Summary quarterly highlights:

--  GAAP revenues of $50.7 million for the third quarter of 2009, an
    increase of 9% year-over-year.
--  GAAP application revenue increased to $44.9 million, growth of 20%
    year-over-year and 5% quarter-over-quarter.
--  GAAP net loss of $(1.1) million or $(0.04) per share.
--  Non-GAAP net income of $6.7 million, or $0.20 per fully diluted share.
--  Cash flow from operations of $13.6 million; total year-to-date cash
    flow from operations increases to $30.1 million.
--  Signed 167 new customers, including 17 new Taleo Enterprise customers
    and 150 new Taleo Business Edition customers.
--  Closed 7 large enterprise deals with annual contract values in excess
    of $250,000.
--  Signed more than 40 new performance management customers across both
    enterprise and SMB segments, increasing the company's total performance
    management customer base to more than 160.
--  Announced an agreement to acquire the remaining shares of strategic
    partner Worldwide Compensation, Inc.
--  Launched the Talent Grid 'cloud community' set of online exchanges to
    the market, and announced plans to deliver Taleo 10 in the fourth quarter
    of 2009.
    

"Strategic talent management is driving innovation, growth and business success for companies of all sizes," said Michael Gregoire, Taleo Chairman and CEO. "Those that are locking in their growth plans for 2010 are choosing Taleo to transform how they optimize their businesses by using the most advanced talent management system, Taleo. An example of this is Harris Teeter, the grocery store chain, which standardized their recruiting on Taleo in Q2 2008, and based on the positive impact on their business, expanded their use of Taleo this quarter."

Significant achievements included:

--  Acquired 17 new enterprise customers, and closed 7 large enterprise
    deals with annual contract values in excess of $250,000. New enterprise
    customers include: Cognizant Technology Solutions, Shaw Industries, U.S.
    Cellular, Lifespan, Xcel Energy, Itron, Atmos Energy, and Centegra Health
    System.
--  Signed 150 new small and medium-sized customers. Taleo Business
    Edition, a talent management solution targeted at companies with less than
    5,000 employees, now has more than 3,500 customers. New Taleo Business
    Edition customers include: Skymall, Medical Management Resource Group,
    Wesley Homes, vCustomer Corp., RQ Construction, Lakeside Schools, TIB Bank,
    Talyst and Communications Infrastructure Group.
--  Received Human Resource Executive magazine's Product of the Year award
    for Taleo Perform, the company's performance management solution for small-
    to-medium sized businesses.
--  Continued momentum in enterprise talent management suite sales. Sales
    this quarter included both new and existing customers, with several long-
    standing Taleo recruiting customers choosing to power their talent
    management initiatives with Taleo's performance management solutions and
    new customer Penske Truck Leasing selecting Taleo to start with a unified
    offering.
--  Strong quarter in new performance management deals across both
    enterprise and SMB segments. Taleo now has more than 160 performance
    management customers, up from roughly 120 at the end of the second quarter
    of 2009. New enterprise performance management customers include: RSC
    Equipment Rental, SavaSeniorCare, Talisman Energy and a Fortune 500
    customer closed through IBM.
--  Hosted its annual user conference, Taleo WORLD, in Las Vegas to its
    largest audience of customers, prospects, partners and industry
    influencers.
--  Announced plans to deliver to market a complete Talent Management
    suite of solutions for enterprise and small-to-medium sized businesses,
    called Taleo 10. The enterprise solution includes a unified interface
    across all components, and new capabilities in recruiting, development
    planning, and also mobile/social networking enablement. The SMB solution
    will add compensation management functionality. Taleo 10 is expected to be
    generally available in the fourth quarter of 2009.
--  Launched the Talent Grid to offer customers and partners online access
    to a broad collection of talent management domain expertise.  The Talent
    Grid is comprised of the Knowledge Exchange, providing an online customer
    community for best practices; the Solution Exchange, providing a wide range
    of partner solutions; and the Talent Exchange, providing a global network
    of candidates and careers.
--  Announced plans to acquire the remaining shares of strategic partner
    Worldwide Compensation, Inc., adding best-in-class compensation management
    functionality to our suite of unified talent management applications.
--  Continued to achieve Vurv customer conversions and commitments to
    convert to Taleo. Recent Vurv customers committing to Taleo include:
    Northrup Grumman, Perot Systems, Magellan Health Services, Adventist Health
    System, United Stationers, Harland Clarke and Total System Services.
    

Taleo delivered the following financial results:

Revenue: Total revenue for the third quarter was $50.7 million, representing an increase of 9% on a year-over-year basis. Application revenue for the third quarter was $44.9 million, an increase of 20% on a year-over-year basis.

Net Income (Loss) and Net Income (Loss) Per Share to Common Stockholders: Net loss was $(1.1) million for the third quarter, compared to a net loss of $(5.9) million for the same period last year. Net loss includes $3.6 million in amortization expense related to the acquisition of Vurv, stock-based compensation expense of $3.1 million and $1.1 million of other expense related to the write-off of the Worldwide Compensation purchase option. Net loss per share was $(0.04) for the third quarter of 2009 based on 30.9 million weighted average shares outstanding compared to a net loss per share of $(0.20) for the same period in 2008 based on 29.4 million weighted average shares outstanding.

Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income was $6.7 million for the third quarter of 2009, compared to non-GAAP net income of $5.1 million in the same period last year. Non-GAAP net income includes amounts excluded from GAAP revenue due to the write down of the deferred revenue associated with purchase accounting for the Vurv acquisition, and excludes stock-based compensation expense, amortization of acquired intangibles, restructuring and severance expense and the write-off of the Worldwide Compensation purchase option. Non-GAAP net income per fully diluted share was $0.20 for the third quarter of 2009 based on 33.9 million weighted average shares outstanding compared to non-GAAP net income per fully diluted share of $0.15 for the same period in 2008 based on 33.3 million weighted average shares outstanding.

Conference Call Details

The company will issue a pre-recorded webcast and transcript of prepared remarks regarding the quarter at 1:30pm PDT (4:30pm EDT), both of which will be available on the Investor Relations section of www.taleo.com. The company will then host a live Q&A call at 2:30pm PDT (5:30pm EDT), with Michael Gregoire, Chairman and CEO, and Katy Murray, CFO. This call will also be available via webcast on the Investor Relations section of www.taleo.com.

About Taleo

Taleo Corporation (NASDAQ: TLEO) is the leading global provider of on-demand, unified talent management software solutions. Our goal is to help our customers improve business results through better talent management. We offer recruiting, performance management, compensation, internal mobility, onboarding, analytics and other software solutions that help our customers attract and retain high quality talent, more effectively match workers' skills to business needs, reduce the time and costs associated with manual and inconsistent processes, ease the burden of regulatory compliance, and increase workforce productivity through better alignment of workers' goals and career plans with corporate objectives.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding Taleo's future financial performance, new product development, the release of Taleo 10, market growth, the demand for Taleo's solutions, the impact of Taleo's acquisition of Vurv, 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, for the period ending June 30, 2009, as filed with the SEC on October 27, 2009, and in other reports filed by Taleo with the SEC.

Non-GAAP Financial Measures

Taleo has provided in this release financial information that has not been prepared in accordance with GAAP.