Halogen Software’s Record Fourth Quarter Marks Conclusion of Record-Breaking Year

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Nearly 100 new companies choose Halogen as their employee performance and talent management solution in fourth quarter alone.

Halogen’s flexibility and power is what differentiated Halogen from other vendors

Halogen Software Inc., the leading provider of Web-based employee performance and talent management software announced today that 2006 has broken all previous records for the organization. Records were set in almost every measurable category including revenues and number of new customers in a year.

2006 concluded with a record fourth quarter that included close to 100 new customers including: The TOPPS Company Inc., Inlign Wealth Management, New Balance Athletic Shoe Inc., Bickmore Risk Services, Prairie Lakes Healthcare Systems, Optimus Solutions, LLC, Floyd Memorial Hospital, Cimarron, Enterprise Bank & Trust, Potomac-Hudson Engineering, Roxar, Inc., ExcelleRx and Isilon Systems.

“Halogen’s flexibility and power is what differentiated Halogen from other vendors,” said Teri Rohrer, firm administrator for new customers Bickmore Risk Services. “It used to take weeks to complete appraisals and determine whether goals were reached or even had significance within the big picture. Some items, like training, seldom tied to anything measurable. Halogen enables us to provide meaningful feedback, based on standard criteria, and hold employees and managers accountable. Halogen really impressed us by closing the communication loop.”

These new customers are attracted to Halogen’s proven track record for delivering quick and substantial ROI, while remaining focused on customer service.

A customer since 2004, Phoenix Children’s Hospital anticipates saving approximately $97,000 per year using Halogen eAppraisal Healthcare. While the financial benefits are important to the hospital so is Halogen’s commitment to its customers.

"One of the reasons Halogen has continued to succeed is because of their focus on the customer. From soliciting input from existing customers about research and product development, to bringing customers together to learn from each other and share knowledge, to developing solutions that customers can quickly and easily adopt, Halogen sets the standard for customer care,” said Steve Youngdahl, manager, human resources systems and processes with Phoenix Children’s Hospital. “They have always been and I expect they will remain our easiest vendor to work with."

Halogen works closely with its customers to ensure their success and to ensure its Employee Performance and Talent Management Suite is focused on customer needs.

Halogen’s fourth quarter in 2006 ended with an 82 percent year-over-year growth in license revenue. “Customer response to our employee performance management solutions has been very positive over the past year. The enthusiasm of our customers is evidence that we are designing best practice tools that meet their needs,” said Paul Loucks, president and CEO of Halogen Software. “We are focused on continuing to help our customers be successful by providing them with solutions that are increasingly powerful, easy to use and accessible.”

During the fourth quarter of 2006, Halogen released Employee Performance and Talent Management Suite 8.0, which included numerous upgrades designed to enable organizations to effectively execute corporate strategy. Upgrades include Halogen eSuccession™ a powerful yet simple-to-use succession planning tool that enables users to get started right away without excessive implementation overhead. Suite 8.0 also includes global-usability improvements and numerous new features for eCompensation™ and eAppraisal™ Healthcare.

About Halogen Software

With nearly 1000 customers worldwide, Halogen Software Inc. has established itself as the leading provider of employee performance and talent management solutions. Halogen offers powerful, easy-to-use, and affordable Web-based software that dramatically improves HR and line-manager productivity. The company's flagship product, Halogen eAppraisal™, automates and simplifies time-consuming employee appraisals. Halogen eAppraisal™ Healthcare, endorsed by the American Hospital Association, was created specifically for the healthcare industry and helps to simplify the task of performing appraisals and meeting accreditation criteria. Halogen e360™ automates and simplifies formal 360-degree feedback procedures and offers sophisticated performance reporting. Halogen eCompensation™ automates the entire compensation adjustment process including budget distribution and approval. Halogen eSuccession™ makes it simple and

affordable to get a best practices succession-planning program underway at your organization. For further information please visit: http://www.halogensoftware.com/.

Media contacts:

Donna Ronayne

VP, Marketing & Business Development

Halogen Software

T: 613-270-1011 x 320

This press release was distributed through eMediaWire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.

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Steven Reid
Halogen Software
613-270-1011ext 254
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