SAN DIEGO, CALIFORNIA - July 13, 2001 - BakBone Software™ Incorporated (TSE: BKB; OTC: BKBOF), a global provider of storage management software, today announced that it has filed its Form 20-F with the United States Securities and Exchange Commission (SEC), as a step toward implementing its move to the U.S. equities markets.

"Today's filing with the SEC marks a major step in our corporate evolution. From our inception, we have stated that becoming a reporting entity in the United States has been a key corporate goal," stated Archie Nesbitt, BakBone's board chairman.

The Form 20-F allows foreign private issuers to register securities with the SEC pursuant to the Securities Exchange Act of 1934. The SEC may review the Form 20-F before permitting the Form to become effective and, as such, no timeline can be given as to the expected effective date of BakBone's registration.

Today's filing comes on the same day that the company filed its financial and operational results for the fourth quarter and eleven months ended March 31, 2001. BakBone reported consolidated revenues of CDN$2.6 million for the fourth quarter, an increase of 14% over third quarter revenues. Gross margin on revenues improved to CDN$2.2 million for the fourth quarter, an increase of approximately 11% over the previous quarter. Net loss for the fourth quarter was CDN$9.9 million, or CDN$0.25 per share. For the eleven months ended March 31, 2001, revenues were CDN$7.5 million, with a net loss of CDN$32.7 million, or CDN$0.92 per share.

Company officials cited the achievement of four strategic objectives during the fourth quarter, including:

• Sustained quarter-to-quarter growth in revenues of more than 14%, marking continuous quarterly double-digit growth since BakBone was formed last year;
• Agreements and certifications with several leading storage hardware companies, including Network Appliance (NASDAQ: NTAP) and StorageTek (NYSE: STK);
• Realignment of its corporate sales and marketing functions, bringing in two industry veterans to head those divisions; and
• NetVault's certification by the General Services Administration for purchase by U.S. Federal Government agencies.

"BakBone demonstrated continued growth throughout its first year, despite the difficult economic climate worldwide," said Keith Rickard, BakBone's newly appointed chief executive officer and president. "The company established a foothold in the North American and European marketplaces, as well as solidified its position in the Pacific Rim. We are in position to expand that foothold, ramp up sales in our second year, and deliver quantifiable financial results to our shareholders."

The company also announced that, in consultation with its newly appointed auditors, KPMG LLP, it has restated the financial statements of its wholly?owned subsidiary, NetVault Limited, for the year ended December 31, 1999. The restatement results from a May 1999 contract with a reseller, whereby UK-based NetVault Limited was paid a refundable development fee for software engineering services. Management has reconsidered the appropriateness of recognizing the full amount of the development fee as revenue due to the fact that the development fee was recoverable by the reseller in certain circumstances. The restatement of these predecessor financial statements did not have a material impact on the consolidated financial statements of BakBone Software Incorporated.

The restatement is described in greater detail in Footnote 2 of the restated NetVault Limited audited financial statements for the years ended December 31, 1999 and 1998; a copy of these financial statements is available on the SEDAR disclosure system at www.sedar.com.

About BakBone Software, Inc.

BakBone Software™ Incorporated (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'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, Suite 900, 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

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, without limitation, statements by BakBone Software regarding:

• Growth projections for the company, including revenues and net income; and
• 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; and
• 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) and/or those risk factors disclosed in the current report filed with the United States Securities and Exchange Commission which may be found at www.sec.gov/edgar.

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.