Salesforce.com Grants Equity Awards Under Its Inducement Equity Incentive Plan


SAN FRANCISCO - September 26, 2008 - Salesforce.com [NYSE: CRM], the market and technology leader in Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), today reported that it granted equity awards under its 2006 Inducement Equity Incentive Plan (the "Plan") to new employees of salesforce.com in connection with its previously announced acquisition of InStranet, Inc.  The Plan was adopted by the Board of Directors in May 2006 in accordance with New York Stock Exchange Rule 303A.08.

Salesforce.com announced the acquisition of InStranet, the leading provider of knowledge management technology for business to consumer (B2C) call centers, on August 20, 2008.  InStranet has solved the customer service and support challenge by taking a completely different approach to knowledge base management through its patented Dimensions technology. Dimensions adds the customer's context, such as product or geography, to the knowledge base, quickly delivering the right solution and eliminating irrelevant search results.  This powerful technology provides call center agents with accurate answers to customer questions at an unmatched speed and greatly improves customers' Web-based self-service experience.

Under the Plan, salesforce.com has granted options to purchase a total of 124,050 shares of its common stock to 35 non-executive employees.  On September 9, 2008, salesforce.com granted 2 options to its French employees to purchase a total of 29,250 shares at an exercise price of $57.20 under the terms and conditions of the Plan's French Sub-Plan.  On September 23, 2008, salesforce.com granted 22 options to its French employees to purchase 37,300 shares at an exercise price of $52.43 under the terms and conditions of the Plan's French Sub-Plan, and granted 11 options to its employees outside of France to purchase 57,500 shares at an exercise price of $52.23 under the terms and conditions of the Plan.  All of the above stock options were granted on terms that include the following: 5 year term and vesting over 4 years with 25% of the shares vesting on the first anniversary of the grant date and the balance vesting monthly thereafter in 36 equal installments.

Salesforce.com has also granted or will grant a total of 41,316 restricted stock units ("RSUs") to 40 non-executive employees under the Plan.  Salesforce.com made 2 awards for a total of 5,249 RSUs on August 23, 2008 and plans to make 38 additional awards for a total of 36,067 RSUs in November 2008.  For employees in France, terms of the RSUs are as follows: 5 year term and vesting over 4 years with 50% of the RSUs vesting on the second anniversary of the grant date and the balance vesting quarterly thereafter in 8 equal installments.  For employees outside of France, the terms of the RSUs are as follows: 5 year term and vesting over 4 years with of 25% of the RSUs vesting on the first anniversary of the grant date and the balance vesting quarterly thereafter in 12 equal installments.

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