BACKWEB ANNOUNCES STRATEGIC PARTNERSHIP IN NEW MARKET AND SEVERAL EXPENSE REDUCTION ACTIONS, INCLUDING THE PLANNED DEREGISTRATION OF ITS ORDINARY SHARES

SAN JOSE, Calif., January 31, 2008 – BackWeb Technologies Ltd. (OTC BB: BWEBF) ("BackWeb" or, the "Company"), a provider of software to offline-enable business web applications, today announced initial steps it has taken to pursue a growth initiative in a new market. BackWeb also announced a series of initiatives designed to substantially lower ongoing expenses within the Company's core business, including the planned deregistration of its Ordinary Shares with the United States Securities and Exchange Commission, and clarified its plans for its current product line. The goals of the actions announced today are to preserve the Company's cash so it can continue to provide enterprise support to its customers while also leveraging its technical, business and financial assets to pursue a growth opportunity in a new market. The Company's Board of Directors has approved these initiatives, which are reviewed below.

• BackWeb announced it has completed the layoff of one-third of its employees. The layoffs occurred in departments across the Company and were focused most heavily in the sales, pre-sales, marketing and administrative functions. BackWeb anticipates annualized cost savings of approximately $1.2 million from these staff reductions as well as a one-time severance charge of approximately $135,000, which will be reflected in the Company's Q4 2007 or Q1 2008 results. The majority of the personnel BackWeb retained are in the areas of engineering and customer support. The Company believes its ongoing expenses will be approximately $1.1 million per quarter, commencing in Q2 2008. The Company expects that its revenues will decline as a result of the reductions in its sales and marketing group; however, the Company will continue to take orders for its Offline Access Server and Foundation products.
• BackWeb is announcing its plans for supporting its Offline Access Server and Foundation products. BackWeb will provide support for these products through December 2010 for customers that are current on their maintenance agreements. BackWeb will provide customers full support, including maintenance software releases and technical support services as it does today, through December 2009. During a subsequent limited support phase, through December 2010, BackWeb will provide technical support services to customers but will not provide software maintenance releases. The employees retained after the layoff have significant engineering and support experience that will enable the Company to fulfill its support obligations described above.
• BackWeb is moving its finance function from the U.S. to its Israel offices so it can reduce costs and better support its new partnership activities focused in Israel. As part of this move and as previously announced, the Company has changed its independent registered public accounting firm from Grant Thornton LLP to Deloitte Brightman Almagor, the Israeli member firm of Deloitte Touche Tohmatsu. There were no disagreements with Grant Thornton on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
• As part of its expense reduction initiatives, BackWeb intends to file a Form 15 with the United States Securities and Exchange Commission on February 6, 2008 to terminate the registration of BackWeb's Ordinary Shares pursuant to the Securities Exchange Act of 1934. BackWeb is pursuing deregistration in order to eliminate the substantial costs associated with SEC reporting and compliance; however, the Company remains committed to keeping its shareholders informed on an ongoing basis on the Company's financial and operational progress. Accordingly, the Company plans to continue to make available on its website its annual audited financial statements and other information regarding the Company. The Form 15 filing will immediately terminate BackWeb's registration under the Exchange Act, and BackWeb will no longer be required to file most Exchange Act reports, including Forms 10-K, 10-Q and 8-K, or comply with the requirements of the Sarbanes-Oxley Act. Once 90 days have elapsed after the filing of the Form 15, or May 6, 2008, BackWeb's obligation to file all other Exchange Act reports will cease, including its obligation to file proxy statements related to future shareholder meetings. As a result of the deregistration process, BackWeb's Ordinary Shares are expected to be delisted from the OTC Bulletin Board effective with the close of the market on February 6, 2008; however, the Company intends to take the required actions to enable trading information regarding its Ordinary Shares to continue to be available on The Pink Sheets (www.pinksheets.com).

New Strategic Initiative and Relationship:
In an effort to position the Company in a market that the Company believes offers long-term growth potential, BackWeb has negotiated a joint development agreement with OneCall Contact Centers Ltd. Israel, pursuant to which the parties will develop and maintain a business application platform for OneCall's current operations in Israel and planned international expansion. OneCall is an early stage company currently operating in Israel under the "No Problem" brand. OneCall provides a local-search service connecting consumers with pre-screened service providers operating in their area. BackWeb's development efforts will include software development and assisting OneCall in expanding its operations to international markets. The joint development agreement calls for BackWeb to be compensated up to $500,000 on a time and materials basis for its development efforts over the next four to six months. Revenues from the joint development effort will be deferred by BackWeb until it receives payments from OneCall, which are anticipated to commence after the anticipated four to six-month joint development period has been completed.

Related to the OneCall partnership, BackWeb has purchased for $100,000 a call option to invest $1 million in OneCall based on the terms of a financing completed in late 2007. The option was purchased from the BRM Group Ltd., which is a major shareholder of BackWeb and a large investor in OneCall. The BRM Group would remain a large investor in OneCall regardless of whether BackWeb exercises the call option. BackWeb's Chairman, Eli Barkat, is a principal of the BRM Group and therefore recused himself from BackWeb's Board discussions and votes concerning the partnership with OneCall and the purchase of the call option from the BRM Group. The call option provides the Company an opportunity to strengthen the relationship between BackWeb and OneCall and better realize the potential benefits from the partnership. The business potential for OneCall's and BackWeb's partnership is subject to the risk normally associated with early stage markets and companies. It is anticipated that the decision of whether to exercise the call option will be put to a vote of BackWeb's shareholders later this year.

