Kent Plunkett, founder and chief executive officer stated, "We were pleased with the company's performance in the first quarter, which was a solid start to fiscal 2009. First quarter revenue was at the upper end of our guidance, which helped produce a smaller-than-anticipated net loss, and we delivered solid year-over-year growth in bookings. The strategic sales and marketing initiative that we announced last quarter is off to a good start and will complement the broadening of our data-rich product portfolio to drive future bookings and revenue growth. We continue to believe that we are at the early stages of a large market opportunity, and the investments we are making will help to ensure that Salary.com is one of the long-term winners in the overall compensation and talent management market place."

First Quarter of Fiscal 2009 Financial Summary

-- First quarter of fiscal 2009 revenue of $9.6 million.

-- On a GAAP basis, for the first quarter of fiscal 2009, Salary.com reported a net loss of $6.2 million, or ($0.42) per diluted share, compared to a net loss of $1.4 million, or ($0.10) per diluted share, in the first quarter of fiscal 2008.

-- Cash and cash equivalents at the end of the first quarter of fiscal 2009 were $34.7 million, compared to $37.7 million at end March 31, 2008, with the decrease primarily due to increased sales and marketing expenditures to fund previously disclosed growth initiatives.

-- Current deferred revenue grew to $22.0 million at the end of the first quarter of fiscal 2009, an increase from $20.5 million at the end of fiscal 2008. Total deferred revenue was $23.3 million at the end of the first quarter, an increase from $22.0 million at March 31, 2008.

-- Cash flow from operations was a net outflow of $2.1 million in the first quarter of fiscal 2009 and free cash flow, a non-GAAP measure, was an outflow of $2.5 million.

Bryce Chicoyne, Salary.com's chief financial officer said, "Our first quarter results reflect solid execution and we are pleased to have met our expectations. At the same time, we are making good progress expanding our sales force and implementing the marketing initiatives that we announced previously, and we continue to anticipate positive long-term results from these efforts."

Business Highlights

-- Salary.com added approximately 240 new enterprise customers in the first quarter of fiscal 2009.

-- New customer additions in the first quarter of fiscal 2009 included Four Seasons Hotels - Canada, Express Scripts, MSC Software, The New York Times Company, Novartis, Teva Pharmaceuticals, and VF Corporation.

-- In May 2008, Salary.com announced the formation of a provider alliance with Convergys to offer enhanced compensation outsourced solutions and services to help customers reduce compensation costs and redeploy existing resources to more strategic compensation and talent management initiatives.

-- Also in May 2008, Salary.com demonstrated momentum with its CompAnalyst(R) Canada dataset, with the announcement that several marquee customers chose the product to market price over 650 benchmark jobs. These customers include Stratos Mobile Networks, HRB Management, The Hershey Company, Peter Kiewit Sons, Inc., Omron Canada Inc., Sonoco Products Company, Harry Winston, Credit Union of Central British Columbia and Globe Union Group Inc.

Business Outlook

For the second quarter of fiscal 2009, Salary.com expects total revenue in the range of $10.2 to $10.7 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $2.2 million and amortization of intangibles of approximately $0.8 million, is expected to be in the range of $3.2 to $3.7 million. GAAP net loss for the second quarter of fiscal 2009 is expected to be in the range of $6.2 to $6.7 million. Weighted average diluted shares for the quarter are estimated to be approximately 15.0 million shares.

Salary.com continues to expect total revenue in fiscal 2009 to be in the range of $45.0 to $49.0 million, and cash flow from operations is expected to be in the range of $0 to $1.0 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $9.0 million and amortization of intangibles of approximately $3.0 million, is expected to be in the range of $10.0 to $13.0 million. On a GAAP basis, net loss for fiscal 2009 is expected to be in the range of $22.0 to $25.0 million. Weighted average diluted shares for the year are estimated to be approximately 15.1 million shares.

About Salary.com, Inc.
Salary.com is a leading provider of on-demand compensation and talent management solutions helping businesses and individuals manage pay and performance. Salary.com's highly configurable software applications, proprietary data and consulting services help HR and compensation professionals automate, streamline and optimize critical talent management processes including: market pricing, compensation planning, performance management and succession planning. Built with compensation and competency data at the core, Salary.com solutions provide businesses of all sizes with the most productive and cost-effective way to manage and inspire their most important asset - their people.

For more information, visit www.salary.com.

For additional investor information, please visit http://investor.salary.com.

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 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. The risks and uncertainties referred to above include, but are not limited to, 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, our ability to expand our customer base and product and service offerings, 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, and competition, as well as those risks and uncertainties described in Salary.com's filings with the Securities and Exchange Commission. Salary.com expressly disclaims any obligation to update any forward-looking statements.

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