SAN JOSE, Calif., February 6, 2008 — Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced that leading UK energy company npower, a subsidiary of RWE, has selected the Callidus TrueComp® Manager, TrueInformation® and Callidus TrueAnalytics(TM) software modules to manage its incentive compensation programs for thousands of UK sales and service personnel. Under the agreement, signed in the fourth quarter of 2007, npower will use Callidus software modules to enhance incentive compensation management for its direct and indirect sales agents across the UK, facilitating the optimisation of sales performance.

As one of the largest providers of energy in the UK, serving more than 6.8 million customers, npower needed to implement more effective and flexible commissions incentive schemes that would provide detailed sales insight for its sales agents and better tie sales performance to core company objectives. With its new initiative for incentive compensation management, npower aims to improve its overall sales process and automate an otherwise manual process.

“Gaining visibility into compensation schemes is one of the quickest ways for a company such as npower to save money on avoiding inaccurate payouts and time consuming processes for managing sales staff incentives,” said Bill Schuh, vice president for Europe at Callidus Software.

“Improving its incentive compensation management will also allow npower to benefit from other advantages of state of the art sales performance management. In an industry where competition for talent is fierce, attracting and retaining the best salespeople is a major challenge. By deploying a technology that ensures sales personnel get paid correctly and on time, npower is aiming to stay ahead of its competition,” Schuh continued. npower needed to automate compensation management processes that were previously labor intensive, difficult to audit and offering less visibility into the company’s commission costs. Following an extensive comparison of all leading solutions on the market, npower identified Callidus as the best solution for its needs due to Callidus’ experience, vision and knowledge of best practices in sales management.

Additionally, Callidus’ partnership with SAP meant that npower could link its sales performance management into its wider information systems, delivering a total solution that was flexible, scalable and robust.

In challenging economic times and faced with unprecedented competition, companies are pursuing new ways to drive revenue and optimise profitability. Sales performance management is one of the untapped levers to bring these strategies to life. Callidus’ solutions help companies align corporate objectives with sales strategy.

Callidus’ SPM software solutions deliver a high ROI in a very short period of time by allowing sales executives to make better incentive decisions, providing timely visibility into channel operations, and giving them the flexibility to rapidly deploy new sales and distribution strategies and tactics.

About Callidus Software®
Callidus Software (www.callidussoftware.com, NASDAQ: CALD) is the leading provider of on-premise and on-demand Sales Performance Management (SPM) solutions to global companies across a broad range of industries. Our software allows innovative enterprises of all sizes to strategically manage incentive compensation, set quota targets, administer producers, and align territories, resulting in improved sales and distribution performance. Over 1.8 million salespeople, brokers, and channel representatives have their sales performance managed by Callidus Software’s products.

About npower
npower is Britain's largest electricity supplier and supplies gas, electricity and related services to 6.8 million customers across the UK.

© 1998-2008 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation, TrueInformation, TruePerformance, TruePerformance Index, TruePerformance Indicator, TrueMBO, TrueAllocation, TrueProducer, TrueQuota, TrueReferral, TrueResolution, and TrueService+ are trademarks, servicemarks, or registered 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.