Small and Mid-Sized Businesses Accelerate Investment In Automated Performance Management; Increase Overall Business Productivity

SAN MATEO, Calif., - FEB 15, 2007 - SuccessFactors today announced that a record number of small and mid-sized businesses (SMBs) across a variety of industries selected SuccessFactors' award winning, web-based solution to automate performance management processes. SuccessFactors customers are using the affordable, web-based tool to increase employee productivity and align overall company performance behind common goals. An unprecedented number of small and mid-size companies, ranging from the 25-employee design agency, Mojave Creative, to the popular consumer website, Shutterfly, are now leveraging the leading on-demand performance and talent management solution to transform their business by focusing on their people. Built on best practices learned from SuccessFactors' successful implementations at leading enterprise companies including Wachovia Bank, Kimberly-Clark Corporation and MasterCard Worldwide, SuccessFactors technology helps SMBs drive business performance and support target growth plans.

Small and mid-sized organizations face increasing pressures to maximize employee productivity, prepare for the looming talent crisis and address outdated manual, paper-based processes. SuccessFactors' on-demand solution-recently chosen as a finalist for Small Business Technology Magazine's Product of the Year award-is enabling companies to efficiently and cost-effectively implement performance reviews, 360 degree reviews, goal planning and compensation planning initiatives.

"We want to continue to compete on a level with global agencies and as such, need to figure out how we can continue to build and improve on what we are doing," said Brad Zabrowski, SuccessFactors customer and principal at Mojave Creative. "We've always advanced through technology and knew we needed to leverage it to help us grow. With SuccessFactors, we have begun to create a pay for performance culture where employees are encouraged to reach specific goals and are compensated based on their contributions."

SuccessFactors' SMB product offering has been designed specifically for organizations with 25-1500 employees. The on-demand architecture enables SMBs to implement the technology within hours and without the need for extensive IT support. The easy to use, web-based solution also allows companies to add users and functionality when needed to meet a company's growing needs.

"Small companies don't have the IT resources to support software installations and constant updates nor the resources to train people on a difficult application," said Shelly Davenport, General Manager of Small Business at SuccessFactors. "SuccessFactors' software-as-a-service solution is an easy to use, cost-effective option that has quickly gained ardent and avid support in the SMB world based on the results it has delivered to our customer base."

About SuccessFactors
SuccessFactors delivers performance and talent excellence, on demand. The company's software promotes visibility, accountability, and results, enabling organizations to eliminate the politics that destroy motivation and impede performance. Fueled by the industry's highest renewal rate, SuccessFactors grew in 2006 from 275 customers to over 1,000 customers and from 1 million users to over 2 million users in 156 countries, across 60 industries, and in 18 languages - all while becoming easier to use. During that period, the company nearly doubled its employee base, currently employing over 450 people, passionate about effective human capital management. Carefully managed and executed internal growth has allowed the company to provide the same caliber of absolute excellence in execution for customers that catapulted SuccessFactors into the product, customer and revenue leader in the performance and talent management space. SuccessFactors' technology suite is currently used by 16% of the Fortune 100 and includes notable customers such as Kimberly-Clark Corporation, MasterCard Worldwide, T. Rowe Price, Textron, Sutter Healthcare, Direct Energy, Arrow Electronics, Quintiles Transnational, Volkswagen of North America, Lancaster General Hospital, and Salesforce.com.. The company continues to execute at a level of global excellence by providing an industry-leading, scalable and secure global hosting operation. Founded in 2001, SuccessFactors has 15 worldwide offices collaborating for strong local support of customers. For more information, visit http://www.successfactors.com/.