Halogen Software Reports Strongest Second Quarter To Date

Halogen's Web-based employee performance management solutions' ability to address unique customer needs drives record second quarter.

OTTAWA, ON - July 17, 2006 - Halogen Software Inc., the leading provider of Web-based employee performance management (EPM) software announced today that it has concluded the best second quarter of its history. Halogen builds on the strength of its first quarter, which produced its best quarterly revenue ever, with another strong quarter in both new customer wins and increased investment by existing customers.

Halogen's second quarter development cements its position as the employee performance management leader. The company continues to make unparalleled gains in part as a result of eAppraisal Healthcare's continued momentum, exceeding 100 percent year-over-year revenue growth. Additionally, Halogen's subscription pricing alternative continues to gain popularity, but more importantly clients appreciate the company's flexible pricing and hosting alternatives, which enable organizations to buy and implement the solution based on their unique needs.

"Halogen offered a number of implementation possibilities, including both a hosted and on-premise option," said Alicia Van Blair, HR Manager for L-3 Interstate Electronics Corporation. "Our IT department saw a lot of value in having the application hosted by Halogen as it eliminated the burden of managing and maintaining the solution from their already extensive list of responsibilities. The Halogen team broke down all of the licensing options for us, many of which other vendors didn't offer, and helped us choose the one that best fit with our business needs."

Halogen eAppraisal Healthcare™ has continued its strong growth in the second quarter of 2006, contributing to the overall success of Halogen Software. The solution has empowered Scottsdale Healthcare to create accurate, timely and painless employee performance appraisals, without the chaos of a paper-based system.

"Halogen has tailored this solution to meet the unique needs of healthcare providers like our hospitals," said Nancy Brandon, an Educator with the Training and Development Department of Scottsdale Healthcare. "With eAppraisal we hope to create more uniform and informative appraisals while saving our managers time and effort."

A few other new customers to sign with Halogen in Q2 include: Southern California Regional Rail Authority (SCRRA), InfoNXX, Inc., Kitsap County, City of Boca Raton, Consumer Credit Counseling, HostMySite.com, Cincinnati Museum Center, Memorial Health, Inc., New York University ITS, Muzak LLC, Charles E Smith Real Estate, Scottsdale Healthcare, RealNetworks, Inc., Team Industries, EMD Chemicals Inc. and Kohl & Frisch Limited.

About Halogen Software
With more than 450 customers, Halogen Software Inc. has established itself as the leading provider of employee performance management (EPM) solutions. Founded in 2001 as a subsidiary of a successful consulting company, Halogen offers powerful, easy-to-use, and affordable Web-based software that dramatically improves HR and line-manager productivity and helps organizations align employee goals to drive bottom line success. The company's flagship product, Halogen eAppraisal™, automates and simplifies time-consuming employee appraisals. Halogen eAppraisal™ Healthcare, created specifically for the healthcare industry, helps to simplify the tasks of performing appraisals and meeting accreditation criteria. Halogen e360™ automates formal 360-degree feedback procedures and offers sophisticated performance reporting. Halogen eCompensation™ automates the entire compensation adjustment process, including budget distribution and approval.