SAN DIEGO, CALIFORNIA, January 18, 2001 - MD OnLine, a healthcare applications service provider (ASP) based in Lexington, Mass., today said it has chosen BakBone Software's (TSE: BKB, OTC: BKBOF) NetVault™ storage management software to safeguard development work being done on the next generation of its comparative consultation software. MD OnLine officials said they chose NetVault over other backup and restore software products because of its ease of use and powerful ability to help them quickly manage the entire data storage process.

"We were having trouble with losing development data we couldn't afford to lose," said Tony Fisher, Director of Quality Control, at MD OnLine. "The physicians, healthcare professionals and patients using our site have constantly evolving and growing needs for information. We need to be able to provide data to them in the time frame they demand, which is why it's crucial that we develop and deliver the products that will keep our customers informed, and keep us in business. NetVault ensures the work our teams have done will be there when it's needed most."

BakBone's NetVault software is designed to help companies like MD OnLine safeguard their most important, corporate-critical information. The new version of NetVault, introduced commercially earlier this month, enables companies of all sizes to manage their growing data storage requirements simply and powerfully, regardless of the topology being used. From direct-attached storage and network-attached storage (NAS) to storage area networks (SANs), NetVault features ease of use throughout the entire product lifecycle, from installation and operation through scalability and support.

Those features were especially important at MD OnLine; Fisher said the company performs daily backups of 100 gigabytes of application development information over a Windows NT network. The information is needed as the company works on improvements to its ImageMatch™ application, offering radiologists seamlessly integrated access to the world's largest database of diagnostic images and associated clinical information.

"Ease of use was crucial to us," Fisher said. "Working with our systems integration partner NEXL Network Systems, we settled on NetVault as the software answer to our data backup problems. NetVault enables us to perform a centralized backup, eliminating a number of time-consuming steps that we've been forced to complete in the past. It gives us a clear advantage over what we were using before."

BakBone's NetVault software is available globally, through an exclusive network of storage-centric channel partners and distributors.

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

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.