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| R      | ANNUAL REPORT PURSUANT TO      SECTION 13OR      15(d)OF THE      SECURITIES EXCHANGE ACT OF 1934     |
|--------|------------------------------------------------------------------------------------------------------------|
|   |                                                                                                       |
|   | For the fiscal year      endedDecember 31,      2008                                                  |
|   |                                                                                                       |
| or     |
|   |                                                                                                       |
| £ | TRANSITION REPORT PURSUANT      TOSECTION 13      OR 15(d)OF THE      SECURITIES EXCHANGE ACT OF 1934 |
|   |                                                                                                       |
|   | For the transition period      from        to                      |

| Delaware                                                                 | 52-2190418                                        |
|--------------------------------------------------------------------------|---------------------------------------------------|
| (State or other      jurisdiction of incorporation      or organization) | (I.R.S. Employer      Identification      Number) |

| Title of Each Class                                     | Name of Each Exchange on Which      Registered |
|---------------------------------------------------------|------------------------------------------------|
| Class A      Common Stock, $0.00001 par value | The      Nasdaq Stock MarketLLC                |

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| Large      accelerated filer £ | Accelerated      filer R | Non-accelerated      filer £             | Smaller      reporting company £ |
|------------------------------------------|-------------------------------|----------------------------------------------------|--------------------------------------------|
|                                     |                          | (Do      not check if a smaller reporting company) |                                       |

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PORAT

|          |   | Explanatory      Note Regarding Restatement                                                                             |           |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------|----------------|
|          |   | Forward-Looking      Information                                                                                        |           |
| PART I   |
| ITEM      1   |   | Business                                                                                                                |  5        |
| ITEM      1A  |   | Risk Factors                                                                                                            |  15       |
| ITEM      1B  |   | Unresolved Staff Comments                                                                                               |   30 |
| ITEM      2   |   | Properties                                                                                                              |   30 |
| ITEM      3   |   | Legal Proceedings                                                                                                       |   31 |
| ITEM      4   |   | Submission of Matters to a Vote of Security      Holder                                                                 |   32 |
| PART II  |
| ITEM      5   |   | Market for Registrant’s Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities |   33 |
| ITEM      6   |   | Selected Financial Data                                                                                                 |   35 |
| ITEM      7   |   | Management’s Discussion and Analysis of Financial Condition and      Results of Operations                        |   37 |
| ITEM      7A  |   | Quantitative and Qualitative Disclosures About Market      Risk                                                         |   53 |
| ITEM      8   |   | Financial Statements and Supplementary Data                                                                             |   54 |
| ITEM      9   |   | Changes in and Disagreements With Accountants on Accounting and      Financial Disclosure                               | 104            |
| ITEM      9A  |   | Controls and Procedures                                                                                                 | 104            |
| ITEM      9B  |   | Other Information                                                                                                       | 105            |
| PART III |
| ITEM      10  |   | Directors, Executive Officers and Corporate      Governance                                                             | 106            |
| ITEM      11  |   | Executive Compensation                                                                                                  | 106            |
| ITEM      12  |   | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters                     | 107            |
| ITEM      13  |   | Certain Relationships and Related Transactions, and Director      Independence                                          | 107            |
| ITEM      14  |   | Principal Accounting Fees and Services                                                                                  | 107            |
| PART IV  |
| ITEM      15  |   | Exhibits, Financial Statements Schedules                                                                                | 107            |
| Signatures    | 108    |

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USIN

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|   | • | Product      performance and functionality; |
|--------|---------|---------------------------------------------|

|   | • | Breadth      and depth of functionality; |
|--------|---------|------------------------------------------|

|   | • | Ease      of implementation and use; |
|--------|---------|--------------------------------------|

|   | • | Security      and data privacy; |
|--------|---------|---------------------------------|

|   | • | Ability      to integrate with third-partysolutions; |
|--------|---------|------------------------------------------------------|

|   | • | Scalability      and reliability; |
|--------|---------|-----------------------------------|

|   | • | Company      reputation; and |
|--------|---------|-----------------------------------|

|   | • | Price. |
|--------|---------|--------|

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| Date of Closing    |   | Company                                                  |   | Details                                                                                                                                                                                   |
|--------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| July      1, 2008  |   | Vurv      Technology, Inc. (“Vurv”)                                                                                                                                                                                                                                                               |   | The      Vurv acquisition enhanced our solutions with the Vurv talent management      solution, and provided new customer relationships and intellectual      property.                                                                                                                                                                                                                                                              |
| July      3, 2007  |   | Wetfeet,      Inc. (“Wetfeet”)                                                                                                                                                                                                                                                                    |   | Taleo      acquired certain assets associated with the Wetfeet hiring management      solution, including customer contracts, from Wetfeet, Inc. and its parent      Universum Communications Holdings, Inc.                                                                                                                                                                                                                         |
| March      7, 2007 |   | JobFlash,      Inc. (“JobFlash”)                                                                                                                                                                                                                                                                  |   | Taleo      acquired certain assets of JobFlash, Inc., including customer contracts      and intellectual property related to hourly hiring management, scheduling      management and voice recognition tools for hiring management. The assets      acquired provided the basis for our Taleo Scheduling Center solution,      Taleo Voice Response and hourly hiring management tools for our Taleo      Business Editionsolution. |

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FAC

|   | • | we      may have difficulty renewing former Vurv customers at the expiration of      their current agreements; |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

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|   | • | we      may be unable to convert certain Vurv customers—including in particular      those that previously entered into perpetual licenses and customer      on-premise hosting arrangements—to the Taleo platform and our vendor      hosted, subscription model; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      may find it difficult to support or migrate Vurv customers that are using      specific customized versions of the Vurv software to our solutions, as we      historically have maintained a single version of each release of our      software applications without customer-specific code      customization; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      may have difficultly identifying and correcting deficiencies in Vurv’s      internal controls over financialreporting; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      terminated a significant number of Vurv employees in connection with the      acquisition, and may have difficulty retaining key Vurv employees over      time; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      will incur additional expense to maintain and support the Vurv product      lines for up to three years while customers are migrated to the Taleo      platform; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      may find it difficult to integrate Vurv’s hosting infrastructure and      operations with our own hostingoperations; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Jacksonville,      Florida may be more expensive or less productive than we anticipate as a      software development and support location;and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      may not have sufficient cash balances to fund other investments that      become available to us over time as a result of our decreased cash balance      due to the cash consideration paid in connection with the acquisition, or      we may be required to seek additional sources of funding in order to make      new investments. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |        • | the      price, performance and functionality of our  solutions; |
|--------|---------------------|------------------------------------------------------------------|

|   |        • | the      availability, price, performance and functionality of competing products      and services; |
|--------|---------------------|------------------------------------------------------------------------------------------------------|

|   |        • | the      effectiveness of our maintenance and support  services; |
|--------|---------------------|------------------------------------------------------------------|

|   |        • | our      ability to develop complementary products and      services; and |
|--------|---------------------|--------------------------------------------------------------------------------|

|   |        • | the      stability, performance and security of our hosting infrastructure and      hosting services. |
|--------|---------------------|-------------------------------------------------------------------------------------------------------|

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|   | • | our      operating performance and the performance of other similar      companies; |
|--------|---------|-------------------------------------------------------------------------------------|

|   | • | overall      performance of the equity markets; |
|--------|---------|-------------------------------------------------|

|   | • | developments      with respect to intellectual propertyrights; |
|--------|---------|----------------------------------------------------------------|

|   | • | publication      of unfavorable research reports about us or our industry or withdrawal of      research; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | coverage      by securities analysts or lack of coverage by securities      analysts; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | speculation      in the press or investmentcommunity; |
|--------|---------|-------------------------------------------------------|

|   | • | general      economic conditions and data and the impact of such conditions and data on      the equity markets; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | terrorist      acts; and |
|--------|---------|--------------------------|

|   | • | announcements      by us or our competitors of significant contracts, new technologies,      acquisitions, commercial relationships, joint ventures, or capital      commitments. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |        • | the      complex nature of our solutions; |
|--------|---------------------|-------------------------------------------|

|   |        • | the      need to educate potential customers about the uses and benefits of our      solutions; |
|--------|---------------------|-------------------------------------------------------------------------------------------------|

|   |        • | the      relatively long duration of ourcontracts; |
|--------|---------------------|----------------------------------------------------|

|   |        • | the      discretionary nature of our customers’ purchase and budget      cycles; |
|--------|---------------------|----------------------------------------------------------------------------------------|

|   |        • | the      competitive evaluation of oursolutions; |
|--------|---------------------|--------------------------------------------------|

|   |        • | fluctuations      in the staffing management requirements of our prospective      customers; |
|--------|---------------------|----------------------------------------------------------------------------------------------|

|   |        • | announcements      or planned introductions of new products by us or our      competitors; and |
|--------|---------------------|-----------------------------------------------------------------------------------------------------|

|   |        • | the      lengthy purchasing approval processes of our prospective      customers. |
|--------|---------------------|-----------------------------------------------------------------------------------|

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|   | • | being      unable to achieve the anticipated benefits from our      acquisitions; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | discovering      that we may have difficulty integrating the accounting systems,      operations, and personnel of the acquired business, and may have      difficulty retaining the key personnel of the acquired      business; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      ongoing business and management’s attention may be disrupted or diverted      by transition or integration issues and the complexity of managing      geographically and culturally diverselocations; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | difficulty      incorporating the acquired technologies or products into our existing code      base; |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | problems      arising from differences in the revenue, licensing or support model of the      acquired business; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | customer      confusion regarding the positioning of acquired technologies or      products; |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | • | difficulty      maintaining uniform standards, controls, procedures and policies across      locations; |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | • | difficulty      retaining the acquired business’ customers;and |
|--------|---------|----------------------------------------------------------------------|

|   | • | problems      or liabilities associated with product quality, technology and legal      contingencies. |
|--------|---------|--------------------------------------------------------------------------------------------------------|

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|   |   • | lost      or delayed market acceptance and sales of our  products; |
|--------|----------------|--------------------------------------------------------------------|

|   |   • | loss      of customers; |
|--------|----------------|-------------------------|

|   |   • | product      liability and breach of warranty suits against  us; |
|--------|----------------|------------------------------------------------------------------|

|   |   • | diversion      of development and supportresources; |
|--------|----------------|-----------------------------------------------------|

|   |   • | injury      to our reputation; and |
|--------|----------------|------------------------------------|

|   |   • | Increased      maintenance and warranty costs. |
|--------|----------------|------------------------------------------------|

|   |   • | human      error; |
|--------|----------------|-------------------|

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|   |   • | physical      or electronic security breaches; |
|--------|----------------|------------------------------------------------|

|   |   • | telecommunications      outages from third-party providers; |
|--------|----------------|-------------------------------------------------------------|

|   |   • | computer      viruses; |
|--------|---------------------|------------------------|

|   |   • | acts      of terrorism or sabotage; |
|--------|----------------|-------------------------------------|

|   |   • | fire,      earthquake, flood and other natural disasters;  and |
|--------|----------------|----------------------------------------------------------------|

|   |   • | power      loss. |
|--------|----------------|------------------|

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|   |   • | unexpected      changes in regulatory requirements, taxes, trade laws, tariffs, export      quotas, custom duties or other trade  restrictions; |
|--------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | differing      regulations in Quebec with regard to maintaining operations, products and      public information in both French andEnglish; |
|--------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | differing      labor regulations, especially in the European Union and Quebec, where      labor laws are generally more advantageous to employees as compared to the      United States, including deemed hourly wage and overtime regulations in      these locations; |
|--------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | more      stringent regulations relating to data privacy and the unauthorized use      of, or access to, commercial and personal information, particularly in      Europe and Canada; |
|--------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | reluctance      to allow personally identifiable data related to non-U.S. citizens to be      stored in databases within the United States, due to concerns over the      United States government’s right to access personally identifiable data of      non-U.S. citizens stored in databases within the United States or other      concerns; |
|--------|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | greater      difficulty in supporting and localizing our  products; |
|--------|----------------|---------------------------------------------------------------------|

|   |   • | greater      difficulty in localizing our marketing materials and legal agreements,      including translations of these materials into local    language; |
|--------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | changes      in a specific country’s or region’s political or economic      conditions; |
|--------|----------------|-----------------------------------------------------------------------------------------------------|

|   |   • | challenges      inherent in efficiently managing an increased number of employees or      independent contractors over large geographic distances, including the      need to implement appropriate systems, policies, benefits and compliance      programs; |
|--------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   • | limited      or unfavorable intellectual property protection;  and |
|--------|----------------|--------------------------------------------------------------------|

|   |   • | restrictions      on repatriation of earnings. |
|--------|----------------|------------------------------------------------|

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|   |   • | require      costly litigation to resolve and the payment of substantial      damages; |
|--------|----------------|----------------------------------------------------------------------------------------|

|   |   • | require      significant management time; |
|--------|----------------|-------------------------------------------|

|   |   • | cause      us to enter into unfavorable royalty or license  agreements; |
|--------|----------------|-------------------------------------------------------------------------|

|   |   • | require      us to discontinue the sale of ourproducts; |
|--------|----------------|---------------------------------------------------------|

|   |   • | require      us to indemnify our customers or third-party service providers;      or |
|--------|----------------|--------------------------------------------------------------------------------------|

|   |   • | require      us to expend additional development resources to redesign our      products. |
|--------|----------------|-------------------------------------------------------------------------------------------|

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SOLVE

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EGIST

|                                           |   | High   |   |   | Low    |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| For      the year ended December 31, 2008 |   |   |   |   |   |   |
| Fourth      quarter                            |   | $      | 20.26  |   |   | $      | 5.69 |   |
| Third      quarter                             |   |   | 25.75  |   |   |   | 17.38 |   |
| Second      quarter                            |   |   | 21.66  |   |   |   | 17.28 |   |
| First      quarter                             |   |   | 29.00  |   |   |   | 16.72 |   |
| For      the year ended December 31, 2007 |   |   |   |   |   |   |   |   |
| Fourth      quarter                            |   | $      | 33.97  |   |   | $      | 24.07 |   |
| Third      quarter                             |   |   | 26.07  |   |   |   | 20.23 |   |
| Second      quarter                            |   |   | 22.54  |   |   |   | 15.25 |   |
| First      quarter                             |   |   | 16.82  |   |   |   | 12.06 |   |

|     Period                            |   |   Total      Number of Shares      Purchased |    |   |   PricePaid per Share |   |    | Total      Number ofShares      Purchased as Part of PubliclyAnnounced      Plansor Programs |   |   | Maximum      DollarValue      of Sharesthat      May Yet BePurchased      underthe Plans or Programs |   |
|-----------------------------------------------------------|--------|--------------------------------------------------------|---------|--------|---------------------------------|--------|---------|----------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                                      |   |                                                   |    |   |                            |   |    |                                                                                         |   |   |                                                                                                 |   |
| October 1,      2008 through October 31, 2008   |   |                                                   | 13,696  |   |                            | $      | 20.26   | (2)                                                                                          |   |   | —                                                                                              |   |   |   | — |   |
| November 1,      2008 through November 30, 2008 |   |                                                   | — |   |                            |   | — |                                                                                         |   |   | —                                                                                              |   |   |   | — |   |
| December 1,      2008 through December 31, 2008 |   |                                                   | — |   |                            |   | — |                                                                                         |   |   | —                                                                                              |   |   |   | — |   |
|                                                      |   |                                                   | 13,696  |   |                            | $      | 20.26   | (2)                                                                                          |   |   | —                                                                                              |   |   |   | — |   |

| (1)    | In      connection with our awards of restricted stock and/or performance shares,      we repurchase common stock from employees as consideration for the payment      of required withholding taxes. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                  |
| (2)    | Represents      the weighted average price pershare.                                                                                                                                                  |

