Raises Fiscal Year '08 Revenue Outlook

Company to hold webcast at Noon PST today

SAN FRANCISCO — December 12, 2006 — (NYSE: CRM), the market and technology leader in on-demand business services, today announced an increase in its revenue outlook for its full fiscal year 2008. The company now expects revenue to be in the range of $710 million to $720 million for its fiscal year ending January 31, 2008. On November 15, 2006, said that it expected FY08 revenue to be between $700 million and $710 million.

"The continued momentum of our AppExchange ecosystem is creating expanded business opportunities for," said CEO, Marc Benioff. "In connection with the announcement of our AppStore strategy today which we will roll out in phases over the next 12 months, we are raising our revenue expectations for fiscal year 2008."

Marc Benioff will be hosting a lunch meeting today at 12:00PM (PST) /3:00PM (EST) to discuss the AppStore strategy. Attendance at the event is by invitation only. A live audio and slide webcast will be available on's Investor Relations website at

Safe Harbor
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about expected revenues for the full fiscal year 2008 and concerning the expected availability of certain features and functions in our service, the achievement of which involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include — but are not limited to — risks associated with possible fluctuations in our operating results, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.

Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q for the quarter ended October 31, 2006. These documents are available on the SEC Filings section of the Investor Information section of our website at, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

About Salesforce

Salesforce, the global CRM leader, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit:

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