Rally Software Moves to New Corporate Headquarters to Accommodate Rapid Growth

New U.S. and UK Offices Enable Rally to Meet the Needs of its Worldwide Customer Base

BOULDER, Colorado, February 15, 2011 - Rally(R), the leader in Agile application lifecycle management (ALM),
today announced it has relocated its corporate headquarters to 3333 Walnut
Street in Boulder, CO. Occupying the entire 65,545 square-foot building, the
space was re-designed to align with Agile software development practices that
focus on collaboration across roles and department silos for improved
efficiency and productivity. Relocation of the new headquarters marks the
achievement of another milestone in the company's growth. Rally is actively
expanding its engineering, sales and management teams, plus extending its
reach into international markets by doubling the size of Rally's London
office.

Fueled by the global adoption of Agile development practices, Rally has
doubled the size of its team in the United Kingdom. Established in 2009,
Rally's UK-based team also relocated to a new, collaborative office space to
accommodate their growth in professional services, sales support, public
Agile training courses and on-site product implementation. Karl Scotland
recently joined the team as Rally's first official European coach. Scotland
is a well-known thought-leader in the Lean, Kanban and Systems Thinking space
who sits on the board of the Lean Systems Consortium.

"We feel lucky that 2010 was a high-growth year for Rally," said Tim
Miller, Rally's CEO. "We saw the implementation of Agile practices grow at a
much larger scale than ever before, allowing us to gain a lot of traction
with large enterprise businesses. We will continue hiring talented people,
implementing feedback from our customers and improving our award-winning
Agile ALM platform as we forecast even more growth in 2011."

Approval of a $50,000 flexible rebate business incentive by Boulder's
city manager allowed Rally to make several innovative and environmentally
friendly decisions about its new headquarters. The 2010 flexible rebate
program uses social, community and environmental sustainability guidelines
that require companies to meet minimum requirements in order to receive the
rebate. The city's flexible rebate program, developed to help retain local
businesses and help them expand in Boulder, is authorized for sales and use
taxes, and permit-related fees.

"Rally exceeded the community sustainability guidelines, including
committing one percent of the company's equity to the Entrepreneur's
Foundation of Colorado," said Jane S. Brautigam, Boulder's City Manager.
"We're glad that Rally found a new home in the innovative Boulder tech
community where the company was founded."

As part of Rally's corporate social responsibility mission, the company
adhered to sustainable design principles in making its new headquarters
energy efficient, less demanding of resources and recycling-friendly. In
addition to using low-impact materials, including recycled carpet and
beetle-kill pine, Rally installed motion sensors and Energy Star appliances
throughout the new building to conserve energy and reduce environmental
impact. Rally's Corporate Social Responsibility team distributed a list of
tips for being "Green" to each employee, along with a reusable pint glass to
replace the use of disposable cups.

Employing over 240 people worldwide, Rally's active hiring pace will
remain steady throughout the first half of 2011. Rally currently has over 15
positions open in Engineering, IT, Professional Services, Sales, Support,
Marketing and Administration. Last year, Rally was named the #6 best place to
work in the U.S. by Outside Magazine, and the #1 best place to work in
Colorado. To view and apply for open positions, visit Rally's Career Page.

About Rally

Rally is the recognized leader in Agile application lifecycle management
(ALM). We are dedicated to helping organizations embrace Agile and Lean
development practices that increase the pace of innovation and improve
product quality. According to a study by QSM Associates, software-driven
companies that rely on Rally's Agile ALM products and services are 50% faster
to market and 25% more productive than industry averages. The company's
experienced services group, including training through Agile University,
guides companies through the organizational change required to become
innovative, Agile businesses. Rally currently supports more than 2,500
corporate customers, 82,000 projects and 154,000 users in 60 countries. For
more information, visit www.rallydev.com.

Rally, the Rally logo, Rally Software Development and Agile University
are trademarks of Rally Software Development Corp. Third-party trademarks are
the property of their respective owners.

Lara Vacante of Rally Software, +1-720-921-8128, lvacante at rallydev.com