Halogen Software Sets Course for Next Phase of Growth with Strategic Investment from JMI Equity

Halogen Software, Inc., a leading provider of web-based employee performance and talent management software (http://www.halogensoftware.com/products/), announced today that it has received a strategic investment from JMI Equity. JMI, a private equity firm exclusively focused on investments in growing software and business services companies, will work closely with Halogen to further grow the company's leadership position in the Employee Performance and Talent Management market. Harry Gruner, a General Partner at JMI, has joined Halogen's Board of Directors. Terms of the transaction were not disclosed.

Industry analyst firms concur that the Talent Management space is a growth area in the Human Capital Management (HCM) market. Bersin & Associates estimated this strategic HCM segment at US $2 billion for 2007 with expected growth of 20 percent annually. Within the talent management segment, the fastest growing sub segment is employee performance management, which is increasing by 30 percent per year.

"Halogen is an excellent company with a proven track record of growth, a loyal and passionate customer base and outstanding technology in a growing market," said Mr. Gruner of JMI. "It is a leader in its space and has established its market share with a proven and pragmatic business model. We're pleased to be making this investment and plan to work closely with Halogen's team to build on the company's successes and position Halogen for continued long-term growth."

Halogen Software has consistently demonstrated leadership and momentum, with over 1000 customers worldwide, and 22 consecutive quarters of year-over-year growth. The company has also received broad industry recognition winning human resource product awards, and garnering continued analyst and media recognition as a market leader. Halogen will use the strategic investment for growth capital and to expand the company's sales, marketing, research and development efforts as well as its operations.

"We looked for a strategic investor that would be a true partner, help maximize our potential, and bring us to the next stage of growth as a company," said Paul Loucks, President and CEO, Halogen Software. "JMI is just that partner - they're a tier one firm that stood out with their deep knowledge of the Human Capital Management market, and this partnership is a testament to where we're headed."

Osler, Hoskin, and Harcourt LLP advised Halogen Software. JMI was advised by Goodwin Procter, LLP.

About Halogen Software:

A recognized industry leader with over 1000 customers worldwide, Halogen Software makes powerful, simple-to-use and affordable employee performance and talent management applications. The company offers a complete suite of web-based products that automate, simplify and integrate employee performance management, 360/multi-rater feedback, compensation management, succession planning and learning management. Halogen's offering makes HR best-practices accessible to companies of all sizes and its healthcare, financial services and professional services specific suites meet the unique needs of these industries. Halogen is

consistently recognized by the industry and its customers for its exceptional implementation and support services, and has won multiple awards for its corporate leadership and product innovation, including HR Technology Product of the Year. For more information, visit www.halogensoftware.com.

About JMI Equity:

JMI Equity is a private equity firm exclusively focused on investments in growing software and business services companies at all stages of their lifecycles. Founded in 1992, JMI has invested in more than 90 companies throughout North America and has approximately $1.3 billion of committed capital under management. JMI provides the first institutional capital to self-funded companies, partners with management teams to acquire or recapitalize market leading companies and selectively makes investments in early-stage companies. Representative investments include Blackbaud, DoubleClick, Kronos and Unica. For more information on JMI, visit www.jmiequity.com.

Media contacts:

Connie Costigan

Halogen Software

ccostigan @ halogensoftware.com

613-270-1011 Ext. 526

Chuck Dohrenwend and Kelly Hahn for JMI Equity

The Abernathy MacGregor Group

212-371-5999

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

Halogen Software Sets Course for Next Phase of Growth with Strategic Investment from JMI Equity

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Halogen Software Sets Course for Next Phase of Growth with Strategic Investment from JMI Equity

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