2005 Press Releases

Xactly Corporation Completes $4 Million Venture Financing Led
by Bay Partners and Rembrandt Ventures

SAN JOSE, Calif. – September 6, 2005 – Xactly™ Corporation (www.xactlycorp.com), the ﬁrst and only company to deliver a real-time, web-based, on-demand sales compensation application that enables companies to incent right and sell more, today announced that is has completed a $4 million ﬁrst round of institutional venture ﬁnancing led by Bay Partners and Rembrandt Ventures.

“We’re pleased to partner with two of the industry’s leading venture ﬁrms, Bay Partners and Rem-brandt Ventures,” said Christopher Cabrera, founder, president and CEO, Xactly Corporation. “This funding will allow us to further invest in our development efforts and aggressively expand our sales and marketing initiatives. Bay and Rembrandt bring extensive operational experience and a large network of contacts, partners and resources that will help accelerate our growth.”

“Xactly is ideally positioned to capitalize on the industry momentum shift now underway for low cost, on-demand software solutions that are easy to procure, deploy and use such as Salesforce,” said Gerald Casilli, general partner, Rembrandt Ventures. “Xactly’s management team possesses deep domain expertise in developing, selling and marketing enterprise-level sales compensation solutions. They are now leveraging that knowledge and experience to deliver the power of an enterprise-level solution, in an on-demand model, at a fraction of the cost.”

“Bay Partners is excited to invest in Xactly as they deliver on a broad, mid-market need for an on-demand sales compensation application,” said Chris Noble, general partner, Bay Partners. “The vast majority of companies today take an archaic and decades old approach of using Excel spreadsheets to tackle sales compensation issues. Xactly’s solution – Xactly Incent™ – does away with this obsolete approach and gives companies web-based real-time visibility into their sales compensation plans helping them to sell more.”

About Bay Partners
Bay Partners is an early-stage venture capital ﬁrm active in wireline, wireless and enterprise software and services investing with over $1 billion of capital under active management. Since its founding in 1976, Bay Partners has funded over 250 companies including Exodus Communications, Informatica, Digital Island, Brocade Communications, WebLogic and Sonic Wall. For more information, visit www.baypartners.com.

About Rembrandt Ventures
Rembrandt Ventures, established in 1997, is a private equity venture fund which targets investments in early and expansion stage high technology companies that demonstrate potential for signiﬁcant growth. Collectively, Rembrandt and its Principals have assisted in the formation and ﬁnancing of more than 60 wireless, e-commerce, optical networking, wireless infrastructure, Internet media and information technology companies. For more information, visit www.rembrandtvc.com.

About Xactly Corporation
Xactly Corporation is the market leader in on-demand sales performance management. The company’s flagship product, Xactly Incent, enables sales and finance executives to design, implement, manage, audit and optimize sales compensation management programs easily and affordably. Xactly solutions automate the process of aggregating data from disparate systems into a secure, hosted repository, and enable companies to leverage this business data, which is the lifeblood of sales performance management. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance, and maximize profits. The Xactly family of products is used by sales and finance executives, compensation analysts, sales operations and sales professionals across a variety of industries, ranging from SMBs to large enterprises. For more information, visit www.xactlycorp.com or call 1-866-GO-XACTLY.

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© 2005 Xactly Corporation. All rights reserved. Xactly Corporation, “Incent right. Sell more.,” and Xactly Incent are trademarks or registered trademarks of Xactly Corporation. All other trademarks are the property of their respective owners.

Media Contacts:

Dan Rampe
Director of Corporate Communications
Xactly Corporation
Tel: 408-977-3132, ext. 310
Email: drampe@xactlycorp.com