PALM DESERT, Calif., March 30 /PRNewswire-FirstCall/ -- Spare Backup, Inc. (BULLETIN BOARD: SPBU) announced today that it has bought back 1 million shares of common stock from Robinson Reed at $1.25 per share. The purchase was made pursuant to a put option exercised by Robinson Reed whereby Spare had the option of repurchasing the stock or issuing $1 million worth of shares at $0.30. Additionally, Spare issued 2 million warrants to purchase its common stock at $1.25 to DSG as part of their previously announced marketing and sales agreement.

Commenting on the events, Cery Perle, CEO of Spare Backup stated, "We have made significant strides in positioning our company for growth in the coming years and this repurchase of the Robinson Reed stock represents the removal of a significant equity liability to the shareholders of our company. Robinson Reed played a valuable role in providing us with capital at an early stage of our development and we are grateful for that support. We are also excited to provide DSG with the opportunity to become an equity stakeholder in Spare at $1.25 as we believe they will be a key driver in future growth as a company."

The transaction with Robinson Reed eliminates a substantial portion of Spare's potential liability on its balance sheet and reduces its outstanding shares by 1 million. The warrants issued to DSG are exercisable at $1.25 for a period of 5 years.

About Spare Backup, Inc.

Spare Backup, Inc. specializes in helping consumers, small office/home office users, and small to mid-sized businesses protect their computer data quickly, automatically and cost-effectively. The company's flagship Spare Backup product is the first totally automated online backup service that intelligently selects, secures and stores files without any user intervention, automatically backing up documents, email, music, photos and other PC files on a continuous basis or according to a schedule of the user's choice. The company is headquartered in Palm Desert, Calif.

Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts, which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward- looking statements.

CONTACT: Robert Schatz of Wolfe Axelrod Weinberger, +1-212-370-4500,
rob@wolfeaxelrod.com, for Spare Backup, Inc.