Press Release: August 22, 2000

WR Hambrecht + Co Initiates Coverage of Saba Software (SABA) with a Buy Rating and a Target of $42

Market leader poised for growth in expanding LMS sector

San Francisco, CA, August 22, 2000—WR Hambrecht + Co today initiated research coverage on Saba Software (SABA) with a buy rating and a six to twelve month price target of $42. WR Hambrecht + Co’s eLearning analyst Trace Urdan cited Saba’s market leadership in the LMS space and highly attractive business model as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“Saba provides the killer app in the eLearning market. Over the next several years, we expect Saba’s business to expand rapidly. As a pure-play in the learning management system space, we view Saba as a core eLearning holding,” Urdan said.

Urdan projects Saba Software’s total revenues will reach $31.8 million in 2000 and $67.8 million in 2001.

Saba Software Inc. provides software and services that enable businesses and governments to manage both on- and off-line learning through a global Internet-based network.