BackWeb Delivers Proactive Technology for Logitech Customers WorldWide

San Jose, CA.- October 29, 2001 —BackWeb Technologies (Nasdaq: BWEB), the leading provider of ProactivePortal™ technologies for the enterprise, announced today that Logitech (NASDAQ: LOGIY) (Switzerland: LOGN, LOGZ) has powered its mouse and keyboard software with BackWeb® Proactive™ technologies to maximize and extend the reach of its relationship with 20 million customers worldwide.

With millions of people buying Logitech pointing devices and keyboards through retail dealers and worldwide distributors, Logitech wanted to establish a direct relationship with its customers and improve its after-sales customer experience. By ensuring that end-users receive critical content such as notice of software upgrades, patches, and product promotions in a seamless, timely and cost-effective manner, Logitech is able to provide a high level of customer satisfaction with its products.

BackWeb's Proactive technology allows software upgrades and product promotions to be seamlessly delivered and downloaded to Logitech customers using BackWeb's patented Polite® communications technology, which avoids disrupting the user by downloading content in the background during network idle time. Since upgrades are now delivered directly to the end-user, Logitech can enhance the customer experience and reduce service costs and time to market.

"Logitech is committed to providing our worldwide customer base with the best possible product experience," said Michel Yavercovski, director of partner marketing, Logitech. "Making sure customers had the very latest information was a challenge best addressed by BackWeb's ProactivePortal technology. This technology provides the critical piece to enable our customers to maximize the use of their Logitech products. Choosing a tool that was scalable and reliable was another requirement that was met by BackWeb."

"By implementing BackWeb's Proactive solutions, Logitech is making it easier for customers to do business with them," said John Kemp, director of product marketing, BackWeb Technologies. "ProactivePortal technologies are the result of hundreds of man-years of development effort and five years of experience with hundreds of customers. Providing these high value Proactive services and putting critical content in the hands of those who need it most will add significant value to Logitech's ongoing relationship with its worldwide customers."

	Three Months Ended		Nine Months Ended
	September 30, 2002	September 30, 2001	September 30, 2002	September 30, 2001
	Unaudited	Unaudited	Unaudited	Unaudited
Revenues:
License	$148	$2,635	$1,571	$10,642
Service	754	1,846	3,433	5,635
Total revenues	902	4,481	5,004	16,277
Cost of revenues:
License	46	62	173	334
Service	813	1,132	2,791	4,218
Total cost of revenues	859	1,194	2,964	4,552

Gross profit	43	3,287	2,040	11,725

Operating expenses:
Research and development, net	1,438	2,017	4,998	7,165
Sales and marketing	2,505	5,375	8,601	18,675
General and administrative	1,226	2,058	3,797	8,435
Restructuring charge	4,678	2,825	4,678	2,825
Write-off of intellectual property and other intangibles	1,738	-	1,738	-
Amortization of intellectual property, other intangibles, and deferred stock compensation	-	951	1,782	2,855
Total operating expenses	11,585	13,226	25,594	39,955

Loss from operations	(11,542)	(9,939)	(23,554)	(28,230)

Finance and other income, net	242	694	1,062	1,942
Write-down of an equity investment	-	-	-	(2,500)

Net loss	$(11,300)	$(9,245)	$(22,492)	$(28,788)

Net loss per share	$(0.29)	$(0.24)	$(0.57)	$(0.75)

Net loss per share (see Note 1)	$(0.12)	$(0.14)	$(0.36)	$(0.54)

Shares used in computing net loss per share	39,512	38,313	39,222	38,147

Note 1 Net loss per share excludes amortization, write-off of intellectual property and other intangibles, restructuring charge and write down of an equity investment BACKWEB TECHNOLOGIES LTD. Condensed Consolidated Balance Sheets (in thousands)

	September 30, 2002	December 31, 2001
	Unaudited	Audited
Assets

Current assets:

Cash and cash equivalents	$20,002	$17,209
Short-term investments	8,207	24,615
Trade accounts receivable, net	1,046	3,529
Other current assets and prepaid expenses	1,825	2,015
Total current assets	31,080	47,368

Long-term investments and other assets	2,616	2,458
Property and equipment, net	1,417	3,356
Intellectual property and other purchased intangibles, net	-	3,330
Total assets	$35,113	$56,512
Liabilities and shareholders´ equity

Current liabilities:

Accounts payable and accrued liabilities	$9,021	$7,192
Deferred revenue	1,228	2,271
Total current liabilities	10,249	9,463

Long-term liabilities	372	468
Total shareholders´ equity	24,492	46,581
Total liabilities and shareholders´ equity	$35,113	$56,512