Record Number of New Customers Select Xactly to Transform Sales Compensation, Improve Business Results

SAN JOSE, Calif. - Xactly Corporation, the leader in on-demand sales performance management (SPM), today announced that a record number of new customers have selected Xactly's SaaS-based solutions to improve sales performance and bottom line results. In Q3 2010, more than 30 new customers selected Xactly solutions to reduce manual incentive compensation management (ICM) processes, improve visibility and positively modify sales behaviors. New customers selecting Xactly Express or Xactly Incent and its related sales performance management modules include Administaff, Carefusion, Karl Storz Endoscopy, NXP, Thyssen Krupps, Walgreens and Xerox.

"[P]rospects for further long-term expansion remain promising for the sales ICM market"

"Sales are critical to the success of any organization, yet many companies are still trusting one of their most strategic business functions and cost centers to spreadsheets," said Christopher Cabrera, president and CEO, Xactly Corporation. "The tremendous growth and customer acquisition we are seeing quarter-after-quarter is indicative of the overall market demand for powerful, flexible SaaS-based sales compensation solutions. As the economy recovers, companies will be looking for new ways to streamline processes and improve sales effectiveness and Xactly is the clear choice to help them meet this business need."

"Variable compensation is a big cost center in any organization - and we were losing money and time managing it with spreadsheets. In addition, the sales team had no real-time visibility into how they were performing and were constantly spending time shadowing finance when they should have been selling," said David Korey, director of finance, Karl Storz Endoscopy. "Xactly will enable us to dramatically cut the time spent managing comp, while being able to provide the sales team immediate insight into their performance and commissions, regardless of their location."

According to a recent Gartner, Inc. report, "prospects for further long-term expansion remain promising for the sales ICM market" and "by 2011, more than 60% of new sales ICM software projects will source from a hosted or SaaS option, based on an annual subscription." 1 Xactly was the first company in the industry to deliver a 100 percent multi-tenant ICM solution, Xactly Incent, as well as an automated compensation solution specifically for the SMB market, Xactly Express.

Xactly Continues to Demonstrate Product and Company Leadership

In addition to record customer acquisition in Q3 2010, Xactly also announced significant business accolades and enhancements to its award-winning product suite, including:

• CRM magazine CRM Market Leader in Incentive Compensation: Xactly beat out the competition to take home CRM magazine's 2010 Market Awards for Incentive Management for the second consecutive year.
• Xactly Incent 6.0: The company released Version 6.0 of its flagship platform, introducing Xactly Mobile, new functionality that allows sales reps to access personalized sales compensation dashboards from their preferred mobile device and Xactly Docs, a new module that allows users to create customized workflow processes for the seamless routing and approval of compensation related documents.
• Oracle CRM On Demand Integration: Xactly Incent achieved Oracle Validated Integration with a current version of Oracle CRM On Demand, enabling customers to extend the value of their Oracle investment with single sign-on access to business enhancing sales compensation and sales performance management capabilities.
• Secured $12 Million in Funding, investment from salesforce.com: The company secured $12 million in financing to further extend its customer and technology leadership in the SPM market. The round, which was led by Bridgescale Partners with participation from existing investors, included a strategic new investment from salesforce.com.

About Xactly Corporation

Xactly Corporation is the market leader in on-demand sales performance management. The company's SPM Suite of products, enables sales and finance executives to design, implement, manage, audit, and optimize sales compensation management programs easily and affordably. Xactly's solutions automate the process of aggregating data from disparate systems into a secure, hosted repository, and enable companies to leverage this business data, which is the lifeblood of sales performance management. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance, and maximize profits. The Xactly family of products is used by sales and finance compensation analysts, sales operations and sales professionals across a variety of industries, ranging from SMBs to large enterprises. For more information, visit www.xactlycorp.com or call