Volkswagen de México Steers Employees and Dealers Toward Saba Learning

August 26, 2002

REDWOOD SHORES, CALIF., Aug. 26, 2002 – Saba (NASDAQ: SABA), the leading provider of Human Capital Development and Management (HCDM) solutions, today announced that Volkswagen de México (VWM) has selected Saba Learning, Saba Content, and Saba Publisher products to transform its 100% classroom-based training to e-learning in an effort to cost-effectively increase employee and dealer productivity and performance.

The Instituto para Formación y Desarrollo (Training and Development Institute) of VWM needed to transform its manual, paper-based training processes and homegrown systems into a more efficient and automated Internet-based management system. It also required a system that could standardize training for the Sales and Services personnel in its 220 dealerships and its employees and plant workers. VWM selected Saba for its leadership and ability to execute. Saba and gedas Mexico, the Volkswagen IT partner company providing systems, integration services and outsourcing for IT, will work together to implement the Saba system.

Daniel Estrada, H. R. Director for VWM, commented: “We selected Saba for its strong vertical experience and knowledge in the automotive industry, as well as its technology and functionality. Saba solutions will support Volkswagen’s corporate level e-business initiatives, which leverage the Internet to empower employees, dealers, suppliers, and customers.”

VWM will use Saba Learning to manage training and certifications on topics such as safety, machine work, technology, and management. It will use Saba Publisher to easily and quickly create new e-learning content and repurpose existing content. It will then use Saba Content to manage new custom and off-the-shelf content.

“VWM continues to innovate and support its corporate business objectives through new technologies and process efficiencies,” said Geno Tolari, Saba President and CEO. “We look forward to partnering with VWM and gedas Mexico as they expand their solution throughout the enterprise to increase productivity and corporate performance.”

About Volkswagen de México

VOLKSWAGEN de México was founded in 1965, operations started during March 1966 and on March 23, 1967, the first vehicle rolled off the production line, it was a Classic Beetle. At present it’s the biggest Plant in Mexico occupying an extension of 300 hectares.

With a factory of about 15,000 employees, VOLKSWAGEN de México now produces the Classic Beetle, the Jetta and the New Beetle, which is exported to more than 80 countries around the world.

On May 2001 VOLKSWAGEN de México produced its 5,000,000 vehicle, 1.6 million of them were Classic Beetles. In 2001 the Plant produced 380,000 vehicles and about 80% were exported mainly to the United States and Canada. On the other hand the VW Group in Mexico, including Seat, Audi and VOLKSWAGEN, sold in the Mexican market 180,248 vehicles.

VOLKSWAGEN de México cars are presented to its customers through the 218 VOLKSWAGEN, Seat and Audi Dealerships and sales points that operate at strategic points all over the country.

Currently, VOLKSWAGEN de México has 310 part suppliers situated in Mexico. Twenty-six of them under the concept “Just in Time” (JIT) are located in the FINSA Industrial Park that is conveniently located near its facilities.

About Saba

Saba (Nasdaq: SABA) is the leading provider of Human Capital Development and Management (HCDM) solutions. Saba offerings include an integrated Internet-based platform to manage learning, content, performance, talent, and collaboration; and related professional services. Organizations around the world rely on the Saba platform to ensure that their customers, partners, and employees have the knowledge and skills required to successfully execute business initiatives.

Among the Global 2000, Saba customers include Alcatel, Telecom Italia, DaimlerChrysler, EDS, Procter & Gamble, Medtronic, Anheuser-Busch, Ford Motor Company, Continental Airlines, General Electric, Cisco Systems, EMC Corp., i2 Technologies, and VERITAS Software. The Saba ecosystem of partners includes Allos, Cisco, Deloitte Consulting, Mellon/Buck Consultants formerly Unifi Network, and SchlumbergerSema.

Saba was recently positioned in the leader quadrant in Gartner’s 2002 LMS “Magic Quadrant”. Founded in 1997, Saba is headquartered in Redwood Shores, California, with offices worldwide. For more information, please visit www.saba.com or call (877) SABA-101 or (650) 779-2791.

Saba, the Saba logo, and the marks relating to other Saba products and services referenced herein are either trademarks or registered trademarks of Saba Software, Inc. All other trademarks are the property of their respective owners.