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ECTED

|                                                                                                             |   | Year      Ended December 31,          |    |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                             |   | 2008                                       |    |   | 2007      (1) |   |   | 2006      (1) |   |   | 2005      (2) |   |   | 2004      (2) |   |
|                                                                                                             |   | (In      thousands, except per share data) |    |
|                                                                                                             |   |                                       |    |   | As      restated |   |   | As      restated |   |   | As      reported |   |   | Adjustments |   |   | As      restated |   |   | As      reported |   |   | Adjustments |   |   | As      restated |   |
| Consolidated      Statements of Operations Data(3):                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                                                                                         |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                                      |   | $                                          | 138,628 |   |   | $ | 105,032 |   |   | $ | 79,116 |   |   | $ | 63,296 |   |   | $ | (27 | ) |   | $ | 63,269 |   |   | $ | 49,010 |   |   | $ | - |   |   | $ | 49,010 |   |
| Consulting                                                                                                       |   |                                       | 29,791  |   |   |   | 23,038 |   |   |   | 15,864 |   |   |   | 15,114 |   |   |   | (6,169 | ) |   |   | 8,945 |   |   |   | 9,640 |   |   |   | (5,122 | ) |   |   | 4,518 |   |
| Total      revenue                                                                                               |   |                                       | 168,419 |   |   |   | 128,070 |   |   |   | 94,980 |   |   |   | 78,410 |   |   |   | (6,196 | ) |   |   | 72,214 |   |   |   | 58,650 |   |   |   | (5,122 | ) |   |   | 53,528 |   |
| Cost      of revenue:                                                                                            |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                                      |   |                                       | 32,390  |   |   |   | 22,577 |   |   |   | 19,351 |   |   |   | 16,419 |   |   |   | (8 | ) |   |   | 16,411 |   |   |   | 14,627 |   |   |   | - |   |   |   | 14,627 |   |
| Consulting                                                                                                       |   |                                       | 25,183  |   |   |   | 18,005 |   |   |   | 12,807 |   |   |   | 11,058 |   |   |   | - |   |   |   | 11,058 |   |   |   | 8,276 |   |   |   | - |   |   |   | 8,276 |   |
| Total      cost of revenue                                                                                       |   |                                       | 57,573  |   |   |   | 40,582 |   |   |   | 32,158 |   |   |   | 27,477 |   |   |   | (8 | ) |   |   | 27,469 |   |   |   | 22,903 |   |   |   | - |   |   |   | 22,903 |   |
| Gross      profit                                                                                                |   |                                       | 110,846 |   |   |   | 87,488 |   |   |   | 62,822 |   |   |   | 50,933 |   |   |   | (6,188 | ) |   |   | 44,745 |   |   |   | 35,747 |   |   |   | (5,122 | ) |   |   | 30,625 |   |
| Operating      expenses:                                                                                         |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                                         |   |                                       | 53,758  |   |   |   | 36,871 |   |   |   | 29,528 |   |   |   | 22,544 |   |   |   | (63 | ) |   |   | 22,481 |   |   |   | 18,153 |   |   |   | - |   |   |   | 18,153 |   |
| Research      and development                                                                                    |   |                                       | 30,937  |   |   |   | 22,968 |   |   |   | 19,525 |   |   |   | 16,687 |   |   |   | (37 | ) |   |   | 16,650 |   |   |   | 15,932 |   |   |   | - |   |   |   | 15,932 |   |
| General      and administrative                                                                                  |   |                                       | 32,653  |   |   |   | 23,684 |   |   |   | 21,030 |   |   |   | 10,725 |   |   |   | 104 |   |   |   | 10,829 |   |   |   | 7,096 |   |   |   | 62 |   |   |   | 7,158 |   |
| Restructuring      and severance expense                                                                         |   |                                       | 1,914   |   |   |   | - |   |   |   | 414 |   |   |   | 804 |   |   |   | - |   |   |   | 804 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      operating expenses                                                                                    |   |                                       | 119,262 |   |   |   | 83,523 |   |   |   | 70,497 |   |   |   | 50,760 |   |   |   | 4 |   |   |   | 50,764 |   |   |   | 41,181 |   |   |   | 62 |   |   |   | 41,243 |   |
| Operating      income (loss)                                                                                     |   |                                       | (8,416  | ) |   |   | 3,965 |   |   |   | (7,675 | ) |   |   | 173 |   |   |   | (6,192 | ) |   |   | (6,019 | ) |   |   | (5,434 | ) |   |   | (5,184 | ) |   |   | (10,618 | ) |
| Other      income (expense):                                                                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                             |   |                                       | 1,717   |   |   |   | 3,045 |   |   |   | 2,891 |   |   |   | 873 |   |   |   | - |   |   |   | 873 |   |   |   | 101 |   |   |   | - |   |   |   | 101 |   |
| Interest      expense                                                                                            |   |                                       | (199    | ) |   |   | (137 | ) |   |   | (107 | ) |   |   | (1,273 | ) |   |   | - |   |   |   | (1,273 | ) |   |   | (404 | ) |   |   | - |   |   |   | (404 | ) |
| Fees      for early extinguishment of debt                                                                       |   |                                       | -       |   |   |   | - |   |   |   | - |   |   |   | (2,264 | ) |   |   | - |   |   |   | (2,264 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      other income (expense), net                                                                           |   |                                       | 1,518   |   |   |   | 2,908 |   |   |   | 2,784 |   |   |   | (2,664 | ) |   |   | - |   |   |   | (2,664 | ) |   |   | (303 | ) |   |   | - |   |   |   | (303 | ) |
| Income      (loss) before provision (benefit) for income taxes                                                   |   |                                       | (6,898  | ) |   |   | 6,873 |   |   |   | (4,891 | ) |   |   | (2,491 | ) |   |   | (6,192 | ) |   |   | (8,683 | ) |   |   | (5,737 | ) |   |   | (5,184 | ) |   |   | (10,921 | ) |
| Provision      (benefit) for income taxes                                                                        |   |                                       | 1,303   |   |   |   | 3,083 |   |   |   | (323 | ) |   |   | 4 |   |   |   | - |   |   |   | 4 |   |   |   | (11 | ) |   |   | - |   |   |   | (11 | ) |
| Net      income (loss)                                                                                           |   |                                       | (8,201  | ) |   |   | 3,790 |   |   |   | (4,568 | ) |   |   | (2,495 | ) |   |   | (6,192 | ) |   |   | (8,687 | ) |   |   | (5,726 | ) |   |   | (5,184 | ) |   |   | (10,910 | ) |
| Accrual      of dividends and issuance costs on preferred stock                                                  |   |                                       | -       |   |   |   | - |   |   |   | - |   |   |   | (2,984 | ) |   |   | - |   |   |   | (2,984 | ) |   |   | (3,299 | ) |   |   | - |   |   |   | (3,299 | ) |
| Net      income (loss) attributable to Class A common    stockholders                                       |   | $                                          | (8,201  | ) |   | $ | 3,790 |   |   | $ | (4,568 | ) |   | $ | (5,479 | ) |   | $ | (6,192 | ) |   | $ | (11,671 | ) |   | $ | (9,025 | ) |   | $ | (5,184 | ) |   | $ | (14,209 | ) |
| Net      income (loss) attributable to Class A common stockholders per      share — basic        |   | $                                          | (0.30   | ) |   | $ | 0.16 |   |   | $ | (0.23 | ) |   | $ | (1.19 | ) |   | $ | (1.34 | ) |   | $ | (2.53 | ) |   | $ | (161.16 | ) |   | $ | (92.57 | ) |   | $ | (253.73 | ) |
| Net      income (loss) loss attributable to Class A common stockholders per      share — diluted |   | $                                          | (0.30   | ) |   | $ | 0.13 |   |   | $ | (0.23 | ) |   | $ | (1.19 | ) |   | $ | (1.34 | ) |   | $ | (2.53 | ) |   | $ | (161.16 | ) |   | $ | (92.57 | ) |   | $ | (253.73 | ) |
| Weighted-average      Class A common shares — basic                                              |   |                                       | 27,569  |   |   |   | 24,116 |   |   |   | 20,031 |   |   |   | 4,619 |   |   |   | 4,619 |   |   |   | 4,619 |   |   |   | 56 |   |   |   | 56 |   |   |   | 56 |   |
| Weighted-average      Class A common shares — diluted(4)                                         |   |                                       | 27,569  |   |   |   | 28,777 |   |   |   | 20,031 |   |   |   | 4,619 |   |   |   | 4,619 |   |   |   | 4,619 |   |   |   | 56 |   |   |   | 56 |   |   |   | 56 |   |

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|                                                         |   | As      of December 31, |    |
|--------------------------------------------------------------|--------|------------------------------|---------|
|                                                         |   | 2008                         |    |   | 2007 (1) |   |   | 2006 (2) |   |   | 2005 (2) |   |   | 2004 (2) |   |
|                                                         |   | ($      In thousands)        |    |
|                                                         |   |                         |    |   | As restated |   |   | As restated |   |   | As reported |   |   | Adjustments |   |   | As restated |   |   | As reported |   |   | Adjustments |   |   | As restated |   |
| Consolidated      balance sheet data:                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                               |   | $                            | 49,462  |   |   | $ | 86,135 |   |   | $ | 58,785 |   |   | $ | 59,346 |   |   | $ | 12 |   |   | $ | 59,358 |   |   | $ | 5,773 |   |   | $ | 21 |   |   | $ | 5,794 |   |
| Working      capital (deficit)                               |   |                         | 19,594  |   |   |   | 60,515 |   |   |   | 49,310 |   |   |   | 58,497 |   |   |   | (7,295 | ) |   |   | 51,202 |   |   |   | (1,371 | ) |   |   | (3,611 | ) |   |   | (4,982 | ) |
| Total      assets                                            |   |                         | 283,189 |   |   |   | 164,821 |   |   |   | 118,571 |   |   |   | 99,020 |   |   |   | (12 | ) |   |   | 99,008 |   |   |   | 38,648 |   |   |   | 27 |   |   |   | 38,675 |   |
| Long-term      debt(5)                                       |   |                         | 519     |   |   |   | 16 |   |   |   | 17 |   |   |   | 399 |   |   |   | 21 |   |   |   | 420 |   |   |   | 2,573 |   |   |   | - |   |   |   | 2,573 |   |
| Total      preferred stock and exchangeable share obligation |   |                         | -       |   |   |   | 331 |   |   |   | 796 |   |   |   | 1,715 |   |   |   | - |   |   |   | 1,715 |   |   |   | 52,073 |   |   |   | - |   |   |   | 52,073 |   |
| Total      stockholders’ equity (deficit)              |   |                         | 172,421 |   |   |   | 85,668 |   |   |   | 61,155 |   |   |   | 71,698 |   |   |   | (14,348 | ) |   |   | 57,350 |   |   |   | (42,996 | ) |   |   | (8,139 | ) |   |   | (51,135 | ) |

| (1) | See      Note 2 “Restatement of Consolidated Financial Statements” of the      Notes to Consolidated Financial Statements for a discussion of these      adjustments. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      consolidated statements of operations data for the years ended December      31, 2005 and 2004, and the consolidated balance sheet data as of      December 31, 2006, 2005 and 2004 have been revised to reflect adjustments      related to the restatement described below under “Management’s Discussion      and Analysis of Financial Condition and Results of Operations —      Restatement” and Note 2 of the Notes to Consolidated Financial      Statements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | We      acquired Recruitforce.com, Inc. in March 2005, certain assets of JobFlash,      Inc. in March 2007, certain assets of Wetfeet, Inc. in July 2007, and Vurv      Technology, Inc. in July 2008. Our consolidated statement of operations      and balance sheet data include the results of Recruitforce.com, JobFlash,      Wetfeet and Vurv Technology only for periods subsequent to      October 21, 2003, March 10, 2005, March 7, 2007,      July 3, 2007, and July 1, 2008, respectively. See Item 7, “      Management’s Discussion      and Analysisof      Financial Condition and Results of Operations” and      Note 3 “Business Combinations and Dispositions” of the Notes to      Consolidated Financial Statements for additional information regarding our      acquisitions with respect to JobFlash, Inc., Wetfeet, Inc., and Vurv      Technology, Inc. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Exchangeable      shares, redeemable convertible preferred stock, stock options, and      warrants are not included if antidilutive for the periods presented. See      Note 8 “Preferred Stock” and Note 9 “Common Stock” of      the Notes to Consolidated FinancialStatements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes      long-term debt and capital leases related to production equipment and      internal use software. See Note 11  “Commitments and Contingencies”      of the Notes to Consolidated Financial  Statements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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MANA

|   | (1) | Our      consolidated balance sheet as of December 31, 2007 and the related      consolidated statements of operations, stockholders’ equity, and cash      flows for each of the fiscal years ended December 31, 2006 and      2007; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Our      selected financial data as of and for our fiscal years ended      December 31, 2004, 2005, 2006, and 2007 located in Item 6 of      this Form 10-K; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Our      management’s discussion and analysis of financial condition and results of      operations as of and for our fiscal years ended December 31, 2006 and      2007 contained herein; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Our      unaudited quarterly financial information for each quarter in our fiscal      year ended December 31, 2007, and for the quarters ended March 31,      2008 and June 30, 2008 in Note 16, “Selected Quarterly Financial Data      (Unaudited)” of the Notes to Consolidated Financial Statements in      Item 8 of this Form 10-K. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |        • | persuasive      evidence of an agreement exists; |
|--------|---------------------|--------------------------------------------------|

|   |        • | delivery      has occurred; |
|--------|---------------------|-----------------------------|

|   |        • | fees      are fixed or determinable; and |
|--------|---------------------|------------------------------------------|

|   |        • | the      collection of fees is consideredprobable. |
|--------|---------------------|----------------------------------------------------|

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|   | • | fees      paid for subscription services; |
|--------|---------|-------------------------------------------|

|   | • | amortization      of any related set-up fees; and |
|--------|---------|---------------------------------------------------|

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|                                                      |   | Year Ended December 31, |   |
|-----------------------------------------------------------|--------|-------------------------|--------|
|                                                      |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
| Condensed      Consolidated Statement of Operations Data: |   |                    |   |   |   |   |   |   |   |
|                                                      |   |                    |   |   |   |   |   |   |   |
| Revenue:                                                  |   |                    |   |   |   |   |
| Application                                               |   |                    | 82     | % |   |   | 82 | % |   |   | 83 | % |
| Consulting                                                |   |                    | 18     | % |   |   | 18 | % |   |   | 17 | % |
| Total      revenue                                        |   |                    | 100    | % |   |   | 100 | % |   |   | 100 | % |
| Cost      of revenue (as a percent of related revenue):   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Application                                               |   |                    | 23     | % |   |   | 21 | % |   |   | 24 | % |
| Consulting                                                |   |                    | 85     | % |   |   | 78 | % |   |   | 81 | % |
| Total      cost of revenue                                |   |                    | 34     | % |   |   | 32 | % |   |   | 34 | % |
| Gross      profit                                         |   |                    | 66     | % |   |   | 68 | % |   |   | 66 | % |
| Operating      expenses:                                  |   |                    |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                  |   |                    | 32     | % |   |   | 29 | % |   |   | 31 | % |
| Research      and development                             |   |                    | 18     | % |   |   | 18 | % |   |   | 21 | % |
| General      and administrative                           |   |                    | 19     | % |   |   | 18 | % |   |   | 22 | % |
| Restructuring                                             |   |                    | 1      | % |   |   | 0 | % |   |   | 0 | % |
| Total      operating expenses                             |   |                    | 71     | % |   |   | 65 | % |   |   | 74 | % |
| Operating      income / (loss)                            |   |                    | -5     | % |   |   | 3 | % |   |   | -8 | % |
| Other      income (expense):                              |   |                    |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                      |   |                    | 1      | % |   |   | 2 | % |   |   | 3 | % |
| Interest      expense                                     |   |                    | 0      | % |   |   | 0 | % |   |   | 0 | % |
| Total      other income, net                              |   |                    | 1      | % |   |   | 2 | % |   |   | 3 | % |
| Income      / (loss) before provision for income taxes    |   |                    | -4     | % |   |   | 5 | % |   |   | -5 | % |
| Provision      for income taxes                           |   |                    | 1      | % |   |   | 2 | % |   |   | 0 | % |
| Net      income / (loss)                                  |   |                    | -5     | % |   |   | 3 | % |   |   | -5 | % |

|                     |   | Year ended December 31, |    |   |   |   |    |     |   |
|--------------------------|--------|-------------------------|---------|--------|--------|--------|---------|----------|--------|
|                     |   | 2008                    |    |   | 2007   |   |    | $ change |   |   | % change |   |
|                     |   | (In      thousands)     |    |   |   |   |    |     |   |
| Application      revenue |   | $                       | 138,628 |   |   | $      | 105,032 |     |   | $ | 33,596 |   |   |   | 32 | % |
| Consulting      revenue  |   |                    | 29,791  |   |   |   | 23,038  |     |   |   | 6,753 |   |   |   | 29 | % |
| Total      revenue       |   | $                       | 168,419 |   |   | $      | 128,070 |     |   | $ | 40,349 |   |   |   | 32 | % |

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|                               |   | Year ended December 31, |   |   |   |   |   |     |   |
|------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                               |   | 2008                    |   |   | 2007   |   |   | $ change |   |   | % change |   |
|                               |   | (In      thousands)     |   |   |   |   |   |     |   |
| Cost      of revenue - application |   | $                       | 32,390 |   |   | $      | 22,577 |     |   | $ | 9,813 |   |   |   | 43 | % |
| Cost      of revenue - consulting  |   |                    | 25,183 |   |   |   | 18,005 |     |   |   | 7,178 |   |   |   | 40 | % |
| Cost      of revenue - total       |   | $                       | 57,573 |   |   | $      | 40,582 |     |   | $ | 16,991 |   |   |   | 42 | % |

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|                                  |   | Year ended December 31, |    |   |   |   |   |     |   |
|---------------------------------------|--------|-------------------------|---------|--------|--------|--------|--------|----------|--------|
|                                  |   | 2008                    |    |   | 2007   |   |   | $ change |   |   | % change |   |
|                                  |   | (In      thousands)     |    |   |   |   |   |     |   |
| Gross      profit                     |   |                    |    |   |   |   |   |     |   |   |   |   |
| Gross      profit — application |   | $                       | 106,238 |   |   | $      | 82,455 |     |   | $ | 23,783 |   |   |   | 29 | % |
| Gross      profit — consulting  |   |                    | 4,608   |   |   |   | 5,033  |     |   |   | (425 | ) |   |   | -8 | % |
| Gross      profit — total       |   | $                       | 110,846 |   |   | $      | 87,488 |     |   | $ | 23,358 |   |   |   | 27 | % |

|                                             |   | Year ended December 31, |   |   |   |   |
|--------------------------------------------------|--------|-------------------------|--------|--------|--------|--------|
|                                             |   | 2008                    |   |   | 2007   |   |   | % change |   |
| Gross      profit percentage                     |   |                    |   |   |   |   |   |   |   |
| Gross      profit percentage — application |   |                    | 77     | %      |   |   | 79 | % |   |   | -2 | % |
| Gross      profit percentage — consulting  |   |                    | 15     | %      |   |   | 22 | % |   |   | -7 | % |
| Gross      profit percentage — total       |   |                    | 66     | %      |   |   | 68 | % |   |   | -2 | % |

|                                     |   | Year ended December 31, |    |   |   |   |   |     |   |
|------------------------------------------|--------|-------------------------|---------|--------|--------|--------|--------|----------|--------|
|                                     |   | 2008                    |    |   | 2007   |   |   | $ change |   |   | % change |   |
|                                     |   | (In      thousands)     |    |   |   |   |   |     |   |
| Sales      and marketing                 |   | $                       | 53,758  |   |   |   | 36,871 |     |   | $ | 16,887 |   |   |   | 46 | % |
| Research      and development            |   |                    | 30,937  |   |   |   | 22,968 |     |   |   | 7,969 |   |   |   | 35 | % |
| General      and administrative          |   |                    | 32,653  |   |   |   | 23,684 |     |   |   | 8,969 |   |   |   | 38 | % |
| Restructuring      and severance expense |   |                    | 1,914   |   |   |   | -      |     |   |   | 1,914 |   |   |   | * |   |
| Total      operating expenses            |   | $                       | 119,262 |   |   | $      | 83,523 |     |   | $ | 35,739 |   |   |   |  43 | %  |

