BackWeb Reports Sequential Rise In Q1 Revenue

2-way Offline Portal Synchronization for "Disconnected" Mobile Workers Launched at End of Q1 ‘03

Balance Sheet Remains Solid: Cash and Cash Equivalents of $21.6 million

SAN JOSE, Calif., – April 30, 2003 – BackWeb Technologies Ltd. (Nasdaq: BWEB), a leading provider of offline Web infrastructure software that enables offline access to websites and enterprise portals, today announced financial results for its first quarter ended March 31, 2003.

Net revenue for the first quarter of 2003 was $1.5 million, a sequential increase over fourth quarter net revenue of $1.3 million, but below revenue of $2.3 million in the first quarter of 2002. The sequential revenue increase reflects BackWeb's offline portal strategy and a growing base of new BackWeb ProactivePortal™ product sales in both absolute and percentage terms. Q1 revenue also benefited from continued demand for the Company's Foundation™ product rooted in BackWeb's core expertise in efficient content distribution and synchronization across enterprise networks.

ProactivePortal Server customers in the period included AC Nielsen (France), Boehringer-Ingelheim (UK), IBM, Logitech, and Owens Illinois. Other customers in the period included Fidelity Management & Research, Hewlett-Packard, and Vantico (UK).

Eli Barkat, chairman and CEO of BackWeb Technologies, commented, "Even though the IT spending environment remains tentative at best, our direct sales and marketing efforts are awakening prospective customers and industry analysts to the clear benefits of our offline offerings, yielding another sequential increase in revenue. Visibility remains limited, and we have yet to see a breakthrough in our indirect sales efforts through key portal partners. Nevertheless, we believe the continuing trend of moving enterprise application access to the online Web will drive the need for offline Web technology, further strengthening our market position and value."

"The launch of version 3 of our ProactivePortal Server infrastructure expands our unique value proposition as we are now able to provide a more complete offline work experience. We do this by allowing mobile workers to both access and make updates to their enterprise portal while on the road - disconnected from the network. We then automatically synchronize their work upon their next connection. We believe this capability significantly enhances the productivity of mobile personnel, while also improving the accuracy and timeliness of enterprise data. Version 3 is being well received by customers and industry analysts and is already contributing to improvements in our sales performance."

BackWeb's operating results continue to benefit from its Fall 2002 restructuring which included a 44% decrease in overall headcount. BackWeb reported a net loss of $3.6 million, or $0.09 per share, for the first quarter of 2003, compared to a net loss of $5.7 million, or $0.15 per share, in the year-ago period.

As of March 31, 2003, BackWeb had cash and cash equivalents totaling $21.6 million and no long-term debt.