Healthcare Industry Thrives On Successfactors; Creates Pay For Performance Cultures Across The Nation

SuccessFactors Healthcare Delivers More Effective and Efficient Talent Management; Reduces Burden of Paper- Based Processes and Enables Smooth Path to Accreditation Compliance

SAN MATEO, CA - January 16, 2007 - SuccessFactors, Inc., the established global leader in on-demand performance and talent management solutions, today announced the launch of SuccessFactors Healthcare, a new patient care focused version of the company's market-leading solution that delivers a combination of healthcare-specific content, approved processes and leading edge technology. Based on SuccessFactors' Performance and Talent Management Suite and culled from best practices of key healthcare customers including Lancaster General, Centura Health, Sutter Healthcare, Maine Medical and many others, SuccessFactors Healthcare offers the largest library of competency-based job descriptions for clinical, support and administrative roles in addition to a central repository for storing, updating, approving, tracking and viewing job descriptions.

On SuccessFactors, healthcare organizations can move past the basic automation offered by other technology offerings and also achieve alignment of organizational performance with institutional goals. SuccessFactors Healthcare alleviates the administrative burden of what has been, for the majority of institutions nationwide, a cumbersome, manual and spreadsheet-based performance and talent review process.. SuccessFactors' new offering helps organizations drive towards achieving an open, pay-for-performance culture while decreasing the administrative burden of managing performance and talent, substantially increasing manager efficiencies and enabling healthcare organizations to more easily comply with exacting accreditation standards.

"The goal of implementing SuccessFactors technology at Lancaster General Hospital is to continually strive to increase the performance of the hospital through our people," said Edward Albee, Chief Human Resource Officer, Lancaster General Hospital.

Lancaster, a SuccessFactors customer since 2004, has been recognized as a 100 Solucient Top Hospital, Magnet Hospital by the American Nursing Assocation, The Leapfrog Group Top Hospital, US News & World Report America's Best Hospital, and Training Magazine's Top 100 for Excellence in Human Capital Development.

Continued Albee, "By automating manual and spreadsheet-based performance and talent management processes with SuccessFactors technology, healthcare organizations can increase manager and individual accountability, move towards creating high performing, highly motivated workforces and overall, increase an organization's ability to provide the highest levels of patient care."

SuccessFactors Healthcare adds deep healthcare-focused functionality and best-in-class content to the SuccessFactors Performance and Talent Management Suite. SuccessFactors provides more medical content than any other solution on the market, including an industry-leading library of nearly 800 job descriptions, as well as accreditation and skill management tools that patient care organizations can reference to meet and maintain Joint Commission on Accreditation of Healthcare Organizations (JCAHO) standards. SuccessFactors Healthcare provides contextual visibility of job descriptions, key job requirements, and corresponding clinical and non-clinical competencies required of healthcare practitioners. Supervisors are able to easily conduct performance evaluations against a common set of benchmarks available on-demand and also reduce the amount of time spent managing the actual review process. This approach of maintaining and delivering key content in the context of a performance review reduces the administration burden involved in preparing for JCAHO accreditation while enabling a virtually paperless performance and talent management review process.

"SuccessFactors is becoming a driving force for the healthcare sector's rapid growth, providing tools that foster an efficient, motivated workforce while delivering unprecedented results and accountability for its customers," said Lars Dalgaard, SuccessFactors Founder and CEO. "Experts estimate that 30 to 40 percent of new jobs created in America in the next 25 years will be in the healthcare field and with the largest healthcare customer base of any Performance and Talent Management vendor, SuccessFactors will be a key player in support of that growth."

U.S. healthcare has created 1.7 million jobs since 2001, the largest growth of any sector during the last five years. Patient care providers on SuccessFactors account for more than 300,000 employees at 185 hospitals, from the world's leading systems to small community-based organizations. SuccessFactors, the fastest growing on-demand Performance and Talent Management solutions provider worldwide, has been able to achieve rapid growth in the healthcare market, mirroring its equally impressive and unprecedented growth in more than 40 other industries, with a combined two million total users in 139 countries.

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 has grown in the past 12 months from 275 customers to over 1,000 customers and from 1 million users to over 2 million users in 139 countries, across 40 industries, and in 18 languages - all while becoming easier to use. During that period, the company nearly doubled its employee base, currently employing over 400 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. Customers include 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.