January 15, 2003

News Release: BakBone Software Announces Preliminary Results for the Third Quarter Fiscal 2003

BakBone Software(TM) (OTCBB:BKBOF)(TSX:BKB), a global provider of storage management software, announced today preliminary results for the third fiscal quarter ended December 31, 2002. Final reported results for the quarter are expected to show revenues in excess of US$4.8M or approximately 70% growth over the corresponding quarter of last fiscal year. "Our third quarter results show the continued traction and sustainable revenue growth that we had expected," said Keith Rickard, BakBone's President and CEO. "Our pipelines remain strong and we are on track to achieve our guided revenues for this fiscal year. In fact, our revenue growth and expense control shows a clear path to our guidance of breakeven EBITDA for our current fiscal quarter."

"Equally as important as the milestones cited by Keith is our success in the area of cash management," said John Fitzgerald, BakBone's Chief Financial Officer. "The third fiscal quarter saw continued improvement in operating cash flow as well as success in negotiating the early release of our restricted cash balance. These successes have been further supplemented by the proceeds received from the private placement that closed this month."

BakBone's final reported results for the third fiscal quarter ended December 31, 2002 are expected to be released on February 4, 2003. Following the release, BakBone will host a conference call by management at 4:30 Eastern Standard Time to discuss the final results of the quarter ended December 31, 2002.

About BakBone Software, Inc.

BakBone Software (OTCBB:BKBOF)(TSX: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 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 This email address is being protected from spambots. You need JavaScript enabled to view it., or access BakBone's web site at www.bakbone.com.

BakBone, BakBone Software and the BakBone logo 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.

Safe Harbor

With the exception of historical information, the statements set forth above include forward looking statements (including but not limited to express or implied statements concerning BakBone's anticipated revenue growth, increased demand for its product, achievement of EBITDA breakeven, and cash position) 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 Software
Chanda Idano
Investor relations
(858) 450-9009
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