Telstra Drives Business Execution, Improves Sales and Customer Satisfaction with Merced Systems’ Sales and Service Performance Management Solutions

REDWOOD SHORES, California, July 19, 2011 -

- Australia’s
Largest Telecommunications Provider Leverages Merced Systems’
Solutions to Align Organization with Exceptional Customer
Service

Merced Systems, Inc., the leading provider of performance
management solutions that drive business execution in sales and
service functions, today announced that Telstra has successfully
completed the deployment of all of Merced Systems’ core Sales
Performance Management and Service Performance Management solutions
in their internal consumer contact centres. Telstra has implemented
Merced Systems’ solutions to improve employee performance, assist
managers in coaching, and streamline incentive management.

Telecommunications companies are in one of the most competitive
markets worldwide and find themselves in a battle to secure new and
retain current customers. Progressive telecommunications companies
understand the value of having a loyal customer base and realize
that it’s in their best interest to do everything possible to
improve the overall customer experience.

Telstra deployed a pilot program with Merced Systems in 2009 to
align its service organizations to improve customer service. Within
three months, the company results included an increase in sales
conversion rates, decreased preparation time for coaching and
increased face-to-face coaching conducted. As a result, Telstra
expanded the deployment to all their internal consumer call centers
to help improve customer satisfaction. Telstra is now deploying the
Merced Systems’ suite of Sales Performance Management and Service
Performance Management solutions across more than 100 Retail stores
throughout 2011.

“Implementing Merced Systems is part of an expansive program to
support our teams and put the customer at the centre of everything
we do.  This partnership will help us deepen our coaching
culture and assist in delivering consistently better service to our
customers,” said Michael Bowman, Director Customer Service and
Sales, Telstra. “We plan to roll out Merced Systems’ solutions to
additional customer facing areas over the coming year.”

“As the first telecommunication provider in its region to deploy
Sales Performance Management and Service Performance Management
solutions, Telstra has demonstrated the importance it places on
improving the customer experience,” said Mark Selcow, president,
Merced Systems. “By implementing Merced Systems’ software, Telstra
is now better able to align its sales and service organizations
with its business goals. We look forward to helping the company see
improved results as it deploys the technology across additional
customer facing areas of their organization.”

Telstra is currently using Merced Systems Performance Suite and
Merced Systems Coaching Plus to assist in targeted coaching of call
center agents based on individual performance needs. The company is
planning to use these same solutions for performance management and
coaching with its retail employees, in addition to Merced Systems’
Incentive Compensation Management for incentives management.
Telstra is also looking to expand the deployment of its Sales
Performance Management and Service Performance Management
solutions.

Telstra joins a growing list of global leaders who are
experiencing incredible business gains using Merced Systems Sales
Performance Management and Service Performance Management
solutions. The Merced Systems solutions are designed for driving
improvement in sales effectiveness, customer experience, and
operating efficiency. Merced Systems’ award-winning technology has
proven to increase sales and customer loyalty for Global 2000
companies including Sprint, ING DIRECT USA, Mazda Motors UK, and
DIRECTV.

About Telstra

Telstra is Australia’s leading telecommunications and
information services company, with one of the best known brands in
the country. We offer a full range of services and compete in all
telecommunications markets throughout Australia, providing more
than 8.5 million Australian fixed line and 11.4 million mobile
services.

Our main activities include the provision of basic access
services to most homes and businesses in Australia, local and long
distance telephone calls in Australia and international calls to
and from Australia, mobile telecommunications services, broadband
access and content, a comprehensive range of data and Internet
services (including through Telstra BigPond®, Australia’s leading
Internet service provider), management of business customers’ IT
and/or telecommunications services, wholesale services to other
carriers, carriage service providers and ISPs, advertising, search
and information services (through Sensis, Australia’s leading
directory and search company), cable distribution services for
FOXTEL’s® cable subscription television services.

One of our major strengths in providing integrated
telecommunications services is our vast geographical coverage
through both our fixed and mobile network infrastructure. This
network and systems infrastructure underpins the carriage and
termination of the majority of Australia’s domestic and
international voice and data telephony traffic.

Telstra also owns 50% of FOXTEL®.

Its international businesses include: The Telstra International
global networks and managed services business that has more than
1,100 Points-of-Presence throughout Australia, Asia Pacific, Europe
and the U.S., CSL- Hong Kong’s leading mobile network operator.
China search and advertising businesses, including the Sequel
businesses - Pcpop, IT168, Autohome and CHE 168, the Octave
businesses - Sharp Point and ChinaM and LMobile and China Bar.

About Merced Systems

Merced Systems is the leading provider of enterprise software
solutions focused on Business Execution for Sales and Service
organizations. Merced System’s performance management solutions
help drive sales effectiveness, superior customer experience and
operating efficiency across a range of vertical industries. Merced
Systems’ award-winning products serve Global 2000 customers, and
include advanced analytics and reporting, incentive compensation
management, coaching, and other performance execution applications.
With a strong track record of growth and delivering business impact
to its customers, Merced Systems has been profitable for the past
eight years. Merced Systems is a privately held company
headquartered in Silicon Valley and London, with major customers in
more than 20 countries worldwide. For more information on Merced
Systems, please visit www.mercedsystems.com.

Joscelyn Zell of Goodman Communications, Inc., +1-503-260-1169, joscelyn at gcipr.com, for Merced Systems, Inc.