Taleo Expands Global Leadership in Talent Management With Acquisition of Jobpartners

DUBLIN, California, June 21, 2011 -

- Acquisition Doubles Customer Base
and More than Doubles the Team in Europe  

Taleo Corporation (NASDAQ: TLEO), the leading provider of
on-demand talent management solutions, today announced that it has
signed a definitive agreement to acquire Jobpartners for
approximately $38 million, 26 million Euros. The acquisition
expands Taleo’s ability to serve customers based in Europe and
makes Taleo one of the largest SaaS-based talent management vendors
in the region. Taleo’s acquisition of Jobpartners doubles its
customers based in Europe, and more than doubles the size of its
team of professionals in Europe, providing an unmatched ability to
serve the customers in this region. This deal signifies Taleo’s
commitment to investing in growth and the strategic importance of
having a strong team and established customer base in scaling a
significant SaaS business.

“We have been impressed by the capabilities of the Jobpartners
team and the close relationships they have built with their large
and sophisticated Europe-based customers. This acquisition creates
an opportunity for us to accelerate our expansion outside of North
America by increasing our customer base, increasing our local sales
and support capacity as well as taking advantage of the Jobpartners
Eastern European development center,” said Michael Gregoire,
Chairman and CEO of Taleo. “With our expertise and skills, and
Jobpartners’ experienced employees, we have the unmatched ability
to serve and expand our combined base of European customers.”

More than 350 customers internationally already realize the
benefits of Taleo’s cloud-based talent management solutions for
recruiting, performance management and learning. The combined
strength of Taleo and Jobpartners make Taleo a global leader in
Europe.

“Talent is becoming a global challenge while at the same time
local presence is a key,” says Lisa Rowan, program director HR,
Talent and Learning Strategies for IDC. “Taleo’s acquisition of
Jobpartners will offer them that local capability in Europe and a
host of well-known global brand clients.”

Jobpartners cloud-based solutions help organizations effectively
attract, connect, develop and retain the quality people they need
to remain competitive in today’s global business environment.
Jobpartners provides talent management solutions to global
customers such as Carrefour, Deutsche Post DHL, Nationwide, Nike
EMEA, Rabobank and Xerox. Jobpartners solutions are available in
more than 50 countries across all industries and in 28
languages.

Details Regarding the Proposed
Jobpartners Acquisition

Taleo will acquire Jobpartners for approximately $38 million in
cash. The acquisition has been approved by Jobpartners board of
directors and is expected to close in the quarter ending
September 30, 2011 subject to customary closing conditions.

Additional details and information about the terms and
conditions of the acquisition will be available in a current report
on Form 8-K to be filed by Taleo with the United States Securities
and Exchange Commission.

The acquisition of Jobpartners is expected to add approximately
$2-3 million to Taleo’s GAAP revenue and $5-6M to its non-GAAP
revenue in 2011.  The acquisition is expected to be dilutive
to GAAP earnings per share and neutral to non-GAAP earnings per
share in 2011.  Taleo expects to provide an updated financial
outlook for its fiscal third quarter and full year 2011
during the quarterly earnings call.

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About Taleo

Taleo’s (NASDAQ: TLEO) cloud-based talent management platform
unites products and an ecosystem to drive business performance
through Talent Intelligence.™ Approximately 5,000 customers use
Taleo for talent acquisition, performance, learning and
compensation management, including 47 of the Fortune 100. Further,
Taleo’s Talent Grid cloud community harnesses the expertise of
Taleo customers, more than 200 million candidates to date, and 140
partners and industry experts.

Forward-looking Statements

This release contains forward-looking statements, including
statements regarding the expected timing of the closing of the
acquisition, the expected benefits of the acquisition to: Taleo’s
leadership and market position; Taleo’s sales efforts; Taleo’s
products and services; and Taleo’s customers. Any forward-looking
statements contained in this press release are based upon Taleo’s
historical performance and its current plans, estimates and
expectations and are not a representation that such plans,
estimates, or expectations will be achieved. These forward-looking
statements represent Taleo’s expectations as of the date of this
press release. Subsequent events may cause these expectations to
change, and Taleo disclaims any obligation to update the
forward-looking statements in the future. These forward-looking
statements are subject to known and unknown risks and uncertainties
that may cause actual results to differ materially, including risks
related to (1) the satisfaction of closing conditions to the
acquisition, (2) difficulties in integrating Jobpartners and its
products, services and employees into Taleo and achieving expected
synergies, (3) Taleo’s ability to retain key employees, (4) whether
the market for Taleo’s products and services grows as anticipated,
and Taleo’s ability to compete successfully, (5) Taleo’s ability to
deliver new products and services and to acquire and renew
customers, and (6) other factors affecting the operation of the
respective businesses. Further information on potential factors
that could affect actual results is included in Part II, Item 1A of
Taleo’s Quarterly Report on Form 10-Q, as filed with the SEC on May
9, 2011, and in other reports filed by Taleo with the SEC.

Mary Jo Rose, +1-925-452-3252, mrose at taleo.com