SAN DIGO, CALIFORNIA - August 1, 2002 - BakBone Software, a global provider of storage management software, announced today financial results for the first fiscal quarter ended June 30, 2002.

BakBone reported consolidated revenues of US$3.6 million for the first quarter, an increase of 124 percent over the same period in the previous fiscal year. Operating expenses for the first quarter were US$6.1 million, an increase of 12 percent from the same period last year, which includes US$396,000 in stock-based compensation charges associated with the Company's adoption of the new Canadian accounting standard for stock-based compensation. Excluding stock-based compensation charges, operating expenses for the first quarter totaled US$5.7 million, an increase of 4 percent from the same period last year. Net loss for the first quarter was US$2.9 million, or US$0.06 per share, compared to US$5.0 million, or US$0.14 per share, for the same period last year.

"I am extremely pleased by the results we achieved during our first quarter," said Keith Rickard, BakBone's President and CEO. "We were able to add another strong growth quarter as compared to last year as well as continued sequential quarterly growth. The slight increase in operating expenses was the result of a planned expansion of our sales and marketing organizations as we added people who will be key in our continued revenue growth. We are working hard to grow our company, based on fundamental metrics, and we are focused on maximizing shareholder value while providing a leading storage management software offering to our customers."

The company will discuss the quarterly results during an investors' conference call to be held Thursday, August 1, 2002 at 4:30 pm Eastern Standard Time. Interested parties may participate in the call by dialing 1-800-257-7087, and requesting the "BakBone Quarterly Conference Call."

About BakBone Software, Inc.

BakBone Software (TSE: BKB - News) 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, Suite 900, San Diego, California 92121. Its stock is listed on the Toronto Stock Exchange and is included on the S&P/TSE Composite Index, 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.

Disclosure and Forward Looking Statements

In addition to historical information, this press release includes forward looking statements (including but not limited to express or implied statements concerning BakBone's anticipated revenue growth and maximized shareholder value) that involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to: competition in our target markets; potential capital needs; management of future growth and expansion; risk of third party claims of infringement; protection of proprietary information; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; potential product defects; our ability to hire and retain qualified employees and key management personnel; and risks associated with operations in foreign countries.

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 at www.sedar.com and/or those risk factors disclosed in our most recent 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.

All brands, products or service names are or may be trademarks, registered trademarks or service marks of, and used to identify, products or services of their respective owners.