Halogen Software Inc., the leading
provider of Web-based employee performance management (EPM) software announced
today that it has concluded the best second quarter of its history. Halogen
builds on the strength of its first quarter, which produced its best quarterly
revenue ever, with another strong quarter in both new customer wins and
increased investment by existing customers.

Halogen’s second quarter development cements its position as the employee
performance management leader. The company continues to make unparalleled
gains in part as a result of eAppraisal Healthcare’s continued momentum,
exceeding 100 percent year-over-year revenue growth. Additionally, Halogen’s
subscription pricing alternative continues to gain popularity, but more
importantly clients appreciate the company’s flexible pricing and hosting
alternatives, which enable organizations to buy and implement the solution
based on their unique needs.

“Halogen offered a number of implementation possibilities, including both
a hosted and on-premise option,” said Alicia Van Blair, HR Manager for L-3
Interstate Electronics Corporation. “Our IT department saw a lot of value in
having the application hosted by Halogen as it eliminated the burden of
managing and maintaining the solution from their already extensive list of
responsibilities. The Halogen team broke down all of the licensing options for
us, many of which other vendors didn’t offer, and helped us choose the one
that best fit with our business needs.”

Halogen eAppraisal Healthcare has continued its strong growth in the
second quarter of 2006, contributing to the overall success of Halogen
Software. The solution has empowered Scottsdale Healthcare to create accurate,
timely and painless employee performance appraisals, without the chaos of a
paper-based system.

“Halogen has tailored this solution to meet the unique needs of
healthcare providers like our hospitals,” said Nancy Brandon, an Educator with
the Training and Development Department of Scottsdale Healthcare. “With
eAppraisal we hope to create more uniform and informative appraisals while
saving our managers time and effort.”
A few other new customers to sign with Halogen in Q2 include: Southern
California Regional Rail Authority (SCRRA), InfoNXX, Inc., Kitsap County, City
of Boca Raton, Consumer Credit Counseling, HostMySite.com, Cincinnati Museum
Center, Memorial Health, Inc., New York University ITS, Muzak LLC, Charles E
Smith Real Estate, Scottsdale Healthcare, RealNetworks, Inc., Team Industries,
EMD Chemicals Inc. and Kohl & Frisch Limited.