BackWeb Brings Push to Wireless Devices with Acquisition of Mobix Wireless Data Technology

BackWeb Acquires Technology of Wireless Leader as it Accelerates Efforts to Introduce Push Applications for Wireless and Handheld Devices

SAN JOSE, Calif. — June 28, 2000 — BackWeb® Technologies (Nasdaq: BWEB), a leading provider of push for e-business solutions, today announced that it has acquired the technology assets of Mobix Communications Ltd., a leading provider of technology platforms for wireless data solutions, for approximately $16 million in cash and stock. With the acquisition, BackWeb receives all Mobix software technology and intellectual property rights, as well as key members of the Mobix engineering team. The technical team will form the nucleus of BackWeb's wireless development efforts and will enable BackWeb to accelerate its entry into the wireless market with its patented Polite™ push technology.

"Wireless is a natural extension of our vision to bring push-enabled Internet applications to every e-business and consumer application," said Eli Barkat, chairman and CEO of BackWeb Technologies. "Today's acquisition of Mobix technology dramatically accelerates these efforts by fortifying our existing R&D with proven and reliable wireless technology and accomplished engineering talent. BackWeb has always extended its customers' Internet infrastructures by empowering them to deliver the right information to the right people. By moving to wireless, we are now enabling them to deliver information at precisely the right time, no matter the device or network. This ability will make push the killer app for wireless devices."

Excluding one-time and amortization charges, the asset acquisition is expected to have only a minimal impact on BackWeb's financial results in 2000, and is expected to be accretive in 2001.

Founded in 1994, Mobix has used its expertise in wireless data communications to enable solutions over GSM, Mobitex, CDMA and CDPD networks. Based in Israel, Mobix has a proven track record of providing cost-effective products and solutions for such customers as Ericsson, GEC-Marconi, Northrop-Grumman, Olivetti, Schlumberger and Maxon. Mobix technologies enable data communications with a broad range of devices, including cellular phones, wireless modems and handheld devices.

"We are delighted that BackWeb is bringing our field-tested, customer-proven technology to the broadest possible audience," said Ester Hemli, CEO of Mobix. "Today's announcement represents an enormous opportunity for e-businesses, application providers, and any company that needs to deliver content across the last frontier of the Internet."

To integrate its Polite push infrastructure with wireless Internet technology, BackWeb will leverage Mobix's wireless communications framework within the BackWeb product line. This infrastructure can be customized to communicate with different carriers and wireless networks – via SMS and WAP protocols – to provide BackWeb customers with highly functional, bandwidth-efficient, and broadly applicable wireless data delivery capabilities. BackWeb expects to first integrate Mobix technology into its product line in the fourth calendar quarter of 2000. Further details will be announced at a later date.

BackWeb's patented Polite push technology allows even media-rich content to reach users with no effect on the performance of other network applications such as email and browsing. As a result, Global 2000 companies for the first time can simultaneously deliver audio and video files, slide presentations and other sophisticated multimedia content to any number of recipients – from thousands of employees and partners to millions of consumers.

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.