BackWeb Technologies Announces Preliminary Q2 Revenues and Earnings Results

Plans to Reduce Workforce by Approximately 25%

SAN JOSE, Calif., July 2 - BackWeb Technologies (Nasdaq: BWEB), a leading provider of push communications infrastructure, today announced that it expects revenues for the second quarter ended June 30, 2001 to be between $4.4 and $4.7 million. Loss per diluted share for the second quarter is expected to be between $0.19 and $0.22 (excluding amortization charges related to previous acquisitions and deferred stock compensation).

"We believe that the poor economic conditions in the market and the downturn in IT spending has resulted in customers further delaying new IT-related spending initiatives," said Eli Barkat, chairman and CEO of BackWeb Technologies.

"We are seeing IT spending migrating from new technology investments to investments that augment and integrate existing platforms such as 'Enterprise Portals'. With our entry into the Enterprise Portal market we have begun to realign our business strategies to meet the changing demands of the market. We expect to see growth from these changes over the next few quarters. We will also be implementing various cost-cutting measures, which include reducing our workforce by approximately 25% worldwide, to further align our expenses with our lower revenues," he said.

Second Quarter Earnings Conference Call
BackWeb will be releasing its full results for the second quarter of 2001 on Tuesday, July 31 before the market open. A conference call will be held following the earnings release at 5:30 a.m. Pacific Time that day. Those wishing to join should dial 415-228-3886, passcode "BackWeb'' at approximately 5:15 a.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 Aug. 7, 2001. To access the replay, please dial 402-998-0772.