BackWeb's CEO, Bill Heye, commented, "For the last several years we have focused our technology and products on the market for offline-enabled web applications. We have worked with many customers to deploy "must-have" business applications, and we continue today to implement new solutions and support existing customers. Our results, including those in the recent fourth quarter, have been consistent over the last several quarters; however, this market is not experiencing significant growth nor has the resulting business proven sufficient to sustain long-term operations. This means BackWeb must forge a new growth opportunity. We will be focused now on two activities: supporting our product line in the offline application market and the partnership activity with OneCall. The goal of our expense reduction initiatives is to enable us to support our customers and to conduct our activities in the offline application market in a cost effective way.

"The OneCall opportunity provides a chance to leverage our assets and capabilities in a market we believe has growth potential. Web applications and communications between service providers and consumers are key to the OneCall business and are areas where BackWeb can provide substantial expertise. Although there is risk in the early stages of any market, we believe the OneCall partnership is an exciting opportunity that provides significant potential for BackWeb to create value for our shareholders in the coming years."

Daniel Shaked, CEO of OneCall, commented, "BackWeb brings a wealth of technical expertise and business development experience, along with the capital to support a partnership, and should play an integral role in supporting OneCall's planned growth and expansion into new markets. The relationship has been structured to evolve and expand over the next several months in an effort to match OneCall's business needs, while also addressing the goals and needs of BackWeb and its shareholders. We are excited about our collaboration and welcome BackWeb as a significant partner for our company."

Financial Update:
BackWeb anticipates it will publish its 2007 annual report on its website by the end of March 2008. On a preliminary basis, as of December 31, 2007, BackWeb had cash and investments of approximately $3.0 million, and working capital of approximately $2.4 million. BackWeb currently has 41.3 million Ordinary Shares issued and outstanding.

Conference Call/Webcast Details:
On Monday, February 4, 2008 at 1.00 p.m. EST, BackWeb will host an investor conference call and live webcast to review these strategic initiatives. Details follow.

• Conference Call Dial-In Number: 888-214-7564 (415-537-1804 for international callers)
• Webcast/Replay URL (An archived version of the webcast will be available for 30 days.)

About BackWeb Technologies:
BackWeb (http://www.backweb.com) mobilizes critical web applications and content for mobile workforces and remote offices. BackWeb's web and polite synchronization mobile solution is commonly deployed to sales forces, field employees, mobile managers and remote operations for functions including enterprise sales force automation, CRM, e-learning and training, Human Capital Management (HCM) and rich media communications.

BackWeb's customers include Boehringer Ingelheim, Eastman Kodak, Hewlett-Packard, Johnson & Johnson and KLA Tencor. The Company's operations are centered in San Jose, California, New York, New York, and Rosh Ha 'ayin, Israel.

© 2007 BackWeb Technologies Ltd. All rights reserved. BackWeb is a registered trademark and Offline Access Server is a trademark of BackWeb Technologies Ltd. All other trademarks are property of their respective owners.

Statements in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements of beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, but are not limited to, statements regarding: our strategic partnership with OneCall, the anticipated benefits of this relationship and the growth opportunities in this market; the call option BackWeb purchased from the BRM Group in which it can invest additional money in OneCall and the intention to allow BackWeb shareholders to vote upon the exercise of such call option; our expense management efforts in order to improve our bottom line results, including the planned deregistration of our Ordinary Shares; the anticipated timing and impact of such deregistration of our Ordinary Shares; the savings the Company expects to realize from its cost reduction measures, when such savings are expected to be reflected in the Company's financial results and the adverse impact these measures are expected to have on its revenues; the Company's plans to publish future financial and other information regarding its operations; the Company's plans for supporting its Offline Access Server and Foundation products and the ability of the Company's remaining employees to fulfill the Company's support obligations; the Company's plans to move its finance operations from the United States to Israel; and the Company's expectations regarding its cash and investments and working capital balances as of December 31, 2007. Actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: OneCall operates in an emerging, rapidly evolving and highly competitive industry, and, as a result, its business may not prove successful, which would significantly reduce the value of our strategic partnership with, and investment in, OneCall; our stockholders might not vote to approve the exercise of the call option in OneCall, which would limit our ability to fully realize the benefits of this partnership; our expense reduction efforts could impair our ability to operate our core business and reduce our revenues beyond our expectations; and the deregistration of the Company's Ordinary Shares could have a negative impact on the liquidity and trading price of the Ordinary Shares. In addition, please refer to our periodic filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, which contain more detailed descriptions of the risks facing our business. BackWeb assumes no obligation to update any of the forward-looking statements in this release.

Contacts:
Investor Relations
BackWeb Technologies Ltd.
(408) 933-1722
investors@jcir.com

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