UK-based Retail Fund Manager Meets Compliance Demands with Saba Performance

Redwood Shores, Calif. - October 16, 2006 — Saba (NASDAQ: SABA), the premier Human Capital Management (HCM) software and services provider, announced that M&G Investments (M&G), the oldest retail fund manager in the UK, is using the Saba Performance Suite to monitor and manage the demands of training and compliance requirements mandated by the Financial Services Authority (FSA). M&G purchased Saba to ensure a consistent approach to performance management, with management reports for auditing competencies across the business.

An integral component of Saba's suite of HCM solutions, the Saba Performance Suite is a powerful solution that provides organizations like M&G with the ability to track and manage the performance of both individuals and business goals. As part of an integrated people management system, the Saba Performance Suite closes the loop between overall strategy and individual accountability.

With employees across multiple offices in the UK, Germany, Italy and Spain, M&G encourages a culture of development and growth, with open opportunities to people who deliver and perform well. M&G evaluated eight systems, including a number of large- scale solutions, for a performance management application that could be used by all employees at every level and function.

"Saba was the only vendor that could provide a highly configurable solution that could be rolled out across all employees to give us a consistent approach to competency and performance management," said Claire Walters, Regulatory HR Manager, M&G. "Our board is already committed to performance management, which is core to M&G, but Saba proved its worth in the management reporting capabilities we require to comply with FSA regulations."

Each year, M&G conducts performance reviews made up of self-assessment and 360 degree input from other colleagues or project managers. Saba tracks every employee by job title and competency sets, and all employees have access to their appraisal information, objectives and training logs throughout the year. Training activity, which is managed in a separate online registration form, can also be tracked by M&G's HR and Development team, who can draw off a single report and immediately take action on requests.

Saba enables M&G to run a single system for performance management, including competency assessment and appraisals. All employees have a personal record of how and when they are appraised and their competencies and objectives are readily available for management information or regulatory inspection.

"At M&G Investments, our people and their performance are what drive our continued success and growth," said Gareth Jones, Head of Organisational Development, M&G. "With businesswide involvement and senior management support, we now have a consistent and well-understood approach both to performance management and a dynamic solution to capture management information online in a robust and intuitive fashion."

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 EnterpriseT 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.

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.