BakBone Needs Time

SAN DIEGO -- BakBone Software, Incorporated (Pink Sheets: BKBO) announced today that additional time will be required to complete the filing of its comprehensive 10-K for fiscal year ended March 31, 2006. The Company had previously expected to complete this process during the month of May.

"One of the questions we receive from stakeholders is why this process takes so long and deadlines continue to be missed," commented Jim Johnson, president and CEO of BakBone. "Progress is very good and we are approaching the finish line. When we announced in early May that a few additional weeks were needed to complete this process, we believed this would be the case. Considering the complexity of the issues at hand -- appropriate allocation of revenues, as well as the appropriate recording and timing of expenses, as well as a review of complex technology and accounting matters relating to each transaction from earlier periods -- and the volume of materials to be evaluated, additional time is required to complete the testing and review phases. Consequently, we currently expect to file the FY06 10-K no sooner than the end of July."

BakBone Software Inc.