Continues Expansion of Worldwide Operations to Meet Growing Demand for HCM Solutions

TORONTO - October 17, 2006 — Saba (NASDAQ: SABA), the premier Human Capital Management (HCM) software and services provider, is continuing its global expansion with the opening of a new office in Toronto, Canada. The new office will strengthen Saba's presence in the Canadian market and help the company address demand for its industry-leading HCM solutions, while better serving its Canadian customer base.

Scott Pink will head Saba's Canadian operations in Toronto and lead the company's expansion in the market. Pink is a long time veteran in the Canadian learning market and brings over seven years of experience to this role. The Toronto office will provide sales, consulting and customer support to Saba's current and future Canadian customers and key business partners.

"Canada represents a strong and growing market for Saba," said Bobby Yazdani, chairman and CEO, Saba. "We've done very well in Canada, and now with our expanded presence, we have an even stronger base with which to extend our leadership and success and provide our customers with increased service and support."

Saba's HCM solutions drive the people management initiatives of some of Canada's leading organizations including, Bank of Montreal; Bell Canada; Contact North/Contact Nord; KPMG Canada; Lasalle College; London Life; Mitel Networks Corp.; Nortel Networks; Northern Lakes College; Royal Bank of Canada; Research in Motion; Sanofi-Aventis; Scotiabank; and Sony of Canada.

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.

Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the growing demand for Saba's HCM solutions, Saba's ability to expand operations in Canada and the ability of Saba's presence in the Canadian market to help the company address demand for its industry-leading HCM solutions, while better serving its Canadian customer. 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: Saba's dependence on growth of the markets for Saba's products, dependence on acceptance of Saba's products by customers and channel partners, fluctuation in customer spending, length of Saba's sales cycle, competition, rapid technological change, dependence on new product introductions and enhancements and potential software defects. Readers should also refer to the section entitled "Risk Factors" on pages 11 through 21 of Saba's Annual Report on Form 10-K dated August 18, 2006 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.

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.