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Xactly Corporation Chosen by BlueLinx Corporation to Automate Sales Compensation

SAN JOSE, Calif. - January 23, 2007 - Xactly Corporation, (www.xactlycorp.com), the leader in automated on-demand sales compensation management, today announced that it has been selected by BlueLinx Corporation, a leading distributor of building products in North America, to automate sales compensation management for the company's 900 person sales force.

"BlueLinx' decision to automate its sales compensation process with Xactly Incent™ is proof that our on-demand model is practical for Fortune 500 companies, regardless of their industry or market," said Karen Steele, Xactly vice president of marketing. "BlueLinx is also representative of a growing number of savvy public companies that are turning to Xactly Incent's automated sales compensation solution to put in place a rigorous internal process control that minimizes the risk of non-compliance with the Sarbanes-Oxley Act of 2002 (SOX)."

"As a public company, automating sales compensation management is a priority," said Dean Adelman, BlueLinx, vice president of human resources. "A clear and undeniable need exists to track and manage sales compensation data. Xactly Incent provides our sales and finance organizations visibility into sales data. We believe this service will provide us with the ability to improve sales performance, ensure compliance with federal regulations, and more effectively respond to changes in the marketplace."

The Sarbanes-Oxley Act of 2002 (SOX) has forced corporations to re-examine their use of spreadsheets in financial reporting. Xactly Incent functions as an internal process control over incentive compensation. It helps minimize the risk of non-compliance that can result from the use of manual spreadsheets. Spreadsheet-based compensation plans typically do not provide an adequate audit trail as required by SOX. Xactly Incent allows companies to introduce an automated process for defining and paying compensation that provides full auditing to meet federal regulations.

BlueLinx also will be using the Xactly Document Management™ feature to automate the review and approval of its sales compensation plan. Oftentimes, companies distribute paper-based compensation plans with an accompanying cover letter via postal mail to individual sales representatives, requiring them to review the documents and indicate with a signature whether they accept or decline the plans. This legacy approach is inefficient and time-consuming for overburdened compensation administrators who struggle to distribute the plans and then chase down completed plans in order to archive them. This process repeats itself annually, and in some instances more frequently, with hundreds if not thousands of individual compensation plans. This process can be managed entirely online within Xactly Incent via Plan Document Management.

Xactly is the first and only company completely focused on delivering a 100% on-demand sales compensation management solution. It also is the first and only company to deliver a true multi-tenant solution in a SAS 70 Type II certified environment. This single-minded approach enables Xactly to minimize hardware and software infrastructure costs - savings that are then passed on to customers - and accelerate the process by which it delivers new features and functionality.

About BlueLinx
Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing more than 3,400 people in North America, BlueLinx offers 10,000 products from over 750 suppliers to service approximately 12,000 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses. BlueLinx is included in the Fortune 500 list of the nation’s largest companies and its stock trades on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its Web site at www.BlueLinxCo.com.

About Xactly Corporation
Xactly Corporation delivers automated on-demand sales compensation solutions that enable companies to improve sales effectiveness and increase sales productivity. Today, most companies use spreadsheets to manage their incentive compensation which are error-prone and provide no real-time visibility, often leaving sales unmotivated, resulting in unpredictable sales results. Xactly Incent allows companies the ability to easily and affordably design, implement, manage and audit optimized incentive programs. The Xactly Incent on-demand sales compensation management solution is used by sales and finance executives, compensation analysts, sales operations and sales professionals in mid-sized companies across a variety of industries.  The combination of the right incentives with complete visibility motivates companies to incent right and sell more. For more information, visit www.xactlycorp.com or call 1-866-GO-XACTLY.

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© 2007 Xactly Corporation. All rights reserved. Xactly, “Incent right. Sell more.,” Xactly Incentive Estimator, Xactly Document Management and Xactly Incent are trademarks or registered trademarks of Xactly Corporation. BlueLinx is a trademark and registered servicemark of BlueLinx Corporation.

Media Contacts:

Dan Rampe
Director of Corporate Communications
Xactly Corporation
Tel: 408-200-0610
Email: drampe@xactlycorp.com