BakBone Software Reports a 26 Percent Quarter Over Quarter Revenue Increase For The Third Quarter Fiscal 2002.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Feb. 14, 2002

BakBone Software(TM) (TSE: BKB), a global provider of storage management software, announced today financial and operational results for the company's third quarter ended December 31, 2001.

BakBone reported consolidated revenues of US$2.9 million for the third quarter, an increase of 86 percent from consolidated revenues for the same period in the prior fiscal year. Consolidated revenues increased 26 percent over the company's second quarter ended September 30, 2001. This repeated quarter over quarter growth represents a sustained revenue increase and is an indicator of increasing product acceptance worldwide.

Net loss for the third quarter was US$3.2 million or US$0.07 per share, a 51 percent improvement over a net loss of US$6.6 million or US$0.18 per share, for the same period in the prior fiscal year.

"We achieved many of our goals this quarter including completion of a round of financing that has made our cash position stronger," said Keith Rickard, President and CEO, BakBone Software "We also continued to keep expenses under control and in December achieved our first month in the history of the company of consolidated revenues in excess of US$1.0 million. As we continue to expand successfully into new regions throughout the world, while leveraging our existing partnerships, I believe we will see further solid revenue growth."

Rickard will discuss the quarterly results during an investors' conference call to be held Thursday, February 14, 2002 at 4:30pm Eastern Standard Time. Interested parties may participate in the call by dialing 1-800-240-2134, and requesting the "BakBone Quarterly Conference Call."

About BakBone Software, Inc.

BakBone Software(TM) (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 [phone], e-mail [e-mail], or access BakBone's web site at www.bakbone.com.

Safe Harbor 

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.

All 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.

     BAKBONE SOFTWARE INCORPORATED
     Consolidated Statements of Operations and Accumulated Deficit
     (U.S. dollars in thousands, except loss per share)
     (unaudited)
                                             Nine      Eight
                                             Months    Months
                      Three Months Ended     Ended     Ended
                      December  December  December  December
                           31,       31,       31,       31,
                          2001      2000      2001      2000
                         -----     -----     -----     -----
Revenues                $2,869     1,544     6,776     3,298
Cost of revenues           324       235       918       512
                         -----     -----     -----     -----
Gross margin             2,545     1,309     5,858     2,786
                         -----     -----     -----     -----
Operating expenses:
Sales and marketing      2,739     3,623     8,279     8,248
Research and development   964       928     3,078     2,343
General
 and administrative      1,091     2,653     4,152     5,683
                         -----     -----    ------    ------
Total operating          4,794     7,204    15,509    16,274
expenses                ------    ------   -------   -------
Operating loss         (2,249)   (5,895)   (9,651)  (13,488)
Interest income         ------    ------    ------   -------
 (expense), net           (60)        60      (74)       402
Amortization
 of intangibles          (933)     (934)   (2,796)   (2,267)
Foreign exchange
 gains (losses), net      (14)        18        15         6
Other income
 (expense), net              4       (4)        72      (34)
Minority interest           42       169       100       144
                        ------    ------   -------   -------
Net loss               (3,210)   (6,586)  (12,334)  (15,237)
Accumulated deficit,
 beginning of         (31,712)   (9,547)  (22,588)     (896)
 period                -------    ------   -------    ------
Accumulated deficit,
 end of period       $(34,922)  (16,133)  (34,922)  (16,133)
Net loss per share     =======   =======   =======   =======
 - basic and           $(0.07)    (0.18)    (0.28)    (0.45)
diluted                =======   =======   =======   =======
Weighted average
 common shares    45,774,131  37,526,806 44,618,625 34,110,767
                  ==========  ========== ========== ==========


     BAKBONE SOFTWARE INCORPORATED
     Consolidated Balance Sheets
     (U.S. dollars in thousands)
     (unaudited)
                             December,31           March 31,
Assets                              2001                2001
                             -----------           ---------
Current assets:
Cash and cash equivalents         $8,070               3,815
Restricted cash                       12                  90
Accounts receivable                2,472               1,404
Other assets                         592                 500
                                  ------               -----
Total current assets              11,146               5,809
Capital assets, net                3,353               3,736
Restricted cash                      780                 780
Intangibles, net                   5,068               7,831
Other assets                         614                 602
                                 -------              ------
Total assets                     $20,961              18,758
Liabilities                      =======              ======
 and Shareholders' Equity
Current liabilities:
Accounts payable                    $397               1,368
Accrued liabilities                1,534               1,121
Deferred revenue                   1,212                 671
Current portion
 of capital lease obligations        197                 192
Current portion of notes payable   2,566               2,574
Loans from related parties            65                  75
                                   -----               -----
Total current liabilities          5,971               6,001
Capital lease obligations,
 excluding current portion           109                 240
Notes payable,
 excluding current portion           132                 188
                                   -----               -----
Total liabilities                  6,212               6,429
                                   -----               -----
Minority interest                      3                 100
                                  ------              ------
Shareholders' equity:

Share capital                     50,794              35,843
Share capital held by subsidiary    (66)                (66)
Cumulative exchange adjustment   (1,060)               (960)
Accumulated deficit             (34,922)            (22,588)
                                --------            --------
Total shareholders' equity        14,746              12,229
Total liabilities               --------            --------
 and shareholders' equity        $20,961              18,758
                                ========            ========