Spare Backup to Be Marketed by Sony Electronics

Spare Backup, Inc. will be modeling new Mobile and OEM PC service agreements after its recent agreement with Sony Electronics, Inc. (SEI Agreement) as referenced in its July 15, 2010 Form 8-K filing with the Securities and Exchange Commission. It is anticipated that Spare will be recognizing revenue under this agreement commencing in the 3rd quarter.

Under the terms of the SEI Agreement, Spare Backup will provide its proprietary online data backup and transfer services to be marketed by SEI to its customers, offering a free introductory, one year subscription service that can be upgraded after one year or for the purchase of larger storage plans with designated storage price points. Spare Backup will receive revenue on all free introductory accounts and will share in all revenue derived from any additional purchases.

Spare Backup is in negotiations with several large potential customers for similar licensing agreements. Management believes it will achieve significantly better results through a more predictable revenue stream as a result of the joint commitments with its partners.

Commenting on the announcement, Cery Perle, CEO of Spare Backup, stated: "As we continue to look to broaden our worldwide footprint we are excited to be working with industry leaders in consumer electronics and look forward to adding additional customers under this licensing framework. We are confident that this will accelerate our future growth in a more predictable way and open additional revenue-generating opportunities for us in the future."