IAG uses Saba to put people at the center of its business strategy

Redwood Shores, CA – January 3, 2007 — Saba (NASDAQ: SABA), the premier Human Capital Management (HCM) software and services provider, today announced the implementation of the Saba Enterprise Performance Suite at IAG, the largest general insurance group in Australia and New Zealand. IAG deployed Saba Performance to align employee goals and performance with corporate strategy.

As the insurance market in Australia is highly competitive, it is critical for IAG to support its people with the right tools and information. The Saba solution enables IAG to provide well-defined career progression paths by creating individual goals, tracking and managing employee performance, all within the context of corporate objectives.

Having streamlined its performance plans, IAG is able to more efficiently carry out its people strategy. The company is able to engage people on a personal level with face-to-face performance reviews while also saving time and money. This allows IAG to retain and develop key talent.

“We went live with Saba Performance in July 2006, and it was one of the best implementations we’ve ever had,” said Evan Bull, manager of Learning Development at IAG. “We have 11,000 employees now with active performance plans in the system and have received very few support calls from users.”

“IAG’s growing business requires a reliable, highly efficient and scalable performance management solution,” said Bobby Yazdani, chairman and CEO of Saba. “Saba Performance has delivered on these needs, and we anticipate a continued, outstanding working relationship with IAG as it prepares to deploy Saba’s Enterprise Talent Suite.”

Based on its success with Saba Enterprise Learning and Performance Suites, IAG is next looking to rollout the Saba Talent Suite. With the upcoming deployment, IAG plans to identify and develop approximately 700 high-performing people within the organization with possible international expansion.

About IAG
Insurance Australia Group (IAG) is the largest general insurance group in Australia and New Zealand. It provides personal and commercial insurance products under some of the most respected and trusted brands including NRMA Insurance, SGIO, SGIC, CGU, Swann Insurance, and State. Insurance Australia Group’s core lines of business include:

• Home insurance
• Motor vehicle insurance
• Health insurance
• Commercial insurance
• Consumer credit insurance
• Extended warranty insurance
• Compulsory third party (CTP) insurance
• Workers’ compensation insurance

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 Enterprise™ 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.