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BackWeb Announces Settlement of Patent Infringement Lawsuit with Microsoft

SANTA CLARA, CA, June 3, 2010 - BackWeb Technologies Ltd (Pink Sheets: BWEBF or BWEBF.PK) announced today that it had reached a settlement of its previously announced patent infringement litigation with Microsoft Corporation. Under the settlement, all claims are resolved and the BackWeb patents are now licensed to Microsoft. With the resolution of the matter with Microsoft, BackWeb's patent litigation has been resolved with all defendants and the litigation has ended.

BackWeb currently has cash of approximately $ 10 million, which reflects the impact of the patent litigation and the last year of BackWeb's business operations. A more detailed, pro forma balance sheet taking into account the foregoing is enclosed with this press release.

Bill Heye, BackWeb's President and CEO stated, "We are pleased to have the litigation resolved. We now plan to analyze the company's future plans."

About BackWeb:
BackWeb® Technologies Ltd. ( has developed a range of communications software technologies and solutions enabling distribution of important information and digital assets. The company currently has very limited operations.

BackWeb’s operations are based in Santa Clara, CA and Rosh Ha'ayin, Israel.

Statements in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements of beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, but are not limited to, comments concerning BackWeb's future company plans and future financial results. BackWeb assumes no obligation to update any of the forward-looking statements in this release.

BackWeb Technologies Ltd.
PRO FORMA Consolidated Balance Sheet

June 3, 2010
In thousands
Current Assets
 Cash and Cash Equivalents$10,448
  Accounts Receivable37
  Other current assets 48
   Total Current Assets$10,533
Property and equipment, net5
Other non - current assets 3
 Total assets$10,541
Current liabilities
 Accounts payable$14
 Accrued liabilities982
 Deferred revenue 36
  Total current liabilities1,032
Long Term Liabilities13
Shareholders equity
 Share Capital152,376
 Accumulated deficit (142,880)
  Total shareholders equity 9,496
Total liabilities and shareholders equity$10,541
As of June 1, 2010, the company had 41,333,704 Ordinary Shares outstanding.

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Media or Investor Relations contact:
Bill Heye
BackWeb Technologies, Ltd.
+1 (408) 933-1722

Tomer Assis
Vice-President, Finance
BackWeb Technologies, Ltd.
+972 (03) 900 2712

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