BackWeb Reports Record Revenues for Second-Quarter 1999

Growth Was 150% Year-Over-Year and 24% Quarter-Over-Quarter

SAN JOSE, California — July 26, 1999 — BackWeb® Technologies Ltd. (Nasdaq: BWEB), a leading provider of Priority Internet communication infrastructure for the extended enterprise, today announced record results for the second quarter ended June 30, 1999. Revenues for the period were $5.1 million, a 150% increase over those of the prior year and a 24% advance over the quarter ended March 31, 1999.

Excluding amortization charges related to previous acquisitions and deferred stock compensation, BackWeb's operating net loss for second-quarter 1999 was $2.4 million, or ($0.09) per share, compared to the $3.5 million, or ($0.18) per share, reported for second quarter of 1998.

Including amortization charges, BackWeb's net loss for the quarter ended June 30, 1999, was $3.3 million, or ($0.12) per share compared to the $3.9 million, or ($0.20) per share, recorded for the second quarter of 1998.

Commenting on these results, BackWeb Chairman and CEO Eli Barkat said, "We are very pleased with the progress we made on achieving our goals during second quarter, 1999. Our strong revenue growth, key customer wins, and growing strategic alliances continue to move us closer toward our objective of being recognized as the de facto standard in Priority Internet communications."

During the second quarter, BackWeb announced a number of strategic customer wins including U S WEST, which will use BackWeb to expand the portal experience for ISP and high-capacity broadband network services. In addition, Hewlett-Packard started shipping BackWeb on all new HP Pavilion home PCs as part of that company's expansion of its service and support capabilities. These successes in the business-to-consumer market are expected to add millions of BackWeb seats over the next 12 months.

BackWeb also announced new distribution and partnership agreements during 1999's second quarter that will further substantiate the Company's penetration of the Global 1000 market. These alliances include SAP AG and its use of BackWeb in its SAP™ Customer Relationship Management (CRM) offerings; Baan Company and its integration of BackWeb into its customer relationship management product line; and Deloitte Consulting and its establishment of BackWeb-focused consulting services as a key component of its e-Business practice.

On the technology front, BackWeb further strengthened barriers to entry with its receipt of a patent on its Polite Agent™ technology from the United States Patent and Trademark Office. BackWeb's Polite™ communications software senses periods of idle bandwidth and uses that time to efficiently transmit data through networks. This technology enables users to access critical data without interrupting other applications and activities such as access to e-mail and the Web.

Finally, during second quarter, 1999, BackWeb Technologies achieved a major milestone in the Company's four-year history with the initial public offering of its ordinary shares on the Nasdaq National Market under the trading symbol BWEB. BackWeb issued 6.325 million shares and raised nearly $68 million.

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.

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