BackWeb Reports Strong First Quarter 2000 Results

Growing Momentum as Internet´s Push Infrastructure Drives Revenue Growth of 117 Percent Year-Over-Year

SAN JOSE, Calif. — April 26, 2000 — BackWeb® Technologies (Nasdaq: BWEB) a leading provider of push for e-business solutions, today announced first quarter results for the period ending March 31, 2000. Increased demand for BackWeb's leading push for e-business solutions across all of its core markets drove revenue growth of 117 percent over prior year and 13 percent growth over last quarter. BackWeb's push solutions are growing increasingly popular among Global 2000 companies as an integral component of their standard e-business communications infrastructure for internal, business-to-business, and "customer facing" communications.

Revenues for the first quarter increased 117 percent to $8.9 million, from $4.1 million in the first quarter of 1999 and grew 13 percent from $7.9 million the previous quarter. Excluding amortization charges related to a previous acquisition and deferred stock compensation, net loss for the first quarter was $1.7 million, or $0.05 per diluted share, compared to a net loss of $2.5 million or $0.11 per diluted share for the same period a year earlier. Including these charges, net loss for the quarter was $2.2 million, or $0.06 per share loss compared to a net loss of $3.7 million, or $0.16 per share in the first quarter of 1999.

"During the quarter we made continued progress in establishing BackWeb's Polite™ push infrastructure technology as a de facto Internet standard," said Eli Barkat, chairman and CEO of BackWeb Technologies. "This growth was driven by our continued success in the business-to-business sector, by increasing demand from existing customers, and by an aggressive effort by the Global 2000 to implement BackWeb beyond individual departments to the entire enterprise. Now more than ever, BackWeb is poised to lead the ubiquitous acceptance of push solutions to meet the demands of e-business."

First Quarter 2000 Highlights
BackWeb's first quarter of 2000 was highlighted by new customer wins, additional ubiquity-driving relationships, major business-to-business momentum, key strategic alliances, the debut of BackWeb-powered start-ups, and a major new product release.

INCREASING CUSTOMER ADOPTION: Strong Q1 2000 revenues resulted from mounting demand among both new and existing customers. New customer wins include ADP's Dealer Services Group, Dow Corning, Enron Corp., Kaeser, Nationwide Building Society, and Owens Illinois. Also contributing to Q1 revenues were existing BackWeb customers, including Bell Atlantic Mobile, Cisco Systems, Inc., Charles Schwab & Co., Inc., Goldman Sachs & Co., Hewlett-Packard Company, Nortel Networks and SBC Communications.

UBIQUITY ALLIANCES: New alliances with such companies as NEC/Packard Bell continue to drive BackWeb's ubiquity in the marketplace.

B-TO-B MOMENTUM: BackWeb made significant inroads into the B-to-B space as SAP AG and Whomakesit.com (a B-to-B infomediary portal for the electronics component industry), announced plans to integrate the BackWeb infrastructure into their marketplaces as part of a growing effort to create "proactive exchanges. Ericsson, NEC Computers International BV, and Sage Software all announced plans to implement BackWeb's software to proactively deliver critical, time-sensitive information and materials to hundreds of thousands of partners around the world.

STRATEGIC ALLIANCES: SAP AG's BackWeb-enabled CRM solutions helped drive BackWeb's revenues in Q1 2000, reflecting the strength and potential of the company's partnership with SAP. BackWeb and Viador, Inc.™ also announced a joint effort to allow Viador's E-Portal Suite™ customers to transform their enterprise portals into proactive, personalized sources of current and vital information. Cable & Wireless and BackWeb also jointly announced that the global telecommunications group will offer BackWeb solutions to its largest multinational accounts.

START-UPS BUILDING ON BACKWEB PUSH: Two new start-ups debuted in Q1 that feature businesses driven by BackWeb technology: Deliverex, a delivery exchange service for digital content, and Adsavers.com, a pay-per-view Internet advertising company.

NEW PRODUCTS: BackWeb Sales Accelerator 2.0, the next generation of BackWeb's popular solution for empowering the sales chain with mission-critical communication, delivery and feedback capabilities, debuted with enhancements for business-to-business environments.
Conference Call

BackWeb has scheduled a conference call for 5:00 p.m. EDT today to discuss the first quarter 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.