Callidus Software and Groupware Technology Partner to Provide Full End-to-End Solution

Market Wire, October, 2007

Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced a cooperative marketing and services relationship with Groupware Technology Inc., a rapidly growing Bay Area information technology solution provider. By leveraging Groupware's services and support, Callidus customers gain easier access to complementary hardware, software and related services.

As one of the nation's leading resellers(1),(2), Groupware's expertise with hardware integrations is spread across a wide array of industries and perfectly matches the business requirements of most Callidus customers. With Groupware's support, Callidus believes joint customers will rapidly realize the key benefits of the industry's leading SPM solutions: driving revenue, increasing shareholder value and aligning sales with corporate objectives.

"At Groupware, we believe our worth and stature is solely based on our ability to meet each of our customers' unique requirements," said Mike Thompson, president and CEO at Groupware Technology. "Callidus has proven itself as the leading provider of SPM solutions that can greatly impact on a company's business performance. We are pleased to be partnering with Callidus and look forward to servicing our joint customers with a full, end-to-end solution that can provide them with the services, support and hardware they need to get the most out of their SPM implementation."

"Callidus is committed to enhancing the customer experience," said Leslie Stretch, senior vice president of global sales, marketing and on-demand business at Callidus Software. "We are excited to partner with a proven solution and services provider like Groupware. Groupware's extensive experience working with Sun, Oracle and BEA Systems will be extremely useful to our joint customers and further help Callidus' customers grow their SPM implementations."

By every meaningful measure -- be it number of customers, number of payees, or size of transactions -- Callidus Software is the leading provider of sales performance management software and services. Callidus' industry-leading solutions , now with the addition of Groupware's services, provide today's Fortune 1000 with increased value, reduced maintenance cost, and a more strategic and effectively managed sales operations and incentive programs.

About Callidus Software®

Callidus Software ( www.callidussoftware.com ) (NASDAQ: CALD) is a leading provider of on-premise and on-demand Sales Performance Management (SPM) solutions to global companies across a broad range of industries. Our software allows innovative enterprises of all sizes to strategically manage incentive compensation, set quota targets, administer producers, and align territories, resulting in improved sales and distribution performance. Over 1.7 million salespeople, brokers, and channel representatives have their sales performance managed by Callidus Software's products.

About Groupware Technology, Inc.

Groupware Technology, Inc. is a leading information technology solution provider and Sun Microsystems Advantage Partner headquartered in the San Francisco Bay Area. The company provides enterprise technology solutions to its Fortune 1000 customer base and specializes in storage, security, networking and enterprise systems. For more information, contact (408) 540-0090 or visit www.groupwaretechnology.com

© 1998-2007 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation, TrueInformation, TruePerformance, TruePerformance Index, TruePerformance Indicator, TrueProducer, TrueQuota, TrueReferral, TrueResolution, and TrueService are trademarks, servicemarks, or registered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

(1) CRN Magazine, July 9, 2007: Fast Growth 100, Groupware ranked #1; http://www.crn.com/it-channel/200900359?pgno=5

(2) Inc. Magazine, September 1, 2007: Inc. 5,000 list of the nation’s fastest growing private companies, Groupware ranked #7; http://www.inc.com/inc5000/index.html

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Press Contact: Jock Breitwieser Callidus Software Inc. (408) 975-6683 pr@callidussoftware.com