BakBone Software, a leading provider of storage and data protection software, today announced a realigned corporate strategy focused on its core markets. The realigned strategy includes the closing, effective today, of the Company's ColdSpark operations, which were acquired in May 2009. The Company will effect a smooth transition for those customers who currently utilize the technologies offered by ColdSpark to facilitate message management in enterprise environments. BakBone will record a non-cash impairment charge of approximately $12.6 million in the fourth quarter ended March 31, 2010 and expects to incur approximately $300,000 in personnel related expenses related to closing ColdSpark.

"Our Board of Directors and senior management team have concluded that the best opportunity for BakBone to gain consistent profitability and generate returns to shareholders is by focusing our resources on our core storage and data protection markets," said Steve Martin, senior vice president, Chief Financial Officer and Interim CEO. "By exiting the message management business, our entire organization of some 240 dedicated and motivated employees can devote their full attention to our existing 15,000 customers and our expanding NetVault(R) product suite. The NetVault product line includes NetVault: Backup, NetVault: FASTRecover and NetVault: SmartDisk products, which are gaining increased traction in the market, and is offered through our worldwide network of channel partners. By reinforcing our relationship with these partners, and offering best-of-class products and customer service, we believe that BakBone will be a more focused and financially-capable company. Furthermore, we expect our realigned strategy will eliminate the risk of ColdSpark's comparatively longer sales cycle, stabilize our cash utilization and position the Company to generate enhanced returns for our shareholders," Mr. Martin added.