Enterprise Application Performance

DUBLIN, CA -- (Marketwire) -- 02/09/10 -- Taleo Corporation (NASDAQ: TLEO), the leading provider of on-demand talent management solutions, today announced its strong showing in the "IDC MarketScape: Worldwide Integrated Talent Management 2010 Vendor Analysis" report(1). The report, announced this week, is IDC's second annual analysis of software companies that offer integrated solutions to help attract, develop and retain the workforce. In the report, Taleo moves up this year from a major contender to a market leader. This parallels Taleo's trajectory in expanding its product set and market share over the past 12 months for companies of all sizes looking to centralize the view of their best performing -- and potential -- staff members.

In the report, Taleo is cited for its vision and execution in providing organizations with a superior end-to-end solution capable of meeting the needs of the entire employee lifecycle. According to IDC, Taleo's strengths include depth of product functionality, a robust partner ecosystem, strong brand recognition, global reach and a track record of innovative R&D.

"Strategic organizations are beginning to understand the value they can achieve by integrating the various silos in HR. Taleo understands this and continues to lead the way in the talent management industry," said Lisa Rowan, Program Director for HR and Talent Management Services with IDC. "By adding compensation capabilities through its recent acquisition of Worldwide Compensation, Taleo continues to expand its range of talent management capabilities."

The report also calls out Taleo 10™ and the Talent Grid™ as additional value points in the company's offerings. Launched last September, Taleo 10 is the company's new talent management solution, which helps companies of all sizes hire better, manage more effectively and accelerate the development of their workforce. Taleo 10 is recognized by IDC for bringing talent capabilities together via a new Web 2.0 user interface. Taleo 10 also includes the Talent Grid, a powerful online social community that connects Taleo customers, candidates and partners. The report notes that the Talent Grid makes Taleo's talent management solution the focal point in a talent ecosystem that enables data and idea exchange.

"Growing a business in this environment requires truly understanding the breadth and depth of teams, key performers and high potential talent that can drive innovation and competitive differentiation," said Michael Gregoire, Chairman and CEO of Taleo. "More and more businesses are turning to Taleo to help power their talent management strategies with our unique offering of software solutions and access to the largest global community of talent management experts and partners. We are pleased to see that reflected in IDC's analysis."

This IDC study represents a vendor assessment of the integrated talent management market. IDC defines talent management as those functions that serve to attract, develop, reward and retain the workforce. Made up of a variety of functions, talent management includes the areas of recruiting and staffing, learning and development, performance management, compensation management and career and succession planning, all supported by a base of competency management and assessment.

(1) IDC, IDC MarketScape: Worldwide Integrated Talent Management 2010 Vendor Analysis, Doc # 221561, January 2010

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About IDC MarketScape

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.

About Taleo

Taleo (NASDAQ: TLEO) is the leader in on-demand unified talent management solutions that empower organizations of all sizes to better understand and engage their best talent for improved business performance. More than 4,200 organizations use Taleo for talent acquisition, performance and compensation management, including 46 of the Fortune 100 and over 3,500 small and medium sized businesses across 200 countries and territories. Known for its strong configurability and usability, Taleo runs on a world-class infrastructure and offers 99.9% availability. Taleo's Talent Grid harnesses the resources of the Taleo community of customers, candidates, and partners to power the talent needs of companies around the world.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding the demand for Taleo's solutions, results from use of Taleo's solutions and general business conditions. Any forward-looking statements contained in this press release are based upon Taleo's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Further information on potential factors that could affect actual results is included in Part II, Item 1A of Taleo's Quarterly Report on Form 10-Q/A, as filed with the SEC on November 4, 2009, and in other reports filed by Taleo with the SEC.

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