SAN DIEGO, CALIFORNIA, February 22, 2001 - BakBone Software, Inc. (TSE: BKB; OTC: BKBOF), a global provider of storage management software, today announced financial and operational results for the company's third quarter and eight months ended December 31, 2000.

Company officials cited the achievement of three strategic objectives for the three-month period, including:

• Substantial quarter-to-quarter growth in reported revenues, with licensing and service revenues up by more than 33 per cent and 20 per cent, respectively, from the previous quarter;
• Strategic business alliances formed with leading hardware manufacturers in the data storage industry; and
• Completion of work on new, "first to market" versions of the company's backup/restore and near-line archival software.

BakBone Software reported consolidated revenues of CDN$2.3 million for the third quarter, an increase of more than 31 per cent over revenues from the company's second quarter. The gross margin on revenues improved to CDN$2.0 million for the same period, an increase of approximately 32 per cent over the previous period. The net loss for the period was CDN$9.9 million, or CDN$0.26 per share. For the eight-month period ended December 31, 2000, revenues were CDN$4.9 million, with a net loss of CDN$22.8 million, or CDN$0.67 per share. BakBone officials noted that operating losses as a percentage of revenues narrowed as sales of NetVault™, the company's enterprise-grade backup and restore software, commenced in North America.

They also noted that the build-out of the company's global sales and support infrastructure is largely completed, and that BakBone is now in position to rapidly meet its sales objectives.

"The third quarter of our fiscal year was marked by our growing acceptance and validation among data storage industry leaders," said , BakBone's Chief Executive Officer. "They recognize our unique value proposition, and BakBone is engaging these industry leaders as strategic business partners. This achievement is the most tangible evidence of our making substantial progress in our path to profitability, and rewarding our shareholders for their faith in us. I'm pleased to say we continue to move firmly in that direction."

Cerqueira stated that BakBone achieved North American licensing revenues of CDN$805,000 in the third quarter, almost twice as much as the previous two quarters combined. In addition, licensing revenues of NetVault were CDN$1.1 million for the third quarter, representing 49 per cent of NetVault's year-to-date product revenues.

BakBone Software executives will discuss these results during a conference call today (Thursday, February 22, 2001) at 4:30 p.m. EST, following the close of the Toronto and New York financial markets. Investors can access the call by dialing 800.633.8410. A recording of the conference call will be available for the next seven days; North American investors may access the recording by dialing 800.633.8284, access code 18060462. International investors may access the recording by dialing 858.812.6440.

During the third quarter of its fiscal year, BakBone Software highlighted the achievement of the following strategic and operational milestones:

• Training of more than 900 salespeople from its North American network of channel sales partners. These channel sales partners are a cornerstone of BakBone's North American sales strategy.
• Beta launch of the latest version of its NetVault backup/restore software, commercially released in January 2001. NetVault now supports the widest range of data storage options, ranging from direct-attach to network-attached storage (NAS), and ultimately to storage area networks (SANs). NetVault's point-and-click ease of use, powerful performance and speed to market enabling technology has earned it consistent praise from users, industry analysts and trade magazine reviewers. Leading companies worldwide use NetVault to backup and restore the information critical to the success of their businesses.
• Completion and release of the new version of BakBone's MagnaVault™ software for UNIX-based near-line optical data storage systems. MagnaVault is the leader in its segment, with users including dozens of Fortune 100 companies as well as U.S. Federal government agencies and departments.
• Product certifications with a number of leaders in the data storage industry, resulting in strategic partnerships announced subsequent to the end of last quarter. Among those companies announced to date as strategic partners are StorageTek (NYSE: STK), Network Appliance (NASDAQ: NTAP), Exabyte Corporation (NASDAQ: EXBT), Spectra Logic Corporation and others. These agreements are consistent with BakBone's strategy to establish partnerships to increase both the acceptance of the company's storage management software solutions and revenues.

Cerqueira concluded, "The foundation is now in place to rapidly expand our global sales channels, to develop leading-edge storage management software solutions, and ultimately to sell our products, but we refuse to standstill. We will continue to establish strategic partnerships, announcing agreements that we expect to firmly anchor BakBone Software as a leader in the data storage industry."

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 workgroup to enterprise that will grow with a company's needs. BakBone's core products include nearline optical and archival, as well as tape backup and restore software for a full suite of storage management solutions to the corporate data center.

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 858-450-9009, e-mail sales@bakbone.com, or access BakBone's web site at www.bakbone.com.

Safe Harbor

This news release contains forward-looking statements reflecting management's current forecast of certain aspects of the company's future. It is based on current information that we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements may include statements by BakBone Software regarding:

• Growth projections for the company, including revenues and net income.
• The projected rollout of upgraded versions of our products.

BakBone's actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with our business, including, but not limited to:

• Our dependence on projected purchases by our major customers.
• Our ability to establish and maintain contractual arrangements with storage-centric value-added resellers ("channel partners")
• Competition in all aspects of our business
• Changes in product or service profit margins due to pricing changes driven by variations in customer demand, competition, or unforeseen factors
• The effect of general economic, credit and capital market conditions on our business
• Our failure to compete or successfully operate planned expansion projects.

Our forward-looking statements should be considered in the context of these and other risk factors disclosed in our most recent report filed with the Canadian Securities Administrators, which is available on the SEDAR disclosure system (www.sedar.com).

All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

BakBone Software, the BakBone logo, 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.