Offers Fast, Easy, Affordable Learning, Performance and Talent Management Deployment

BOSTON – September 26, 2006 — Saba (NASDAQ: SABA), the premier Human Capital Management (HCM) software and services provider, today unveiled Saba OnDemand FastTrack and Saba OnDemand Enterprise at the Saba-Centra Summit, the company’s user conference being held in Boston this week. Tailored for mid-market organizations as well as for larger organizations, Saba OnDemand is a fully-integrated software as a service (SaaS) HCM offering designed specifically to reduce implementation time and speed time-to-benefit.

The new solutions provide the rich functionality of Saba’s on-premise learning, performance, and talent management software, but have been specifically adapted for subscription-based delivery, resulting in up to 70 percent reduction in deployment time. Saba OnDemand Enterprise and Saba OnDemand FastTrack extend Saba’s range of on-demand services, enabling organizations of any size to access Saba’s strategic HCM applications on the delivery platform that best suits their needs – on-premise, on-demand or hosted. The new solutions also complement the company’s Centra OnDemand offerings and come pre-integrated with the Centra virtual classroom, web seminars and eMeetings capabilities to achieve a true seamless learning and collaboration environment.

With Saba OnDemand, customers can access the Saba suite of HCM solutions without having to invest in IT infrastructure or in people resources to operate and maintain the application. The new SaaS offerings are easy to deploy and will appeal to any customer with legacy HCM systems. Seasoned Saba experts administer the application, in partnership with a top-tier secure data center, providing unmatched ability to quickly implement, tune and optimize the suite to fit each customer’s needs.

“Today organizations want to tackle performance, learning and talent management in an integrated way,” said Josh, Bersin, president of Bersin & Associates, a research and advisory services firm focused on enterprise learning and talent management. “Mid-market companies have the same needs as large organizations – they want to set goals, develop employees, and align the workforce to meet critical talent gaps and new business demands. Availability of an easy-to-implement, on-demand platform for integrated talent management provides tremendous benefits to mid-sized organizations in today’s tight labor market.”

“Saba OnDemand taps the convergence of two major trends in HCM today,” said Bobby Yazdani, chairman and CEO of Saba. “On the one hand, organizations need more than ever to optimize their chief assets – their people – in order to compete and grow. On the other, the need to reduce the burden of software management is driving the adoption of the on-demand model across organizations of all sizes. Unlike many other on-demand providers, however, we believe there should be no compromise in either functionality, configurability or convenience and have dedicated our research and development efforts to proving that the two can co-exist in Saba OnDemand.”

Saba OnDemand FastTrack: Fast, Easy, Affordable Deployment for the Mid-Market
Saba OnDemand FastTrack features superior learning and performance management capabilities. A comprehensive range of competencies and content are also available from Saba to streamline implementation and reduce time-to-benefit.

• Saba OnDemand FastTrack Learning includes two options: Streamlined Training and Compliance Training. More than just a learning management system, these options enable a complete content solution – featuring support for extensive content and competency partnership libraries, virtual classroom integration via Centra and comprehensive content tools and services. With a unique competency-driven learning approach, these subscription-based learning management solutions support the mapping of courses and competencies, allowing learning managers to match training with the skills required and monitor the impact of learning programs on employees’ performance.



• Saba OnDemand FastTrack Performance has two options: Automated Performance Reviews, for quick deployment of best practice review processes, and Streamlined Performance Management, which facilitates reviews and goal setting and can integrate with Saba OnDemand Learning for actionable development plans. The solution also integrates with Microsoft Outlook and Lotus Notes as well as enterprise portals for easier goal management.

Saba OnDemand Enterprise: Full Enterprise-class Functionality via Subscription Model
Saba OnDemand Enterprise leverages Saba's unparalleled domain expertise and includes all the features of Saba’s integrated on-premise performance, talent and learning management solutions.

• Saba OnDemand Enterprise Learning – Enables the management of learning programs and the dissemination of knowledge for compliance, corporate universities, sales training, customer education and channel certifications.



• Saba OnDemand Enterprise Performance – Ensures goal alignment between individuals, teams and the entire organization. The innovative initiative management capabilities allow organizations to form initiative teams with key competencies around specific goals.



• Saba OnDemand Talent – Helps organizations identify internal candidates for roles and manages their progression to ensure implementation of succession plans.

More than One Million OnDemand Users and Growing
Saba’s OnDemand product line is the fastest-growing segment of the company’s business. With more than one million users, usage of Saba’s OnDemand solutions has more than doubled in the last 12 months. Organizations such as General Motors, Honeywell, Federated Department Stores, Freddie Mac, IDX Systems, Luxury Hotels of the World, MRO Software, Inc, and Safeco Insurance Company, are just a few of the companies that have selected Saba’s OnDemand solutions.

About Saba
Saba (NASDAQ: SABA) ) is the premier Human Capital Management (HCM) software and services provider, using a people-centric approach to increase productivity and performance. As a trusted partner, Saba enables the Aligned Enterprise™ for over 1,100 customers in 150 countries by providing an integrated people management system to continuously align goals, develop people, improve collaboration and increase visibility into organizational performance.

Saba customers include ABN AMRO, Alcatel, Bank of Tokyo-Mitsubishi UFJ, BMW, CEMEX, Cisco Systems, DaimlerChrysler, Dell, Deloitte Touche Tohmatsu, EDS, EMC Corporation, FedEx Kinko's, Insurance Australia Group, Lockheed Martin, Medtronic, National Australia Bank, Novartis, Petrobras, Procter & Gamble, Scotiabank, Sprint, Standard Chartered Bank, Stanford University, Swedbank, Wyndham International, Weyerhaeuser, Underwriters Laboratories, and the U.S. Army and U.S. Navy.

Headquartered in Redwood Shores, California, Saba has offices on five continents. For more information, please visit www.saba.com or call (+ 1) 877-SABA-101 or (+1) 650-779-2791.

Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding future releases of Saba’s products and OnDemand services. Saba's actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties Saba faces that could cause results to differ materially include risks associated with: Saba's dependence on growth of the markets for Saba's products, dependence on acceptance of Saba's products by customers and channel partners, fluctuation in customer spending, length of Saba's sales cycle, competition, rapid technological change, dependence on new product introductions and enhancements and potential software defects. Readers should also refer to the section entitled "Risk Factors” on pages 11 through 21 of Saba's Annual Report on Form 10-K dated August 18, 2006 and similar disclosures in subsequent Saba periodic SEC reports. The forward-looking statements and risks stated in this press release are based on information available to Saba today. Saba assumes no obligation to update them.

SABA, the Saba logo, Centra and the marks relating to Saba products and services referenced herein are either trademarks or registered trademarks of Saba Software, Inc. or its affiliates. All other trademarks are the property of their respective owners.