Callidus Software Appoints George B. James as First Outside Director; New Board Member Brings Hands-On CFO Experience to the Leader in Business Performance Systems.

SAN JOSE, Calif.--(BUSINESS WIRE)--July 20, 1999--

Callidus Software, the business performance systems (BPS) company, announced today that George B. James has joined the Board of Directors.

James brings to Callidus Software's board a strong financial background, including thirteen years of experience as chief financial officer for Levi Strauss & Co.

In his role as a board member, James will draw on his financial management background to provide strategic insight and guidance to the Callidus Software management team in assessing the usability, the necessity, and functionality of present and future Callidus Software products.

"Callidus Software's first product, TrueComp, is an effective tool to manage incentive compensation and assess results. It's a terrific product and fills a vital niche, helping organizations understand their costs, and better manage the costs of doing business," said James. "Callidus Software is the first company to explore the full extent of the variable cost management market and as such is well positioned to take the leadership in developing quality business performance systems solutions."

"We are thrilled to have George join the board," said Reed Taussig, president and chief executive officer. "With his strong background as a former CFO of first-rank companies, George brings a fresh perspective and diversity to the board. With his extensive CFO background, we are confident that he will provide terrific insight into our products and move us in direction that will improve our climate of acceptance among the CFO community."

Prior to joining Levi Strauss & Co, James was executive vice president and CFO, and later group president, with Crown Zellerbach Corporation from 1982-1985. His previous experience also includes ten years with Arcata Corporation as senior vice president and CFO and vice president, finance of the Pepsico Leasing Corporation.

James attained a Bachelor of Arts from Harvard College in 1959 and Master of Business Administration from Stanford Graduate School of Business in 1962.

About Callidus Software's Board of Directors

The Callidus Software Board of Directors is comprised of accomplished industry veterans including: Lorraine Fox of Crescendo Ventures, John Mumford of Crosspoint Venture Partners, Darlene Mann of ONSET Ventures, Reed Taussig and co-founder Andy Swett, both of Callidus Software. Company advisors include Jim Finkelstein, Managing Director, Arthur Anderson; Brooks McChesney, Callidus Software Advisory Board Chairman; John Russell, former CFO, Cisco Systems and Dan Doles, President and COO, WiData Inc.

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 CFOs boost top and bottom-line corporate performance through accurate and timely variable cost management, such as sales commissions accounting.

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 Cadence Design Systems (NYSE:CDN), Dun & Bradstreet (NYSE:DNB), Newbridge Networks (NYSE:NN), Netscape Communications (NYSE:AOL) and Sybase Inc. (Nasdaq:SYBS).