SAN DIEGO -- BakBone Software (TM) Incorporated (TSE: BKB, OTC: BKBOF), a global provider of storage management software, today announced financial and operational results for the company's first quarter ended June 30, 2001. BakBone reported consolidated revenues of US$1.6 million for the first quarter, an increase of 48 percent from pro forma consolidated revenues for the same period in the previous year. Pro forma information includes results for the three months ended June 30, 2000 and includes the results of operations of Tracer Technologies Inc., an entity acquired in June 2000, for the entire three months ended June 30, 2000. Management cited the expansion of sales efforts for NetVault (TM) in North America as a leading contributor to the pro forma increase. BakBone's aggressive program to reduce expenses resulted in a significant 22 percent reduction in operating expenses from the fourth quarter of last year to the first quarter of this year, contributing to a 25 percent reduction in net loss per share. Net loss for the first quarter was US$5.0 million, or US$0.12 per share, compared with a net loss of US$6.5 million, or US$0.16 per share, for the preceding three-month period. These results are indicative of BakBone's continued efforts to move the company toward profitability. "My mandate is to increase tangible shareholder value," said Keith Rickard, BakBone's newly appointed President and Chief Executive Officer. "The best and quickest way we can do that is to continue delivering world-class technology to the market, focus on aggressively generating additional sales, and live within our means. That is our plan, and we will continue to implement it over the coming quarters as we grow both BakBone's market share, and value to its investors." In fact, two days ago on August 1st, the company expanded its restructuring efforts, reducing personnel to a level in line with industry norms, and moving to consolidate key management in the San Diego headquarters. BakBone Software Inc.