Saba is a provider of talent management software with 19 million users across 1,400 customers in 195 countries. It offers learning, performance, and social collaboration solutions. Saba has a 90% renewal rate and sees opportunity in converging its learning, talent management, and social software offerings to capitalize on the $18 billion talent management market. It aims to drive growth through cross-selling, partnerships, and expanding into new geographies like China and Southeast Asia. Saba reported 14% bookings growth in the last quarter and sees continued momentum from its profitable business model and leadership position in the talent management space.

1. Power Up Your People

2. Safe Harbor Statement With the exception of historical information, this presentation contains “forward-looking statements” that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including any statements that use words such as “may,” “will,” “expects,” “projects,” “plans,” “estimates,” and “believes.” These statements are subject to many assumptions, risks, uncertainties and changes in circumstances. Any assumptions we offer about future performance represent a point-in-time estimate. Actual results may vary materially from those expressed or implied by such statements, due to changes in economic, business, competitive, technological and/or other factors. More detailed information about risk factors that could affect actual results is set forth in filings by Saba with the Securities and Exchange Commission, including Saba’s annual report on Form 10-K for the fiscal year ended May 31, 2011 and other filings with the SEC. Saba is not obligated to(and expressly disclaims any obligation to) revise or update anyforward-looking statement.

3. Founded in 1997—(NASDAQ: SABA) Saba solutions support Public and Private Cloud Large Enterprise Public Sector presence 19 Million Users, 1,400 customers Average seat deployment 23K users 25% of users access solutions through the Public Cloud 90%+ Renewal Rate Presence in 195 countries; support 28 languages 60+ Global Partners, Distributors and Resellers IBM, HP, ACS, Hewitt, Comenius, Bluemat, Hudson Gates, Sistemas, Bristech Saba Overview

4. Total Addressable Market $18B 10% CAGR PEOPLE SYSTEMS MARKET OPPORTUNITY CAGR 38.2% 7.9% 5.4% 16.5% 7.0% 8.0% Workforce Management Performance Management LearningManagement Collaboration Social Platforms Compensations and Benefits 2009 2014 Source: Forrester, IDC

5. Four Growth Markets Enterprise Learning Web Conferencing Enterprise Talent Management Enterprise Social Software

6. Four Markets Converge into One Collaborative People Systems People Collaboration Suite Collaborative Enterprise Learning Web Conferencing Enterprise Learning Enterprise Social Software Enterprise Talent Management Collaborative Enterprise Talent Management People Management Suite

7. Opportunities for Technology Innovation and Differentiation People Systems Web Conferencing Enterprise Learning Cloud People Enterprise Talent Management Enterprise Social Software

8. Customer Request for Module Combinations

9. Consistent Leader in Learning Since 1999 2009 2004

10. Trusted Partnerships withGlobal Leaders 51 of the Fortune 100 7of the top 10 global automakers 6 of the top 10 aerospace and defense firms 5 of the top 10 global food and beverage enterprises 5 of the top 10 global banks 4 of the top 10 oil and gas companies 4 of the world’s top 10 military forces 3 of the top 10 global pharmaceutical companies

11. Marquee List of Customers Across Verticals 1,400 organizations, 19 million+ users in 195 countries Automotive and Mfg Financial Services Retail/ Hospitality High Tech Life Sciences Energy/Utilities Public Sector

12. Customer Deployment Sample

13. Vendor Market ShareLMS Market: Customers > 10,000 Employees Other 35.8% © Bersin & Associates, LMS 2009 Facts, Solutions, Vendor Profiles www.bersin.com/lms

14. Note: Does not include customers purchased through resellers. Saba Customers Overview

15. Global Account Sales Reps Enterprise Sales Reps Dedicated Installed Base Mid-Enterprise Sales Reps Alliances & Channel Enterprise Mid-Enterprise Channel * # Of Employees Saba Go-to-Market Strategy

16. Saba’s Transforming Learning Informal Learning User generated content Microblogging Comment, rating, tagging Extended Enterprise Structured Formal Compliance Internal Resellers Partners Distributors Web 2.0 Mobile Cloud LMS 1.0 LMS 1.0 Web Services Self Expertise Identification Virtual Classroom Online office hours Interactive class meetings Easy recording and editing Mentor identification Profile matching Project to expert mapping

17. What are the Business Drivers 1 Reduce Risk Improve Compliance Speed-up Time to Proficiency Collaborate via Social Learning 2 3 Improve Operations Effectiveness Educate extended enterprise 4 Increase Revenue For Profit Learning 5 Be a Market Leader Support Global Deployment Reduce cost Deliver Virtual Classroom 6 7 Be the “Employer of choice” Offer Continuous Learning

18. Financial Highlight

19. Forbes Magazine August 6, 2011 Saba Named one of Forbes‘Most Trustworthy Companies’

20. Total Revenues ($M) EPS Deferred Revenues ($M) Free Cash Flow ($M) Financial Highlights Revenue and EPS are Non-GAAP; $ in MM’s, except EPS

21. Q2FY11 Highlights 14% Growth in Bookings in Q2FY11 to $30.8M 20% Growth in Deferred Revenues to $36.7M Added Record 42 New Customers in the Quarter Doubled Dollar Value of ACV for new Public Cloud Bookings Sequentially and Year-over-Year 3 Fold Increase in new Public Cloud Transactions over $50K 1 out of every 4 customers purchasing multiple modules Dollar Value of our Average Deal Size is the highest we have seen

22. Growth Initiatives Cross-sell & Up-sell into installed base Accelerate New Customer Acquisition Concerted push into mid-market Deepen existing partnerships / extend partner networks Strategically pursue geographic expansion China, South East Asia, Middle East

23. Summary Further Expanding our Leadership Across the Talent Management Suite Marquee List of Customers Poised for Growth in a $18B TAM Seasoned Executive Leadership Team Strong Financials Profitable since FY06 $28.9M in Cash & Equivalents Debt Free Attractive Valuation $8.2M Stock Repurchase Program

24. Q & A

25. THANK YOU