, e-services and reseller networks.

Call center wins include: Pacific Bell, SBC Communications, Bell Atlantic Mobile and Charles Schwab and Co.;
E-service wins include: Hewlett-Packard, Compaq and First American Financial Corporation;
Reseller network wins include: Tech Data/C2000, Lucent, and Mannesman o.tel.o GmbH;

A variety of alliances fortified BackWeb's leadership as a key Internet infrastructure provider. BackWeb announced alliances with:

SAP AG, to leverage BackWeb technology as part of its Customer Relationship Management solution;
Hewlett-Packard, to use BackWeb technology to deliver service content to all HP Pavilion PC users;
RealNetworks, to partner with BackWeb to build a push-based digital music delivery platform;
US WEST, to partner with BackWeb to build a proactive portal experience as a part of their Internet offerings;

BackWeb made a number of significant announcements in 1999 broadening its' product offerings and strengthening the technical barriers of entry into its' market:

The company received a U.S. Patent for its Polite push technology;
BackWeb unveiled Service Accelerator and the Rapid Survey module as part of its Accelerator Suite of products; and
BackWeb released new versions of its' Foundation product which strengthens its' infrastructure offerings

Conference Call
BackWeb has scheduled a conference call for 5:00 p.m. EDT today to discuss the fourth quarter and fiscal year-end results. Interested parties may access the conference call over the Internet at www.backweb.com.

About BackWeb Technologies
BackWeb Technologies is a leading offline Web software company. BackWeb extends the value of technology investments by offering mobile and remote employees offline access to portals, intranets and other Web-based applications and content. The company's products reduce network costs and improve the productivity of an increasingly mobile workforce. At the core of BackWeb's products is its patented Polite® synchronization technology that can distribute large amounts of data even over narrow bandwidth connections. BackWeb® customers include market leaders such as Boehringer Ingelheim, Centocor, Eastman Kodak, GE Healthcare, Guidant, HP, KLA Tencor, Lam Research, Pfizer and more than one hundred other companies. BackWeb also has strategic reseller alliances with software industry leaders: Plumtree, SAP and IBM. The company is headquartered in San Jose, Calif. and Rosh Ha'ayin, Israel. For more information, visit www.backweb.com or call (800) 863-0100.

Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of the U.S. Securities laws, including statements of beliefs, plans, expectations or intentions regarding the future. Examples of these statements include, but are not limited to, the ability of BackWeb software to allow customers to gain mobile, disconnected use of their portals and help increase field sales and field service productivity, the integration of BackWeb software with BEA products will help developers extend portal applications for offline use without changing the way they work, and the ability of the resulting applications to help field sales and service organizations realize maximum productivity, cost savings, and process acceleration gains while disconnected from the network. Actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include unforeseen technological issues related to use of the BackWeb software, deployment issues related to implementation, unforeseen software errors, competitive factors and business and expense factors that may affect the perceived efficiencies from use of BackWeb's products, and the risks and uncertainties detailed from time to time in BackWeb's periodic reports and registration statements filed with the U.S. Securities and Exchange Commission. BackWeb assumes no obligation to update any forward-looking statements contained in this press release.