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|                                         |   | Year ended December 31, |   |   |   |   |   |     |   |
|----------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                         |   | 2008                    |   |   | 2007   |   |   | $ change |   |   | % change |   |
|                                         |   | (In      thousands)     |   |   |   |   |   |     |   |
| Contribution      Margin                     |   |                    |   |   |   |   |   |     |   |   |   |   |
| Contribution      margin — application |   | $                       | 75,301 |   |   | $      | 59,487 |     |   | $ | 15,814 |   |   |   | 27 | % |
| Contribution      margin — consulting  |   |                    | 4,608  |   |   |   | 5,033  |     |   |   | (425 | ) |   |   | -8 | % |
| Contribution      margin — total       |   | $                       | 79,909 |   |   | $      | 64,520 |     |   | $ | 15,389 |   |   |   | 24 | % |

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|                         |   | Year ended December 31, |   |   |   |   |   |     |   |
|------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                         |   | 2008                    |   |   | 2007   |   |   | $ change |   |   | % change |   |
|                         |   | (In      thousands)     |   |   |   |   |   |     |   |
| Interest      income         |   | $                       | 1,717  |   |   | $      | 3,045  |     |   | $ | (1,328 | ) |   |   | -44 | % |
| Interest      expense        |   |                    | (199   | )      |   |   | (137   | )        |   |   | (62 | ) |   |   | 45 | % |
| Total      other income, net |   | $                       | 1,518  |   |   | $      | 2,908  |     |   | $ | (1,390 | ) |   |   | -48 | % |

|                            |   | Year ended December 31, |   |   |   |   |   |     |   |
|---------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                            |   | 2008                    |   |   | 2007   |   |   | $ change |   |   | % change |   |
|                            |   | (In      thousands)     |   |   |   |   |   |     |   |
| Provision      for income taxes |   | $                       | 1,303  |   |   | $      | 3,083  |     |   | $ | (1,780 | ) |   |   | -58 | % |

|                     |   | Year ended December 31, |    |   |   |   |   |     |   |
|--------------------------|--------|-------------------------|---------|--------|--------|--------|--------|----------|--------|
|                     |   | 2007                    |    |   | 2006   |   |   | $ change |   |   | % change |   |
|                     |   | (In      thousands)     |    |   |   |   |   |     |   |
| Application      revenue |   | $                       | 105,032 |   |   | $      | 79,116 |     |   | $ | 25,916 |   |   |   | 33 | % |
| Consulting      revenue  |   |                    | 23,038  |   |   |   | 15,864 |     |   |   | 7,174 |   |   |   | 45 | % |
| Total      revenue       |   | $                       | 128,070 |   |   | $      | 94,980 |     |   | $ | 33,090 |   |   |   | 35 | % |

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|                               |   | Year ended December 31, |   |   |   |   |   |     |   |
|------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                               |   | 2007                    |   |   | 2006   |   |   | $ change |   |   | % change |   |
|                               |   | (In      thousands)     |   |   |   |   |   |     |   |
| Cost      of revenue - application |   | $                       | 22,577 |   |   | $      | 19,351 |     |   | $ | 3,226 |   |   |   | 17 | % |
| Cost      of revenue - consulting  |   |                    | 18,005 |   |   |   | 12,807 |     |   |   | 5,198 |   |   |   | 41 | % |
| Cost      of revenue - total       |   | $                       | 40,582 |   |   | $      | 32,158 |     |   | $ | 8,424 |   |   |   | 26 | % |

|                                  |   | Year ended December 31, |   |   |   |   |   |     |   |
|---------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                  |   | 2007                    |   |   | 2006   |   |   | $ change |   |   | % change |   |
|                                  |   | (In      thousands)     |   |   |   |   |   |     |   |
| Gross      profit                     |   |                    |   |   |   |   |   |     |   |   |   |   |
| Gross      profit — application |   | $                       | 82,455 |   |   | $      | 59,765 |     |   | $ | 22,690 |   |   |   | 38 | % |
| Gross      profit — consulting  |   |                    | 5,033  |   |   |   | 3,057  |     |   |   | 1,976 |   |   |   | 65 | % |
| Gross      profit — total       |   | $                       | 87,488 |   |   | $      | 62,822 |     |   | $ | 24,666 |   |   |   | 39 | % |

|                                             |   | Year ended December 31, |   |   |   |   |
|--------------------------------------------------|--------|-------------------------|--------|--------|--------|--------|
|                                             |   | 2007                    |   |   | 2006   |   |   | % change |   |
| Gross      profit percentage                     |   |                    |   |   |   |   |   |   |   |
| Gross      profit percentage — application |   |                    | 79     | %      |   |   | 76 | % |   |   | 3 | % |
| Gross      profit percentage — consulting  |   |                    | 22     | %      |   |   | 19 | % |   |   | 3 | % |
| Gross      profit percentage — total       |   |                    | 68     | %      |   |   | 66 | % |   |   | 2 | % |

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|                                     |   | Year ended December 31, |   |   |   |   |   |     |   |
|------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                     |   | 2007                    |   |   | 2006   |   |   | $ change |   |   | % change |   |
|                                     |   | (In      thousands)     |   |   |   |   |   |     |   |
| Sales      and marketing                 |   | $                       | 36,871 |   |   | $      | 29,528 |     |   | $ | 7,343 |   |   |   | 25 | % |
| Research      and development            |   |                    | 22,968 |   |   |   | 19,525 |     |   |   | 3,443 |   |   |   | 18 | % |
| General      and administrative          |   |                    | 23,684 |   |   |   | 21,030 |     |   |   | 2,654 |   |   |   | 13 | % |
| Restructuring      and severance expense |   |                    | -      |   |   |   | 414    |     |   |   | (414 | ) |   |   | * |   |
| Total      operating expenses            |   | $                       | 83,523 |   |   | $      | 70,497 |     |   | $ | 13,026 |   |   |   | 18 | % |

|                                         |   | Year ended December 31, |   |   |   |   |   |     |   |
|----------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                         |   | 2007                    |   |   | 2006   |   |   | $ change |   |   | % change |   |
|                                         |   | (In      thousands)     |   |   |   |   |   |     |   |
| Contribution      Margin                     |   |                    |   |   |   |   |   |     |   |   |   |   |
| Contribution      margin — application |   | $                       | 59,487 |   |   | $      | 40,240 |     |   | $ | 19,247 |   |   |   | 48 | % |
| Contribution      margin — consulting  |   |                    | 5,033  |   |   |   | 3,057  |     |   |   | 1,976 |   |   |   | 65 | % |
| Contribution      margin — total       |   | $                       | 64,520 |   |   | $      | 43,297 |     |   | $ | 21,223 |   |   |   | 49 | % |

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|                         |   | Year ended December 31, |   |   |   |   |   |     |   |
|------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
|                         |   | 2007                    |   |   | 2006   |   |   | $ change |   |   | % change |   |
|                         |   | (In      thousands)     |   |   |   |   |   |     |   |
| Interest      income         |   | $                       | 3,045  |   |   | $      | 2,891  |     |   | $ | 154 |   |   |   | 5 | % |
| Interest      expense        |   |                    | (137   | )      |   |   | (107   | )        |   |   | (30 | ) |   |   | 28 | % |
| Total      other income, net |   | $                       | 2,908  |   |   | $      | 2,784  |     |   | $ | 124 |   |   |   | 4 | % |

|                                        |   | Year      ended December 31, |   |   |   |   |   |     |   |
|---------------------------------------------|--------|------------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                        |   | 2007                         |   |   | 2006   |   |   | $ change |   |   | % change |   |
|                                        |   | (In      thousands)          |   |   |   |   |   |     |   |
| Provision      / (benefit) for income taxes |   | $                            | 3,083  |   |   | $      | (323   | )        |   | $ | 3,406 |   |   |   | * |   |

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|                                       |   | Year      ended December 31, |    |   |   |   |    |     |   |
|--------------------------------------------|--------|------------------------------|---------|--------|--------|--------|---------|----------|--------|
|                                       |   | 2008                         |    |   | 2007   |   |    | $ change |   |   | % change |   |
|                                       |   | (In      thousands)          |    |   |   |   |    |     |   |
| Cash      provided by operating activities |   | $                            | 17,754  |   |   | $      | 30,190  |     |   | $ | (12,436 | ) |   |   | -41 | % |
| Cash      used in investing activities     |   |                         | (62,843 | )      |   |   | (13,789 | )        |   |   | (49,054 | ) |   |   | 356 | % |
| Cash      provided by financing activities |   |                         | 8,499   |   |   |   | 10,063  |     |   |   | (1,564 | ) |   |   | -16 | % |
|                                       |   |                         |    |   |   |   |    |     |   |   |   |   |   |   |   |   |

|                                       |   | Year      ended December 31, |    |   |   |   |    |     |   |
|--------------------------------------------|--------|------------------------------|---------|--------|--------|--------|---------|----------|--------|
|                                       |   | 2007                         |    |   | 2006   |   |    | $ change |   |   | % change |   |
|                                       |   | (In      thousands)          |    |   |   |   |    |     |   |
| Cash      provided by operating activities |   | $                            | 30,190  |   |   | $      | 9,362   |     |   | $ | 20,828 |   |   |   | 222 | % |
| Cash      used in investing activities     |   |                         | (13,789 | )      |   |   | (12,014 | )        |   |   | (1,775 | ) |   |   | 15 | % |
| Cash      provided by financing activities |   |                         | 10,063  |   |   |   | 2,230   |     |   |   | 7,833 |   |   |   | 351 | % |

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|                                    |   | Total               |   |   | Less Than 1 Year |   |   | 2—3 Years |   |   | 4—5 Years |   |
|-----------------------------------------|--------|---------------------|--------|--------|------------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                                    |   | (In      thousands) |   |
| Capital      lease obligations          |   | $                   | 1,620  |   |             | $      | 1,101  |            |   | $      | 473             |   |   | $ | 46 |   |
| Interest      payments                  |   |                | 87     |   |             |   | 64     |            |   |   | 23              |   |   |   | - |   |
| Facility      leases (1)                |   |                | 7,915  |   |             |   | 3,243  |            |   |   | 3,241           |   |   |   | 1,431 |   |
| Operating      equipment leases         |   |                | 151    |   |             |   | 101    |            |   |   | 50              |   |   |   | - |   |
| Third      party hosting facilities     |   |                | 1,400  |   |             |   | 904    |            |   |   | 496             |   |   |   | - |   |
| Software      contracts                 |   |                | 3,301  |   |             |   | 3,080  |            |   |   | 221             |   |   |   | - |   |
| Total      contractual cash obligations |   | $                   | 14,474 |   |             | $      | 8,493  |            |   | $      | 4,504           |   |   | $ | 1,477 |   |

TATIV

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ENT

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|   |        • | pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of the assets of      Taleo; |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |        • | provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that receipts and expenditures of Taleo are      being made only in accordance with authorizations of management and      directors of Taleo; and |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |        • | provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of Taleo’s assets that could      have a material effect on the financial  statements. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/      Michael      Gregoire                                                   |   | /s/      Katy      Murray                    |
|----------------------------------------------------------------------------------|--------|----------------------------------------------|
| Michael      GregoireChairman      of the Board and Chief Executive Officer |   | Katy      MurrayChief      Financial Officer |
|                                                                             |   |                                         |
| April 30,      2009                                                         |   | April 30,      2009                     |

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| TALEO      CORPORATION AND SUBSIDIARIES                                                                                                                                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                                                                                                                                                        |   |
| (In      thousands, except shares and share data)                                                                                                                                                                       |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                                                                    |   | December      31, |   |
|                                                                                                                                                                                                                    |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                    |   |   |   |   | (As Restated) (1) |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                                                  |   |
| Current      assets:                                                                                                                                                                                                    |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                                                                                                          |   | $ | 49,462 |   |   | $ | 86,135 |   |
| Restricted      cash                                                                                                                                                                                                    |   |   | 521 |   |   |   | 288 |   |
| Accounts      receivables, net of allowances of $884 and $369 at December 31, 2008      and 2007, respectively                                                                                                     |   |   | 49,167 |   |   |   | 30,255 |   |
| Prepaid      expenses and other current assets                                                                                                                                                                          |   |   | 10,977 |   |   |   | 5,694 |   |
| Investment      credits receivable                                                                                                                                                                                      |   |   | 6,087 |   |   |   | 4,734 |   |
| Total      current assets                                                                                                                                                                                               |   |   | 116,214 |   |   |   | 127,106 |   |
| Property      and equipment, net                                                                                                                                                                                        |   |   | 25,250 |   |   |   | 23,178 |   |
| Restricted      cash                                                                                                                                                                                                    |   |   | 515 |   |   |   | 838 |   |
| Goodwill                                                                                                                                                                                                                |   |   | 91,626 |   |   |   | 9,109 |   |
| Other      intangibles, net                                                                                                                                                                                             |   |   | 44,802 |   |   |   | 1,404 |   |
| Other      assets                                                                                                                                                                                                       |   |   | 4,782 |   |   |   | 3,186 |   |
| Total      assets                                                                                                                                                                                                       |   | $ | 283,189 |   |   | $ | 164,821 |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                         |   |
| Current      liabilities:                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                                                                                                                                                           |   | $ | 24,877 |   |   | $ | 20,687 |   |
| Deferred      revenue - application services and customer deposits                                                                                                                                                      |   |   | 54,421 |   |   |   | 32,234 |   |
| Deferred      revenue - consulting services                                                                                                                                                                             |   |   | 16,221 |   |   |   | 13,632 |   |
| Capital      lease obligations, short-term                                                                                                                                                                              |   |   | 1,101 |   |   |   | 38 |   |
| Total      current liabilities                                                                                                                                                                                          |   |   | 96,620 |   |   |   | 66,591 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Long-term      deferred revenue - application services and customer      deposits                                                                                                                                  |   |   | 777 |   |   |   | 273 |   |
| Long-term      deferred revenue - consulting services                                                                                                                                                                   |   |   | 9,594 |   |   |   | 7,236 |   |
| Other      liabilities                                                                                                                                                                                                  |   |   | 3,258 |   |   |   | 4,706 |   |
| Capital      lease obligations, long-term                                                                                                                                                                               |   |   | 519 |   |   |   | 16 |   |
| Commitments      and contingencies (Note 11)                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Class B      Redeemable Common Stock, $0.00001 par value, 4,038,287 shares authorized;      no shares outstanding at December 31, 2008 and 655,652 shares outstanding      at December 31, 2007, respectively |   |   | - |   |   |   | - |   |
| Total      liabilities                                                                                                                                                                                                  |   |   | 110,768 |   |   |   | 78,822 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Exchangeable      share obligation                                                                                                                                                                                      |   |   | - |   |   |   | 331 |   |
| Stockholders’      equity:                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Class A      Common Stock; par value, $0.00001 per share; 150,000,000 shares      authorized; 31,120,614 and 25,442,373 shares outstanding at      December 31, 2008 and 2007, respectively                   |   |   | — |   |   |   | — |   |
| Additional      paid-in capital                                                                                                                                                                                         |   |   | 247,764 |   |   |   | 151,574 |   |
| Accumulated      deficit                                                                                                                                                                                                |   |   | (75,918 | ) |   |   | (67,717 | ) |
| Treasury      stock, at cost, no shares outstanding at December 31, 2008 and 6,900      shares outstanding at December 31, 2007                                                                                    |   |   | — |   |   |   | (195 | ) |
| Accumulated      other comprehensive income                                                                                                                                                                             |   |   | 575 |   |   |   | 2,006 |   |
| Total      stockholders’ equity                                                                                                                                                                                   |   |   | 172,421 |   |   |   | 85,668 |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                   |   | $ | 283,189 |   |   | $ | 164,821 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| (1) See      Note 2 "Restatement of Consolidated Financial Statements" of Notes to      Consolidated Financial Statements.                                                                                    |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| See      Accompanying Notes to Consolidated Financial Statements                                                                                                                                                        |   |

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| TALEO      CORPORATION AND SUBSIDIARIES                                                                                         |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                                                                                      |   |
| (in      thousands, except shares and per share data)                                                                           |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                                                            |   | Year      Ended December 31, |   |
|                                                                                                                            |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                            |   |   |   |   | (As Restated) (1) |   |   | (As Restated) (1) |   |
| Revenue:                                                                                                                        |   |   |   |   |   |   |   |   |   |
| Application                                                                                                                     |   | $ | 138,628 |   |   | $ | 105,032 |   |   | $ | 79,116 |   |
| Consulting                                                                                                                      |   |   | 29,791 |   |   |   | 23,038 |   |   |   | 15,864 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                                                              |   |   | 168,419 |   |   |   | 128,070 |   |   |   | 94,980 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                                                     |   |   | 32,390 |   |   |   | 22,577 |   |   |   | 19,351 |   |
| Consulting                                                                                                                      |   |   | 25,183 |   |   |   | 18,005 |   |   |   | 12,807 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                                                      |   |   | 57,573 |   |   |   | 40,582 |   |   |   | 32,158 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                                               |   |   | 110,846 |   |   |   | 87,488 |   |   |   | 62,822 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                                                        |   |   | 53,758 |   |   |   | 36,871 |   |   |   | 29,528 |   |
| Research      and development                                                                                                   |   |   | 30,937 |   |   |   | 22,968 |   |   |   | 19,525 |   |
| General      and administrative                                                                                                 |   |   | 32,653 |   |   |   | 23,684 |   |   |   | 21,030 |   |
| Restructuring      and severance expense                                                                                        |   |   | 1,914 |   |   |   | - |   |   |   | 414 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                                                   |   |   | 119,262 |   |   |   | 83,523 |   |   |   | 70,497 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income / (loss)                                                                                                  |   |   | (8,416 | ) |   |   | 3,965 |   |   |   | (7,675 | ) |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                                            |   |   | 1,717 |   |   |   | 3,045 |   |   |   | 2,891 |   |
| Interest      expense                                                                                                           |   |   | (199 | ) |   |   | (137 | ) |   |   | (107 | ) |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                                                    |   |   | 1,518 |   |   |   | 2,908 |   |   |   | 2,784 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      / (loss) before provision / (benefit)  for income      taxes                                              |   |   | (6,898 | ) |   |   | 6,873 |   |   |   | (4,891 | ) |
| Provision      / (benefit) for income taxes                                                                                     |   |   | 1,303 |   |   |   | 3,083 |   |   |   | (323 | ) |
| Net      income / (loss)                                                                                                        |   | $ | (8,201 | ) |   | $ | 3,790 |   |   | $ | (4,568 | ) |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income / (loss) per share attributable to Class A common stockholders      — basic                          |   | $ | (0.30 | ) |   | $ | 0.16 |   |   | $ | (0.23 | ) |
| Net      income / (loss) per share attributable to Class A common stockholders      — diluted                        |   | $ | (0.30 | ) |   | $ | 0.13 |   |   | $ | (0.23 | ) |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic                                                                  |   |   | 27,569 |   |   |   | 24,116 |   |   |   | 20,031 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — diluted                                                                |   |   | 27,569 |   |   |   | 28,777 |   |   |   | 20,031 |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) See      Note 2 "Restatement of Consolidated Financial Statements" of Notes to      Consolidated Financial Statements. |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| See      Accompanying Notes to Consolidated Financial Statements.                                                               |   |

