Spare Backup, Inc. Announces Exclusive Distribution Agreement with DSG international PLC, Europe's Leading Electronics Retailer, Within Its European Distribution Network.

Spare Backup's Suite of Software Applications Including Data Migration and Online Remote Backup Program to Be Marketed to DSGi's Installed Base and New PC Users

PALM DESERT, Calif -- Spare Backup, Inc. (OTCBB:SPBU) announced today that it has entered into a comprehensive distribution program with DSG international PLC (DSGi) for the exclusive distribution of Spare Backup's data migration and remote backup software applications within its European distribution network.

Under the terms of the agreement DSGi will provide Spare Backup's service in its various performance packages as well as placing Spare Backup as an icon image in all PCs sold throughout its network. With annual revenues in excess of $10 billion, DSGi is the largest retailer of PCs in Europe. Spare Backup's services will be marketed to DSGi's UK customers, including the millions of customers to whom DSGi provides technical support and maintenance services. Both companies will share in the monthly recurring revenue from customers using the service through this expansive program.

Commenting on this agreement, Cery Perle, President and CEO of Spare Backup, Inc. stated: "This agreement represents a huge milestone for our Company. With DSGi, our software will be exposed to millions of customers in over 27 countries. More importantly, it will be imaged on the delivered PC and marketed as part of DSGi's extensive support programs. DSGi is the largest company of its type in Europe and is the perfect distribution partner for Spare Backup as they are known for their quality and post sales support. Through this agreement Spare Backup will be the exclusive backup and data migration offering for the millions of DSGi customers and DSGi is excited to provide those customers with a world class solution to their backup and data migration needs."

Jon Naylor, Dixons' PC World Customer Experience Director, stated, "We are very pleased to have established an exclusive distribution arrangement with Spare Backup. The importance of backing up critical information is frequently underestimated until the information is lost. Our customers will quickly recognize the benefits of Spare Backup's convenient, low cost, online backup solution and we expect that it will be a win-win situation for all -- our customers, Spare Backup and DSGi."

"Online backup is becoming a key option for many PC users, as they compare the various backup choices regarding ease-of-use, pricing and reliability," said Doug Chandler, Program Director, IDC's Storage Software and Services research. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. "European customers will now have easy access to an online solution, thanks to Spare Backup's agreement with DSGi."

About Spare Backup, Inc.

Spare Backup, Inc. specializes in helping consumers, small office/home office users, and small to mid-sized businesses protect their computer data quickly, automatically and cost-effectively. The company's flagship Spare Backup product is the first totally automated online backup service that intelligently selects, secures and stores files without any user intervention, automatically backing up documents, email, music, photos and other PC files on a nightly basis or according to the schedule of the user's choice. The company is headquartered in Palm Desert, Calif.

About DSG International, PLC.

Founded in 1937, DSG operates in over 1,450 stores and online stores and employs over 40,000 people in across 27 countries. DSG's retail and e-tail brands include PC World, Curry's and Dixons.co.uk in the UK and Ireland, "The Link" in the UK, Elkjop in the Nordic countries, UniEuro in Italy, Kotsovolos in Greece, Electro World in central Europe, PC City in France, Spain, Italy and Sweden, and Pixmania.com across Europe.

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