Spare Backup Begins Utilizing Funds From its Equity Line

PALM DESERT, Calif., July 1 /PRNewswire-FirstCall/ -- Spare Backup, Inc. (OTC Bulletin Board: SPBU), an industry-leading provider of automated, online backup applications for home users and small businesses, announced today that it has begun drawing down funds from its previously announced agreement for an equity line from a private international fund to facilitate its sales expansion in Europe, the Asia Pacific region and the United States.  Additionally, the lender has agreed to expand the equity line to a total amount available of $10 million.

The company will be using this initial funding as well as additional draws it plans to make in the coming weeks to fuel its distribution growth in Europe as a number of large scale software deployments begin with its current partners.  The company has also been working to settle and or restructure a number of other obligations to substantially reduce its overall liabilities.  Management has negotiated and or paid down approximately $1.3 million in liabilities and believes it can further reduce legacy obligations as the company positions itself for a rapid growth phase.

Management intends to utilize a substantial portion of this financing to forge new relationships with strategic partners across the globe to further accelerate its growth. For more detailed information on the financing referred to in this release, reference is made to the Company's Current Report on Form 8-K filing to be filed with the Securities and Exchange Commission and related exhibits thereto.  

Cery Perle, CEO of Spare Backup, Inc., stated, "We are extremely pleased to begin utilizing this equity line from our strategic partner to invest in the future of our company. We will now begin to rapidly deploy these funds to expand our sales channels and partnerships as well as reduce and restructure a number of liabilities to place the company on more solid financial footing. In addition, we believe that the expansion of this facility to $10 million gives us ample capital to reach our goal of positive cash flow this year as our sales continue to build.  We are excited to use these funds to support our aggressive launch plan in Europe and to pursue additional strategic relationships in the Pacific Rim to further accelerate sales growth."

Any securities issued in conjunction with this equity line have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States except pursuant to an effective registration statement filed with the Securities and Exchange Commission or pursuant to an applicable exemption from the relevant registration requirements.

For additional information, visit http://www.sparebackup.com. For investor relations, please contact our investor relations department at 760-779-0251 Ext. 224 or [email protected].

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 the schedule of the user's choice. The company is headquartered in Palm Desert, California.

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 possibility of unknown factors, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward-looking statement. An investment in our common stock involves a significant degree of risk. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully all risk factors and other information in our annual report and quarterly filings before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our company.

SOURCE Spare Backup, Inc.