SAN DIEGO, CA., July 17, 2000 - BakBone Software (TSE: BKB, OTC: BKBOF), a global leader in storage management software solutions, today announced the completion of the first stage of its research facility improvement program. The program is designed to provide BakBone with world-class research and testing capabilities at its sites around the world.

The upgrades were performed at BakBone's facilities in the United States, United Kingdom and Japan, and were finished in advance of the North American launch of NetVault™, BakBone's flagship storage management software product. That launch, said company officials, is expected within several weeks.

"We have committed to our customers and shareholders that BakBone will be a truly world-class organization, from the products we sell to the service and support we deliver," said Tony Cerqueira, BakBone's Chief Executive Officer. "Our research facilities meet that goal; we are already hard at work, producing improvements to our current product roster, and researching next-generation storage software solutions," he added.

SAN, Multi-platform testing, lead research focus

BakBone's Storage Area Network (SAN) and Operability Lab is the company's premier facility. Lab researchers are busy working, assuring that NetVault and other BakBone products are compatible with leading SAN vendors, such as Crossroads, Brocade, Qlogic and Gadzoox, across a wide range of computer platforms, such as Windows NT, Linux and UNIX.

BakBone has upgraded its other global research facilities as well, more than tripling both its development staff and available work area.

The need for continuous improvement in storage management technology seemingly grows by the day. Leading analysts have noted the explosion in the need for ever-increasing amounts of available storage; one has estimated the total market will be worth almost $15 billion dollars annually within three years. That estimate is double the figure quoted last year at this time.

Cerqueira noted that BakBone Software is preparing to meet the demands for software that easily manages greater and greater amounts of information, in shorter time spans. "Backup windows are rapidly shrinking, even disappearing, in the 24/7 economy," he noted. "Storage software that secures companies' most important information, with a maximum of ease and minimum of complexity, will prove to be of the greatest benefit to those companies, and will be the winner in the marketplace. Through our worldwide technical facilities, our ongoing research and our corporate focus, we are positioning BakBone today to meet tomorrow's needs."

About BakBone Software, Inc.

BakBone Software™ (TSE: BKB, OTC: BKBOF) is an international storage management software company that develops and globally distributes industry-leading storage management solutions to the open systems markets, providing data protection and management solutions scalable from office to enterprise that will grow with a company's needs.

BakBone's NetVaultTM product is designed to provide unparalleled robustness, and unmatched data protection and recovery to meet the challenges of today's computing infrastructures. NetVault's comprehensive but easy to use features include versatile modular design, advanced SAN support and specialized on-line application backup. The very core of the product is designed with high bandwidth data transfers in mind and designed to ensure that performance is not compromised.

BakBone's corporate headquarters are located at 10145 Pacific Heights Boulevard, San Diego, Ca. 92121. Its stock is listed on the Toronto Stock Exchange and is included on the TSE 300 Composite, S&P/TSE Canadian SmallCap and TSE 200 indices. For more information on BakBone products, call 858-450-9009, e-mail sales@bakbone.com, or access BakBone's web site at www.bakbone.com.

Safe Harbor

The statements contained in this press release that are not historical in nature are forward-looking statements. Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward-looking statements.