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Halogen Software Continues Momentum with Record Growth

15 July 2005

Halogen Software Inc., the leading provider of Web-based employee performance management (EPM) software, today announced second quarter results showing 100% year-over-year growth in
revenue, making this its seventh straight quarter with record results. With
the signing of 51 new customers this quarter, the best quarter to date for the
company, Halogen secures their place as vendor of choice for web-based EPM
solutions.

Halogen Software also continues to gain significant market share. "We
projected the EPM software market would demonstrate at least a 15 percent
compound annual growth rate (CAGR) through 2008, although recent short term
trends could point to rates as high as 20 to 25 percent growth" said James
Holincheck, research director, Gartner Inc. Halogen's results of more than
100 percent year-over-year are appreciably outpacing these projections.

"The first half of this year has seen acceleration in our growth rate to
more than 100 percent year-over-year versus 75 percent in 2004, as we continue
to extend our market leadership position," said Paul Loucks, president,
Halogen Software. "These results are significant not only because of the
considerable number of new customer wins, but also because the growth is
balanced revenue, based on wide-scale customer acceptance, not just one or two
large deals. Customers, those new to web-based EPM solutions and also those
migrating from other EPM software, obviously appreciate the ease-of-use and
affordability of our highly adaptable solutions."

New customers for the quarter include First American Corporation,
Fairfield County Bank Corp, Sharp Electronics of Canada, Georgia State
Financing & Investment Commission, Carondelet Health, Websense, Inc., Digi
International, Institute for Scientific Research, Inc., Federal Realty
Investment Trust, Columbus Regional Healthcare, Republic Airways Holdings,
Worldspan, L.P., California Healthcare Foundation, Paragon Development
Systems, College of Southern Maryland, and many more.

Halogen's growth rate should be further enhanced by the recent release of
eCompensation, an affordable, Web-based software system that automates the
compensation adjustment process and works seamlessly with Halogen's eAppraisal
solution.

Halogen has also nearly doubled the number of employees since the second
quarter of 2004, and plans to hire another 20 by year-end 2005 to keep pace
with its revenue growth.

About Halogen Software

Halogen Software Inc. is a 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.
The company's flagship product, Halogen eAppraisal(TM), automates and
simplifies time-consuming employee appraisals. Halogen eAppraisal(TM)
Healthcare, created specifically for the healthcare industry, helps to
simplify the task of performing appraisals and meeting accreditation criteria.
Halogen e360(TM) automates and simplifies formal 360-degree feedback
procedures and offers sophisticated performance reporting. Their newest
offering, Halogen eCompensation(TM) automates the entire compensation
adjustment process including budget distribution and approval. For more
information on Halogen Software, visit: .

For further information: Media contact: Donna Ronayne, VP, Marketing &
Business Development, (613) 744-2254 x 320, dronayne@halogensoftware.com