BackWeb Reports Second Quarter 2000 Results

Fueled by 109 Percent Revenue Growth, Internet's Push Infrastructure Leader Broadens Presence with Strategic Alliances, Customer Wins, Wireless Acquisition and Universal Push Initiative

SAN JOSE, Calif. — July 26, 2000 — BackWeb® Technologies (Nasdaq: BWEB), a leading provider of push for e-business solutions, today announced second quarter results for the period ending June 30, 2000. BackWeb's mounting success as an infrastructure for e-business and continued progress towards becoming the Internet's de facto push standard drove revenue growth of 109 percent over the previous year and 19 percent growth over last quarter. During the quarter, BackWeb expanded its market reach through key alliances with KPMG® Consulting LLC, IBM® and RealNetworks®, in addition to a host of significant customer wins, a new wireless push product expansion, and an industry-wide Universal Push initiative.

Revenues for the second quarter increased 109 percent to $10.6 million, from $5.1 million in the second quarter of 1999 and grew 19 percent from $8.9 million the previous quarter. Excluding amortization charges related to a previous acquisition, deferred stock compensation and the acquisition of intellectual property in the second quarter, net loss for the second quarter was $1.1 million, or $0.03 per diluted share, compared to a net loss of $2.4 million or $0.09 per diluted share for the same period a year earlier. Including these charges, net loss for the quarter was $9.8 million, or $0.26 per share loss (of which $8.4 million or $0.22 per share loss was attributable to the initial write-off of the acquisition of intellectual property) compared to a net loss of $3.3 million, or $0.12 per share in the second quarter of 1999.

"Our results underscore the ever-widening market acceptance of BackWeb's Polite™ push technology as a vital component of the Internet's e-business and portal infrastructure," said Eli Barkat, chairman and CEO of BackWeb Technologies. "With our recent strategic acquisition of wireless technology and major product expansion, we anticipate the market opportunity for BackWeb to broaden even further as we provide a single push infrastructure to businesses for both their Internet and wireless needs."

Second Quarter 2000 Highlights
BackWeb's second quarter of 2000 was highlighted by strategic alliances and ubiquity-driving relationships, major new customer wins, the debut of next-generation push technology, and strategic initiatives to bring push to every common data device.

STRATEGIC ALLIANCES: BackWeb and IBM announced that IBM has embraced BackWeb's Polite Push into IBM's eBusiness solution map for CRM applications in the financial services and telecommunications industries. KPMG Consulting also announced that KPMG has embraced BackWeb's Polite Push infrastructure within KPMG Consulting's eWorkforce solution. BackWeb also extended its broad ubiquity play with the official launch of the Polite Push-enabled RealNetworks, Inc. RealJukebox™ the Real.com Music Delivery Service.

BROAD CUSTOMER ADOPTION: Strong Q2 2000 revenues resulted from mounting demand among both new and existing customers. New customer wins include Caterpillar, Delano, ElasticEdge, EC-Gate, Philip Morris, Amicada, Gigabell and Integrisys. Also contributing to Q2 revenues were sales to existing BackWeb customers, including Nortel Networks, Lucent Technologies, Ford Motor Co., ISI Mars, Hewlett-Packard Company, Siemens, Global Techno and NTTLS.

NEXT-GENERATION PUSH TECHNOLOGY: BackWeb debuted the Push Application Server, which features first-of-its-kind technology to support multiple delivery methods via Internet and wireless and incorporating standard CORBA and XML interfaces.

UNIVERSAL PUSH INITIATIVE: BackWeb launched an industry-wide initiative to provide e-businesses with a single communications infrastructure for any application to deliver content to any user on any common data device via BackWeb Polite Push, e-mail, wireless, fax, and voicemail. BackWeb's vision for Universal Push garnered support from a broad range of industry leaders – including Hewlett-Packard Company and Lucent Technologies EMEA – and builds upon BackWeb's acquisition of wireless data delivery technology from Mobix Communications Ltd.

"We continue to see more and more killer apps for push in key e-business markets including e-CRM, Supply Chain, e-Commerce, and now, Executive Communications," added Barkat. "In fact, for the second quarter in a row, we have seen multiple corporate wide infrastructure transactions where the driving need was Executive Communications via video."

Conference Call
BackWeb has scheduled a conference call for 5:00 p.m. EDT today to discuss the second quarter results. Interested parties may access the conference call over the Internet at http://www.backweb.com/corporate/html/investor_relations.html.

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.

© 2004 BackWeb Technologies Ltd. All rights reserved. BackWeb and Polite are registered trademarks of BackWeb Technologies. All other trademarks are property of their respective owners.

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