SAN DIEGO, CALIFORNIA - August 17, 2001 - BakBone Software™ (TSE: BKB, OTC: BKBOF), a global provider of storage management software, today announced a voluntary stock option cancel and regrant program for its employees.

Under the program, BakBone employees, excluding executive officers, will be given the opportunity to cancel certain outstanding stock options previously granted to them in return for new options to purchase shares of its common stock equal to the number of options cancelled. These new options will be granted to participants in the exchange program six months and 1 day from the cancellation date. The exercise price of the new options will be based on the fair market value of the common stock at the time of the new option grants.

"I believe our employees are our key asset at BakBone. Retaining our employees and motivating them to achieve our long-term goals is a high priority which will in turn enhance shareholder value," said Keith Rickard, president and chief executive officer of BakBone Software.

The exchange program is being designed to conform with applicable Canadian and United States accounting standards. Accordingly, BakBone anticipates that there will be no compensation charges to the company as a result of the exchange program.

About BakBone Software, Inc.

BakBone Software™ (TSE: BKB, OTC: BKBOF) is an international storage management software company that develops and globally distributes high-performance software solutions to the network storage and open systems markets. BakBone's near-line archival and backup/restore software suites provide scalable data protection from the workgroup to the enterprise. Founded in 2000, BakBone Software's products are used by companies worldwide, and are distributed through a network of OEMs and solution providers.

BakBone's corporate headquarters is located at 10145 Pacific Heights Boulevard, San Diego, California 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 (866) 484-2663, 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.

BakBone Software, the BakBone logo, MagnaVault and NetVault are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries. All other brands, products or service names are or may be trademarks or service marks of, and used to identify, products or services of their respective owners.