BackWeb Reports Q1 Revenue, Earnings in Line with PreliminaryResults

Signs OEM and Reseller Partnership with IBM

SAN JOSE, Calif., April 23, 2001 – BackWeb Technologies (Nasdaq: BWEB), a leading provider of push communications infrastructure for e-business, today announced results for its first quarter ended March 31, 2001.

Revenues for the first quarter of 2001 were $7.2 million compared to $8.9 for the same period last year and $7.1 million reported in the fourth quarter of 2000. Net loss for the first quarter of 2001 was $7.0 million, or a loss of $0.18 per diluted share. This compares with a net loss of $1.7 million, or a loss of $0.05 per diluted share in the same period last year and a loss of $4.7 million, or a loss of $0.12 per diluted share, in the fourth quarter of 2000 (excluding amortization charges related to previous acquisition(s) and deferred stock compensation). Including these special charges, net loss for the first quarter of 2001 was $7.9million, or a loss of $0.21 per diluted share, compared with a net loss of $2.2 million, or a loss of $0.06 in the same period last year and $5.8 million, or a loss of $0.15 per share in the fourth quarter of 2000.

The company continued to strengthen relationships with its partners and existing customer base throughout the quarter. The company signed a strategic OEM and reseller partnership with IBM, a major Internet Infrastructure industry leader. BackWeb's technology will be offered as a stand-alone module as well as a component of an integrated IBM WebSphere bundle. Using BackWeb® technology, Websphere developers would be able to enhance their e-business environments with proactive subscriptions that increase the interaction and delivery with personalized content. BackWeb's relationship with SAP remains strong, with SAP embedding BackWeb's upgraded infrastructure in its next major product release in the Mobile Sales CRM suite, 3.0, which is expected to ship later this year. BackWeb continued to grow its presence in the Global 2000 market with major customer wins such as Hewlett Packard, Nationwide, BMW, MGM and City of Ottawa among others. On the product front, the company unveiled its innovative BackWeb Shadow™ solution this quarter. BackWeb Shadow technology converts Enterprise Portals from passive destinations to always-present desktop Portals.

"Increased weakness in technology spending impacted our sales this quarter; however, we remain confident of the strategic value that our technology brings to customers and partners," said Eli Barkat, chairman and CEO of BackWeb Technologies. "We will continue to focus our efforts on providing tangible return on investment to customers and helping them leverage their current technologies, and at the same time, we will align our expenses to our revenues and preserve our strong cash position throughout the market uncertainty," he said.

Conference Call
BackWeb Technologies has scheduled a conference call for 2 p.m. Pacific Time today to discuss the first quarter results. To access the conference call, please dial (712) 257-3647 by 1:40 p.m. Pacific Time on April. 23. You will need to reference the passcode "BackWeb." 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 April 30, 2001. To access the replay, please dial (402) 220-3767.