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| TALEO      CORPORATION AND SUBSIDIARIES                                                                                         |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED      STATEMENTS OF STOCKHOLDERS’ EQUITY                                                                      |   |
| AND      COMPREHENSIVE INCOME (LOSS)                                                                                            |   |
| Years      Ended December 31, 2008, 2007, and 2006                                                                         |   |
| (In      thousands, except share data)                                                                                          |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                            |   | Common      Stock |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                            |   | Shares |   |   | Par      Value |   |   | Additional      Paid-In-Capital |   |   | Treasury      Stock |   |   | Deferred      Comp |   |   | Accumulated      Deficit |   |   | Accumulated      Comprehensive Other Income (Loss) |   |   | Total      Stockholders' Equity |   |   | Comprehensive      Income (Loss) |   |
| Balances,      January 1, 2006  As Previously Reported                                                           |   |   | 18,755,071 |   |   |   | — |   |   | $ | 124,947 |   |   | $  | — |   |   | $ | (21 | ) |   | $ | (53,701 | ) |   | $ | 473 |   |   | $ | 71,698 |   |   |   |   |
| Prior      period adjustments (1)                                                                                               |   |   | — |   |   |   | — |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (14,297 | ) |   |   | (51 | ) |   |   | (14,348 | ) |   |   |   |
| Balances,      January 1, 2006  As Restated (1)                                                                  |   |   | 18,755,071 |   |   |   | — |   |   |   | 124,947 |   |   |  | - |   |   |   | (21 | ) |   |  | (67,998 | ) |   |   | 422 |   |   |   | 57,350 |   |   |   |   |
| Employee      stock options exercised                                                                                           |   |   | 917,918 |   |   |   | — |   |   |   | 2,355 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2,355 |   |   |   |   |
| Issuance      of ESPP shares                                                                                                    |   |   | 64,513 |   |   |   | — |   |   |   | 616 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 616 |   |   |   |   |
| Warrants      exercised                                                                                                         |   |   | 53,801 |   |   |   | — |   |   |   | 1 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1 |   |   |   |   |
| Shares      issued to former stockholders of White Amber                                                                        |   |   | 30,753 |   |   |   | — |   |   |   | 162 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 162 |   |   |   |   |
| Class B      Common stock exchanged for Class A Common Stock                                                          |   |   | 2,164,476 |   |   |   | — |   |   |   | 961 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 961 |   |   |   |   |
| Shares      acquired for payroll tax payments                                                                                   |   |   | (14,413 | ) |   |   | — |   |   |   | — |   |   |   | (158 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (158 | ) |   |   |   |
| Restricted      shares reacquired or forfeited                                                                                  |   |   | (9,063 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | - |   |   |   |   |
| Issuance      of Restricted shares                                                                                              |   |   | 290,071 |   |   |   | — |   |   |   | 82 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 82 |   |   |   |   |
| Reversal      of deferred compensation due to adoption of    SFAS 123(R)                                                   |   |   | — |   |   |   | — |   |   |   | (21 | ) |   |   | — |   |   |   | 21 |   |   |   | — |   |   |   | — |   |   |   | - |   |   |   |   |
| IPO      related cost                                                                                                           |   |   | — |   |   |   | — |   |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3 |   |   |   |   |
| Stock      based compensation (1)                                                                                               |   |   | — |   |   |   | — |   |   |   | 4,528 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4,528 |   |   |   |   |
| Net      loss (1)                                                                                                               |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (4,568 | ) |   |   | — |   |   |   | (4,568 | ) |   | $ | (4,568 | ) |
| Foreign      currency translation adjustments (1)                                                                               |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (177 | ) |   |   | (177 | ) |   |   | (177 | ) |
| Balances,      December 31, 2006 (1)                                                                                       |   |   | 22,253,127 |   |   |   | — |   |   |   | 133,634 |   |   |   | (158 | ) |   |   | - |   |   |   | (72,566 | ) |   |   | 245 |   |   |   | 61,155 |   |   |   | (4,745 | ) |
| Cumulative      transition adjustment related to the adoption of    FIN 48                                                 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,059 |   |   |   | — |   |   |   | 1,059 |   |   |   |   |   |
| Employee      stock options exercised                                                                                           |   |   | 1,438,610 |   |   |   | — |   |   |   | 9,439 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 9,439 |   |   |   |   |   |
| Issuance      of ESPP shares                                                                                                    |   |   | 143,992 |   |   |   | — |   |   |   | 1,018 |   |   |   | 608 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,626 |   |   |   |   |   |
| Warrants      exercised                                                                                                         |   |   | 356,200 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | - |   |   |   |   |   |
| Class B      Common stock exchanged for Class A Common Stock                                                          |   |   | 1,218,159 |   |   |   | — |   |   |   | 548 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 548 |   |   |   |   |   |
| Shares      acquired for payroll tax payments                                                                                   |   |   | (34,678 | ) |   |   | — |   |   |   | — |   |   |   | (645 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (645 | ) |   |   |   |   |
| Restricted      shares reacquired or forfeited                                                                                  |   |   | (16,193 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | - |   |   |   |   |   |
| Issuance      of restricted shares                                                                                              |   |   | 83,156 |   |   |   | — |   |   |   | 248 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 248 |   |   |   |   |   |
| Stock      based compensation (1)                                                                                               |   |   | — |   |   |   | — |   |   |   | 6,687 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 6,687 |   |   |   |   |   |
| Net      income (1)                                                                                                             |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,790 |   |   |   | — |   |   |   | 3,790 |   |   | $ | 3,790 |   |
| Foreign      currency translation adjustments (1)                                                                               |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | - |   |   |   | 1,761 |   |   |   | 1,761 |   |   |   | 1,761 |   |
| Balances,      December 31, 2007 (1)                                                                                       |   |   | 25,442,373 |   |   |   | — |   |   |   | 151,574 |   |   |   | (195 | ) |   |   | - |   |   |   | (67,717 | ) |   |   | 2,006 |   |   |   | 85,668 |   |   |   | 5,551 |   |
| Employee      stock options exercised                                                                                           |   |   | 698,231 |   |   |   | — |   |   |   | 7,742 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 7,742 |   |   |   |   |   |
| Class      A Common stock issued for acquisition of Vurv                                                                        |   |   | 3,823,192 |   |   |   | — |   |   |   | 73,444 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 73,444 |   |   |   |   |   |
| Class      A Common stock exchange for Vurv stock options                                                                       |   |   | — |   |   |   | — |   |   |   | 1,745 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,745 |   |   |   |   |   |
| Issuance      of ESPP shares                                                                                                    |   |   | 175,669 |   |   |   | — |   |   |   | 1,173 |   |   |   | 1,263 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2,436 |   |   |   |   |   |
| Class B      Common stock exchanged for Class A Common Stock                                                          |   |   | 655,652 |   |   |   | — |   |   |   | 282 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 282 |   |   |   |   |   |
| Shares      acquired for payroll tax payments                                                                                   |   |   | (49,326 | ) |   |   | — |   |   |   | — |   |   |   | (1,068 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,068 | ) |   |   |   |   |
| Restricted      shares reacquired or forfeited                                                                                  |   |   | (81,743 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | - |   |   |   |   |   |
| Issuance      of restricted shares                                                                                              |   |   | 456,566 |   |   |   | — |   |   |   | 242 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 242 |   |   |   |   |   |
| Stock      based compensation                                                                                                   |   |   | — |   |   |   | — |   |   |   | 11,506 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 11,506 |   |   |   |   |   |
| Excess      tax benefit associated with stock based compensation                                                                |   |   | — |   |   |   | — |   |   |   | 56 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 56 |   |   |   |   |   |
| Net      loss                                                                                                                   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (8,201 | ) |   |   | — |   |   |   | (8,201 | ) |   | $ | (8,201 | ) |
| Foreign      currency translation adjustments                                                                                   |   |   | — |   |   |   | — |   |   |   | - |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,431 | ) |   |   | (1,431 | ) |   |   | (1,431 | ) |
| Balances,      December 31, 2008                                                                                           |   |   | 31,120,614 |   |   |   | — |   |   | $ | 247,764 |   |   | $ | - |   |   | $ | - |   |   | $ | (75,918 | ) |   | $  | 575 |   |   | $  | 172,421 |   |   | $  | (9,632 | ) |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) See      Note 2 "Restatement of Consolidated Financial Statements" of Notes to      Consolidated Financial Statements. |   |
|                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      Accompanying Notes to Consolidated Financial Statements.                                                               |   |

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| TALEO      CORPORATION AND SUBSIDIARIES                                                                                         |   |                    |    |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                                                      |   |                    |    |   |
| (in      thousands)                                                                                                             |   |                    |    |   |
|                                                                                                                            |   |                    |    |   |   |   |   |   |   |
|                                                                                                                            |   | Year Ended December 31, |    |
|                                                                                                                            |   | 2008                    |    |   | 2007 |   |   | 2006 |   |
|                                                                                                                            |   |                    |    |   | (As Restated) (1) |   |   | (As Restated) (1) |   |
| Cash      flows from operating activities:                                                                                      |   |                    |    |   |   |   |   |   |   |
| Net      income / (loss)                                                                                                        |   | $                       | (8,201  | )      |   | $ | 3,790 |   |   | $ | (4,568 | ) |
| Adjustments      to reconcile net income / (loss) to net cash provided by operating      activities:                            |   |                    |    |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                                              |   |                    | 16,453  |   |   |   | 6,934 |   |   |   | 4,780 |   |
| (Gain)      / loss on disposal of fixed assets and other assets                                                                 |   |                    | (64     | )      |   |   | 13 |   |   |   | 390 |   |
| Tenant      inducements from landlord                                                                                           |   |                    | -       |   |   |   | - |   |   |   | 1,063 |   |
| Amortization      of tenant inducements                                                                                         |   |                    | (152    | )      |   |   | (223 | ) |   |   | (266 | ) |
| Stock-based      compensation expense                                                                                           |   |                    | 11,506  |   |   |   | 6,687 |   |   |   | 4,528 |   |
| Director      fees settled with stock                                                                                           |   |                    | 242     |   |   |   | 248 |   |   |   | 82 |   |
| Bad      debt expense (reversal)                                                                                                |   |                    | 237     |   |   |   | (69 | ) |   |   | 254 |   |
| Interest      earned on restricted cash                                                                                         |   |                    | -       |   |   |   | 1 |   |   |   | 2 |   |
| Changes      in assets and liabilities, net of effect of acquisition:                                                           |   |                    |    |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                        |   |                    | (11,663 | )      |   |   | (2,590 | ) |   |   | (12,310 | ) |
| Prepaid      expenses and other assets                                                                                          |   |                    | (3,836  | )      |   |   | (1,992 | ) |   |   | (1,888 | ) |
| Investment      credit receivable                                                                                               |   |                    | (2,637  | )      |   |   | 446 |   |   |   | 563 |   |
| Accounts      payable and accrued liabilities                                                                                   |   |                    | (5,329  | )      |   |   | 831 |   |   |   | 5,866 |   |
| Deferred      revenues and customer deposits                                                                                    |   |                    | 21,198  |   |   |   | 16,114 |   |   |   | 10,866 |   |
| Net      cash provided by operating activities                                                                                  |   |                    | 17,754  |   |   |   | 30,190 |   |   |   | 9,362 |   |
| Cash      flows from investing activities:                                                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                                                        |   |                    | (11,055 | )      |   |   | (13,152 | ) |   |   | (10,290 | ) |
| Change      in restricted cash                                                                                                  |   |                    | 375     |   |   |   | 2,664 |   |   |   | (1,724 | ) |
| Purchase      of investment                                                                                                     |   |                    | (2,498  | )      |   |   | - |   |   |   | - |   |
| Acquisition      of business, net of cash acquired                                                                              |   |                    | (49,665 | )      |   |   | (3,301 | ) |   |   | - |   |
| Net      cash used in investing  activities                                                                           |   |                    | (62,843 | )      |   |   | (13,789 | ) |   |   | (12,014 | ) |
| Cash      flows from financing activities:                                                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Principal      payments on capital lease obligations                                                                            |   |                    | (667    | )      |   |   | (357 | ) |   |   | (583 | ) |
| Excess      tax benefits on  the exercise of stock options                                                            |   |                    | 56      |   |   |   | - |   |   |   | - |   |
| Treasury      stock acquired to settle employee withholding liability                                                           |   |                    | (1,068  | )      |   |   | (645 | ) |   |   | (158 | ) |
| Proceeds      from stock options, ESPP Shares and warrants exercised                                                            |   |                    | 10,178  |   |   |   | 11,065 |   |   |   | 2,971 |   |
| Net      cash provided by financing activities                                                                                  |   |                    | 8,499   |   |   |   | 10,063 |   |   |   | 2,230 |   |
| Effect      of exchange rate changes on cash and cash equivalents                                                               |   |                    | (83     | )      |   |   | 886 |   |   |   | (151 | ) |
| Increase      / (decrease) in cash and cash equivalents                                                                         |   |                    | (36,673 | )      |   |   | 27,350 |   |   |   | (573 | ) |
| Cash      and cash equivalents:                                                                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                                                        |   |                    | 86,135  |   |   |   | 58,785 |   |   |   | 59,358 |   |
| End      of period                                                                                                              |   | $                       | 49,462  |   |   | $ | 86,135 |   |   | $ | 58,785 |   |
| Supplemental      cash flow disclosures:                                                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                                                     |   | $                       | 60      |   |   | $ | 9 |   |   | $ | 41 |   |
| Cash      paid for income taxes                                                                                                 |   | $                       | 278     |   |   | $ | 305 |   |   | $ | - |   |
| Supplemental      disclosure of non-cash financing and investing activities:                                                    |   |                    |    |   |   |   |   |   |   |   |   |   |
| Property      and equipment acquired under capital lease                                                                        |   | $                       | -       |   |   | $ | 44 |   |   | $ | - |   |
| Property      and equipment purchases included in accounts payable and accrued      liabilities                                 |   | $                       | 1,416   |   |   | $ | 3,492 |   |   | $ | 586 |   |
| Contingent      shares issuable                                                                                                 |   | $                       | -       |   |   | $ | - |   |   | $ | (81 | ) |
| Contingent      shares issued                                                                                                   |   | $                       | -       |   |   | $ | - |   |   | $ | 162 |   |
| Class      B common stock exchanged for Class A common stock                                                                    |   | $                       | 282     |   |   | $ | 548 |   |   | $ | 961 |   |
| Stock      and stock options issued in connection with Vurv    acquisition                                                      |   | $                       | 75,189  |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                            |   |                    |    |   |   |   |   |   |   |   |   |   |
| (1) See      Note 2 "Restatement of Consolidated Financial Statements" of Notes to      Consolidated Financial Statements. |   |
|                                                                                                                            |   |                    |    |   |   |   |   |   |   |   |   |   |
| See      Accompanying Notes to Consolidated Financial Statements.                                                               |   |

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|   |        • | persuasive      evidence of an agreement exists; |
|--------|---------------------|--------------------------------------------------|

|   |        • | delivery      has occurred; |
|--------|---------------------|-----------------------------|

|   |        • | fees      are fixed or determinable; and |
|--------|---------------------|-----------------------------------------------|

|   |        • | the      collection of fees is consideredprobable. |
|--------|---------------------|----------------------------------------------------|

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|   |        • | fees      paid for subscription services |
|--------|---------------------|------------------------------------------|

|   |        • | amortization      of any related set-up fees; and |
|--------|---------------------|---------------------------------------------------|

|   |        • | amortization      of fees paid for hosting services and software maintenance services under      certain software licensearrangements |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|

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|                                       |   | 2008                |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                                       |   | (In      thousands) |   |
| Balance      at January 1                  |   | $                   | 369    |   |   | $      | 585    |   |   | $ | 350 |   |
| Provision      charged to expense          |   |                | 237    |   |   |   | 512    |   |   |   | 254 |   |
| Provision      related to Vurv acquisition |   |                | 602    |   |   |   |   |   |   |   |   |   |
| Reversal      of allowance provision       |   |                | -      |   |   |   | (581   | )      |   |   | — |   |
| Write-offs      charged against allowance  |   |                | (324   | )      |   |   | (147   | )      |   |   | (19 | ) |
| Balance      at December 31                |   | $                   | 884    |   |   | $      | 369    |   |   | $ | 585 |   |

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| Computer      hardware and software | 3      to 5 years                            |
|-------------------------------------|---------------------------------------------------|
| Furniture      and equipment        | 5 years                                      |
| Leasehold      improvements         | Shorter      of lease term or useful life ofasset |

