BackWeb Completes Sale of Red Bend Stake for $1.56 Million and Reports 2007 and Q1 and Q2 2008 Financial Results

SAN JOSE, Calif., October 14, 2008 – BackWeb Technologies Ltd. (Pink Sheets: BWEBF or BWEBF.PK) today announced the completion of the sale of its stake in Red Bend, reported its results for the year ended December 31, 2007, posted its 2007 annual report to its website at http://www.backweb.com/news-and-events/, and also provided financial results for the first and second quarters of 2008.

Sale of Red Bend Stake

On Thursday, October 2, 2008 BackWeb completed the sale of its equity stake in Red Bend Ltd., a private Israeli company ("Red Bend"), for $1.56 million plus possible future contingency payments. BackWeb invested a total of $1 million in Red Bend between 2000 and 2002 and the investment was written down to zero on the Company's Balance sheet in 2003 due to market uncertainty at that time. Proceeds from the sale will be utilized to fund contemplated transactions with One Call which were previously announced and are subject to shareholder approval at the Annual General Meeting in November.

BackWeb Financial Results and Summary Balance Sheet

The following tables review BackWeb's financial performance and balance sheet for the year ended December 31, 2007 and the first and second quarters ended March 31 and June 30, 2008. Further details on the 2007 results are available in the annual report posted to the Company's website. No further information is being provided for the Company's results for Q1 and Q2 2008, which were also disclosed in the Company's recently released proxy statement.

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

	June 30, 2008 Unaudited	March 31, 2008 Unaudited	December 31, 2007
ASSETS Current Assets:
Cash and Investments	$2,304	$2,942	$2,948
Trade accounts receivable, net	472	522	1,105
Other current assets	345	408	450
Total Current Assets	3,121	3,872	4,503
Long - term investments and other assets	66	51	53
Property and equipment, net	79	95	102
Total assets	$3,266	$4,018	$4,658
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Total assets	$3,266	$4,018	$4,658
Accounts payable and accrued liabilities	$1,349	$1,495	$1,760
Deferred revenue	438	557	558
Total current liabilities	1,787	2,052	2,318
Long - term liabilities	26		-	-
Total shareholders' equity	1,453	1,966	2,340
Total liabilities and shareholders' equity	$3,266	$4,018	$4,658

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

	Three months ended		Year ended
	June 30, 2008 Unaudited	March 31, 2008 Unaudited	December 31, 2007
Revenue: License	$73	$38	$1,296
Licenses subject to contract accounting	250	250	1,250
Service	398	479	2,610
Total Revenue	721	767	5,156
Cost of revenue: License	1	-	110
Licenses subject to contract accounting	-	23	77
Service	67	69	654
Total cost of revenue	68	92	841
Gross profit	653	675	4,315
Operating expenses: Research and development	462	463	1,818
Sales and marketing	393	408	2,493
General and administrative	291	209	1,374
Restructuring	-	-	249
Total operating expenses	1,146	1,080	5,934
Loss from operations	(493)	(405)	(1,619)
Finance and other income, net	(20)	31	8
Net loss	$(513)	$(374)	$(1,611)
Net loss per share	$(0.01)	$(0.01)	$(0.04)
Shares used in computing net loss per share	41,334	41,334	41,319

Statements in this news release that 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, but are not limited to, statements regarding the potential value of our relationship with OneCall and our ability to monetize additional assets of the Company, and future growth and return for shareholders. Factors that could cause actual results to differ materially from expectations include, but are not limited to: uncertainty related to the return on our investment in OneCall due to their uncertain future performance in their competitive market and the general market uncertainty caused by the on-going changes in the financial and business markets, and, as a result, its business may not prove successful; and our stockholders might not vote to approve the transactions with OneCall; and BackWeb may not indentify other assets in the company with material market value or may not be able to successfully sell assets that may have market value. BackWeb assumes no obligation to update any of the forward-looking statements in this release.

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For any questions or comments, please contact:
Investor Relations
BackWeb Technologies Ltd.
(408) 933-1722
investors@jcir.com

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