SAN DIEGO, CALIFORNIA - January 3, 2003 - BakBone Software, a global provider of storage management software, today announced it has completed a private round of financing for approximately 1.8 million shares.

The total value of approximately US$1.0 million was raised entirely from management and existing investors. The related proceeds will further strengthen BakBone's working capital position and a portion of the proceeds will be used for debt reduction as required under the terms of the company's note payable.

"As we progress on our stated financial goal of breakeven EBITDA this quarter, it sends a strong signal to the market on management's and existing investors' confidence on the state of our business," said John Fitzgerald, BakBone's chief financial officer. "These proceeds will provide our Company with additional flexibility as we continue to invest in our business and drive our growth rate."

About BakBone Software Inc.

BakBone Software 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 backup and restore software provides 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. 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

The statements contained in this press release that are not historical in nature are forward-looking statements (including but not limited to express or implied statements concerning BakBone's anticipated growth rate and achievement of EBITDA breakeven) 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 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, BakBone Software, the BakBone logo, NetVault, Application Plug-in Modules and APM 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, registered trademarks or service marks of, and used to identify, products or services of their respective owners.