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Enterprise Incentive Management Solution Delivers Maximum Scalability and Performance While Minimizing Costs

Bracknell, Berkshire, UK – November 17, 2004 – Callidus Software Inc. (Nasdaq: CALD), the industry leader in Enterprise Incentive Management (EIM), today announced that its TrueComp® Suite has successfully completed the IBM Grid enablement validation. Callidus is the only EIM provider that offers grid computing-based solutions. Its rules-based grid computing architecture, TrueComp Grid, enables customers to more cost-effectively deploy enterprise incentive management applications, by minimizing hardware costs while driving maximum performance to accomplish mission-critical reliability.

The IBM Grid enablement validation confirms that TrueComp can leverage a grid environment of heterogeneous technologies and geographically-dispersed systems. Callidus grid architecture leverages IBM’s middleware and eServer infrastructure to enable businesses to deploy mission-critical EIM applications on available computing resources, while at the same time, take advantage of the cost effective power of the latest platforms, as required.

The grid validation testing completed at the IBM Innovation Center in San Mateo, California confirmed that Callidus TrueComp can leverage a variety of hardware platforms, such as Intel, Power4™ and Power5™ servers, as well as popular software platforms including AIX 5.2, Linux on Power (LoP), Windows and Websphere. Callidus TrueComp was able to take advantage of these resources, all at the same time, with optimum performance spanning long distance geographical locations.

“Grid computing leverages a customer's existing capital investments to increase productivity, IT responsiveness, and meet the requirements of a truly on demand business,” said Ken King, vice president, Grid Computing, IBM. “Working together, IBM and Callidus help customers implement cost-effective and reliable EIM solutions to improve business performance.”

The Callidus grid architecture meets the unique incentive management requirements of Global 5000 enterprises for flexibility, scalability and reliability, allowing them to process millions of transactions for tens of thousands of payees at top speeds.

“The ability to cost-effectively deploy EIM solutions that can scale to the organisation’s needs as these evolve, is crucial,” said Robert Warfield, CTO at Callidus Software. “Our ongoing efforts with IBM support this innovative technology, providing customers with increased scalability and performance. Our joint customer successes showcase that a system built on rules-based grid computing architecture establishes the right technology foundation for optimally effective EIM.”

To learn more about Callidus’ relationship with IBM, please visit http://www.callidussoftware.com/alliances/ibm/index.asp

About Callidus Software
Founded in 1996, Callidus Software (www.CallidusSoftware.com) is the industry’s leading enterprise incentive management (EIM) provider to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp® Grid architecture, Callidus delivers the industry’s only EIM solution that combines the power and scalability of grid computing with the flexibility of a rules-based interface. Customers/Partners include AOL Time Warner Corporation, AT&T Wireless, BMC Software, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, JPMorgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems. Callidus is publicly traded on the NASDAQ under the symbol CALD.

ã 2004 by Callidus Software, Inc. All rights reserved. Callidus Software, the Callidus Software logo, Everyone Profits, TrueChannel, TrueComp, TrueComp Grid, TrueInformation, TruePerformance, TrueReferral, and TrueResolution are trademarks of Callidus Software Inc. All other trademarks are the property of their respective owners.


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Press Contacts:

Jane LeFevre
Callidus Software Inc.
(408) 808-6511
pr@callidussoftware.com


Wendy Marshall
WMPR Consultancy (for Callidus Software)
+44 (0) 20 8560 1437
wendy@wmpr.com



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