BackWeb Announces Transfer to Nasdaq SmallCap Market

Transfer Effective September 23; Trading Continues Under Symbol "BWEB"

San Jose, Calif. – September 20, 2002 – BackWeb Technologies (Nasdaq: BWEB), the leading provider of ProactivePortal™ technologies for the enterprise, today announced that Nasdaq has approved the company's application to transfer its shares from The Nasdaq National Market to The Nasdaq SmallCap Market, effective at the open of business September 23, 2002. The company's stock will continue to trade under its current symbol "BWEB."

"BackWeb is committed to increasing its shareholder value as quickly as possible," said Eli Barkat, chairman and CEO of BackWeb Technologies. "We believe that focusing on the fundamentals of our business strategy – successfully transitioning our products to the Portal space, gaining new customers and expanding our reach through relationships with strategic partners – to generate revenue while carefully controlling operating expenses is the best way to drive shareholder value."

"This voluntary move to The Nasdaq SmallCap Market, we believe, is preferable to other courses of action we considered, including the appeals process. The company comfortably meets all continued listing requirements for the SmallCap Market. This will allow us to focus our time and resources on the business," said Mike Morgan, chief financial officer of BackWeb Technologies. "We are pleased that our application has been accepted and we expect the move to be relatively transparent to investors."