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|                                                                  |   |        |    |   |        |   |   |        |   |   | Income      Tax    |   |   | Total           |   |
|-----------------------------------------------------------------------|--------|-------------|---------|--------|-------------|--------|--------|-------------|--------|--------|--------------------|--------|--------|-----------------|--------|
|                                                                  |   | Revenue     |    |   | Non-Revenue |   |   | Total       |   |   | Effect      of All |   |   | Adjustments,    |   |
|                                                                  |   | Adjustments |    |   | Adjustments |   |   | Adjustments |   |   | Adjustments        |   |   | Net      of Tax |   |
| Cumulative      effect on January 1, 2006 opening accumulated deficit |   | $           | (14,237 | )      |        | $      | (60    | )           |   | $      | (14,297            | )      |   | $               | -      |   |   | $ | (14,297 | ) |
| Year      Ended December 31, 2006                                |   |        | (2,063  | )      |        |   | (69    | )           |   |   | (2,132             | )      |   |            | 192    |   |   |   | (1,940 | ) |
| Year      Ended December 31, 2007                                |   |        | 129     |   |        |   | 154    |        |   |   | 283                |   |   |            | (376   | ) |   |   | (93 | ) |
|                                                                  |   |        |    |   |        |   |   |        |   |   |               |   |   |            |   |   |   |   |   |   |
| Total                                                                 |   | $           | (16,171 | )      |        | $      | 25     |        |   | $      | (16,146            | )      |   | $               | (184   | ) |   | $ | (16,330 | ) |

|                                                           |   | Revenue          |    |   | Revenue     |   |    | Revenue          |   |
|----------------------------------------------------------------|--------|------------------|---------|--------|-------------|--------|---------|------------------|--------|
|                                                           |   | As      Reported |    |   | Adjustments |   |    | As      Restated |   |
|                                                           |   |             |    |   |        |   |    |             |   |
| Cumulative      from December 31,  2003 through 2005 |   | $                | 180,695 |   |        | $      | (14,237 | )                |   | $ | 166,458 |   |
| Year      Ended December 31, 2006                         |   |             | 97,043  |   |        |   | (2,063  | )                |   |   | 94,980 |   |
| Year      Ended December 31, 2007                         |   |             | 127,941 |   |        |   | 129     |             |   |   | 128,070 |   |
|                                                           |   |             |    |   |        |   |    |             |   |   |   |   |
| Total                                                          |   | $                | 405,679 |   |        | $      | (16,171 | )                |   | $ | 389,508 |   |

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|                                                                                                                             |   | As      of December 31, 2007 |    |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                                                             |   | As      Previously           |    |   |   |   |   | As |   |
|                                                                                                                             |   | Reported                     |    |   | Adjustments |   |   | Restated |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |
| ASSETS                                                                                                                           |   |                         |    |   |   |   |   |   |   |
| Current      assets:                                                                                                             |   |                         |    |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                   |   | $                            | 86,135  |   |   | $ | - |   |   | $ | 86,135 |   |
| Restricted      cash                                                                                                             |   |                         | 288     |   |   |   | - |   |   |   | 288 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $369                                                         |   |                         | 30,255  |   |   |   | - |   |   |   | 30,255 |   |
| Prepaid      expenses and other current assets                                                                                   |   |                         | 5,912   |   |   |   | (218 | ) |   |   | 5,694 |   |
| Investment      credits receivable                                                                                               |   |                         | 4,734   |   |   |   | - |   |   |   | 4,734 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total      current assets                                                                                                        |   |                         | 127,324 |   |   |   | (218 | ) |   |   | 127,106 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                                                                                 |   |                         | 23,178  |   |   |   | - |   |   |   | 23,178 |   |
| Restricted      cash                                                                                                             |   |                         | 838     |   |   |   | - |   |   |   | 838 |   |
| Goodwill                                                                                                                         |   |                         | 9,785   |   |   |   | (676 | ) |   |   | 9,109 |   |
| Other      intangibles, net                                                                                                      |   |                         | 1,404   |   |   |   | - |   |   |   | 1,404 |   |
| Other      assets                                                                                                                |   |                         | 2,147   |   |   |   | 1,039 |   |   |   | 3,186 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                |   | $                            | 164,676 |   |   | $ | 145 |   |   | $ | 164,821 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                  |   |                         |    |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                                                                    |   | $                            | 20,623  |   |   | $ | 64 |   |   | $ | 20,687 |   |
| Deferred      revenue - application services and  customer      deposits                                               |   |                         | 36,752  |   |   |   | (4,518 | ) |   |   | 32,234 |   |
| Deferred      revenue - consulting services                                                                                      |   |                         |    |   |   |   | 13,632 |   |   |   | 13,632 |   |
| Capital      lease obligations, short-term                                                                                       |   |                         | 38      |   |   |   | - |   |   |   | 38 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total      current liabilities                                                                                                   |   |                         | 57,413  |   |   |   | 9,178 |   |   |   | 66,591 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Long      term deferred revenue - application services and  customer      deposits                                     |   |                         | 273     |   |   |   | - |   |   |   | 273 |   |
| Long      term deferred revenue - consulting services                                                                            |   |                         |    |   |   |   | 7,236 |   |   |   | 7,236 |   |
| Other      liabilities                                                                                                           |   |                         | 4,535   |   |   |   | 171 |   |   |   | 4,706 |   |
| Capital      lease obligations, long-term                                                                                        |   |                         | 16      |   |   |   | - |   |   |   | 16 |   |
| Commitments      and contingencies                                                                                               |   |                         |    |   |   |   |   |   |   |   |   |   |
| Class B      redeemable common stock, $0.00001 par value, 4,038,287 shares authorized;      655,652 shares outstanding      |   |                         | -       |   |   |   | - |   |   |   | - |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                                           |   |                         | 62,237  |   |   |   | 16,585 |   |   |   | 78,822 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Exchangeable      share obligation                                                                                               |   |                         | 331     |   |   |   | - |   |   |   | 331 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity:                                                                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |
| Class A      common stock; par value, $0.00001 per share; 150,000,000 shares      authorized; 25,442,373 shares outstanding |   |                         | -       |   |   |   | - |   |   |   | - |   |
| Additional      paid-in capital                                                                                                  |   |                         | 151,593 |   |   |   | (19 | ) |   |   | 151,574 |   |
| Accumulated      deficit                                                                                                         |   |                         | (51,387 | ) |   |   | (16,330 | ) |   |   | (67,717 | ) |
| Treasury      stock, at cost, 6,900 shares outstanding                                                                           |   |                         | (195    | ) |   |   | - |   |   |   | (195 | ) |
| Accumulated      other comprehensive income                                                                                      |   |                         | 2,097   |   |   |   | (91 | ) |   |   | 2,006 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total      stockholders’ equity                                                                                            |   |                         | 102,108 |   |   |   | (16,440 | ) |   |   | 85,668 |   |
|                                                                                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                                                                            |   | $                            | 164,676 |   |   | $ | 145 |   |   | $ | 164,821 |   |

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|                                                                                            |   | Year Ended        |    |
|-------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                            |   | December      31, 2007 |    |
|                                                                                            |   |                   |    |   |   |   |   |   |   |
|                                                                                            |   | As      Previously     |    |   |   |   |   | As |   |
|                                                                                            |   | Reported               |    |   | Adjustments |   |   | Restated |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |
| Revenue:                                                                                        |   |                   |    |   |   |   |   |   |   |
| Application                                                                                     |   | $                      | 105,092 |   |   | $ | (60 | ) |   | $ | 105,032 |   |
| Consulting                                                                                      |   |                   | 22,849  |   |   |   | 189 |   |   |   | 23,038 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                              |   |                   | 127,941 |   |   |   | 129 |   |   |   | 128,070 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Application                                                                                     |   |                   | 22,602  |   |   |   | (25 | ) |   |   | 22,577 |   |
| Consulting                                                                                      |   |                   | 18,026  |   |   |   | (21 | ) |   |   | 18,005 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                      |   |                   | 40,628  |   |   |   | (46 | ) |   |   | 40,582 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                               |   |                   | 87,313  |   |   |   | 175 |   |   |   | 87,488 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                        |   |                   |    |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                        |   |                   | 36,916  |   |   |   | (45 | ) |   |   | 36,871 |   |
| Research      and development                                                                   |   |                   | 22,981  |   |   |   | (13 | ) |   |   | 22,968 |   |
| General      and administrative                                                                 |   |                   | 23,734  |   |   |   | (50 | ) |   |   | 23,684 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                   |   |                   | 83,631  |   |   |   | (108 | ) |   |   | 83,523 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Operating      income                                                                           |   |                   | 3,682   |   |   |   | 283 |   |   |   | 3,965 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                            |   |                   | 3,045   |   |   |   | - |   |   |   | 3,045 |   |
| Interest      expense                                                                           |   |                   | (137    | ) |   |   | - |   |   |   | (137 | ) |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                    |   |                   | 2,908   |   |   |   | - |   |   |   | 2,908 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Income      before provision for income taxes                                                   |   |                   | 6,590   |   |   |   | 283 |   |   |   | 6,873 |   |
| Provision      for income taxes                                                                 |   |                   | 2,707   |   |   |   | 376 |   |   |   | 3,083 |   |
| Net      income                                                                                 |   | $                      | 3,883   |   |   | $ | (93 | ) |   | $ | 3,790 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Net      income per share attributable to Class A common stockholders —      basic   |   | $                      | 0.16    |   |   | $ | 0.00 |   |   | $ | 0.16 |   |
| Net      income per share attributable to Class A common stockholders —      diluted |   | $                      | 0.13    |   |   | $ | 0.00 |   |   | $ | 0.13 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic                                  |   |                   | 24,116  |   |   |   | 24,116 |   |   |   | 24,116 |   |
|                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — diluted                                |   |                   | 28,777  |   |   |   | 28,777 |   |   |   | 28,777 |   |

----

Table of Contents

|                                                                                                    |   | Year Ended        |   |
|---------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                    |   | December      31, 2006 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |
|                                                                                                    |   | As      Previously     |   |   |   |   |   | As |   |
|                                                                                                    |   | Reported               |   |   | Adjustments |   |   | Restated |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |
| Revenue:                                                                                                |   |                   |   |   |   |   |   |   |   |
| Application                                                                                             |   | $                      | 79,137 |   |   | $ | (21 | ) |   | $ | 79,116 |   |
| Consulting                                                                                              |   |                   | 17,906 |   |   |   | (2,042 | ) |   |   | 15,864 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                                      |   |                   | 97,043 |   |   |   | (2,063 | ) |   |   | 94,980 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                                   |   |                   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                             |   |                   | 19,317 |   |   |   | 34 |   |   |   | 19,351 |   |
| Consulting                                                                                              |   |                   | 12,785 |   |   |   | 22 |   |   |   | 12,807 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                              |   |                   | 32,102 |   |   |   | 56 |   |   |   | 32,158 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                       |   |                   | 64,941 |   |   |   | (2,119 | ) |   |   | 62,822 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                                |   |                   | 29,482 |   |   |   | 46 |   |   |   | 29,528 |   |
| Research      and development                                                                           |   |                   | 19,475 |   |   |   | 50 |   |   |   | 19,525 |   |
| General      and administrative                                                                         |   |                   | 21,113 |   |   |   | (83 | ) |   |   | 21,030 |   |
| Restructuring      and severance expense                                                                |   |                   | 414    |   |   |   | - |   |   |   | 414 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                           |   |                   | 70,484 |   |   |   | 13 |   |   |   | 70,497 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Operating      loss                                                                                     |   |                   | (5,543 | ) |   |   | (2,132 | ) |   |   | (7,675 | ) |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                          |   |                   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                    |   |                   | 2,891  |   |   |   | - |   |   |   | 2,891 |   |
| Interest      expense                                                                                   |   |                   | (107   | ) |   |   | - |   |   |   | (107 | ) |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                            |   |                   | 2,784  |   |   |   | - |   |   |   | 2,784 |   |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Loss      before benefit from income taxes                                                              |   |                   | (2,759 | ) |   |   | (2,132 | ) |   |   | (4,891 | ) |
| Benefit      from income taxes                                                                          |   |                   | (131   | ) |   |   | (192 | ) |   |   | (323 | ) |
| Net      loss                                                                                           |   | $                      | (2,628 | ) |   | $ | (1,940 | ) |   | $ | (4,568 | ) |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net      loss per share attributable to Class A common stockholders — basic      amd diluted |   | $                      | (0.13  | ) |   | $ | (0.10 | ) |   | $ | (0.23 | ) |
|                                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic and diluted                              |   |                   | 20,031 |   |   |   | 20,031 |   |   |   | 20,031 |   |

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Table of Contents

|                                                                                            |   | Year      Ended December 31, 2007 |        |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------|
|                                                                                            |   | As      Previously                |        |   |   |   |   | As |   |
|                                                                                            |   | Reported                          |        |   | Adjustments |   |   | Restated |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                      |   |                              |        |   |   |   |   |   |   |
| Net      income                                                                                 |   | $                                 | 3,883       |   |   | $ | (93 | ) |   | $ | 3,790 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:     |   |                              |        |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                              |   |                              | 6,934       |   |   |   | - |   |   |   | 6,934 |   |
| Loss      on disposal of fixed assets                                                           |   |                              | 13          |   |   |   | - |   |   |   | 13 |   |
| Amortization      of tenant inducements                                                         |   |                              | (223        | ) |   |   | - |   |   |   | (223 | ) |
| Stock-based      compensation expense                                                           |   |                              | 6,730       |   |   |   | (43 | ) |   |   | 6,687 |   |
| Director      fees settled with stock                                                           |   |                              | 248         |   |   |   | - |   |   |   | 248 |   |
| Bad      debt expense reversal                                                                  |   |                              | (69         | ) |   |   | - |   |   |   | (69 | ) |
| Interest      earned on restricted cash                                                         |   |                              | 1           |   |   |   | - |   |   |   | 1 |   |
| Changes      in assets and liabilities, net of effect of acquisition:                           |   |                              |        |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                        |   |                              | (3,685      | ) |   |   | 1,095 |   |   |   | (2,590 | ) |
| Prepaid      expenses and other assets                                                          |   |                              | (1,500      | ) |   |   | (492 | ) |   |   | (1,992 | ) |
| Investment      credit receivable                                                               |   |                              | 446         |   |   |   | - |   |   |   | 446 |   |
| Accounts      payable and accrued liabilities                                                   |   |                              | 37          |   |   |   | 794 |   |   |   | 831 |   |
| Deferred      revenue and customer deposits                                                     |   |                              | 17,326      |   |   |   | (1,212 | ) |   |   | 16,114 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Net      cash by provided by operating activities                                               |   |                              | 30,141      |   |   |   | 49 |   |   |   | 30,190 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                      |   |                              |        |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                        |   |                              | (13,152     | ) |   |   | - |   |   |   | (13,152 | ) |
| Change      in restricted cash                                                                  |   |                              | 2,664       |   |   |   | - |   |   |   | 2,664 |   |
| Acquisition      of business, net of cash acquired                                              |   |                              | (3,301      | ) |   |   | - |   |   |   | (3,301 | ) |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Net      cash used in investing  activities                                           |   |                              | (13,789     | ) |   |   | - |   |   |   | (13,789 | ) |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                      |   |                              |        |   |   |   |   |   |   |   |   |   |
| Principal      payments on capital lease obligations                                            |   |                              | (357        | ) |   |   | - |   |   |   | (357 | ) |
| Treasury      stock acquired to settle employee withholding liability                           |   |                              | -           |   |   |   | (645 | ) |   |   | (645 | ) |
| Proceeds      from stock options, ESPP Shares and warrants exercised                            |   |                              | 10,457      |   |   |   | 608 |   |   |   | 11,065 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                  |   |                              | 10,100      |   |   |   | (37 | ) |   |   | 10,063 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash and cash equivalents                               |   |                              | 898         |   |   |   | (12 | ) |   |   | 886 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Increase  in      cash and cash equivalents                                           |   |                              | 27,350      |   |   |   | - |   |   |   | 27,350 |   |
| Cash      and cash equivalents:                                                                 |   |                              |        |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                        |   |                              | 58,785      |   |   |   | - |   |   |   | 58,785 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| End      of period                                                                              |   | $                                 | 86,135      |   |   | $ | - |   |   | $ | 86,135 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow disclosures:                                                        |   |                              |        |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                     |   | $                            | 9           |   |   | $  |  - |   |   | $  |  9 |   |
| Cash      paid for income taxes                                                                 |   | $                                 |  305   |   |   | $  |  - |   |   | $  |  305 |   |
|                                                                                            |   |                              |        |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing and investing activities                     |   |                              |        |   |   |   |   |   |   |   |   |   |
| Property      and equipment acqured under capital leases                                        |   | $                            |  44    |   |   | $  |  - |   |   | $  | 44 |   |
| Property      and equipment included in accounts payable and accrued      liabilities |   | $                                 |  3,492 |   |   | $  |  - |   |   | $  |  3,492 |   |
| Class      B common stock exchanged for Class A common Stock                                    |   | $                                 |  548   |   |   | $  |  - |   |   | $  |  548 |   |
| Treasury      Stock issued to employees under ESPP                                              |   | $                                 |  608   |   |   | $  |  (608 | )  |   | $  |  - |   |
| Treasury      stock acquired to settle employee withholding liability                           |   | $                                 |  645   |   |   | $  |  (645 | ) |   | $  |  - |   |

