BAKBONE SOFTWARE
TSX : BKB
Pink Sheets : BKBO

BAKBONE SOFTWARE

July 12, 2005 08:30 ET

BakBone Introduces Backup Encryption Software to Safeguard Critical Information and Reduce Business Risk

SAN DIEGO--(CCNMatthews - Jul 12, 2005) -

Security conscious IT managers confirm that encryption software lowers the cost and complexity of data storage security while bolstering backup and recovery

BakBone Software™ (TSX:BKB)(Pink Sheets:BKBO), a global provider of data protection software, is addressing customer demand for robust, automated and easy-to-manage security solutions with the introduction of advanced backup encryption software.

BakBone's NetVault Encryption Application Plug-in Module (APM) enables customers to simply add easy-to-use encryption functionality to their existing backup and recovery operations as a first line of defense in securing mission-critical data. The encryption software plug-in does not require additional hardware and integrates seamlessly into different networked storage topologies, significantly reducing the costs and complexities associated with traditional data security appliances. In addition, BakBone's offering encrypts data at its source (e.g., database, file server or desktop), which reduces a significant vulnerability for networked storage. The product also adheres to the highest standard for encryption, using the CAST 128 encryption algorithm for extra protection.

Too often, security policies and procedures fail to take storage and backups into account, despite the fact that increasing amounts of corporate data now resides on networked storage, mostly in network-attached storage (NAS) and storage-area network (SAN) environments. According to International Data Corp. (IDC), 80 percent of enterprise storage will be networked by 2008. This continuing shift toward networked storage accentuates the need for robust, automated and easy-to-manage security solutions that can protect all types of storage -- especially backups that are then transported and stored offsite.

"Data encryption is quickly becoming more important for companies seeking to conduct and maintain completely secure backups of their networked storage," said Bharat Kumar, vice president of marketing, BakBone Software. "Providing customers choice continues to be a central value proposition for BakBone. We're pleased to offer an encryption solution that enables security-conscious companies to embrace the notion of encrypting data backups for lowering risks and bolstering business continuity strategies."

According to Charlie Fulks, CEO of Credit Union Data Processing (CUDP), a company that provides core data processing systems and services to the credit-union industry, preserving personal financial data is a top corporate priority. "Security is a huge area of focus for us as a trusted data solution provider to credit unions," he said. "We wanted to guarantee that no personal data for any of our credit union members would be vulnerable in the event that a backup tape were lost or stolen. We've gone to great lengths to make our VPN bulletproof and ensure that data is encrypted before it traverses the network. We've recently begun encrypting all of our backups to add yet another layer of security while reducing risks even further."

Traditionally, fears that CPU-intensive encryption would bring network performance to a crawl has caused some IT decision makers to hesitate before deploying an encryption solution. For that reason, some organizations forego software-based solutions in favor of data security appliances that alleviate performance concerns by conducting the encryption in the middle of the data path with little to no discernible degradation to network or client/server performance. Still, these full-featured devices can be prohibitively expensive since typically they are deployed in pairs for redundancy, as well as too complex and administrator-intensive for IT-constrained shops to manage.

"While security is an all-encompassing initiative for us, price, ease of use and heterogeneous support were heavily considered when we evaluated encryption solutions," says Kevin Kasner, IS supervisor for Sweetwater Authority, a publicly owned water agency that provides water service to approximately 177,000 residents near San Diego. "We wanted to have the flexibility to encrypt content that resided on our Novell, Microsoft and AIX platforms. We were looking for a fairly sophisticated solution without losing our ability to restore vital data fast."

Encryption is not a common feature in most backup and recovery solutions, forcing many organizations to settle for a "world-readable" tape backup. Some solutions also are restricted to file-level encryption. In contrast, BakBone's Encryption APM for NetVault is application agnostic and seamlessly encrypts files, databases and applications. Client-level encryption ensures that data is protected as it travels across the network to the backup server. With flexible configuration options, customers can also be selective in choosing to encrypt all data, or get more granular in determining which information should be encrypted.

Pricing and Availability

BakBone's Encryption Application Plug-in Module (APM) for NetVault is available now and is priced at $195 per server. NetVault 7.x workgroup package begins at $1,195 for x86 based systems (Solaris, Linux and Windows), $1,595 for x86-64 based operating systems, and $2,995 for UNIX (Solaris 10). For more information on the BakBone reseller partner nearest you or to purchase encryption software plug-ins, please visit BakBone's web site at http://www.bakbone.com/products/how_to_buy/.

About BakBone Software, Inc.

BakBone Software is a leading international data protection 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 size 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, interested companies can learn more information about BakBone's products and services at www.bakbone.com or email info@bakbone.com.

Safe Harbor

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. 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; and the success of BakBone's brand development efforts. Also, 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 Securities and Exchange Commission, which may be found at www.sec.gov, as well as those risk factors disclosed in our current report filed with the Canadian Securities Administrators, which is available on SEDAR at www.sedar.com. 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.

BakBone, BakBone Software, NetVault, Application Plugin Module, APM and the BakBone logo are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries. All other 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.

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