Spare Backup, Inc. Receives Extension From Short Term Debt Holders as Revenues Ramp and New Agreements Come Into Effect in the 4th Quarter

Company anticipates strong sales growth from existing and new agreements beginning in the 4th quarter PALM DESERT, Calif., Aug. 26


PALM DESERT, Calif., Aug. 26 /PRNewswire-FirstCall/ -- Spare Backup, Inc.
(OTC Bulletin Board: SPBU) announced today that the vast majority of its short
term debt, due in November, has been extended through August of 2009.  This
agreement comes as Spare launches additional sales initiatives with DSG and
various other previously disclosed partners.  The company has paired expenses
and sees additional revenue projected to commence in the 4th quarter which
should provide positive cash flow from operations.


Spare has initiated cost cutting measures to reduce cash operating
expenses by approximately 25%.  The cuts will not affect current development
initiatives, service or capacity.  Management sees revenue ramping as DSG
launches a comprehensive program in the fall, and orders are received for its
recently deployed enterprise backup solutions.


Commenting on the event, Cery Perle, President and CEO of Spare Backup,
Inc., stated, "We are grateful to our note holders for extending their debt
until August of next year.  Their faith in the growth plans of our company
will enable Spare to move forward on more sound financial footing as this
greatly reduces our short term cash needs.  We are confident that our
partnership with DSG and others will ramp significantly in the 4th quarter and
have positioned our expenses to achieve sustainable operations based on
current and projected sales.  We believe these steps will lead our company on
a path to profitability in 2009."


For additional information, visit http://www.sparebackup.com. For media
relations, please contact Maria-Christina Zajac at Avalanche Strategic
Communications, 201-488-0049 or maria-christina@avalanchepr.com.



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.