SAN DIEGO, CALIFORNIA - January 11, 2002 - BakBone Software™ (TSE: BKB), a global provider of storage management software, announced today the expectation of increased revenues for the company's third fiscal quarter ending December 31, 2001. This repeated growth in revenue along with the expectation of continued improvement in company expenses demonstrates a sustained, positive direction for the company.

BakBone expects an approximate 25 percent revenue growth compared to the previous quarter ending September 30, 2001. Based on current forecasts for the remainder of fiscal 2002, BakBone now projects revenue growth to be 100 to 110 percent over the prior fiscal year. This is an adjustment to previously published financial guidance.

"While BakBone's EMEA and Asia regions showed strong growth, the results in North America for the first two months of the quarter were weaker than anticipated. However, the region rebounded in December, contributing to BakBone's first ever month of revenues in excess of one million dollars," said Keith Rickard, President and CEO of BakBone. "We are focused on continuing to improve expenses while growing revenues in this strong storage management market."

About BakBone Software, Inc.

BakBone Software™ (TSE: BKB) 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

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 are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries.