BACKWEB SUBSTANTIALLY REDUCES Q2 NET LOSS
ON A 50% YEAR-OVER-YEAR INCREASE IN REVENUE

Balance Sheet Remains Solid With $9.1 million in Cash and Investments and No Long-Term Debt

SAN JOSE, Calif., August 1, 2005 – BackWeb Technologies Ltd. (Nasdaq: BWEB), a leading provider of offline and mobile web software, today reported financial results for its second quarter and six months ended June 30, 2005.

BackWeb® reported Q2 2005 revenue rose 50% to $1.72 million compared to $1.15 million in the second quarter of 2004, and compared to revenue of $1.66 million in the first quarter of 2005. Higher license revenues in particular, as well as continued strength in maintenance renewal activity, drove the second quarter revenue increase. In addition to the Company’s direct sales efforts, initial license sales were generated from channel relationships entered into this year, including systems integrator relationships launched in February, as well as an integration between BackWeb’s Offline Access Server and the PeopleSoft® Enterprise ePerformance application from Oracle, announced in April.

BackWeb achieved continued success in expense management, reporting a substantially reduced net loss of $233,000, or $0.01 per share, for Q2 2005, compared to a net loss of $1.32 million, or $0.03 per share, in Q2 2004, and a net loss of $249,000, or $0.01 per share, in Q1 2005.

For the first six months of 2005, BackWeb’s revenue rose 21% to $3.37 million compared to $2.79 million in the first six months of 2004. BackWeb reported a significantly lower net loss of $480,000, or $0.01 per share, for the first six months of 2005, compared to a net loss of $2.69 million, or $0.07 per share, in the first six months of 2004.

BackWeb’s balance sheet and cash position continue to remain solid, with no long-term debt and cash and investments totaling approximately $9.1 million as of June 30, 2005.

BackWeb’s Vice President Finance, Ken Holmes, commented, “our Q2 revenue performance reflects initial success from our development of new sales channels. During the quarter, we recorded revenue from four new customers: Associated Merchandising Corporation (Target Stores), Bristol-Myers Squibb Company, Deloitte & Touche LLP (Canada) and Safety-Kleen. Additionally, we made follow-on sales to existing customers such as Centocor Inc., a unit of Johnson & Johnson. We also recognized license revenue that was deferred from prior periods.”

BackWeb’s CEO, Bill Heye, commented, “our growing base of customers provides BackWeb both commercial and technological validation for our offerings. We are pleased with the contributions from our recently launched strategic relationships. Our joint selling and
servicing efforts with partners helps customers quickly realize complete
solutions. Working with partners will be an important part of BackWeb’s business model going forward.

“We believe our product and value proposition is being increasingly well-received by enterprise customers who want to make their existing enterprise web applications available for disconnected and synchronized use by their mobile field and management employees. Our product is a practical solution to their mobility needs as it does not require changes to their applications, application development or installation of complex software on end user PCs. We believe enterprises will increasingly recognize BackWeb as a cost-effective part of their plans to drive higher productivity from their mobile workforce. We will build on this positive market reception as we pursue our goal of establishing sustainable profitability.”

About BackWeb Technologies:
BackWeb provides a simple and powerful solution for making existing web applications available to your mobile workforce, anytime, anywhere. The Company's software enables mobile professionals, who are either disconnected or occasionally connected (via WiFi and cellular wireless connections) to work with your existing enterprise web applications on their laptop or tablet PC without interruption, regardless of their connection status. BackWeb’s patented web and polite synchronization mobile middleware software enables uninterrupted productivity by automatically synchronizing even large amounts of data in the background. The solution does so with minimal network requirements, and without requiring changes to the web application or installation of complex software on users’ machines. The solution is commonly deployed to sales forces, field service and operations organizations, consultants and managers. Typical applications include enterprise web CRM and HR systems, document repositories, sales tools, product lifecycle management systems, and rich media content.

BackWeb customers include market leaders such as Boehringer Ingelheim, Eastman Kodak, GE Healthcare, Hewlett-Packard, Johnson & Johnson, KLA Tencor, Lam Research, and Pfizer. BackWeb also serves customers through partnerships with BEA, Oracle Peoplesoft, and SAP. BackWeb is headquartered in San Jose, California, and Rosh Ha 'ayin, Israel. Make every minute of your mobile professional's day productive; visit www.backweb.com or call (877) 222-5932.

© 2005 BackWeb Technologies Ltd. All rights reserved. BackWeb and Polite are registered trademarks and Offline Access Server is a trademark of BackWeb Technologies Ltd. All other trademarks are property of their respective owners.

Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements of beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include statements regarding: BackWeb’s business model of working with partners, an expected increase in the acceptance of BackWeb’s solutions by enterprises and BackWeb’s ability to achieve sustainable profitability. Actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the ability of the Company’s new and existing sales personnel to effectively transition to the new sales execution model; the uncertainty of market acceptance of offline access products or our ability to license those products to customers; general economic conditions or any downturn in IT industry spending; the ability of the Company to develop innovative technology and deliver solutions that meet customer needs; and the potential emergence of competitive technologies or competitor companies. In addition, please refer to our periodic filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, which contain more detailed descriptions of the risk factors facing our business. BackWeb assumes no obligation to update any of the forward-looking statements in this release.

Contacts:
Investors:
Investor Relations
BackWeb Technologies Ltd.
(408) 933-1722
investors@jcir.com

Media:
Rachel Clark
BackWeb Technologies
(408) 933-1771
pr@backweb.com

BackWeb Technologies Ltd.
Condensed Consolidated Balance Sheets
(in thousands)

BackWeb Technologies Ltd.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)