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Table of Contents

|                                                                                            |   | Year      Ended December 31, 2006 |      |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                            |   | As      Previously                |      |   |   |   |   | As |   |
|                                                                                            |   | Reported                          |      |   | Adjustments |   |   | Restated |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                      |   |                              |      |   |   |   |   |   |   |
| Net      loss                                                                                   |   | $                                 | (2,628    | ) |   | $ | (1,940 | ) |   | $ | (4,568 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities:       |   |                              |      |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                              |   |                              | 4,789     |   |   |   | (9 | ) |   |   | 4,780 |   |
| Loss      on disposal of fixed assets                                                           |   |                              | 390       |   |   |   | - |   |   |   | 390 |   |
| Tenant      inducements from landlord                                                           |   |                              | 1,063     |   |   |   | - |   |   |   | 1,063 |   |
| Amortization      of tenant inducements                                                         |   |                              | (266      | ) |   |   | - |   |   |   | (266 | ) |
| Stock-based      compensation expense                                                           |   |                              | 4,504     |   |   |   | 24 |   |   |   | 4,528 |   |
| Director      fees settled with stock                                                           |   |                              | 82        |   |   |   | - |   |   |   | 82 |   |
| Bad      debt expense                                                                           |   |                              | 254       |   |   |   | - |   |   |   | 254 |   |
| Interest      earned on restricted cash                                                         |   |                              | 2         |   |   |   | - |   |   |   | 2 |   |
| Changes      in assets and liabilities:                                                         |   |                              |      |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                        |   |                              | (11,134   | ) |   |   | (1,176 | ) |   |   | (12,310 | ) |
| Prepaid      expenses and other assets                                                          |   |                              | (1,793    | ) |   |   | (95 | ) |   |   | (1,888 | ) |
| Investment      credit receivable                                                               |   |                              | 563       |   |   |   | - |   |   |   | 563 |   |
| Accounts      payable and accrued liabilities                                                   |   |                              | 5,808     |   |   |   | 58 |   |   |   | 5,866 |   |
| Deferred      revenue and customer deposits                                                     |   |                              | 7,628     |   |   |   | 3,238 |   |   |   | 10,866 |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Net      cash by provided by operating activities                                               |   |                              | 9,262     |   |   |   | 100 |   |   |   | 9,362 |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                      |   |                              |      |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                        |   |                              | (10,335   | ) |   |   | 45 |   |   |   | (10,290 | ) |
| Change      in restricted cash                                                                  |   |                              | (1,724    | ) |   |   | - |   |   |   | (1,724 | ) |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Net      cash used in investing  activities                                           |   |                              | (12,059   | ) |   |   | 45 |   |   |   | (12,014 | ) |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                      |   |                              |      |   |   |   |   |   |   |   |   |   |
| Principal      payments on capital lease obligations                                            |   |                              | (583      | ) |   |   | - |   |   |   | (583 | ) |
| Treasury      stock acquired to settle employee withholding liability                           |   |                              | -         |   |   |   | (158 | ) |   |   | (158 | ) |
| Proceeds      from stock options, ESPP Shares and warrants exercised                            |   |                              | 2,971     |   |   |   | - |   |   |   | 2,971 |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                  |   |                              | 2,388     |   |   |   | (158 | ) |   |   | 2,230 |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash and cash equivalents                               |   |                              | (152      | ) |   |   | 1 |   |   |   | (151 | ) |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Decrease  in      cash and cash equivalents                                           |   |                              | (561      | ) |   |   | (12 | ) |   |   | (573 | ) |
| Cash      and cash equivalents:                                                                 |   |                              |      |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                        |   |                              | 59,346    |   |   |   | 12 |   |   |   | 59,358 |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| End      of period                                                                              |   | $                                 | 58,785    |   |   | $ | - |   |   | $ | 58,785 |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow discosures:                                                         |   |                              |      |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                     |   | $                                 | 41        |   |   | $ | - |   |   | $ | 41 |   |
| Cash      paid for income taxes                                                                 |   | $                                 |  -   |   |   | $ |  - |   |   | $ |  - |   |
|                                                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing and investing activities                     |   |                              |      |   |   |   |   |   |   |   |   |   |
| Property      and equipment acquired under capital leases                                       |   | $                                 |  -   |   |   | $ |  - |   |   | $ |  - |   |
| Property      and equipment included in accounts payable and accrued      liabilities |   | $                                 |  586 |   |   | $ |  - |   |   | $ |  586 |   |
| Class      B common stock exchanged for Class A common stock                                    |   | $                                 |  961 |   |   | $ |  - |   |   | $ |  961 |   |
| Treasury      stock issued to employees under ESPP                                              |   | $                                 | -         |   |   | $ |  - |   |   | $ |  - |   |
| Treasury      stock acquired to settle employee withholding liability                      |   | $                                 | 158       |   |   | $ |  (158 | )  |   | $ |  - |   |
| Contingent      shares issuable                                                                 |   | $                                 |  (81 | )  |   | $ | - |   |   | $ |  (81 | )  |
| Contingent      shares issued                                                                   |   | $                                 |  162 |   |   | $ | - |   |   | $ |  162 |   |

----

Table of Contents

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Table of Contents

|                                               |   | Amount              |    |
|----------------------------------------------------|--------|---------------------|---------|
|                                               |   | (In      thousands) |    |
| Cash                                               |   | $                   | 223     |   |
| Accounts      receivable, net                      |   |                | 8,063   |   |
| Other      current assets                          |   |                | 485     |   |
| Restricted      Cash                               |   |                | 286     |   |
| Property      and equipment                        |   |                | 4,844   |   |
| Goodwill                                           |   |                | 83,024  |   |
| Intangible      assets                             |   |                | 49,947  |   |
| Non-current      assets                            |   |                | 101     |   |
| Accounts      payable and accrued liabilities      |   |                | (11,938 | ) |
| Other      current liabilities                     |   |                | (1,254  | ) |
| Deferred      revenue                              |   |                | (7,348  | ) |
| Non-current      liabilities                       |   |                | (1,379  | ) |
| Total      estimated purchase price                |   | $                   | 125,054 |   |
|                                               |   |                |    |   |
|                                               |   |                |    |   |
| Purchase      Price                                |   |                |    |   |
|                                               |   | Amount              |    |
|                                               |   | (In      thousands) |    |
| Cash                                               |   | $                   | 46,542  |   |
| Estimated      fair value of common stock issued   |   |                | 73,444  |   |
| Estimated      fair value of stock options assumed |   |                | 1,745   |   |
| Accrued      transaction cost                      |   |                | 3,323   |   |
| Total      estimated purchase price                |   | $                   | 125,054 |   |

|                                                                                              |   | Year ended December 31,                    |    |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                              |   | 2008                                       |    |   | 2007 |   |
|                                                                                              |   | Consolidated      Proforma                 |    |
|                                                                                              |   | (In      thousands, except per share data) |    |
| Revenue                                                                                           |   | $                                          | 195,437 |   |   | $ | 177,099 |   |
| Net      loss attributable to Class A common stockholders                                         |   | $                                          | (22,299 | ) |   | $ | (11,978 | ) |
| Net      loss per share attributable to Class A common stockholders - basic      and diluted |   | $                                          | (0.76   | ) |   | $ | (0.44 | ) |
| Weighted      average Class A common shares - basic and diluted                                   |   |                                       | 29,242  |   |   |   | 27,461 |   |

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Table of Contents

|                                            |   | Amounts             |   | Assigned Life |
|-------------------------------------------------|--------|---------------------|--------|---------------|
|                                            |   | (In      thousands) |
| Goodwill                                        |   | $                   | 1,665  |          |   |
| Customer      relationship                      |   |                | 193    |          | 4 years |
| Less:      Net liabilities                      |   |                | (177   | )             |   |
| Total  purchase      price allocation |   | $                   | 1,681  |          |   |

|                                 |   | Amounts             |   | Assigned Life |
|--------------------------------------|--------|---------------------|--------|---------------|
|                                 |   | (In      thousands) |
| Goodwill                             |   | $                   | 2,014  |          |   |
| Existing      technology             |   |                | 810    |          | 5 years |
| Customer      relationship           |   |                | 290    |          | 4 years |
| Tradename                            |   |                | 20     |          | 2 years |
| Net      assets                      |   |                | 168    |          |   |
| Total      purchase price allocation |   | $                   | 3,302  |          |   |

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Table of Contents

|                                                                                               |   | Year ended December 31,                    |    |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                               |   | 2007                                       |    |   | 2006 |   |
|                                                                                               |   | Consolidated      Proforma                 |    |
|                                                                                               |   | (In      thousands, except per share data) |    |
|                                                                                               |   | As restated                                |    |   | As restated |   |
| Revenue                                                                                            |   | $                                          | 128,410 |   |   | $ | 96,445 |   |
| Net      income / (loss) attributable to Class A commonstockholders                                |   | $                                          | 3,570   |   |   | $ | (7,207 | ) |
| Net      income / (loss) per share attributable to Class A common stockholders      - basic   |   | $                                          | 0.15    |   |   | $ | (0.36 | ) |
| Net      income / (loss) per share attributable to Class A common stockholders      - diluted |   | $                                          | 0.12    |   |   | $ | (0.36 | ) |
| Weighted      average Class A common shares - basic                                                |   |                                       | 24,116  |   |   |   | 20,031 |   |
| Weighted      average Class A common shares - diluted                                              |   |                                       | 28,777  |   |   |   | 20,031 |   |

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Table of Contents

|                                                                                                                                                                          |   |             |   |   | 2008                  |   |   | 2007             |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|-----------------------|--------|--------|------------------|--------|
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                          |   | Useful      Life |   |   | Gross                 |   |   | Reclassification |   |   | Accumulated      Amortization |   |   | Carrying      Value |   |   | Gross |   |   | Accumulated      Amortization |   |   | Carrying      Value |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Detail By Acquisition                                                                                                                                                         |   |             |   |   | ($      In thousands) |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vurv      Technology                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   | As      restated |   |
| Identifiable      Intangible Assets                                                                                                                                           |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Existing      Technology                                                                                                                                                      |   |             | 3      |   |                  | $      | 8,690  |             |   | $ | - |   |   | $ | (1,448 | ) |   | $ | 7,242 |   |   |   |   |   |   |   |   |   |   |
| Customer      Relationships                                                                                                                                                   |   |             | 7      |   |                  |   | 25,900 |             |   |   | - |   |   |   | (1,850 | ) |   |   | 24,050 |   |   |   |   |   |   |   |   |   |   |
| Customer      Relationships - Backlog                                                                                                                                         |   |             | 3      |   |                  |   | 13,947 |             |   |   | - |   |   |   | (1,907 | ) |   |   | 12,040 |   |   |   |   |   |   |   |   |   |   |
| Trade      Name                                                                                                                                                               |   |             | 2      |   |                  |   | 260    |             |   |   | - |   |   |   | (65 | ) |   |   | 195 |   |   |   |   |   |   |   |   |   |   |
| Non-compete      Agreements                                                                                                                                                   |   |             | 2      |   |                  |   | 410    |             |   |   | - |   |   |   | (103 | ) |   |   | 307 |   |   |   |   |   |   |   |   |   |   |
| Optimize      Intangible Assets Sold                                                                                                                                          |   |             |   |   |                  |   | 740    |             |   |   |  (740 | )  |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |
| Vurv      identifiable Intangible assets                                                                                                                                      |   |             |   |   |                  |   | 49,947 |             |   |   |  (740 | ) |   |   | (5,373 | ) |   |   | 43,834 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                      |   |             |   |   |                  |   | 83,024 |             |   |   | - |   |   |   | - |   |   |   | 83,024 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WetFeet                                                                                                                                                                       |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable      Intangible Assets                                                                                                                                           |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer      Relationships                                                                                                                                                   |   |             | 4      |   |                  |   | 193    |             |   |   | - |   |   |   | (72 | ) |   |   | 121 |   |   | $ | 193 |   |   | $ | (24 | ) |   | $ | 169 |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                      |   |             |   |   |                  |   | 1,665  |             |   |   | - |   |   |   | - |   |   |   | 1,665 |   |   |   | 1,727 |   |   |   |   |   |   |   | 1,727 |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| JobFlash                                                                                                                                                                      |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable      Intangible Assets                                                                                                                                           |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Existing      Technology                                                                                                                                                      |   |             | 5      |   |                  |   | 810    |             |   |   | - |   |   |   | (294 | ) |   |   | 516 |   |   |   | 810 |   |   |   | (132 | ) |   |   | 678 |   |
| Customer      Relationships                                                                                                                                                   |   |             | 4      |   |                  |   | 290    |             |   |   | - |   |   |   | (132 | ) |   |   | 158 |   |   |   | 290 |   |   |   | (59 | ) |   |   | 231 |   |
| Trade      Name                                                                                                                                                               |   |             | 2      |   |                  |   | 20     |             |   |   | - |   |   |   | (18 | ) |   |   | 2 |   |   |   | 20 |   |   |   | (8 | ) |   |   | 12 |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                      |   |             |   |   |                  |   | 2,014  |             |   |   | - |   |   |   | - |   |   |   | 2,014 |   |   |   | 2,030 |   |   |   |   |   |   |   | 2,030 |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recruitforce      / White Amber*                                                                                                                                              |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable      Intangible Assets                                                                                                                                           |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Existing      Technology                                                                                                                                                      |   |             | 5      |   |                  |   | 2,311  |             |   |   | - |   |   |   | (2,162 | ) |   |   | 149 |   |   |   | 2,311 |   |   |   | (2,038 | ) |   |   | 273 |   |
| Customer      Relationships                                                                                                                                                   |   |             | 5      |   |                  |   | 967    |             |   |   | - |   |   |   | (945 | ) |   |   | 22 |   |   |   | 967 |   |   |   | (926 | ) |   |   | 41 |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                      |   |             |   |   |                  |   | 4,923  |             |   |   | - |   |   |   | - |   |   |   | 4,923 |   |   |   | 5,352 |   |   |   |   |   |   |   | 5,352 |   |
| *      White Amber includs $0.9 million customer relationship intangible asset      and $1.7 million existing technology (fully amortized) and $3.0 million in      goodwill. |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARY                                                                                                                                                                       |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                          |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable      Intangible Assets                                                                                                                                           |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Existing      Technology                                                                                                                                                      |   |             |   |   |                  | $      | 11,811 |             |   | $ | - |   |   | $ | (3,904 | ) |   | $ | 7,907 |   |   | $ | 3,121 |   |   | $ | (2,170 | ) |   | $ | 951 |   |
| Customer      Relationships                                                                                                                                                   |   |             |   |   |                  |   | 41,297 |             |   |   | - |   |   |   | (4,906 | ) |   |   | 36,391 |   |   |   | 1,450 |   |   |   | (1,009 | ) |   |   | 441 |   |
| Trade      Name                                                                                                                                                               |   |             |   |   |                  |   | 280    |             |   |   | - |   |   |   | (83 | ) |   |   | 197 |   |   |   | 20 |   |   |   | (8 | ) |   |   | 12 |   |
| Non-compete      Agreements                                                                                                                                                   |   |             |   |   |                  |   | 410    |             |   |   | - |   |   |   | (103 | ) |   |   | 307 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intangible      Assets Held for Sale                                                                                                                                          |   |             |   |   |                  |   | 740    |             |   |   | (740 | )  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                          |   |             |   |   |                  | $      | 54,538 |             |   | $ | (740 | )  |   | $ | (8,996 | ) |   | $ | 44,802 |   |   | $ | 4,591 |   |   | $ | (3,187 | ) |   | $ | 1,404 |   |
| Goodwill                                                                                                                                                                      |   |             |   |   |                  |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vurv      Technology                                                                                                                                                          |   |             |   |   |                  | $      | 83,024 |             |   | $ | - |   |   | $ | - |   |   | $ | 83,024 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| WetFeet                                                                                                                                                                       |   |             |   |   |                  |   | 1,665  |             |   |   | - |   |   |   | - |   |   |   | 1,665 |   |   |   | 1,727 |   |   |   | - |   |   |   | 1,727 |   |
| JobFlash                                                                                                                                                                      |   |             |   |   |                  |   | 2,014  |             |   |   | - |   |   |   | - |   |   |   | 2,014 |   |   |   | 2,030 |   |   |   | - |   |   |   | 2,030 |   |
| Recruitforce      / White Amber                                                                                                                                               |   |             |   |   |                  |   | 4,923  |             |   |   | - |   |   |   | - |   |   |   | 4,923 |   |   |   | 5,352 |   |   |   | - |   |   |   | 5,352 |   |
|                                                                                                                                                                          |   |             |   |   |                  | $      | 91,626 |             |   | $ | - |   |   | $ | - |   |   | $ | 91,626 |   |   | $ | 9,109 |   |   | $ | - |   |   | $ | 9,109 |   |

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| Estimated      Amortization Expense |   | (In      thousands) |         |
|-------------------------------------|--------|---------------------|--------------|
| 2009                                |   | $                   | 14,283       |   |
| 2010                                |   |                | 11,306       |   |
| 2011                                |   |                | 6,233        |   |
| 2012                                |   |                | 3,730        |   |
| 2013                                |   |                | 3,700        |   |
| Thereafter                          |   |                | 5,550        |   |
| Total                               |   | $                   |  44,802 |   |

|                                                |   | 2008                |    |   | 2007   |   |
|-----------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|                                                |   | (In      thousands) |    |
| Computer      hardware and software                 |   | $                   | 46,740  |   |   | $      | 38,206 |   |
| Furniture      and equipment                        |   |                | 3,198   |   |   |   | 2,681 |   |
| Leasehold      improvements                         |   |                | 3,498   |   |   |   | 3,148 |   |
|                                                |   |                | 53,436  |   |   |   | 44,035 |   |
| Less      accumulated depreciation and amortization |   |                | (28,186 | )      |   |   | (20,857 | ) |
| Total                                               |   | $                   | 25,250  |   |   | $      | 23,178 |   |

|                                           |   | 2008                |         |   | 2007        |    |
|------------------------------------------------|--------|---------------------|--------------|--------|-------------|---------|
| Prepaid      Expenses and Other Current Assets |   | (In      thousands) |         |
|                                           |   |                |         |   | As restated |    |
| Prepaid      expenses                          |   | $                   | 3,614        |   |        | $       | 2,988 |   |
| Deferred      compensation expense             |   |                | 3,509        |   |        |    | 1,724 |   |
| Other                                          |   |                | 3,854        |   |        |    | 982 |   |
| Total                                          |   | $              |  10,997 |   |        | $  |  5,694 |   |

| Non-Current      Other Assets                          |   | 2008                |   |   | 2007        |   |
|--------------------------------------------------------|--------|---------------------|--------|--------|-------------|--------|
|                                                   |   | (In      thousands) |   |
|                                                   |   |                |   |   | As restated |   |
| Deferred      tax asset net of valuation allowance     |   | $                   | 802    |   |        | $      | 2,812 |   |
| Purchase      of investment                            |   |                | 2,498  |   |        |   | - |   |
| Receivable      from Sale of Optimize Product Offering |   |                | 875    |   |        |   | - |   |
| Other                                                  |   |                | 607    |   |        |   | 374 |   |
| Total                                                  |   | $                   | 4,782  |   |        | $      | 3,186 |   |

