FOR IMMEDIATE RELEASE

Callidus Software and Enspire Learning Team To Deliver Online Training for EIM Customers

Enterprise Incentive Management Leader Addresses Needs of its Growing Customer Base with Interactive Software Training from Enspire

San Jose, CA and Austin, TX - January 28, 2004 - Callidus Software Inc. (Nasdaq: CALD), the leader in Enterprise Incentive Management (EIM) software systems, and Enspire Learning, a provider of scenario-based online training, announced today a partnership to develop online training modules for Callidus' True Comp application. The online training uses case studies and interactivity to address the complex training needs of Callidus' growing customer base.

"Helping our customers to become proficient implementers, administrators and users of our products remains a top priority for Callidus," said Bert Rankin, senior vice president of Marketing at Callidus Software. "By partnering with Enspire, we ensure that both customers and partners take advantage of a truly engaging training experience. We see tremendous value in using Enspire's scenario-based development approach to train our customers and partners on Callidus' flagship software application."

Callidus rolled out the first interactive software training modules in the fall of 2003 and plans to roll out additional training modules throughout 2004 using Enspire's development team. The training courses are designed to address the challenge of educating thousands of end-users and consulting partners on the Callidus software in a consistent and cost-effective way. Callidus' fast growth in the EIM marketplace has presented a unique opportunity to provide innovative training to the thousands of users of its software, in order to ensure continuity of the corporate knowledge and wealth of information. With its focus on customer value, Callidus has approached training as a key pillar for its business success.

"Enspire is excited about the opportunity to deliver a powerful online educational experience to Callidus' users," said Bjorn Billhardt, CEO of Enspire Learning. "Our unique development approach and award-winning scenario-based multimedia design delivers a truly engaging learning experience that creates real value for Callidus' customers and partners."

About Enspire Learning

Enspire Learning was founded in 2001 with the mission to create effective online learning. Headquartered in Austin, Texas, the company provides innovative e-learning development services to corporate, academic, and government training departments. Enspire Learning can be reached at info@enspire.com or 512/472-8400.

About Callidus Software

Founded in 1996, Callidus Software (http://www.callidussoftware.com) is the leading provider of enterprise incentive management (EIM) systems to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage competitive incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp Grid™ architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include Airborne Express, Inc., Allstate, Apple Computer, AOL Time Warner Corporation, AT&T Wireless, BMC Software, Citizens Bank, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, Intuit, JP Morgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems.

1998-2004 by Callidus Software Inc. Callidus Software logos and all other Callidus Software product or service names are registered trademarks or trademarks of Callidus Software Inc. All other trademarks or registered trademarks belong to their respective companies. All Rights Reserved.

Contacts:

Jane LeFevre
Callidus Software, Inc.
(408) 808-6511
pr@callidsussoftware.com

Heather Clarke
Horn Group, Inc. (for Callidus Software)
(415) 905-4014
hclarke@horngroup.com

Shon Bayer
Enspire Learning
(512) 472-8400
shon@enspire.com