BackWeb Q3 Revenue Rises to $1.75 Million; Cash and Cash Equivalents Total $17.0 Million at September 30th

Erez Lorber, VP Worldwide Sales and Business Development, Promoted To CEO Role; Eli Barkat Maintains Position of Chairman

SAN JOSE, Calif., – October 22, 2003 – BackWeb Technologies Ltd. (Nasdaq: BWEB), a leading provider of offline Web software, today announced financial results for its third quarter ended September 30, 2003. Separately, the Company announced that Erez Lorber, VP of Worldwide Sales and Business Development, has been promoted to CEO, effective January 1, 2004, replacing Eli Barkat, who will remain as BackWeb's Chairman.

BackWeb achieved net revenue of $1.75 million in the third quarter of 2003, compared to 2003 second quarter net revenue of $1.47 million and net revenue of $0.90 million in the third quarter of 2002. License revenue was approximately $0.9 million in the quarter, approximately 2/3rds of which related to the BackWeb® ProactivePortal® Server (PPS) product. PPS customers in the period included Ondeo Nalco, Pfizer, Lam Research and Centocor.

BackWeb reported a net loss of $2.5 million, or $0.06 per share, for the third quarter of 2003, compared to a 2003 second quarter net loss of $2.6 million, or $0.07 per share, and to a 2002 third quarter net loss of $11.3 million, or $0.29 per share, which included $4.7 million in restructuring charges and a $1.8 million write off of intangibles. At the close of the third quarter of 2003, BackWeb had cash and cash equivalents totaling $17.0 million and no long-term debt.

Eli Barkat, chairman and CEO of BackWeb Technologies, commented, "We believe our third quarter results reflect a ramp-up in market momentum for offline solutions and our products. We are encouraged to see a rise in qualified customer prospects and in our potential order pipeline, however, we would need to see further improvements in visibility before we would be ready to provide any forward-looking guidance on operating results.

"Underscoring the steady growth in interest for offline access and BackWeb, industry analysts and Web infrastructure ISVs are confirming an expanded number of customer inquiries about offline solutions and are increasingly validating our product's solution by pointing customers to BackWeb. We believe that this is mostly due to the favorable feedback and strong levels of customer satisfaction we are achieving in our customer deployments, which are increasing each quarter."

"These overall improvements are still not enough, but they serve to solidify our confidence in our positioning and longer-term outlook. It is in this more encouraging setting, combined with the talent and experience of Erez Lorber and the other senior managers in the company, that I feel confident that the timing is right to transition my CEO functions to Erez at year-end 2003."