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Table of Contents

|                               |   | 2008                |   |   | 2007        |   |
|------------------------------------|--------|---------------------|--------|--------|-------------|--------|
|                               |   | (In      thousands) |   |
|                               |   |                |   |   | As restated |   |
| Accounts      payable              |   | $                   | 3,612  |   |        | $      | 2,331 |   |
| Accrued      compensation          |   |                | 11,276 |   |        |   | 8,706 |   |
| Accrued      professional fees     |   |                | 1,907  |   |        |   | 1,650 |   |
| Accrued      income taxes          |   |                | 760    |   |        |   | 538 |   |
| Accrued      liabilities and other |   |                | 7,322  |   |        |   | 7,462 |   |
| Total                              |   | $                   | 24,877 |   |        | $      | 20,687 |   |

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Table of Contents

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Table of Contents

|                                       |   | Number of Options |       |   | Weighted - Average Exercise      Price |   |
|--------------------------------------------|--------|-------------------|------------|--------|----------------------------------------|--------|
| Outstanding      — January 1, 2006   |   |              | 4,213,626  |   |                                   | $      | 8.78 |   |
| Granted                                    |   |              | 1,162,425  |   |                                   | $      | 11.94 |   |
| Exercised                                  |   |              | (857,203   | )      |                                   | $      | 2.69 |   |
| Forfeited                                  |   |              | (362,734   | )      |                                   | $      | 13.55 |   |
| Outstanding      — December 31, 2006 |   |              | 4,156,114  |   |                                   | $      | 10.52 |   |
| Granted                                    |   |              | 969,457    |   |                                   | $      | 17.62 |   |
| Exercised                                  |   |              | (1,349,344 | )      |                                   | $      | 6.94 |   |
| Forfeited                                  |   |              | (252,813   | )      |                                   | $      | 13.71 |   |
| Outstanding      — December 31, 2007 |   |              | 3,523,414  |   |                                   | $      | 13.61 |   |
| Granted                                    |   |              | 544,507    |   |                                   | $      | 18.00 |   |
| Exercised                                  |   |              | (668,542   | )      |                                   | $      | 11.28 |   |
| Forfeited                                  |   |              | (365,211   | )      |                                   | $      | 15.34 |   |
| Outstanding      — December 31, 2008 |   |              | 3,034,168  |   |                                   | $      | 14.70 |   |

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Table of Contents

| Range of Exercise Prices              |               |   | Number of Options    Outstanding |   |      | Weighted-Average Remaining Contractual Life      (Years) |   |   | Number of Options    Exercisable |   |
|---------------------------------------|--------------------|--------|----------------------------------|--------|-----------|----------------------------------------------------------|--------|--------|----------------------------------|--------|
| $                                     | 3.00      - $11.01 |   |                             |   | 314,710   |                                                     |   |   | 5.42                             |   |   |   | 226,408 |   |
| $                                     | 11.05      - 11.90 |   |                             |   | 375,918   |                                                     |   |   | 7.55                             |   |   |   | 239,323 |   |
| $                                     | 12.00      - 13.30 |   |                             |   | 75,342    |                                                     |   |   | 7.24                             |   |   |   | 40,943 |   |
| $                                     | 13.50      - 13.50 |   |                             |   | 452,937   |                                                     |   |   | 6.23                             |   |   |   | 411,294 |   |
| $                                     | 13.58      - 14.00 |   |                             |   | 395,728   |                                                     |   |   | 6.81                             |   |   |   | 307,202 |   |
| $                                | 14.10      - 16.21 |   |                             |   | 312,259   |                                                     |   |   | 8.00                             |   |   |   | 136,925 |   |
| $                                     | 16.72      - 16.72 |   |                             |   | 17,500    |                                                     |   |   | 9.19                             |   |   |   | — |   |
| $                                | 17.28      - 17.28 |   |                             |   | 328,674   |                                                     |   |   | 9.34                             |   |   |   | — |   |
| $                                     | 17.35      - 17.91 |   |                             |   | 314,067   |                                                     |   |   | 8.32                             |   |   |   | 139,903 |   |
| $                                     | 18.00      - 26.76 |   |                             |   | 447,033   |                                                     |   |   | 6.77                             |   |   |   | 261,749 |   |
|                                  |               |   |                             |   | 3,034,168 |                                                     |   |   | 7.24                             |   |   |   | 1,763,747 |   |
| Average      exercise price per share |               |   |                             |   |      |                                                     |   |   |                             |   | $ | 13.57 |   |

|                                       |   | Number of Taleo Options |     |   | Weighted - Average Exercise      Price |   |
|--------------------------------------------|--------|-------------------------|----------|--------|----------------------------------------|--------|
| Assumed      — July 1, 2008          |   |                    | 433,820  |   |                                   | $      | 24.00 |   |
| Exercised                                  |   |                    | (28,189  | )      |                                   | $      | 7.17 |   |
| Forfeited                                  |   |                    | (160,537 | )      |                                   | $      | 28.31 |   |
| Outstanding      — December 31, 2008 |   |                    | 245,094  |   |                                   | $      | 23.11 |   |

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|                          |   | July      1, 2008       |   |
|-------------------------------|--------|-------------------------|--------|
| Expected      volatility      |   |                    | 53     | % |
| Risk-free      interest rate  |   | 2.77 to      3.48% |
| Expected      life (in years) |   | 2.36      to 5.94       |
| Expected      dividend yield  |   |                    | 0      | % |

| Exercise Prices                       |   |   | Number of Options    Outstanding |   |    | Weighted-Average Remaining Contractual Life      (Years) |   |   | Number of Options    Exercisable |   |
|---------------------------------------|--------|--------|----------------------------------|--------|---------|----------------------------------------------------------|--------|--------|----------------------------------|--------|
| $                                     | 5.86   |   |                             |   | 51,562  |                                                     |   |   | 2.62                             |   |   |   | 51,562 |   |
| $                                     | 7.81   |   |                             |   | 960     |                                                     |   |   | 5.45                             |   |   |   | 960 |   |
| $                                     | 11.72  |   |                             |   | 640     |                                                     |   |   | 5.61                             |   |   |   | 640 |   |
| $                                     | 15.62  |   |                             |   | 9,088   |                                                     |   |   | 5.11                             |   |   |   | 9,088 |   |
| $                                     | 21.48  |   |                             |   | 15,973  |                                                     |   |   | 1.56                             |   |   |   | 15,109 |   |
| $                                     | 27.34  |   |                             |   | 65,494  |                                                     |   |   | 4.02                             |   |   |   | 53,234 |   |
| $                                     | 30.30  |   |                             |   | 101,377 |                                                     |   |   | 3.94                             |   |   |   | 70,609 |   |
|                                  |   |   |                             |   | 245,094 |                                                     |   |   | 3.58                             |   |   |   | 201,202 |   |
| Average      exercise price per share |   |   |                             |   |    |                                                     |   |   |                             |   | $ | 21.76 |   |

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Table of Contents

|                                       |   | Number of Options |    |   | Weighted - Average Exercise      Price |   |
|--------------------------------------------|--------|-------------------|---------|--------|----------------------------------------|--------|
| Outstanding      — January 1, 2006   |   |              | 180,651 |   |                                   | $      | 0.78 |   |
| Exercised                                  |   |              | (60,715 | )      |                                   | $      | 0.78 |   |
| Forfeited                                  |   |              | (6,125  | )      |                                   | $      | 0.78 |   |
| Outstanding      — December 31, 2006 |   |              | 113,811 |   |                                   | $      | 0.78 |   |
| Exercised                                  |   |              | (89,266 | )      |                                   | $      | 0.78 |   |
| Outstanding      — December 31, 2007 |   |              | 24,545  |   |                                   | $      | 0.78 |   |
| Exercised                                  |   |              | (1,500  | )      |                                   | $      | 0.78 |   |
| Outstanding      — December 31, 2008 |   |              | 23,045  |   |                                   | $      | 0.78 |   |

|                                                            |   | Shares |     |   | Purchase      Price |   |
|-----------------------------------------------------------------|--------|--------|----------|--------|---------------------|--------|
| Reserve      for ESPP balance — January 1, 2006 |   |   | 500,000  |   |                |   | — |   |
| Employees      purchases                                        |   |   | (64,513  | )      |                | $      | 9.55 |   |
| ESPP      balance — December 31, 2006           |   |   | 435,487  |   |                |   | — |   |
| Employees      purchases                                        |   |   | (143,992 | )      |                |   | 11.30 |   |
| ESPP      balance — December 31, 2007           |   |   | 291,495  |   |                |   | — |   |
| Employees      purchases                                        |   |   | (175,669 | )      |                |   | 13.87 |   |
| ESPP      balance — December 31, 2008           |   |   | 115,826  |   |                |   |   |   |

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|                            |   | 2008                |   |   | 2007   |   |   | 2006   |   |
|---------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                            |   | (In      thousands) |   |
| Cost      of revenues           |   | $                   | 1,453  |   |   | $      | 795    |   |   | $ | 414 |   |
| Sales      and marketing        |   |                | 3,063  |   |   |   | 1,748  |   |   |   | 1,048 |   |
| Research      and development   |   |                | 1,408  |   |   |   | 1,162  |   |   |   | 694 |   |
| General      and administrative |   |                | 5,582  |   |   |   | 2,982  |   |   |   | 2,372 |   |
|                            |   | $                   | 11,506 |   |   | $      | 6,687  |   |   | $ | 4,528 |   |

|                                                              | 2008               |   | 2007             |   | 2006             |
|-------------------------------------------------------------------|--------------------|--------|------------------|--------|------------------|
| Stock      Options:                                               |               |   |             |   |             |
| Expected      volatility                                          | 53      to 66%     |   | 49      to 51%   |   | 48      to 55%   |
| Risk-free      interest rate                                      | 1.97      to 3.53% |   | 3.9      to 5.1% |   | 4.5      to 5.1% |
| Expected      life (in years)                                     | 5.5      to 6.25   |   | 5.5      to 6.25 |   | 5.0      to 6.25 |
| Weighted-average      exercise price per share of options granted | $18.00             |   | $17.62           |   | $11.94           |
| Weighted-average      fair value per share of option granted      | $9.82              |   | $9.49            |   | $6.83            |
| Expected      dividend yield                                      | 0%                 |   | 0%               |   | 0%               |

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|                               | 2008               |   | 2007               |   | 2006               |
|------------------------------------|--------------------|--------|--------------------|--------|--------------------|
| Employee      Stock Purchase Plan: |               |   |               |   |               |
| Expected      volatility           | 44      to 59%     |   | 44      to 53%     |   | 53      to 55%     |
| Risk-free      interest rate       | 1.07      to 3.49% |   | 3.49      to 5.09% |   | 5.09      to 5.24% |
| Expected      life (in weeks)      | 26                 |   | 26                 |   | 24      to 26      |
| Expected      dividend yield       | 0%                 |   | 0%                 |   | 0%                 |

|                                                                     |   | Performance      Share Awards |    |   | Restricted      Stock Awards |   |     | Weighted-Average      Grant- Date Fair Value per      Share |   |
|--------------------------------------------------------------------------|--------|-------------------------------|---------|--------|------------------------------|--------|----------|-----------------------------------------------------------------------|--------|
| Repurchasable/nonvested      balance — January 1, 2006   |   |                          | — |   |                         |   | —  |                                                                  |   |   | — |   |
| Awarded                                                                  |   |                          | 66,179  |   |                         |   | 282,017  |                                                                  |   | $ | 11.48 |   |
| Released/vested                                                          |   |                          | (8,054  | )      |                         |   | (38,579  | )                                                                     |   |   | 9.74 |   |
| Forfeited/cancelled                                                      |   |                          | (4,375  | )      |                         |   | (9,063   | )                                                                     |   |   | 11.90 |   |
| Repurchasable/nonvested      balance — December 31, 2006 |   |                          | 53,750  |   |                         |   | 234,375  |                                                                  |   |   | 11.75 |   |
| Awarded                                                                  |   |                          | 2,481   |   |                         |   | 58,800   |                                                                  |   |   | 17.00 |   |
| Released/vested                                                          |   |                          | (24,356 | )      |                         |   | (76,606  | )                                                                     |   |   | 10.56 |   |
| Forfeited/cancelled                                                      |   |                          | (3,750  | )      |                         |   | (16,193  | )                                                                     |   |   | 11.48 |   |
| Repurchasable/nonvested      balance — December 31, 2007 |   |                          | 28,125  |   |                         |   | 200,376  |                                                                  |   |   | 13.77 |   |
| Awarded                                                                  |   |                          | 29,227  |   |                         |   | 440,582  |                                                                  |   |   | 18.53 |   |
| Released/vested                                                          |   |                          | (15,984 | )      |                         |   | (126,505 | )                                                                     |   |   | 14.25 |   |
| Forfeited/cancelled                                                      |   |                          | (2,090  | )      |                         |   | (81,743  | )                                                                     |   |   | 15.65 |   |
| Repurchasable/nonvested      balance — December 31, 2008 |   |                          | 39,278  |   |                         |   | 432,710  |                                                                  |   |   | 18.12 |   |

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| Class A      Common Stock Plans (excluding the White Amber Stock Plan and Employee      Stock Purchase Plan) |   |   | 3,542,768 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| White      Amber Stock Plan                                                                                       |   |   | 23,045    |   |
| Vurv      Stock Plan                                                                                              |   |   | 245,094   |   |
| Employee      Stock Purchase Plan                                                                                 |   |   | 115,826   |   |
| Total                                                                                                             |   |   | 3,926,733 |   |

|     |   | Year EndedDecember 31, |   |
|----------|--------|-----------------------------|--------|
|     |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
|     |   | (In      thousands)         |   |
|     |   |                        |   |   | As restated |   |   | As restated |   |
| Domestic |   | $                           | (7,301 | )  |   | $ | 5,953 |   |   | $ | (7,745 | ) |
| Foreign  |   |                        | 403    |   |   |   | 920 |   |   |   | 2,854 |   |
| Total    |   |                        | (6,898 | ) |   |   | 6,873 |   |   |   | (4,891 | ) |

|                                            |   | Year EndedDecember 31, |      |
|-------------------------------------------------|--------|-----------------------------|-----------|
|                                            |   | 2008                        |      |   | 2007 |   |   | 2006 |   |
|                                            |   | (In      thousands)         |      |
|                                            |   |                        |      |   | As restated |   |   | As restated |   |
| Current                                         |   |                        |      |   |   |   |   |   |   |
| Federal                                         |   | $                           | 313       |   |   | $ | 297 |   |   | $ | — |   |
| State                                           |   |                        | 192       |   |   |   | - |   |   |   | - |   |
| Foreign                                         |   |                        | 222       |   |   |   | 1,763 |   |   |   | 1,153 |   |
| Total                                           |   | $                           | 727       |   |   | $ | 2,060 |   |   | $ | 1,153 |   |
| Deferred                                        |   |                        |      |   |   |   |   |   |   |   |   |   |
| Federal                                         |   |                        | 519       |   |   |   | 675 |   |   |   | - |   |
| State                                           |   |                        | -         |   |   |   |  - |   |   |   |  - |   |
| Foreign                                         |   |                        | 57        |   |   |   | 348 |   |   |   | (1,476 | ) |
| Total                                           |   |                        |  576 |   |   |   |  1,023 |   |   |   |  (1,476 | ) |
| Total      provision (benefit) for income taxes |   | $                           | 1,303     |   |   | $ | 3,083 |   |   | $ | (323 | ) |

|                                         |   | 2008   |   |   | 2007        |   |   | 2006        |   |
|----------------------------------------------|--------|--------|--------|--------|-------------|--------|--------|-------------|--------|
|                                         |   |   |   |   | As restated |   |   | As restated |   |
| Federal      tax at statutory rate           |   |   | -34    | %      |        |   | 34     | %           |   |   | -34 | % |
| State      income taxes, net                 |   |   | 1      | %      |        |   | 7      | %           |   |   | -12 | % |
| U.S.      Alternative Minimum Taxes          |   |   | 0      | %      |        |   | 2      | %           |   |   | 0 | % |
| Foreign      Taxes                           |   |   | 6      | %      |        |   | 26     | %           |   |   | 42 | % |
| Non-deductible      share based payments     |   |   | 1      | %      |        |   | 1      | %           |   |   | 31 | % |
| Non-deductible      other expenses           |   |   | 22     | %      |        |   | 12     | %           |   |   | 21 | % |
| Unbenefitted      Losses/Valuation Allowance |   |   | 23     | %      |        |   | -38    | %           |   |   | -55 | % |
| Total                                        |   |   | 19     | %      |        |   | 44     | %           |   |   | -7 | % |

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|                                |   | 2008                |    |   | 2007        |   |
|-------------------------------------|--------|---------------------|---------|--------|-------------|--------|
|                                |   | (In      thousands) |    |
|                                |   |                |    |   | As restated |   |
| Deferred      tax assets:           |   |                |    |   |        |   |
| Tax      loss carry forwards        |   | $                   | 23,469  |   |        | $      | 8,872 |   |
| Reserves      and accruals          |   |                | 3,068   |   |        |   | 2,023 |   |
| Property      and equipment         |   |                | -       |   |        |   | 1,154 |   |
| Deferred      revenue               |   |                | 7,207   |   |        |   | 5,938 |   |
| Alternative      Minimum Tax credit |   |                | 331     |   |        |   | 332 |   |
| Canadian      investment credits    |   |                | 1,666   |   |        |   | 563 |   |
| Stock      based compensation       |   |                | 2,731   |   |        |   | 1,702 |   |
| Other,      net                     |   |                | 1,135   |   |        |   | 1,159 |   |
| Total      deferred tax assets      |   | $                   | 39,607  |   |        | $      | 21,743 |   |
| Deferred      tax liabilities:      |   |                |    |   |        |   |   |   |
| Transactional      Cost Study       |   | $                   | (491    | )      |        | $      | - |   |
| Property      and equipment         |   |                | (1,252  | )      |        | $      | (772 | ) |
| Acquired      intangible assets     |   |                | (17,067 | )      |        |   | (128 | ) |
| Total      deferred tax liabilities |   | $                   | (18,810 | )      |        | $      | (900 | ) |
| Net      deferred tax asset         |   | $                   | 20,797  |   |        | $      | 20,843 |   |
| Valuation      allowance            |   |                | (19,115 | )      |        |   | (18,249 | ) |
| Deferred      tax asset, net        |   | $                   | 1,682   |   |        | $      | 2,594 |   |

