BOSTON – September 26, 2006 — Saba (NASDAQ: SABA), the premier Human Capital Management (HCM) software and services provider, today previewed the next versions of its Saba Enterprise 5 and Centra 7 product lines at the Saba-Centra Summit, its user conference being held in Boston this week.

The new and enhanced solutions are designed to provide the industry’s most comprehensive and seamlessly integrated HCM solution on the market for companies of all sizes and industries. Saba is continuing to invest aggressively in its R&D efforts and intends to provide new and enhanced capabilities to its HCM suite which deepen integration between its Saba and Centra product offerings, improve users’ experience, drive greater collaboration, and more tightly integrate its learning, performance and talent management capabilities.

These enhancements are designed to help Saba’s customers continue to deliver successful people-centered HR and training programs in the more informal, collaborative, unstructured, connected, multi-generational, and global work environments of today and the future. Saba is supporting this changing HCM landscape by continuing to build on the success of its Saba and Centra product suites and deliver an innovative HCM solution from a single vendor that will enable organizations to:

• Drive more collaboration throughout the enterprise
• Empower users to take control of the learning and performance process
• Create a more compelling and collaborative user experience to accelerate adoption
• Better develop, manage, and measure people through formal, informal and collaborative means
• Gain more visibility into their workforce.

“No other vendor can match Saba’s global customer success, HCM domain expertise, and superior technology and product vision,” said Bobby Yazdani, chairman and CEO, Saba. “We are building on this leadership and expertise to deliver a game-changing HCM solution that will help our customers dramatically improve their results though better optimization of their people. We are already delivering on this vision through our existing Saba and Centra product lines as well as the new OnDemand and other products we announced today.”

More Integrated Learning, Performance and Talent Management Capabilities
The next version of the Saba Enterprise 5 suite is designed to provide tighter integration of learning, performance and talent capabilities, enabling managers and employees to manage these tasks in a much more consistent and effective manner. Key capabilities are designed to include:

• A unified, actionable view of integrated learning and performance through Saba’s My Success Plan™ feature. The unique feature will provide users with a much clearer view of their overall development requirements by enabling activities from their learning and performance plans to be presented in a single consolidated view. This view can be personalized and filtered, and the user can also select to view or manage the individual plans.



• Enriched succession and talent management capabilities to allow organizations to better understand, identify, prescribe, and track the capabilities of individuals and groups within the organization and ensure the development of key talent for the demands of current and future critical positions across the enterprise. New features will include the ability to holistically view an employee’s current and past experiences, education and exposures; to define attributes and display key employees who are the closest match to the desired attributes; to define developmental goals and set targets for their completion; and to continually monitor employee progress on specific goals and easily identify if the employee is on track.

Deeper Saba-Centra Integration
Saba will strengthen the integration between its Saba and Centra product lines to provide a seamless environment which will allow users to manage the entire Centra event lifecycle from within the Saba interface. These product enhancements and new features are designed to:

• Significantly reduce the cost, time and complexity of integrating discrete applications from many vendors, while increasing the effectiveness and reach of learning.



• Lower learning administrative overhead by enabling training managers to easily manage key aspects of live training events, such as scheduling, enrolling, assigning content, recording, and setting security from a single Saba interface.



• Enable users to access a broad set of powerful functionality from a single vendor; achieve seamless progression from web-based discussions and documents that support HCM processes across Saba Learning, Saba Performance, and Saba Talent to instant real-time Centra meetings; and optimize reuse of content managed by Saba in live Centra sessions.



• Allow organizations to choose an on-premise or on-demand deployment without sacrificing depth of integration or breadth of functionality.

Improved Collaboration and User Experience
With hundreds of customers relying on Centra products for strategic business initiatives involving learning and collaboration, Saba will continue to invest in new Centra product features to drive product innovation and further enable customer success.

