Salary.com™ Outlines Strategic Initiatives to Accelerate Growth and Expand Leadership in Compensation and Performance Management Software Markets

Business Wire, May 20, 2008

* Delivers 50% revenue growth and $8.4 million in operating cash flow during fiscal 2008

* Announces plans to re-invest up to $10 million in marketing and hire up to 100 new sales reps over the next two years

WALTHAM, Mass. -- Salary.com, Inc. (Nasdaq: SLRY), a leading provider of on-demand compensation and talent management solutions, recently announced its new marketing and sales initiatives designed to accelerate growth and expand the company's leadership position in the compensation and employee performance management markets. Over the next two years, the company plans to re-invest up to $10 million in marketing and hire up to 100 sales people to support new product offerings. The company is launching a wave of next generation products this year that will enable companies of all sizes to effectively and efficiently attract, retain and reward employees.

"We see a tremendous opportunity to acquire customers and build market share in the compensation, competency and performance management segments of the human resources software-as-a-service market. Our growth strategies have been working, our product pipeline is full and we offer a unique value proposition to the market. We continue to dominate the compensation category and plan to extend our share by expanding into new geographic markets and adding sales coverage for smaller businesses," said Kent Plunkett, chief executive officer of Salary.com.

Plunkett continued, "Employers are telling us that they have funding in 2008 to improve their performance management systems and to model the critical jobs skills they need to achieve their business goals. We offer the competency content and performance management software to do both. We integrate compensation, performance and succession functions around job-based competency content that helps employers fit the right talent to the right role. We believe the time to invest is now."

Salary.com ended fiscal 2008 with its 28th consecutive quarter of revenue growth, posted 50% annual revenue growth, generated a free cash flow margin of 23% and had $38 million in cash as of March 31, 2008. The company believes that its investments in sales and marketing will drive increased growth over the next two years, and it plans to fund these initiatives with its operating cash flow.

Salary.com plans to incrementally hire up to 100 sales people to build out its competency, international, small business and strategic sales teams to penetrate new buying groups and new geographic markets over the next two years. Over this same time period, Salary.com plans to incrementally invest up to $10 million in marketing to extend its compensation brand globally and build awareness among a new set of buyers in organizational and leadership development. New products that Salary.com has recently made available or that will come to market in the future include expanded capabilities in compensation, performance management and competency services:

* Enhanced CompAnalyst([R]) and IPAS([R]) compensation platforms with the latest .net and ajax technologies, extending the company's leadership position in compensation management.

* Expanded geographic reach with new international market pricing data sets covering individual countries starting with Canada.

* Increased CompAnalyst Executive([R]) data processing capability that makes our database the most accurate and comprehensive data set available for named executives at all U.S. public companies.

* Newly re-architected performance management suite (TalentManager[R]) including our new Succession Planning Module

* A small business version of our performance management and pay products for companies with fewer than 500 employees.

* A first of its kind competency management application to complement our new data libraries and competency consulting practice.

"Strong companies thrive in challenging times because they have the financial strength to invest and grow when others are not able to do so," said Plunkett. With a solid balance sheet, over 9,000 corporate customers and a five year record of generating positive cash flow, Salary.com is confident that it has the resources and new products to distance itself from the competition. Plunkett concluded, "The time is right for market leaders to act boldly and help drive workforce productivity and re-energize economic growth".

Salary.com will be exhibiting at upcoming trade shows and demonstrating new product offerings at the WorldatWork conference in Philadelphia on May 20th, American Society of Training and Development conference in San Diego on June 1st and Society of Human Resource Management in Chicago on June 23, 2008.

About Salary.com, Inc.

Salary.com is a leading provider of on-demand compensation and talent management solutions helping businesses and individuals manage pay and performance. Salary.com's highly configurable software applications, proprietary data and consulting services help HR and compensation professionals automate, streamline and optimize critical talent management processes including: market pricing, compensation planning, performance management, competency management and succession planning. Built with compensation and competency data at the core, Salary.com solutions provide businesses of all sizes with the most productive and cost-effective way to manage and inspire their most important asset - their people.