SAN JOSE, Calif., May 30 /PRNewswire-FirstCall/ -- Callidus Software Inc. , the leader in Enterprise Incentive Management (EIM), today announced Hyperion Solutions Corporation , the global leader in Business Performance Management software, has selected Callidus On-Demand(TM), the company's best-of-breed Web based EIM Solution. Already a Callidus Software TrueComp(R) application customer, Hyperion selected Callidus' On-Demand solution to cut operations costs, reduce IT infrastructure complexity and drive sales performance.

"Implementing the Callidus On-Demand solution is important to driving sales performance worldwide," said Dean Drougas, CIO of Hyperion. "The Callidus On-Demand solution will enable Hyperion to significantly cut project timelines, save cost compared with on-premise solutions and reduce IT infrastructure complexity."

"Callidus' On-Demand solution unlocks the power of enterprise-class EIM for a wide range of businesses with revenues from $250 million to $1 billion. It provides these companies a low capital entry, affordable, 'always on' 'always upgraded' solution. It also offers access to valuable resources such as the Sun Grid and Callidus EIM experts. Callidus On-Demand is the ultimate solution to drive sales performance, align sales with corporate objectives and drive revenue," said Richard Furino, senior vice president worldwide client services of Callidus. "We are excited to support Hyperion's continued leadership in Business Performance Management by providing their sales and services teams with EIM solutions to drive performance and revenue."

Callidus' On-Demand solution levels the playing field for incentive compensation management. It provides medium to large-sized enterprises a best-of-breed EIM solution in a hosted environment. The comprehensive on-demand EIM implementation developed by Callidus leverages the power of Sun Grid Compute Utility to offer flexibility, efficiency, cost savings, security and reliability. The solution also delivers all the advantages of cutting-edge EIM with a selection of service levels and options that suit an organization's business objectives, requirements and resources. Upgrades and maintenance are entirely transparent to end users and occur automatically.

Hyperion, an early adopter of Callidus' On-Demand solution, will take advantage of the enhanced features of TrueComp Manager, the latest version of the Callidus Software's TrueComp Enterprise suite, which includes modeling, date effectivity and integration to a wide range of third-party products, including Hyperion's own reporting and analytics tools. In addition, Hyperion expects to achieve the following benefits through the solution's on-demand environment:

* Increased efficiencies, reduced operating costs and rapid ROI * Latest functional release and elimination of resource time and expense for maintenance and upgrades * High availability, security and minimal downtime Availability

Callidus' On-Demand solution is available now. Please visit www.callidussoftware.com for more information.

About Callidus Software

Founded in 1996, Callidus Software ( www.callidussoftware.com ) is an industry 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 rules-based interface. Customers/Partners include 7-Eleven, Accenture, CUNA Mutual, HP, IBM, Philips Medical Systems, Sprint Nextel, Sun Microsystems, Time Warner Corporation and Wachovia. Callidus is publicly traded on the NASDAQ under the symbol CALD.

Note on Forward-Looking Statements

The forward looking statements included in this press release, including the ability of Callidus On-Demand solution to significantly cut project timelines, save cost compared with on-premise solutions and reduce IT infrastructure complexity and that the solution is always on and always upgraded, reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, timing and size of software license orders, management's ability to successfully implement its business plan, changes in executive management, potential material fluctuations in financial results and future growth rates, decreases in customer spending, increased competition or new entrants in the marketplace, litigation and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K and Form 10-Qs, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or from the Investor Relations section of Callidus Software's website ( www.callidussoftware.com ). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.

(C) 2006 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueChannel, TrueComp, TrueComp Datamart, TrueComp Grid, TrueComp Manager, TrueInformation, TrueIntegration, TruePerformance, TrueReferral, TrueResolution, TrueService and TrueSupport are registered and unregistered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

"Hyperion" is a trademark of Hyperion Solutions Corporation. References to other companies and their products use trademarks owned by the respective companies and are for reference purpose only.

CONTACT: Jock Breitwieser of Callidus Software Inc., +1-408-975-6683, pr@callidussoftware.com

Web site: http://www.callidussoftware.com/