‘Saba Enterprise 2005’ Unifies Core People Processes for Global Organizations

REDWOOD SHORES, CALIF., March 22, 2005 – Saba (NASDAQ : SABA), the leading provider of human capital management (HCM) solutions, today announced the general availability of its next generation HCM solution—Saba Enterprise 2005. The new product suite, integrating learning, performance and talent management in one solution, unifies the strategic people processes of large organizations.

Saba Enterprise 2005 is designed to solve a fundamental problem facing large enterprises in the commercial and public sectors: the alignment of people and their competencies with organizational goals. Due to the scope of initiatives within large organizations, tight integration between people processes (HCM) and information systems (ERP) is critical to organizational performance on a global scale. Saba Enterprise 2005 is a front office “people-facing” HCM suite that integrates with existing back office ERP systems, such as core human resources and financial information systems, in PeopleSoft, Oracle and SAP. In this way, Saba offers a new platform of choice for HR executives and Human Resource Management System (HRMS) users.

The release of Saba Enterprise 2005 is the result of a multi-year, multi-million dollar investment by Saba to build and deliver a single flexible, fully integrated people management system. Technically the third generation of Saba’s Web Services platform, the new solution has evolved to a true enterprise solution with this release. It was built using J2EE standards to ensure enterprise scalability, and presents a modern XML-based architecture that allows complete configuration control and development tools to maintain low total cost of ownership.

“We see the practice of managing the effectiveness and value of employees as a key performance management imperative of this decade. Leveraging employees as human capital assets is essential to improving business and operational performance,” commented Mark Smith, SVP Research and CEO, Ventana Research. “The operational management gap between people and processes is becoming a strategic element of performance improvement and compliance management initiatives.”

“Saba’s focus is on managing cross-functional, strategic people processes. Enterprises can extend the value of existing ERP applications with Saba’s front office HCM solution and generate superior results,” commented Bobby Yazdani, Saba Chairman and CEO.

With the new offering, Saba now provides a broader enterprise solution, including performance, talent, and content management to address multiple areas within human capital management that extend beyond development and learning. Throughout the development process, Saba collaborated with customers and partners to deepen its existing product and services offerings.

Saba Enterprise 2005 Highlights

The Saba Enterprise 2005 suite comprises the following elements:

• Saba Learning: Saba Learning delivers large organizations across all global industries with a management system to improve the skills and knowledge of people across the extended enterprise. Saba Learning offers comprehensive solutions for sales and channel readiness, channel certification, customer education, regulatory compliance and corporate universities.
• Saba Content Management: New in Saba Enterprise 2005, this module is a learning content management system designed for managing and delivering content on an enterprise-wide scale. Designed to simplify content creation costs and increase efficiency by facilitating content reuse, it enables organizations to capture, manage and share critical content through automated content processes and a learning object repository. Organizations can publish content to the Saba Learning catalogue for use by learners throughout their extended organization, and manage content through lifecycle processes.
• Saba Performance: Saba Performance is a management system that increases the ability of an organization to implement and execute its business strategy. It supports the organizations’ strategic objectives by helping communicate those objectives and aligning people’s activity. Because it streamlines and automates the processes of performance review and appraisal processes, it also improves operational costs throughout the organization.
• Saba Talent: Based on competency management, Saba Talent helps align organizations with future needs, as it increases visibility into organizational readiness, and reduces the operational risks associated with succession planning and management. Identifying and retaining the right people to fulfill roles improves individual development as well as job satisfaction for high potential employees.
• Saba Analytics: Saba Analytics provides line of business managers with tools to monitor, measure and manage against key performance indicators, to analyze trends, and link HCM investments to business results.
• Saba Collaboration: Saba Collaboration allows enhanced communication among communities, individuals and subject matter experts and to interact from any location through knowledge sharing tools that capture and retain knowledge and best practices.

Availability
Saba Enterprise 2005 shipped on February 28, 2005 and is now available to both new and existing Saba customers.

About Saba
Saba (NASDAQ: SABA) is the world's leading provider of human capital management (HCM) solutions enabling global organizations to increase the productivity and competency of people across their extended enterprise. Saba enables “The Aligned Enterprise”™ by providing an integrated people management system to align people and their competencies to organizational goals. Today, commercial and government organizations have licensed Saba for use by more than 8.1 million users. Customers include Alcatel, Bank of Tokyo-Mitsubishi, BMW, Cisco Systems, DaimlerChrysler, Deloitte Touche Tohmatsu, FedEx Kinkos, Medtronic, National Australia Bank, Novartis, Procter & Gamble, Scotiabank, Sprint, and Swedbank. Saba has received industry as well as customer recognition and was again named a leader in the Gartner 2004 e-Learning Suite "Magic Quadrant."

Headquartered in Redwood Shores, California, Saba has 13 offices in five regions worldwide. For more information, please visit www.saba.com or call (+ 1) 877-SABA-101 or (650) 779-2791.

Saba, the Saba logo, and the marks relating to other Saba products and services referenced herein are either trademarks or registered trademarks of Saba Software, Inc. All other trademarks are the property of their respective owners.

Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the requirement and market demand for solutions offering functionality provided by Saba Enterprise 2005. Saba's actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties Saba faces that could cause results to differ materially include risks associated with unknown errors or bugs in Saba Enterprise 2005, market acceptance of Saba Enterprise 2005 and dependence on acceptance of Saba Enterprise 2005 by customers and channel partners. Readers should also refer to the section entitled "Factors That May Affect Future Operating Results" on pages 23 through 30 of Saba's Annual Report on Form 10-K/A dated October 27, 2004 and similar disclosures in subsequent Saba periodic SEC reports. The forward-looking statements and risks stated in this press release are based on information available to Saba today. Saba assumes no obligation to update them.