BackWeb Software Suite Utilized By Microsoft in Two Small Business Technology Empowerment Programs

BackWeb Technology Included In Microsoft's ASAE (American Society of Association Executives) Technology Alliance Program and Franchise Extranet Solution

SAN JOSE, Dec. 8, 1997 -- BackWeb Technologies today announced that Microsoft Corp. has included its push technology suite in two programs designed to help small businesses leverage the power of technology. Both solutions are designed to encourage the development of technology leadership and foster electronic community among small businesses, and feature a large intranet and extranet component. As part of these solutions, BackWeb's technology will enable franchises and association headquarters to proactively deliver information to members of their business communities in a variety of formats including Word documents, Microsoft Excel spreadsheets and PowerPoint presentations.

"Automating the delivery of critical information and applications is an important reason why BackWeb is being broadly used in solutions where knowledge management is important," said Eli Barkat, CEO of BackWeb Technologies. "BackWeb makes it easy for entire communities to use technology to stay up-to-date. The more that an organization's partners and customers know about its products, markets, and services, the more successful it will be."

Microsoft has developed these initiatives to build small business technology leadership and improve access to basic resources that can help small businesses better understand and use technology.

"Nowhere is the reliance on community more important than in the small business segment," said Nigel Burton, director of small business at Microsoft. "Small businesses lack the 'built-in' community environment of their corporation counterparts, and are interdependent on their colleagues, peers, suppliers, and customers." Burton explains that these business owners rely upon associations, franchise networks and similar communities for leadership in all areas-including technology. "We want to strengthen these communities' ability to provide technology leadership and support. These initiatives are an important part of that effort and we're delighted that BackWeb shares this vision."

BackWeb's Role in Electronic Communities
BackWeb's flexibility, polite delivery and ability to transfer large files and multimedia data bring important benefits to all forms of electronic communities. Organizations using BackWeb technology as part of their intranet and extranet communications solutions can strengthen partner communications, while reducing business costs and maximizing process efficiency.

BackWeb enables users to proactively deliver information in various formats including Word documents, Excel spreadsheets and PowerPoint presentation seamlessly to their partners' desktops. This information can include anything from special promotions and incentives to the latest marketing materials and price lists. And, these files can be automatically delivered, as newer information becomes available.

BackWeb's Polite Agent manages the file transfers and updates over modems and through firewalls, ensuring that BackWeb's delivery does not interrupt the user. The Polite Agent identifies when a user's network connection is idle and transparently sends information in the background at those times. The Polite Agent also sends information incrementally, so if the user interrupts the transfer, the Polite Agent can easily stop the transfer and pick-up later where it left off. For this reason, the Polite Agent makes downloading large files painless.

Franchise Extranet Solution
As an industry that relies heavily on the distribution of mission-critical information, franchise communities are in a good position to take advantage of core Internet technologies in order to move the franchise business model into the future. Microsoft's franchise extranet provides secure, interactive communication any time, any day, and will enable franchises of any size to improve licensee satisfaction, retention and growth. The solution couples Microsoft's core Internet technologies, applications and platforms with BackWeb Technologies' push solution.

ASAE Technology Alliance
The ASAE and Microsoft Technology Alliance has a two-fold objective: The first is to improve access to basic resources that can help associations and their members better understand and use technology. The second is to create a "blueprint" for technology success that associations can follow to facilitate building electronic communities that serve members.

To meet these objectives, the alliance will offer a variety of tools and support including an association-specific push news service, built using BackWeb Technologies' server suite that will deliver association and technology news.

"BackWeb adds functionality that empowers associations with an easy-to-use avenue for communicating and sharing information with each member. Information shared can include helpful industry tips and up-to-the-minute news and information," said Barkat.

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.