BakBone Raises $10 Million

POOLE, Dorset, U.K. -- BakBone Software(tm), Inc. (TSE: BKB, OTC: BKBOF), a global provider of storage management software, today announced it has completed a round of financing for three million shares. The total value amounts to CDN$15 million, all of it raised from management and existing investors. The use of proceeds will be applied towards, but not limited to, the expansion of BakBone's sales and marketing operations, debt reduction and general working capital.

Archie Nesbitt, BakBone's Board Chairman, said, "Our capital market strategy is taking solid form, and maximising shareholder value is our primary goal. As we move forward, we will build on our success through a clear go-to-market strategy, enabling us to capitalise on expanding our market share. Gartner Group says the market for storage management software is projected to exceed US$14.7 billion by 2004. BakBone is well positioned to exploit that growth through its aggressive business model. BakBone has the potential to rapidly grow into a segment leader."

Harry Brayne, a director with BakBone and former managing director of NetVault Ltd., acquired by BakBone in March of 2000, will become managing director for the Company while the Company searches for a president and chief operating officer to succeed Jack Corrao. Corrao will leverage his 15 years of experience in strategic sales and alliances to head the newly established global business development division, which includes OEM sales and strategic alliances.

BakBone Software Inc.