BackWeb Reports Third Quarter 1999 Results

Company reports 156 percent revenue growth and adds 26 companies to global customer list

SAN JOSE, California — October 21, 1999 — BackWeb® Technologies Ltd. (Nasdaq: BWEB), a leading provider of Push for e-business solutions, today announced results for the third quarter ended September 30, 1999.

Revenues for the period increased 156 percent to $6.2 million, from $2.4 million in the same period a year earlier and up 22 percent from $5.1 million in the previous quarter. Excluding amortization charges related to a previous acquisition and deferred stock compensation, BackWeb's net loss for the third quarter of 1999 was $1.6 million, or $0.05 per share loss, compared to a net loss of $2.9 million or $0.13 per share loss for the third quarter of 1998, and a net loss of $2.4 million, or $0.09 per share loss for the second quarter of 1999.

Including amortization charges, net loss for the quarter ended September 30, 1999 was $2.4 million, or $0.07 per share loss, compared to a net loss of $3.3 million, or $0.15 per share loss for the third quarter of 1998, and a net loss of $3.3 million, or $0.12 per share loss for the second quarter of 1999.

"Our third quarter results show that the Push category is generating accelerated momentum," said Eli Barkat, BackWeb chairman and CEO. "As the leader in the category, BackWeb continues to attract industry-leading, globally branded companies such as Nortel, Lucent and British Telecom. During the quarter, BackWeb expanded its product suite offering, its global 2000 customer base, and increased its desktop presence worldwide. As a result, we believe that we are making significant strides toward our objective of being the recognized de facto standard in Push for e-business solutions."

Third Quarter Highlights
Primary drivers for the company's third quarter growth include the continued acceptance of the Sales Accelerator product. Sales of packaged applications built on BackWeb's infrastructure now make up a significant portion of BackWeb's license revenue.

In the quarter, BackWeb added two new products to its Accelerator Suite of packaged applications. Service Accelerator is an application targeted at proactive delivery of critical information to deployed service personnel. The application can politely push and notify the recipient of new software updates, new documentation, service alerts, and similar rich content critical in efficient operation of deployed service organizations.

The Rapid Survey module was introduced as a standard component in the Service Accelerator application and as an option to the previously announced Sales Accelerator. The Rapid Survey Module automates the process of getting feedback from users in survey form. Rapid Survey also includes simple tools for tabulating and reporting results. BackWeb believes that customer reception to these products has been increasingly strong.

Third quarter sales to global 2000 customers continue to show the broad applicability of BackWeb's solutions to today's e-business challenges. Major customer wins this quarter include Nortel, Ericsson, British Telecom, Disney, Lucent, Jefferies & Co., BancBoston, and Telenordia.

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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