SuccessFactors Offers First Complete Suite of Integrated, On-Demand Human Capital Management Applications

New MAGIC Employee Profile and SMART Recruiting Management Complete Technology Platform; Offer Customers Flexibility and Single Source of Information

SAN FRANCISCO - October 4, 2006 - SuccessFactors, Inc., the established global leader in on-demand performance and talent management solutions, today announced the availability of the world's first complete suite of integrated, on-demand Human Capital Management applications for companies of all sizes. Today's launch of SuccessFactors' MAGIC Employee Profile showcases paradigm changing HRIS capability through robust technology that provides users with relevant employee information that is easy, and actually, enjoyable to use. Next month's release of SuccessFactors SMART Recruiting Management will offer a talent sourcing solution with unique and clever connections to individual employee goals, performance history, learning potential, compensation history, variable pay, 360 survey results, desired career and development paths as well as succession potential. Both products deliver results only possible with an organically built, integrated and complete performance and talent management application suite.

SuccessFactors MAGIC Employee Profile and SMART Recruiting Management are the latest pillars of the company's robust and scalable technology platform. With the addition of the two modules, SuccessFactors customers will have the ability to implement a completely integrated performance and talent management technology solution that is easy to use and encompasses an employee's complete work life cycle. SuccessFactors' on-demand application suite enables organizations to manage their entire human capital life cycle based on performance and competencies, without the expense, extended implementation time or corresponding integration complexity of traditional ERP and on-premise point solutions. The technology also simultaneously allows for dynamic and effective integration to existing employee directories.

SuccessFactors' MAGIC Employee Profile provides a comprehensive, integrated view of each individual in the entire organization, enabling managers to make critical workforce business decisions based on real-time, performance-based information. Today, employee information is commonly dispersed in many data repositories throughout an enterprise, making it nearly impossible for managers to get a complete, current view of their employees. MAGIC Employee Profile combines thousands of data elements-- goal achievement, learning opportunities, total rewards, and others-- from a multitude of relevant disparate sources and existing ERP modules, and delivers them in one complete view. Companies who implement this new employ profiling capability can overcome the limitations of existing data silos and instead provide one central point of management that more accurately aligns with strategic business drivers. This centralized profile offers a highly flexible data model that incorporates all employee data including performance history, compensation history, career experience, development goals, competencies, skill set status and succession potential.

Talent management applications and the move toward an integrated suite-encourage employees to finally leverage intelligence across the organization to build and growth a strong performance-based workforce." said Jason Corsello, Research Director, Yankee Group.

Unlike traditional applicant tracking and onboarding systems that merely streamline and automate the hiring function, SuccessFactors SMART Recruiting Management changes the game by enabling hiring managers to track and assess external recruiting progress against the ability to mitigate performance gaps. SMART Recruiting Management takes the function even further by providing a common understanding around the performance, compensation, succession, learning and career plan expectations needed to succeed within an enterprise. The complete integration between all SuccessFactors' modules enables companies to leverage SMART Recruiting Management to screen and select individuals based on an organization's defined competencies and corporate goals while utilizing language that is common and relevant to the entire organization. The Performance Profile provides managers and recruiters the ability to track and analyze the strengths and areas for improvement of a company's hiring practices based on the performance of recent hires. Leveraging this combined integrated functionality transforms recruiting into an organization business driver, clearly aligned with key business goals, rather than an isolated functional group.

"Unlike ERP and point solution vendors, SuccessFactors' vision is for customers to use and pay only for what they need at the speed they can digest it, while resting assured that at the touch of a button, they can have the most innovative and complete total human asset management solution that leverages their existing investments," said Lars Dalgaard, SuccessFactors Founder and CEO. "SuccessFactors' complete suite of human capital management fulfills that vision with ease and provides an efficient and effective way of managing human capital for almost 1,000 customers."

Continued Dalgaard, "By offering this completely integrated solution, SuccessFactors is helping customers transform their business by identifying, managing and reporting on their employee base in a manner that is based on objective performance, competencies and goals and not on benefits plans or job codes."

About MAGIC Employee Profile
SuccessFactors MAGIC Employee Profile delivers comprehensive employee information while storing collected data in a centralized, master data repository. Customers enjoy a single location for all employee data as well as a full and accurate view of the entire workforce. SuccessFactors MAGIC Employee Profile complements other modules and functionality in the SuccessFactors Performance & Talent Management suite including: PerformanceManager™, Goal Management, Career & Development Planning, Compensation Planning, Variable Pay, Employee Survey, Succession Management, Learning Management, 360/Multirater, writing and development assistants, as well as libraries of goals, development criteria and competencies. Having complete and readily available information to make critical business decisions is vital to a company's success. SuccessFactors MAGIC Employee Profile delivers instant, comprehensive employee information, on-demand, from a single, scalable web application.

About SMART Recruiting Management
SuccessFactors SMART Recruiting Management allows customers to develop Performance Profiles to source, screen and select individuals who can drive higher levels of performance within an organization. Unlike other point-solution recruiting products or loosely integrated solutions patched together as a result of merger or acquisition, SuccessFactors SMART Recruiting Management is the only recruiting application built on an architecture that is directly correlated and integrated with market leading performance and talent management applications. This new functionality leverages proven core capabilities of the SuccessFactors suite including integrated workflow, embedded competency library, flexible role-based permission model and an integrated management dashboard. SuccessFactors Recruiting Management allows customers to extend the reach of a performance-driven culture to begin the moment a job applicant first makes contact with an organization and not falter throughout the entire employee life cycle process. Current SuccessFactors customers who would like to learn more about MAGIC Employee Profile and SMART Recruiting Management can participate in an interactive SuccessFactors Customer Features Forum scheduled for November 15 at 10am PST. Event registration can be accessed via: Forum Registration. Others who would like to learn more can participate in a free SuccessFactors webinar entitled SuccessFactors Complete Suite Web Seminar on Tuesday, November 14, 2006 at 10:00 am, PST. Event registration can be accessed via: Webinar Registration.

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 from 300 customers and 1 million users at the end of 2005 to close to 1,000 customers and over 2 million users in 139 countries, across 40 industries, in 18 languages-all while becoming easier to use everyday. The company has almost doubled the employee base, currently employing close to 400 talented people in 2006. Carefully designed 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 an talent management market space. Customers include MasterCard Worldwide, British Telecom, Textron, Salesforce.com, Cooper Tire & Rubber Company, Volkswagen of North America, Reebok, Pep Boys, Lancaster General Hospital and Grant Thornton. The company continues to execute on a level of global excellence through the provision of 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 or call +1 800 809-9920.