Lancaster General Increases SuccessFactors? Reach; Incorporates Lancaster Medical Group into Pay-for-Performance Initiative

Merit Bonuses Reallocated to Top Performers; HR Budgets More Accurately Forecasted With Workforce Performance Management Implementation

SAN MATEO, Calif. April 19, 2005 - SuccessFactors, Inc., the market and Web business application leader in on-demand workforce performance management, today announced that Lancaster General Hospital will increase their use of SuccessFactors technology to incorporate their sister organization, Lancaster Medical Group. The Medical Group's 600 medical professionals will join 4,600 Lancaster General employees currently using SuccessFactors technology to execute on Lancaster Group's goal of reinforcing a pay-for-performance culture in order to provide the highest levels of customer service and satisfaction.

Lancaster General Hospital is a multi-location healthcare facility that has been named one of the country's Top 100 Hospitals for six out of the past seven years. The company chose to implement SuccessFactors technology to address an executive leadership need to better align merit and bonus compensation to financial results. Besides realizing over $200K savings in HR review-related administrative costs in their first year of use, Lancaster General was able to directly tie bonuses and merit increases to performance, allowing merit increases for below expectation performers to be reallocated to the company's top performers. After the second year of use, Lancaster General was also able to consistently meet budget guidelines in relation to bonuses and merit increases, which in years prior had exceeded expectations by as much as $2 million.

Since Lancaster General's shareholder value lies in the quality of service our employees provide our patients, SuccessFactors' ability to help us identify and reward top performers is very important to the success of our organization," said Edward Albee, Lancaster General Senior Vice President of Human Resources. "At a business level, SuccessFactors provides real value when the technology enables Lancaster General to reallocate merit increases to those employees who impact our organization the most in addition to helping us accurately anticipate and budget for multiple million dollar expenditures."

Lancaster General chose to work with SuccessFactors based on the company's ASP business model which enables companies to quickly achieve accountability and results without experiencing the exorbitant cost and lengthy implementation times of large-scale enterprise software implementations. Lancaster also chose SuccessFactors due to the technology's ease of use which did not require extensive training and also offered coaching and writing assistance for all employees. As a result of their positive implementation experience, Lancaster General is currently in the planning stages for a rollout of SuccessFactors' Succession Planning module later this year.

About SuccessFactors Product
The SuccessFactors Workforce Performance Management Suite is composed of distinct capabilities, all of which are fully integrated. Its ease-of-use and rapid deployment features allow customers to solve immediate needs by getting to productive events in record time. The entire suite is highly scalable and modular, allowing customers to add new modules when they're ready - "on demand."

About Lancaster General Hospital
Lancaster General is a hospital and healthcare system with a reputation for excellence. The winner of numerous national and local awards, Lancaster General is committed to maintaining the health of all Lancaster County, Pennsylvania residents

About SuccessFactors
With the highest industry renewal rate, SuccessFactors is the established global leader in providing on-demand, Web-based, integrated workforce performance management solutions. SuccessFactors, founded in 2001, delivers software and solutions that help companies implement effective workforce performance management strategies that align employee performance with bottom-line business results. The company has over 600,000 users from more than 150 customers across all industry sectors, including Textron, General Motors, Cooper Tire & Rubber Company, MasterCard International, Volkswagen of North America, McKesson, Reebok, MeadWestVaco, PG&E, Lancaster General Hospital, Riggs Bank, Grant Thornton, Friendly's Ice Cream and HP Hood. SuccessFactors is headquartered in San Mateo, CA. and has multiple worldwide offices. The applications are being used in 56 countries and in multiple languages. For more information, visit www.successfactors.com or call 1-800-809-9920.