BackWeb Technologies Helps Drive ‘B2E'—Enterprise Portal Solution from PwC Consulting

BackWeb to Provide ProactivePortal Technology for Critical Enterprise Portal Content

SAN JOSE, Calif. —December 10, 2001— BackWeb Technologies (Nasdaq: BWEB), the leading provider of ProactivePortal™ technologies for the enterprise, today announced that it has formed a global alliance with PwC Consulting™, a business of PricewaterhouseCoopers. BackWeb will participate as a key contributor to PwC Consulting's B2E (business-to-extended enterprise) initiative, which enables global enterprises to fully unlock the potential of their businesses, and optimize their existing assets, through the use of Web-based portal technologies.

BackWeb will help power the B2E solution with offline access and proactive notification capabilities for employees, customers and partners. B2E moves a wide variety of work to the Web, improving collaboration, productivity and operational efficiency among key stakeholders of any organization by making critical information and tools easily accessible and usable, regardless of an individual's role or location.

"Our global clients are moving work to the Web in many exciting ways—and need to maximize the return on their current assets. One thing they are clamoring for is offline access and proactive notification for their critical enterprise portal content," said Anil Cheriyan, PwC Consulting partner and BackWeb relationship leader. "BackWeb shares with us a vision for helping clients reach new heights of productivity by making critical, personalized content easily accessible to those who need it."

PwC Consulting will integrate BackWeb® technology into its enterprise portal solution architecture, allowing its enterprise portal customers to access ‘must-have' content. By offering BackWeb's ProactivePortal technologies, PwC Consulting will address some critical portal needs such as offline portal access for disconnected and mobile users, portal stickiness, emergency communications and enterprise video communications.

Through this global alliance, BackWeb will also work with PwC Consulting and its other B2E alliance members to provide next-generation portal solutions targeted to vertical industries, and to formalize best-of-breed offerings for current PwC Consulting and BackWeb accounts. The BackWeb ProactivePortal Server™ will be available for client demonstration at various PwC Consulting centers throughout North America, Europe and Asia. Additionally, PwC consultants are being trained in BackWeb ProactivePortal technologies.

"Providing portals with must-have capabilities such as offline access and proactive notification requires addressing and overcoming challenging technology barriers," said Erez Lorber, vice president of business development, BackWeb Technologies. "BackWeb's ProactivePortal technologies are the result of hundreds of years of development and five years of experience with hundreds of customers. BackWeb is seeing a growing demand for these technologies in the portal market and that demand is validated by this latest global alliance with PwC Consulting."

About PwC Consulting
PwC Consulting (www.pwcconsulting.com) is a leading global provider of services that transform the businesses of established and emerging enterprises around the world. With an extensive network of global alliances, deep industry-specific knowledge, and broad capabilities in strategy consulting, process improvement and technology integration, PwC Consulting practitioners place innovative ideas into bold, meaningful actions that can help realize a strategic vision, drive business success, and enhance enterprise value for our clients.

PwC Consulting refers to the management consulting services businesses of the member firms of the worldwide PricewaterhouseCoopers organization.

PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world. PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organization.

	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