Callidus Software and The Alexander Group Partner to Provide ASP Offering of TrueComp.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--May 31, 2000

Affordable Enterprise Class Variable Compensation Management

Now Available for Middle Market and Other Companies

Preferring to Outsource

Callidus Software, Inc., the business performance systems company, announced today that for the first time its enterprise compensation management system, TrueComp, will be available through an application service provider (ASP), by expanding its strategic partnership with The Alexander Group, Inc. (AGI).

Available immediately across North America, the agreement offers mid-sized companies, with as few as 40 incentive-based payees, an affordable means of accessing the strategic value of the pay-for-performance industry's premier software.

TrueComp will be the first full-scope modeling, administration, reporting and analytical solution available to the outsource customer via an application service provider. The ASP model enables small, fast growing companies that do not have the infrastructure or budget to buy enterprise applications today, to immediately benefit from the features and benefits of the TrueComp suite as well as provide an easy migration path to support a growing company.

"Under the ASP agreement with AGI, we have easily tripled our prospect pool in one fell swoop," said Phil Ressler, senior vice president, marketing for Callidus Software. "Expanding to the scalable ASP delivery format enables us to provide an affordable solution to the mid-tier of companies that do not have the financial nor technical resources to implement an enterprise class solution on-site, but want to strategically manage their pay-for-performance staff in line with business goals."

AGI, a marketing and sales management consulting firm with a long tradition in compensation plan consulting -- providing strategic and technical advice to customers on programs to motivate their sales force, became an implementation partner for TrueComp in September, 1999. Under the new agreement, AGI will host the software as an ASP via Navisite's secure network infrastructure and combine it with the added value of AGI's implementation, technical support, strategic consultation and maintenance services to resell the TrueComp solution to customers on a monthly rental basis. TrueComp is AGI's first ASP offering.

AGI's ASP status, combined with its existing strategic partnership with Callidus Software, allows the company to offer a complete set of TrueComp variable compensation management solutions to its customers: ranging from an outsourced solution for mid-sized companies with only 40 incentive payees, to on-site enterprise implementations for thousands of payees.

"AGI's core competencies in sales effectiveness and incentive compensation management amplify the immediate benefits of making TrueComp available through the ASP model," said David J. Cichelli, senior vice president of the Alexander Group, Inc. "Our ASP offering enables us to provide strategic enterprise pay-for-performance program automation, with world-class embedded domain expertise, to customers who might otherwise be restricted to a tactical and partial solution."

About TrueComp

TrueComp, the variable compensation management system, is designed to automate 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), Unix (Sun Solaris and HPUX), 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 enterprise software starts at $350,000 for managing compensation plans for up to 400 payees. Pricing for TrueComp on an ASP basis is controlled by the ASP partners.

About The Alexander Group, Inc.

The Alexander Group, Inc. is a marketing and sales management consulting firm helping Fortune 1000 firms achieve excellence in sales execution. The firm's Go-to-Market strategies include a comprehensive combination of customized management consulting services, and software and IT integration services. The firm has a strong reputation as a leader in sales incentive compensation design and marketing effectiveness such as organization and job design, sales strategy, channel strategy and effectiveness, marketing segmentation, and resource deployment. AGI works closely with clients to increase sales and profits through the effective implementation of strategies and the automation of sales support processes. AGI has offices across the United States. For more information, call 800/327-8525 or visit www.alexandergroupinc.com.

About Callidus Software

Callidus Software (http://www.CallidusSoftware.com), the business performance systems (BPS) company, boosts business performance by driving higher corporate revenues through marketplace pay-for-performance. Our BPS software automates incentive programs inside and outside the company. TrueComp automates modeling, administration, reporting and analysis of internal variable compensation, most often sales commissions. TrueChannel similarly automates channel promotions programs, which are paid incentives to distribution partners. Our BPS software provides precision, trust and understanding so that revenue-boosting behavior can be successfully rewarded and revenue drivers optimized for improved business performance.

Callidus Software, of San Jose, CA 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 Ariba, Inc. (Nasdaq:ARBA), Autodesk (Nasdaq:ADSK), Cadence Design Systems (NYSE:CDN), Dun & Bradstreet (NYSE:DNB), Juniper Networks, Inc. (Nasdaq:JNPR), Lucent Technologies (NYSE:LU), Newbridge Networks (NYSE:NN), Netscape Communications (NYSE:AOL), Remedy (Nasdaq:RMDY), Rhythms NetConnections Inc. (Nasdaq:RTHM), Sun Microsystems (Nasdaq:SUNW), Sybase Inc. (Nasdaq:SYBS) and UniDial/LightYear.