Small- and Mid-Sized Businesses Thrive on SuccessFactors

SuccessFactors Sees Widespread Adoption of Performance and Talent Management Solution Among Smaller Businesses

NEW YORK - June 6, 2007 - SuccessFactors, the leader in on-demand performance and talent management solutions, announced today at the SuccessConnect 2007 SuccessFactors Global User Conference the widespread adoption of its performance management solution by small- and mid-sized business (SMBs), as more companies are enjoying the same benefits of being "On SuccessFactors" as large, global enterprises.

Since January, hundreds of small and mid-sized companies have chosen to use SuccessFactors on-demand performance management solutions to more strategically leverage HR resources in order to align company goals with their workforce, implement an efficient and streamlined performance management process, establish pay for performance cultures and identify high-potential future leaders.

In the last few months, SuccessFactors has helped businesses like Nittany Embroidery, Kelley Blue Book, Shutterfly and Polycom dynamically adjust their performance management strategy, focus and execution to meet market demands. New small and mid-sized customers include ArcSight, Juanita's Foods, California Cryobank, Torrington Supply Company, Borel Private Bank & Trust Company, VistaPrint, Celerity, Leap Wireless and Irwin Financial Corp.

"SuccessFactors gives us a competitive advantage by creating HR resources for employees that small businesses cannot usually offer," said Erin O'Leary, founder and CEO of Nittany Embroidery. "Large corporations can offer employees resources like career development and training that would normally blow us out of the water, but with SuccessFactors we're able to invest in our employees through useful reviews and important feedback. By offering them an important and strategic role in the company, we are able to keep employees happy, fulfilled and more inclined to stay with us." Through development of best practices with a number of Fortune 100 customers and its commitment to SMB success, SuccessFactors brings experience and knowledge of performance management unmatched in the industry - expertise in helping smaller companies and big business alike achieve real results. SuccessFactors' Web-based platform is designed for companies of all sizes, with scalability and flexibility that allows the software to keep pace with both small- to medium-sized businesses as well as large, global enterprises. The on-demand architecture of SuccessFactors' Professional and SuccessPractices Edition's also enables SMBs to implement the technology within hours and without the need for extensive IT support. "Because we give SMBs the tools they need to effectively manage their performance management process, SuccessFactors has seen wide market adoption," said Shelly Davenport, General Manager of Small Business at SuccessFactors. "We are committed to helping our customers grow strong and avoid some common growing pains usually found in SMB work environments. By helping SMBs to better motivate employees, more closely align individuals' goals with business goals, and create a more engaged workforce, we are creating environments where small- and mid-sized businesses can grow and thrive."

About SuccessFactors
SuccessFactors is the leading provider of on-demand employee performance and talent management solutions that enable organizations of every size, across every industry and geography, to realize their employees' potential and thus drive business results. Its hosted service is organically built from the ground up - providing a fully integrated, modular suite of performance and talent management applications that provide customers with immediate process benefits and tangible return on investment. Fueled by customer success, SuccessFactors currently has more than 1,400 customers with more than 2 million users in 156 countries and across 60 industries using the application in 18 languages. The company currently employs more than 500 people worldwide, all passionately focused on delighting customers through prompt and effective execution and constant improvement driven by customer feedback. SuccessFactors' customers include Kimberly-Clark Corporation, MasterCard Worldwide, Textron, Sutter Healthcare, Direct Energy, Quintiles Transnational, Volkswagen of North America, Lancaster General Hospital, and Salesforce.com. Founded in 2001, SuccessFactors has multiple offices worldwide collaborating for strong local support of customers.