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Callidus Software and TerrAlign Form Strategic Alliance

Partnership to benefit customers by integrating TerrAlign's territory optimization capabilities with Callidus' robust sales performance management solutions

[SAN JOSE, CA] - February 27, 2007 - Callidus Software Inc. (NASDAQ: CALD - News), the leader in Sales Performance Management (SPM) and Enterprise Incentive Management (EIM), today announced a strategic alliance with The TerrAlign® Group, Inc., a provider of sales resource optimization solutions. Through this partnership, Callidus will offer the only complete SPM solution available in today's market. By using Callidus best-of-breed SPM solutions, Fortune 1000 companies optimize their sales and distribution performance by efficiently managing territories, quotas and compensation plans to drive revenue, increase shareholder value and align sales with corporate objectives.

"To drive greater revenue growth from sales, enterprises must adopt competencies and technology solutions that better integrate and coordinate territory, quota and compensation management processes - these activities are interrelated and establish the framework of responsibilities, expectations and indicators for sales success that guide sales forces," said Michael Dunne, Vice President of Research at Gartner. "Sales performance management as a concept should help organizations to systematically refine planning for sales targets, allocate opportunities equitably, enhance communication on expectations and rewards to all parties, and more effectively encourage desired sales behaviors."

"Users of TerrAlign benefit from increased sales revenues and market share, decreased travel costs, and reduced turnover among field personnel because they are given fair and equitable territories with challenging yet achievable expectations," said Jean-Yves Kainic, vice president, client solutions at TerrAlign. "Furthermore, equitable territories help set reasonable quotas; together with strategic incentive compensation plans and systems, they drive optimal sales outcomes. As the leading EIM and SPM vendor, with a shared vision of providing sales operations the necessary tools to maximize sales performance, Callidus was an obvious choice when considering whom to partner with."

"Optimizing territory management enables companies to align sales resources with territories and maintain hierarchies for forecasting," said Shanker Trivedi, senior vice president and CMO at Callidus Software. "TerrAlign has established itself as the leading provider of sophisticated sales territory management solutions. Our combined solution will provide today's enterprises with the sales knowledge, analytics and agility required to truly drive revenue, increase shareholder value and align sales with corporate objectives."

Under the terms of this agreement Callidus is integrating TerrAlign, an advanced territory design and optimization application, into the company's Sales Performance Management suite. This latest addition broadens Callidus' product offerings to address the critical elements of effective sales performance management: territory, quota and compensation management as well as modeling and analytics. The new offering will maximize sales performance by optimizing territories and account assignments, assigning the 'right' quota, and providing comprehensive geographic sales insight.

About Callidus Software®
Founded in 1996, Callidus Software (www.callidussoftware.com) is an industry leading Sales Performance Management (SPM) and Enterprise Incentive Management (EIM) provider to global companies across multiple industries. Callidus' products allow enterprises to develop and manage incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp® Grid architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include 7-Eleven, Accenture, CUNA Mutual, HP, IBM, Philips Medical Systems, Sun Microsystems and Wachovia. Callidus is publicly traded on the NASDAQ under the symbol CALD.

About TerrAlign
The TerrAlign Group (www.terralign.com), founded in 1987, provides Sales Resource Optimization software and services to a wide variety of Global 2000 companies. The TerrAlign Group developed the world's first desktop-based territory optimizer almost two decades ago for a leading pharmaceutical company, and is now the first and only software vendor to deliver a Territory Alignment & Optimization solution on salesforce.com's Apex platform. TerrAlign also provides strategic services that include promotional response modeling, field force sizing, account profiling, call planning, territory optimization, and territory realignments. TerrAlign customers benefit from increased sales revenues and market share, decreased travel costs and reduced turnover.

© 2007 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueChannel, TrueComp, TrueComp Datamart, TrueComp Grid, TrueComp Manager, TrueInformation, TrueIntegration, TruePerformance, TrueReferral, TrueResolution, TrueService and TrueSupport are trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.


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