Saba Poised to Capitalize on Rapid Convergence of Learning and Performance Management

Redwood Shores, Calif., May 31, 2006 — Saba (NASDAQ: SABA), ), the premier Human Capital Management (HCM) software and services provider, announced that leading companies around the world are selecting Saba's HCM solution to support an integrated learning and performance management initiative.

"Companies tell us every day that integrating their learning and performance projects is critical to developing and retaining employees," said Bobby Yazdani, chairman and CEO, Saba. "That's why our customers are rapidly adopting our integrated HCM solution to align goals, develop people, improve collaboration and increase visibility into their organizational performance."

Organizations of all sizes, geographies and industries are choosing Saba to improve performance management and enhance their learning initiatives:

• One of the top 25 largest banks in the U.S. will deploy Saba Performance and Saba Learning later this year as part of its strategic HCM initiative.
• One of the largest health insurers in the U.S. is deploying Saba Performance to manage performance reviews for 15,000 employees.
• One of the fastest growing independent retailers in the UK chose Saba Learning and Saba Performance to develop the skills of its newly hired employees in support of its nationwide store expansion program.
• A leading insurance company in Australia recently added Saba Performance to its HCM strategy to better automate its review process.
• A state government authority in Australia is deploying Saba Learning and Saba Performance across 28 agencies and shared service providers to manage its learning and performance initiatives in 2006.

"Saba pioneered the vision of integrating learning with performance management for the global enterprise," said Josh Bersin, CEO, Bersin & Associates. "The company is already shipping its fourth major release of an integrated talent management platform. We believe Saba's international reach and deep experience in global enterprise implementations gives them a strong position in the emerging market for integrated learning management, performance management, succession planning, and initiative management."

A recent report by Bersin confirms the rapid convergence of learning and performance. The report, "Performance Management 2006: Market Analysis, Trends, Best Practices, and Vendor Profiles," is the first comprehensive study of the emerging performance management market. Surveys and interviews conducted as part of the study revealed that 63 percent of respondents wanted to link performance, development, and learning. The report also notes that the biggest integration challenge organiza¬tions face in accomplishing this goal is the integration of performance management systems with learning management systems. Consequently, Bersin, believes that many customers will choose to purchase a performance management system that easily integrates with their LMSs. More information about the Bersin report is available at: www.bersin.com/perfmgt.

About Saba
Saba (NASDAQ: SABA) ) is the premier Human Capital Management (HCM) software and services provider, using a people-centric approach to increase productivity and performance. As a trusted partner, Saba enables the Aligned EnterpriseT for over 1,100 customers in 150 countries by providing an integrated people management system to continuously align goals, develop people, improve collaboration and increase visibility into organizational performance.

Saba customers include ABN AMRO, Alcatel, Bank of Tokyo-Mitsubishi UFJ, BMW, CEMEX, Cisco Systems, DaimlerChrysler, Dell, Deloitte Touche Tohmatsu, EDS, EMC Corporation, FedEx Kinko's, Insurance Australia Group, Lockheed Martin, Medtronic, National Australia Bank, Novartis, Petrobras, Procter & Gamble, Scotiabank, Sprint, Standard Chartered Bank, Stanford University, Swedbank, Wyndham International, Weyerhaeuser, Underwriters Laboratories, and the U.S. Army and U.S. Navy.

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

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