BakBone Software Announces Global Partnership with Red Flag Linux.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Oct. 1, 2003

Reinforcing the Company's position as the leading provider of data recovery software for Linux distributions, BakBone Software(TM)(OTCBB:BKBOF)(TSX:BKB) today announced a global alliance with Red Flag Software Co., Ltd, China's leading Linux operating system developer, to deliver NetVault 7.0 backup and restore capabilities for Linux-based applications to the People's Republic of China. The alliance represents the first tier-one data protection provider to support Red Flag Linux distribution and builds on BakBone's worldwide growth in the Linux space. The agreement will also expand BakBone's footprint in the Pacific Rim region.

Enterprise customers in China, for the first time, will receive full data recovery and backup support on the Red Flag Linux platform. Fully certified to run on Red Flag's Server 4 series, NetVault 7.0 delivers an easy-to-deploy, affordable solution that can increase ROI by reducing complex configuration and operational requirements. As an early adopter of the Linux development platform, BakBone's NetVault enables customers to use Linux with confidence, while equally supporting both UNIX and Windows platforms.

"In partnering with Red Flag, we offer customers throughout China a completely scaleable data protection solution that delivers unrivaled lowest total cost of ownership and superior performance benefits," said Keith Rickard, president and CEO of BakBone Software. "The strategic relationship between Red Flag Software and BakBone further proves our commitment to providing best of breed solutions for the Pacific Rim marketplace. In addition to extending BakBone's reach into the Pacific Rim, this alliance will be key to gaining access to customers in government, banking, retail, manufacturing, utility and energy sectors in the Chinese market."

Linux is the fastest growing platform in the world with projected growth in the Linux server market expected to increase approximately 25 percent by 2006 according to IDC. This fast pace adoption of Linux among enterprises in China already has prompted the announcement of several other strategic partnerships between Red Flag and major U.S. database platform developers.

"The explosive adoption of Linux in China has prompted the need for enterprise-ready applications that run seamlessly on the network without any compromise to data backup and recovery needs," said Liu Bo, co-founder, president and CEO of Red Flag. "BakBone offers proven support and backup for more applications running on Linux than any other storage software manufacturer."

About BakBone Software, Inc.

BakBone Software is a leading international data recovery solution provider that develops and distributes data backup, restore, and disaster recovery software for network storage and open-systems environments. BakBone delivers scalable solutions that address the complex demands of large enterprise environments, as well as small to medium sized businesses. Founded in 2000, BakBone products are used by Fortune 1000 corporations and domestic and international government entities. Distributed through a select global network of OEM partners, resellers and solution providers, you can learn more information about BakBone's products and services at www.bakbone.com or email [e-mail].

About Red Flag Software Co., Ltd.

Red Flag Software Co., Ltd. (Red Flag Software) was founded by Software Research Institute of the Chinese Academy of Sciences and NewMargin Venture Capital. We are focused on the development and marketing of Linux-based operating systems and application software on multiple platforms for the constantly growing base of Chinese technology users. Our goal is "Creating Incentives for Networking Life." The company will continue to develop a modern management pattern we call the "Red Flag Way." This is client driven customization based on our business model involving free software.

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This press release contains forward-looking statements that involve risks, uncertainties, assumptions and other factors, which, if they do not materialize or prove correct, could cause BakBone's results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties may 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, customer acceptance of the company's products and fee structures; the success of BakBone's brand development efforts; 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 changes in domestic and international market conditions and the entry into and development of international markets for the company's products. 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 Securities and Exchange Commission, which may be found at www.sec.gov. All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. BakBone assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

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