BackWeb Technologies Announces Preliminary Q1 Revenues, Earnings Results

SAN JOSE, Calif., March 28 - BackWeb Technologies (Nasdaq: BWEB - news), the leading provider of ProactivePortal™ technologies for the enterprise, today announced that it expects revenues for the first quarter ended March 31, 2002 to be between $2.0 and $2.4 million. Net loss per share for the first quarter is expected to be between $0.11 and $0.14 (excluding amortization charges related to goodwill, other intangibles and deferred stock compensation).

"We believe our first quarter revenues will be impacted by a faster-than-anticipated decline in our legacy product revenues," said Eli Barkat, chairman and CEO of BackWeb Technologies. "Customer interest in our newly released ProactivePortal Server continues to strengthen. Although our initial sales cycle has not yet fully ramped, we are vigorously pursuing several early customer leads that we expect to close in the next quarter.

"We remain optimistic that our transition to the portal space, while creating short-term softness in revenues, will translate into a revenue ramp as the year progresses. Our strategic progress in the Portal market remains strong, and our substantial partnerships, industry endorsements and technological strength position us well to become a visible leader in the portal space," said Mr. Barkat.

First Quarter Earnings Conference Call
BackWeb will be releasing its full results for the first quarter of 2002 on Thursday, April 18 after the market close. A conference call will be held following the earnings release at 2 p.m. Pacific Time that day. Those wishing to join should dial 312-470-7209, passcode "BackWeb" at approximately 1:45 p.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 Apr. 25, 2002. To access the replay, please dial 402-220-9816.