For the twelve months ended March 31, 2007, cash flow from operations was $3.1 million, an increase of 71% from fiscal 2006. Non-GAAP cash flow from operations (excluding capitalized IPO costs) in the fourth quarter of 2007 was $2.4 million, an increase of 236% from the fourth quarter of fiscal 2006. GAAP cash flow from operations was $1.1 million for the fourth quarter of 2007.

Kent Plunkett, Chairman, President, and Chief Executive Officer noted, "We were pleased with Salary.com's fourth quarter and full year fiscal 2007 results, which were highlighted by strong growth in revenue and cash flow. Market demand and awareness is increasing in the compensation management and talent management markets. Salary.com is benefiting from these trends due to our leadership position in compensation management, domain expertise, proprietary technology and data sets, and our large and growing customer base."

Plunkett added, "We also announced today that Salary.com has acquired ICR Limited L.C., a premier provider of global compensation data primarily in the high-tech vertical and consumer retail markets. This is a highly strategic acquisition for Salary.com as it expands our vertical expertise and adds global coverage in over 60 countries. This marks Salary.com's entrance into the international markets, and we are extremely focused on expanding our compensation management leadership position on a global basis. With strong momentum in Salary.com's business, and the addition of ICR Limited L.C., we are optimistic about our fiscal 2008 and long-term outlook."

On a GAAP basis, Salary.com reported a net loss attributable to common stockholders of $4.1 million in the fourth quarter of fiscal 2007, compared to a net loss of $1.3 million in the fourth quarter of 2006.

On a non-GAAP basis, excluding the impact of stock-based compensation expense, amortization of intangibles, and accretion of preferred stock, Salary.com reported a net loss attributable to common stockholders of $1.2 million in the fourth quarter of fiscal 2007, compared to $0.7 million in the fourth quarter of 2006.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Cash and equivalents of at the end of the fourth quarter of 2006 were $49.0 million, compared to $1.8 million a year ago, primarily due to proceeds from the company's initial public offering, which was completed in February 2007. Current deferred revenue grew to $15.5 million at March 31, 2007, an increase of 56% compared to the end of fiscal 2006. Total deferred revenue was $16.4 million at March 31, 2007, which also represented an increase of 55% compared to the end of fiscal 2006.

Ken Goldman, Salary.com's Senior Vice President and Chief Financial Officer said, "Our subscription-based, on-demand business model provides Salary.com with a high degree of revenue visibility and predictability. In addition, because most of our customers are billed up front for their annual subscription and we recognize revenue ratably over the course of the contract, we believe cash flow provides the most meaningful way to evaluate our profitability. Salary.com has generated positive cash from operations in the past 4 years, and, during fiscal 2007, we generated strong and growing cash from operations that represented 13% of our revenue."

Full Year Fiscal 2007 Results

For the full year fiscal 2007, revenue of $23.0 million increased 51% compared to fiscal 2006.

On a GAAP basis, Salary.com reported a net loss attributable to common stockholders of $8.6 million for the full year fiscal 2007, compared to a net loss of $3.6 million in fiscal 2006.

On a non-GAAP basis, excluding the impact of stock-based compensation expense, amortization of intangibles, and accretion of preferred stock, Salary.com reported a net loss attributable to common stockholders of $3.6 million for the full year fiscal 2007, compared to $2.1 million in fiscal 2006.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Reconciliation of Non-GAAP Measures."

Business Outlook

For the full year fiscal 2008, Salary.com expects total revenue in the range of $32.5 million to $33.7 million. Cash flow from operations is expected to be in the range of $7.6 million to $8.0 million for the full fiscal year. Non-GAAP loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $5.4 million to $5.8 million. On a GAAP basis, net loss for fiscal 2008 is expected to be in the range of $9.5 to $9.9 million. This excludes the impact of ICR Limited. Weighted average shares for the year are estimated to be approximately 13.7 million shares.

For the first quarter of fiscal 2008, Salary.com expects total revenue in the range of $6.7 million to $7.1 million. Non-GAAP loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $1.5 million to $1.7 million. GAAP loss for the first quarter of fiscal 2008, is expected to be in the range of $2.5 million to $2.7 million. Weighted average shares for the quarter are estimated to be approximately 13.4 million shares.

Conference call

About Salary.com, Inc.
Salary.com is a leading provider of on-demand compensation management solutions helping businesses and individuals manage pay and performance. Salary.com provides companies of all sizes comprehensive on-demand software applications that are tightly integrated with its own proprietary compensation data sets, thereby automating the essential elements of the compensation management process and significantly improving the effectiveness of its client's compensation spend. For more information, visit www.salary.com.

Press Contact:
Elle Hoxie
Salary.com
(781) 464-7841

Investor Contacts:
Kenneth S. Goldman, SVP & CFO
Salary.com, Inc.
(781) 464-7386

Garo Toomajanian
Integrated Corporate Relations
(617) 956-6728

Safe Harbor Statement

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These are statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "expects," "projects," "anticipates," "estimates," "believes," "intends," "plans," "should," "seeks," and similar expressions. This press release contains forward-looking statements relating to, among other things, Salary.com's expectations and assumptions concerning future financial performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in Salary.com's filings with the Securities and Exchange Commission. The risks and uncertainties referred to above include, but are not limited to, risks associated with possible fluctuations in our operating results and rate of growth, our history of operating losses, the possibility that we will not achieve GAAP profitability, interruptions or delays in our service or our Web hosting, our business model, breach of our security measures, the emerging market in which we operate, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, successful customer deployment and utilization of our services, fluctuations in the number of shares outstanding, foreign currency exchange rates and interest rates.

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