Callidus Software and Salesforce.com Partner to Help Companies Increase Profits by Aligning Sales Activities, Customer Relationship Management and Business Objectives

Strategic Partnership to Yield Integrated Online CRM and Enterprise Incentive Management Technologies and Business Practices

SAN JOSE & SAN FRANCISCO, CA. — December 10, 2001 — Callidus Software®, Inc., the trusted provider of Enterprise Incentive Management (EIM) solutions for enterprise customers, and salesforce.com, the market leader in online customer relationship management (CRM), today unveiled a partnership that will result in tighter integration of Callidus' EIM solutions with salesforce.com's online CRM solution. The alliance is designed to assist enterprise customers in achieving improved business performance, increased profits and higher productivity. Together, Callidus and salesforce.com will enable companies to maximize online CRM investments by motivating employees and partners to drive performance and revenue growth through rapid alignment of compensation and incentives with dynamically changing channel priorities, and other business objectives and goals. TrueComp, Callidus's variable compensation management system, is designed to automate the complete variable compensation management process.

"Corporations are searching for synergies between sales and customer relationship management efforts as a means for increasing customer satisfaction, improving margins and developing profitable, long-term customer relationships," said Reed Taussig, president and CEO of Callidus Software, Inc. "Through this partnership companies can align business goals, sales priorities and customer relationships to achieve the greatest return. We are pleased to be working with a technology leader who is addressing complementary needs in the market. Our integrated products and market approach are the solution our joint customers are looking for."

Companies who utilize Salesforce.com CRM and Callidus EIM solutions in concert will gain the ability to easily manage and track accurate enterprise-wide incentives based on CRM objectives and secure, on-demand incentive compensation reporting via the Web. The partnership represents the first comprehensive CRM/EIM approach enabling truly automated administration of the incentives that drive revenue and boost performance within the corporate enterprise and beyond — from employees and call centers to channel partners and supply chains.

"In a global organization, sales managers need a tool to track both corporate goals on the whole and each salesperson's individual progress and compensation," said Marc Benioff, chairman, president and CEO of salesforce.com. "Together, salesforce.com and Callidus provide the best in online CRM by combining a powerful CRM tool with robust incentive management to create a compelling solution for today's sales representatives."

MicroStrategy: Callidus and Salesforce.com Joint Customer Success MicroStrategy® is using salesforce.com's online CRM solution and Callidus TrueComp% for variable compensation management to manage their worldwide sales force. The partners have addressed Micro Strategy's needs through a joint solution that makes all important customer and transaction information highly accessible online, simplifies reporting and administration of sales and CRM activities, and enables better customer service and satisfaction through a trusted system where all customer and transaction data is kept.

Gayle Berkeley, vice president of worldwide information systems at MicroStrategy Incorporated said, "As we align our sales and customer relationship management efforts, we see immediate improvement in our performance. Our customers enjoy being offered the right products for their needs and at the same time, we are able to offer products at effective price points. Salesforce.com and Callidus Software offer best-of-breed products that naturally complement each other. With their joint solution, MicroStrategy will be able to improve its business processes and increase customer satisfaction."

About Callidus Software Inc.:

Callidus Software (http://www.CallidusSoftware.com), the leading provider of enterprise incentive management (EIM) solutions, boosts business performance by driving higher corporate revenues through marketplace pay-for-performance. Callidus Software's EIM software automates incentive programs inside and outside the company. TrueComp automates modeling, administration, reporting and analysis of internal variable compensation, most often sales commissions. TrueChannel similarly automates channel promotions programs, which are paid incentives to distribution partners. Callidus Software's EIM software provides precision, trust and understanding to successfully reward revenue-boosting behavior and optimize revenue drivers, thus improving business performance. Callidus Software, TrueComp, and the Callidus Software logo are registered trademarks and TrueComp Manager, TrueComp Modeler, TrueComp Viewer, TrueChannel, TruePerformance, TrueIntegration, and TrueService are trademarks of Callidus Software, Inc. in the United States and other countries. All other brand or product names are trademarks or registered.

About Callidus Software Inc.:

Callidus Software (http://www.CallidusSoftware.com), the leading provider of enterprise incentive management (EIM) solutions, boosts business performance by driving higher corporate revenues through marketplace pay-for-performance. Callidus Software's EIM software automates incentive programs inside and outside the company. TrueComp automates modeling, administration, reporting and analysis of internal variable compensation, most often sales commissions. TrueChannel similarly automates channel promotions programs, which are paid incentives to distribution partners. Callidus Software's EIM software provides precision, trust and understanding to successfully reward revenue-boosting behavior and optimize revenue drivers, thus improving business performance. Callidus Software, TrueComp, and the Callidus Software logo are registered trademarks and TrueComp Manager, TrueComp Modeler, TrueComp Viewer, TrueChannel, TruePerformance, TrueIntegration, and TrueService are trademarks of Callidus Software, Inc. in the United States and other countries. All other brand or product names are trademarks or registered.