Government Agency to Deploy Saba Learning Management System to Meet Goals of the President’s Management Agenda

Redwood Shores, Calif. – March 29, 2007 – Saba (NASDAQ:SABA), the premier Human Capital Management (HCM) software and services provider today announced that the United States Department of Health and Human Services (HHS), through the Office of Personnel Management’s GoLearn program, has selected Saba Enterprise Learning Management System (LMS) for its organizational HCM initiative. Led by prime contractor Intekras, the Saba deployment is scheduled to begin in May 2007 and is intended to support 70,000 HHS employees across 13 divisions, with future plans to extend Saba Enterprise LMS to more than one million contractors affiliated with the agency.

After evaluating other vendors, HHS concluded that Saba had the best product that provided the most flexibility to meet the Department’s needs. “Saba offers the most flexibility and ease-of-use for the learner,” said an HHS representative. “Saba has the more robust and sophisticated content management system and more support for multiple types of accreditation.”

“HHS is one of an increasing number of government organizations that recognize the critical value of strategic HCM initiatives to improve workforce knowledge and readiness,” said Bobby Yazdani, chairman and CEO of Saba. “As a leading HCM provider to public sector clients such as the U.S. Army, Navy, and IRS, we look forward to delivering a comprehensive solution to support the Department’s initiatives.”

One of the largest U.S. federal civilian agencies, HHS is chartered with protecting the health of all Americans. The agency’s 13 operational divisions include the Centers for Disease Control and Prevention (CDC), Center for Medicare and Medicaid Services (CMS), Federal Drug Administration and the National Institutes of Health (NIH).

The Saba solution will help HHS deliver learning products and services more effectively and economically to its employees. For example, HHS will be able to easily add new divisions to the learning system, create job roles and training courses, process training requests, and launch and broadcast a Web-based curriculum. This will enhance employees’ performance and productivity, as well as improve their ability to deliver services to citizens.

The Saba deployment will also help HHS ensure adherence to the President’s Management Agenda (PMA), an initiative launched by President Bush in 2001 to establish a more efficient and productive workforce among government agencies. One of five major initiatives in the PMA is the strategic management of human capital. HHS also intends to use Saba Performance Management to help drive this initiative.

“With more than three million LMS licenses sold to public sector customers, Saba uniquely understands the challenges and requirements of large government agencies like HHS,” said Dave Dantus, a 25-year industry veteran who recently joined Saba as Director of Public Sector Sales. “We continue to make significant investments in our public sector solutions, such as support for federal standards including SF182 and section 508 compliance.”

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 http://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 Saba’s ability to finalize definitive terms and deliver HCM solutions to the U.S. Department of Health and Human Services, the ability to deploy the Saba LMS to 70,000 HHS employees, and HHS’s intent to extend the Saba LMS to more than 1 million contractors and to use Saba Performance Management. 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.

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