BackWeb Announces Nasdaq Staff Determination

San Jose, Calif. - August 20, 2002 - BackWeb Technologies (Nasdaq: BWEB), the leading provider of ProactivePortal™ technologies for the enterprise, today announced that on August 13, 2002, it received a Nasdaq Staff Determination stating that the company has not met the minimum bid price requirement of $1.00 per share as required in Marketplace Rule 4450(e)(2) for continued listing on The Nasdaq National Market. As a result, BackWeb's ordinary shares are subject to delisting from The Nasdaq National Market.

BackWeb will appeal the Staff's Determination by requesting a hearing before a Nasdaq Listing Qualifications Panel. The delisting proceedings will be stayed and the company's ordinary shares will continue to be listed and traded on The Nasdaq National Market pending resolution of the appeal. There is no assurance that the panel will grant BackWeb's request for continued listing on The Nasdaq National Market. Should the appeal not be accepted, BackWeb will apply to list its ordinary shares on The Nasdaq SmallCap Market. There can be no assurance that BackWeb's application to transfer its shares to the Nasdaq SmallCap Market, if made, will be accepted.

This release is being issued pursuant to Nasdaq Marketplace Rule 4815 (b), which requires BackWeb to make a public announcement through the news media of the letter no later than seven days from its receipt.