BackWeb Announces Agreement with Ericsson to Embed its Priority Internet Communication Infrastructure Software into Internet Advertiser

SAN JOSE, Calif. - July 12, 1999 - BackWeb® Technologies (Nasdaq: BWEB), a leading provider of Priority Internet communication infrastructure and applications software for the extended enterprise, today announced an agreement with Ericsson to embed its technology into Ericsson's Internet Advertiser product. Internet Advertiser will take advantage of BackWeb's patented Polite Agent™ technology as well as its sophisticated attention-management tools.

Ericsson's Internet Advertiser is a revenue-generating tool for Internet Service Providers (ISPs) who want to provide Internet access to their subscribers. Internet Advertiser intelligently incorporates a user's submitted profile, geography and interests and distributes customized advertisements based on the information. Y-Pay, an ISP, has signed an agreement with Ericsson to use Internet Advertiser and BackWeb.

"We believe Ericsson's Internet Advertiser, with BackWeb embedded, will help companies like Y-Pay proactively deliver multi-media rich files of any size to customers, and will revolutionize the online advertising industry," said Michael L. Sheriff, founder and president of Y-Pay. "Companies can no longer rely on banner advertisements to reach savvy online consumers, they need to deliver information that is pertinent as well as entertaining. Ericsson's Internet Advertiser, combined with BackWeb's sophisticated Internet communication technology, will enable Y-Pay to do that."

"BackWeb enables companies to increase revenue through the priority delivery of time-critical and attention-grabbing advertisements that might otherwise be ignored. With BackWeb, Ericsson's ISP clients can send targeted advertising to their customers and realize an immediate return on investment," said Eli Barkat, CEO of BackWeb Technologies.

BackWeb's Priority Internet communication software enables companies to leverage the power of the Internet to drive business-critical information to customers in a noticeable format. BackWeb's sophisticated attention-management technology, also called Flash technology, enables ISPs to customize, send and track intelligent multi-media advertising alerts to and from a targeted audience. BackWeb's patented Polite Agent technology uses only idle bandwidth so that it ensures network-sensitive delivery of information.

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.