SOURCE: Taleo Corporation

September 16, 2008 10:13 ET

Taleo Announces Compensation Management Strategy and Strategic Investment

Leader in Talent Management Expands Unified Platform of Recruiting, Performance and Compensation Solutions

BOSTON, MA--(Marketwire - September 16, 2008) - TaleoWORLD -- Taleo (NASDAQ: TLEO), the leading provider of on-demand talent management solutions, today announced that it is extending its unified talent management platform to include a global compensation management offering through a strategic partner arrangement with an investment in Worldwide Compensation, Inc.

Taleo has made an equity investment in Worldwide Compensation. This investment extends an existing preferred partner arrangement between the two companies who have a number of joint sales opportunities in progress.

Organizations need superior talent to meet their commitments and compete successfully in a global economy. Worldwide Compensation offers fully integrated global compensation management via a 100% on-demand software solution that enables companies to more seamlessly align and reward critical talent worldwide. It facilitates the localization of total compensation programs while allowing companies to maintain centralized control over its human resource investments.

Worldwide Compensation's solutions are in use today with large, globally distributed companies such as Western Digital, a pioneer in data storage and leading provider of hard drives that employs more than 27,000 worldwide.

This agreement brings together the three critical components for managing a talent-optimized organization: Taleo Recruiting to source, assess and acquire employees; Taleo Performance to establish goals, create career and succession planning; and Worldwide Compensation's Global Compensation Planning System to close the loop and establish a true "pay-for-performance" process between corporate objectives and individuals' contributions.

"Compensation management is the next strategic building block in our vision to allow businesses a total talent management solution to achieve greater performance," said Michael Gregoire, Taleo's Chairman and CEO. "The requirements for compensation -- particularly by global enterprises -- are complex and leave no room for error. Therefore, we're investing in the most promising partner in the market, and look forward to their continued success."

"The Taleo relationship is a perfect fit for us, our customers and prospects," said John Halloran, CEO and Director of Worldwide Compensation. "We are taking our companies' respective naturally synergistic talent management software solutions and ensuring maximum return for customers by integrating them all on Taleo's unified talent management platform. This is a win-win for the market overall."

About Worldwide Compensation, Inc.

Worldwide Compensation helps global companies achieve better business performance by rewarding their critical talent worldwide. WWC offers software solutions for performance driven total compensation for the global workforce. WWC enables global companies to localize compensation while retaining centralized financial control over total compensation investments. The result is that companies are able attract, align, and retain local talent while at the same time maximize their overall total rewards investments.

About Taleo

Taleo (NASDAQ: TLEO) is the leader in on-demand unified talent management solutions that empower organizations of all sizes to assess, acquire, develop and align their workforce for improved business performance. More than 3,600 organizations use Taleo for talent acquisition and performance management, including 47 of the Fortune 100 and more than 2,900 small and medium sized businesses, across 200 countries and territories. Known for its strong configurability and usability, Taleo's talent management platform runs on a world-class infrastructure and offers 99.9% availability.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding the demand for and expected benefits and results from using Taleo's products and services and the expected results and market acceptance of Taleo's alliance with and investment in Worldwide Compensation, Inc. Any forward-looking statements contained in this press release are based upon Taleo's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Further information on potential factors that could affect actual results is included in Part I, Item 1A of Taleo's Annual Report on Form 10-K, as filed with the SEC on March 14, 2008, in Part II, Item 1A of Taleo's Quarterly Report on Form 10-Q, as filed with the SEC on August 11, 2008, and in other reports filed by Taleo with the SEC.

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