Callidus Software's TrueComp Chosen by Ariba to Manage Enterprise Variable Compensation.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 19, 2000

Ariba Joins Growing List of High-Profile TrueComp

Customers Adopting Business Performance Systems

Callidus Software, the business performance systems company, announced today that Ariba, Inc. (Nasdaq:ARBA), the leading provider of business-to-business eCommerce services and solutions to leading companies around the world, has purchased Callidus Software's variable compensation management system, TrueComp, to manage compensation programs for its worldwide direct sales force.

TrueComp will replace Ariba's previous process, which relied on manually maintained spreadsheets.

"The TrueComp product will guide Ariba through the total sales compensation process, from expediting commission calculation, payment and reporting all the way through to the more strategic tasks of financial planning and analysis enabled by TrueComp's compensation modeling capabilities," said Ed Kinsey, Ariba's executive vice president and chief financial officer.

Mountain View-based Ariba joins the growing list of high-profile Callidus Software customers for TrueComp, including Dun & Bradstreet, America Online, Cadence Design Systems, Autodesk, Newbridge Networks, Netscape Communications, Sun Microsystems, Rhythms NetConnections and Sybase Inc.

"As a rapidly developing company, Ariba needed to implement a variable compensation management system that could accommodate the increasingly diverse roles within its growing sales force," said Michael Tidd, vice president, finance and chief financial officer for Callidus Software. "TrueComp will help to relieve the administrative burdens of designing and testing new plans by automating a compensation process that can scale to keep up with Ariba's rapid growth."

Under the agreement, Callidus Software will implement TrueComp to fully automate Ariba's variable compensation process, thereby reducing payment errors, improving reporting and analysis and providing a flexible system that can be modified easily by non-technical users to keep compensation aligned with evolving corporate goals.

About TrueComp

TrueComp, the variable compensation management system, is designed to address the complete variable compensation management process, from assessing and refining the effectiveness of incentive plans in meeting business objectives, to ensuring accurate compensation payments to sales personnel. It features three user modules: TrueComp Modeler for prototyping compensation plans, TrueComp Manager for administering compensation programs and TrueComp Viewer for reporting and performance analysis. TrueComp is available for Windows (NT, 32-bit OS) and Unix (Sun Solaris), and supports Oracle, Sybase and MS SQL Server for data storage. The TrueComp Viewer module can be accessed via Netscape Navigator and MS Internet Explorer. Pricing for TrueComp starts at $350,000 for managing compensation plans for up to 400 payees.

About Ariba, Inc.

Ariba, Inc. is the leading provider of business-to-business eCommerce services and solutions to leading companies around the world, including 15 of the Fortune 100. The company delivers an open, end-to-end, best-of-breed platform of interoperable solutions to manage corporate purchasing on the Internet, build net markets, and provide suppliers with buyer access and integration. Together, Ariba's software and services leverage the Internet-based Ariba Network to integrate the internal and external commerce processes of buyers, suppliers, net markets and commerce service providers. The result is a global eCommerce infrastructure that provides cost saving and revenue opportunities for businesses of all sizes. Ariba can be contacted in the U.S. at 650/930-6200 or at www.ariba.com.

About Callidus Software

Callidus Software (http://www.CallidusSoftware.com) is a San Jose-based company delivering a new class of enterprise application software called business performance systems (BPS). BPS software helps corporate finance executives boost top- and bottom-line corporate performance through accurate and timely variable resource program management, including variable compensation, sales commissions and trade promotions to channel partners. Callidus Software was founded in 1996 and is privately backed by Crescendo Ventures (formerly IAI Ventures), Crosspoint Venture Partners, ONSET Ventures, Goldman Sachs Group, and Transamerica Technology Finance. Customers include America Online (NYSE:AOL), Autodesk (Nasdaq:ADSK), Cadence Design Systems (NYSE:CDN), Dun & Bradstreet (NYSE:DNB), Newbridge Networks (NYSE:NN), Netscape Communications (NYSE:AOL), Rhythms NetConnections Inc. (Nasdaq:RTHM) Sun Microsystems (Nasdaq:SUNW) and Sybase Inc. (Nasdaq:SYBS).