These planned enhancements are designed to further enable top-line business benefits – corporate compliance, on-time enterprise application rollouts, increased revenue and customer satisfaction through customer training programs, greater workforce productivity, and higher sales and channel performance – through both formal and collaborative online learning. Planned enhancements are designed to include:

• Enhanced usability, including easier event creation and management, a new course registration approval process, and enhanced Centra Knowledge Center content import and search capabilities, as well as tighter and more streamlined integration between the Centra Knowledge Center and Centra Live.



• An improved virtual classroom experience to make Centra-powered real-time training even more effective. Enhancements will include integrated virtual labs for individualized hands-on software training and new assessment scoring and reporting capabilities.



• Simplified content authoring for business users to enable critical information and employee “know how” to be quickly and cost-effectively captured and distributed. The new Centra Recording Studio will offer an easy and intuitive way to create, edit, publish, and play high-impact learning objects that include slides, application demonstrations, assessments, video, and audio. This will allow subject matter experts to quickly assemble, edit, and one-click publish dynamic, interactive content through the deep functionality of the Centra client.



• Increased accessibility of Centra real-time sessions to more end-users, expanding the reach of critical business communication and training. Saba also plans to enable users to participate in live sessions on mobile devices and support, in the same session, users attending on multiple platform clients, including iPods and PCs running on Mac or Linux operating environments and will enhance Centra with greater support for Section 508 standards, enabling visually impaired users to successfully participate in live, interactive sessions.

New Products Generally Available Now
Saba has already begun to deliver on its vision with a series of announcements also made today at the Saba-Centra Summit. The company introduced Saba OnDemand Enterprise and Saba OnDemand FastTrack, fully-integrated, subscription-based HCM services tailored specifically to reduce implementation time and speed time-to-benefit.

Saba also introduced Saba Publisher Professional Edition 6.0, a powerful new solution for creating and assembling learning content to disseminate knowledge throughout the enterprise. The company is also extending its investment in the academic market with several enhancements to its Centra Live virtual classroom, training and collaboration software and launching a dedicated academic business to address this critical market.

For more information on these products announced today, see separate Saba releases dated, September 26, 2006 or visit www.saba.com.

About Saba
Saba (NASDAQ: SABA) ) is the premier Human Capital Management (HCM) software and services provider, using a people-centric approach to increase productivity and performance. As a trusted partner, Saba enables the Aligned Enterprise™ for over 1,100 customers in 150 countries by providing an integrated people management system to continuously align goals, develop people, improve collaboration and increase visibility into organizational performance.

Saba customers include ABN AMRO, Alcatel, Bank of Tokyo-Mitsubishi UFJ, BMW, CEMEX, Cisco Systems, DaimlerChrysler, Dell, Deloitte Touche Tohmatsu, EDS, EMC Corporation, FedEx Kinko's, Insurance Australia Group, Lockheed Martin, Medtronic, National Australia Bank, Novartis, Petrobras, Procter & Gamble, Scotiabank, Sprint, Standard Chartered Bank, Stanford University, Swedbank, Wyndham International, Weyerhaeuser, Underwriters Laboratories, and the U.S. Army and U.S. Navy.

Headquartered in Redwood Shores, California, Saba has offices on five continents. For more information, please visit www.saba.com or call (+ 1) 877-SABA-101 or (+1) 650-779-2791.

Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding future releases of Saba’s products and OnDemand services. Saba's actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties Saba faces that could cause results to differ materially include risks associated with: Saba's dependence on growth of the markets for Saba's products, dependence on acceptance of Saba's products by customers and channel partners, fluctuation in customer spending, length of Saba's sales cycle, competition, rapid technological change, dependence on new product introductions and enhancements and potential software defects. Readers should also refer to the section entitled "Risk Factors” on pages 11 through 21 of Saba's Annual Report on Form 10-K dated August 18, 2006 and similar disclosures in subsequent Saba periodic SEC reports. The forward-looking statements and risks stated in this press release are based on information available to Saba today. Saba assumes no obligation to update them.

SABA, the Saba logo, Centra and the marks relating to Saba products and services referenced herein are either trademarks or registered trademarks of Saba Software, Inc. or its affiliates. All other trademarks are the property of their respective owners.