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|                                                         |   | Uncertain Tax Benefits |      |
|--------------------------------------------------------------|--------|------------------------|-----------|
|                                                         |   | (In      millions)     |      |
|                                                         |   | 2008                   |      |   | 2007 |   |
|                                                         |   |                   |      |   | As restated |   |
| Uncertain      tax benefits at January 1,               |   | $                      | 6.9       |   |   | $ | 5.2 |   |
| Increase      for uncertain tax benefits in the current year |   |                   |  2.0 |   |   |   |  2.3 |   |
| Increases      for uncertain tax benefits of prior years     |   |                   | 0.8       |   |   |   | - |   |
| Decreases      for uncertain tax benefits of prior years     |   |                   | (2.4      | ) |   |   | - |   |
| Settlements                                                  |   |                   | (0.8      | )  |   |   | (0.6 | )  |
| Lapse      of statute of limitations                         |   |                   | —   |   |   |   | — |   |
| Uncertain      tax benefits at December 31,             |   | $                      | 6.5       |   |   | $ | 6.9 |   |

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|                                         |   | Operating      Leases |   |   |                |   |   |       |   |   |                |   |
|----------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|--------|------------|--------|--------|---------------------|--------|
|                                         |   |                  |   |   |                |   |   | Third      |   |   |                |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                  |   |   |                |   |   | Party      |   |   | Total               |   |   |   |   |   |   |   |   |   |   |
|                                         |   | Equipment             |   |   | Facility            |   |   | Hosting    |   |   | Operating           |   |   | Software |   |   | Capital |   |   |   |   |
|                                         |   | Leases                |   |   | Leases              |   |   | Facilities |   |   | Leases              |   |   | Contracts |   |   | Leases (1) |   |   | Total |   |
|                                         |   |                  |   |   | (In      thousands) |   |   |       |   |   | (In      thousands) |   |   | (In      thousands) |   |   | (In      thousands) |   |
| 2009                                         |   | $                     | 101    |   |                | $      | 3,243  |       |   | $      | 904                 |   |   | $ | 4,248 |   |   | $ | 3,080 |   |   | $ | 1,165 |   |   | $ | 8,493 |   |
| 2010                                         |   |                  | 36     |   |                |   | 2,210  |       |   |   | 298                 |   |   |   | 2,544 |   |   |   | 221 |   |   |   | 430 |   |   |   | 3,195 |   |
| 2011                                         |   |                  | 14     |   |                |   | 1,031  |       |   |   | 198                 |   |   |   | 1,243 |   |   |   | - |   |   |   | 66 |   |   |   | 1,309 |   |
| 2012                                         |   |                  | -      |   |                |   | 980    |       |   |   | -                   |   |   |   | 980 |   |   |   | - |   |   |   | 41 |   |   |   | 1,021 |   |
| 2013                                         |   |                  | -      |   |                |   | 451    |       |   |   | -                   |   |   |   | 451 |   |   |   | - |   |   |   | 5 |   |   |   | 456 |   |
| Total                                        |   | $                     | 151    |   |                | $      | 7,915  |       |   | $      | 1,400               |   |   | $ | 9,466 |   |   | $ | 3,301 |   |   | $ | 1,707 |   |   | $ | 14,474 |   |
| Less      amounts representing interest      |   |                  |   |   |                |   |   |       |   |   |                |   |   |   |   |   |   |   |   |   |   |   | (87 | ) |   |   |   |   |
| Present      value of minimum lease payments |   |                  |   |   |                |   |   |       |   |   |                |   |   |   |   |   |   |   |   |   |   | $ | 1,620 |   |   |   |   |   |
| Less      current portion                    |   |                  |   |   |                |   |   |       |   |   |                |   |   |   |   |   |   |   |   |   |   |   | (1,101 | ) |   |   |   |   |
| Noncurrent      portion                      |   |                  |   |   |                |   |   |       |   |   |                |   |   |   |   |   |   |   |   |   |   | $ | 519 |   |   |   |   |   |

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|                                                          |   | 2008                                       |   |   | 2007         |   |    | 2006         |   |
|---------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------|--------|---------|--------------|--------|
|                                                          |   | Class      A                               |   |   | Class      B |   |    | Class      A |   |   | Class      B |   |   | Class      A |   |   | Class      B |   |
|                                                          |   | Common                                     |   |   | Common(1)    |   |    | Common       |   |   | Common(1) |   |   | Common |   |   | Common(1) |   |
|                                                          |   | (In      thousands, except per share data) |   |
|                                                          |   |                                       |   |   |         |   |    | As restated  |   |   | As restated |   |   | As restated |   |   | As restated |   |
| Allocation      of net income/(loss)                          |   | $                                          | (8,201 | )      |         |   | — |         |   | $ | 3,790 |   |   |   | — |   |   | $ | (4,568 | ) |   |   | — |   |
| Weighted-average      shares outstanding — basic   |   |                                       | 27,569 |   |         |   | 455     |         |   |   | 24,116 |   |   |   | 1,108 |   |   |   | 20,031 |   |   |   | 3,140 |   |
| Weighted-average      shares outstanding — diluted |   |                                       | 27,569 |   |         |   | 455     |         |   |   | 28,777 |   |   |   | 1,874 |   |   |   | 20,031 |   |   |   | 3,140 |   |
| Net      income/(loss) per share — basic           |   | $                                          | (0.30  | )      |         |   | — |         |   | $ | 0.16 |   |   |   | — |   |   | $ | (0.23 | ) |   |   | — |   |
| Net      income/(loss) per share — diluted         |   | $                                          | (0.30  | )      |         |   | — |         |   | $ | 0.13 |   |   |   | — |   |   | $ | (0.23 | ) |   |   | — |   |

| (1) | Class B      common shares are non-participating in periods of net income or net losses      and as a result have no attribution of earnings or losses for the purposes      of calculating earnings per share. The corresponding exchangeable shares,      discussed at Note 9. “Common Stock”, are participating      securities but have no legal requirement to fund such losses, making them      antidilutive for 2006 and2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                        |   | Application         |    |   | Consulting  |   |   | Total       |   |
|-----------------------------|--------|---------------------|---------|--------|-------------|--------|--------|-------------|--------|
|                        |   | (In      thousands) |    |
| 2008                        |   |                |    |   |        |   |   |        |   |
| Revenue                     |   | $                   | 138,628 |   |        | $      | 29,791 |        |   | $ | 168,419 |   |
| Contribution      margin(1) |   | $                   | 75,301  |   |        | $      | 4,608  |        |   | $ | 79,909 |   |
|                        |   | As restated         |    |   | As restated |   |   | As restated |   |
| 2007                        |   |                |    |   |        |   |   |        |   |   |   |   |
| Revenue                     |   | $                   | 105,032 |   |        | $      | 23,038 |        |   | $ | 128,070 |   |
| Contribution      margin(1) |   | $                   | 59,487  |   |        | $      | 5,033  |        |   | $ | 64,520 |   |
|                        |   | As restated         |    |   | As restated |   |   | As restated |   |
| 2006                        |   |                |    |   |        |   |   |        |   |   |   |   |
| Revenue                     |   | $                   | 79,116  |   |        | $      | 15,864 |        |   | $ | 94,980 |   |
| Contribution      margin(1) |   | $                   | 40,240  |   |        | $      | 3,057  |        |   | $ | 43,297 |   |

| (1) | The      Contribution margins reported reflect only the expenses of the line of      business and do not represent the actual margins for each operating      segment since they do not contain an allocation for selling and marketing,      general and administrative, and other corporate expenses incurred in      support of the line of business. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | Year EndedDecember 31, |    |
|----------------------------------------------------------|--------|-----------------------------|---------|
|                                                     |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
|                                                     |   | (In      thousands)         |    |
|                                                     |   |                        |    |   | As restated |   |   | As restated |   |
| Contribution      margin for reportable segments         |   | $                           | 79,909  |   |   | $ | 64,520 |   |   | $ | 43,297 |   |
| Sales      and marketing                                 |   |                        | (53,758 | ) |   |   | (36,871 | ) |   |   | (29,528 | ) |
| General      and administrative                          |   |                        | (32,653 | ) |   |   | (23,684 | ) |   |   | (21,030 | ) |
| Restructuring      charges                               |   |                        | (1,914  | ) |   |   | — |   |   |   | (414 | ) |
| Interest      and other income, expense, net             |   |                        | 1,518   |   |   |   | 2,908 |   |   |   | 2,784 |   |
| Net      income (loss) before provision for income taxes |   | $                           | (6,898  | ) |   | $ | 6,873 |   |   | $ | (4,891 | ) |

|                                                |   | United States       |    |   | Canada      |   |   | Europe      |   |   | Other       |   |   | Total       |   |
|-----------------------------------------------------|--------|---------------------|---------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|
|                                                |   | (In      thousands) |    |
| Year      ended December 31, 2008 — |   |                |    |   |        |   |   |        |   |   |        |   |   |        |   |
| Revenue      based on Taleo contracting entity*     |   | $                   | 159,860 |   |        | $      | 7,919  |        |   | $      | 403         |   |   | $           | 237    |   |   | $ | 168,419 |   |
| Assets                                              |   | $                   | 263,268 |   |        | $      | 15,177 |        |   | $      | 4,304       |   |   | $           | 440    |   |   | $ | 283,189 |   |
|                                                |   |                |    |   |        |   |   |        |   |   |        |   |   |        |   |
|                                                |   | As restated         |    |   | As restated |   |   | As restated |   |   | As restated |   |   | As restated |   |
| Year      ended December 31, 2007 — |   |                |    |   |        |   |   |        |   |   |        |   |   |        |   |   |   |   |   |   |
| Revenue      based on Taleo contracting entity*     |   | $                   | 119,651 |   |        | $      | 6,795  |        |   | $      | 922         |   |   | $           | 702    |   |   | $ | 128,070 |   |
| Assets                                              |   | $                   | 143,945 |   |        | $      | 17,946 |        |   | $      | 2,371       |   |   | $           | 559    |   |   | $ | 164,821 |   |
|                                                |   |                |    |   |        |   |   |        |   |   |        |   |   |        |   |
|                                                |   | As restated         |    |   | As restated |   |   | As restated |   |   | As restated |   |   | As restated |   |
| Year      ended December 31, 2006 — |   |                |    |   |        |   |   |        |   |   |        |   |   |        |   |   |   |   |   |   |
| Revenue      based on Taleo contracting entity*     |   | $                   | 86,421  |   |        | $      | 5,636  |        |   | $      | 1,939       |   |   | $           | 984    |   |   | $ | 94,980 |   |
| Assets                                              |   | $                   | 101,805 |   |        | $      | 13,844 |        |   | $      | 1,702       |   |   | $           | 1,220  |   |   | $ | 118,571 |   |

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|                                |   | Severance           |   |   | Facility closure |   |   | Total liability |   |
|-------------------------------------|--------|---------------------|--------|--------|------------------|--------|--------|-----------------|--------|
| Restructuring      expense          |   | (In      thousands) |   |
| Estimated      cost                 |   | $                   | 1,850  |   |             | $      | 65     |            |   | $ | 1,915 |   |
| Cash      payments                  |   |                | (1,579 | )      |             |   | (65    | )               |   |   | (1,644 | ) |
| Liability      at December 31, 2008 |   | $                   | 271    |   |             | $      | -      |            |   | $ | 271 |   |

|                                                                                    |   | Lease payments      |   |   | Sublease rental income |   |   | Net liability |   |
|-----------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|--------|---------------|--------|
| Liability      for the Remaining Net Lease Payments for the San Francisco      Facility |   | (In      thousands) |   |
| Liability      at January 1, 2008                                                       |   | $                   | 609    |   |                   | $      | (443   | )             |   | $ | 166 |   |
| Cash      receipts / (payments)                                                         |   |                | (382   | )      |                   |   | 273    |          |   |   | (109 | ) |
| Liability      at December 31, 2008                                                     |   | $                   | 227    |   |                   | $      | (170   | )             |   | $ | 57 |   |

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| Costs Associated with the Exit from the      San Francisco Facility           |   | Amount              |   |
|------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                               |   | (In      thousands) |   |
| Establishment      of initial net liability for net lease payments at July    2006 |   | $                   | 469    |   |
| Reversal      of accrued rent from original lease                                  |   |                | (237   | ) |
| Adjustment      for tenant inducements from original lease                         |   |                | (102   | ) |
| Write-off      of fixed assets                                                     |   |                | 205    |   |
| Commissions      and legal costs                                                   |   |                | 79     |   |
| Total      cumulative exit expense                                                 |   | $                   | 414    |   |

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Table of Contents

| 2008                                                                                                        |   | 1st Quarter          |   |   | 2nd Quarter          |   |   | 3rd Quarter          |   |   | 4th Quarter          |   |   | Fiscal Year          |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|
| (In      thousands, except per share data)                                                                  |   | As      restated (1) |   |   | As      restated (1) |   |   |                 |   |   |                 |   |   |                 |   |
|                                                                                                        |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |
| Revenue                                                                                                     |   | $                    | 35,830 |   |                 | $      | 37,902 |                 |   | $      | 46,646               |   |   | $                    | 48,041 |   |   | $ | 168,419 |   |
| Gross      profit                                                                                           |   |                 | 23,816 |   |                 |   | 25,987 |                 |   |   | 29,504               |   |   |                 | 31,539 |   |   | $ | 110,846 |   |
| Operating      loss                                                                                         |   |                 | (475   | )      |                 |   | (691   | )                    |   |   | (5,858               | )      |   |                 | (1,392 | ) |   | $ | (8,416 | ) |
| Net      income (loss)                                                                                      |   |                 | 561    |   |                 |   | (45    | )                    |   |   | (6,216               | )      |   |                 | (2,501 | ) |   | $ | (8,201 | ) |
| Net      income (loss) attributable to Class A common stockholders per      share — basic   |   | $                    | 0.02   |   |                 | $      | (0.00  | )                    |   | $      | (0.21                | )      |   | $                    | (0.08  | ) |   | $ | (0.30 | ) |
| Net      income (loss) attributable to Class A common stockholders per      share — diluted |   | $                    | 0.02   |   |                 | $      | (0.00  | )                    |   | $      | (0.21                | )      |   | $                    | (0.08  | ) |   | $ | (0.30 | ) |
| Weighted      average Class A common shares outstanding— basic                              |   |                 | 25,369 |   |                 |   | 25,708 |                 |   |   | 29,388               |   |   |                 | 29,805 |   |   |   | 27,569 |   |
| Weighted      average Class A common shares outstanding    — diluted                        |   |                 | 28,899 |   |                 |   | 25,708 |                 |   |   | 29,388               |   |   |                 | 29,805 |   |   |   | 27,569 |   |
|                                                                                                        |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |   |   |   |   |
| 2007                                                                                                        |   | 1st Quarter          |   |   | 2nd Quarter          |   |   | 3rd Quarter          |   |   | 4th Quarter          |   |   | Fiscal Year          |   |
| (In      thousands, except per share data)                                                                  |   | As      restated (1) |   |   | As      restated (1) |   |   | As      restated (1) |   |   | As      restated (1) |   |   | As      restated (1) |   |
|                                                                                                        |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |   |   |   |   |
| Revenue                                                                                                     |   | $                    | 28,780 |   |                 | $      | 30,792 |                 |   | $      | 33,379               |   |   | $                    | 35,119 |   |   | $ | 128,070 |   |
| Gross      profit                                                                                           |   |                 | 19,938 |   |                 |   | 20,782 |                 |   |   | 23,068               |   |   |                 | 23,700 |   |   | $ | 87,488 |   |
| Operating      income                                                                                       |   |                 | 720    |   |                 |   | 425    |                 |   |   | 1,196                |   |   |                 | 1,624  |   |   | $ | 3,965 |   |
| Net      income (loss)                                                                                      |   |                 | 885    |   |                 |   | (1,929 | )                    |   |   | 1,706                |   |   |                 | 3,128  |   |   | $ | 3,790 |   |
| Net      income (loss) attributable to Class A common stockholders per      share — basic   |   | $                    | 0.04   |   |                 | $      | (0.08  | )                    |   | $      | 0.07                 |   |   | $                    | 0.12   |   |   | $ | 0.16 |   |
| Net      income (loss) attributable to Class A common stockholders per      share — diluted |   | $                    | 0.03   |   |                 | $      | (0.08  | )                    |   | $      | 0.06                 |   |   | $                    | 0.11   |   |   | $ | 0.13 |   |
| Weighted      average Class A common shares outstanding— basic                              |   |                 | 22,804 |   |                 |   | 23,908 |                 |   |   | 24,638               |   |   |                 | 25,084 |   |   |   | 24,116 |   |
| Weighted      average Class A common shares outstanding    — diluted                        |   |                 | 26,014 |   |                 |   | 23,908 |                 |   |   | 28,771               |   |   |                 | 29,541 |   |   |   | 28,777 |   |

| (1) | As      discussed in Note 2, the Company has restated its annual consolidated      financial statements for 2006 and 2007. In addition, the Company intends      to file restated consolidated quarterly financial statements for each of      the periods ended March 31, 2008 and June 30, 2008 in connection with the      filing of its Forms 10-Q for each of the periods ending March 31, 2009 and      June 30, 2009, respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                            |   | As      of June 30, 2008 |    |   | As      of March 31, 2008 |   |    | As      of December 31, 2007 |   |
|---------------------------------------------------------------------------------|--------|--------------------------|---------|--------|---------------------------|--------|---------|------------------------------|--------|
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | As      Previously       |    |   |                      |   |    | As                           |   |   | As      Previously |   |   |   |   |   | As |   |   | As      Previously |   |   |   |   |   | As |   |
|                                                                            |   | Reported                 |    |   | Adjustments               |   |    | Restated      (1)            |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ASSETS                                                                          |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      assets:                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                                  |   | $                        | 104,735 |   |                      | $      | -       |                         |   | $ | 104,735 |   |   | $ | 91,683 |   |   | $ | - |   |   | $ | 91,683 |   |   | $ | 86,135 |   |   | $ | - |   |   | $ | 86,135 |   |
| Restricted      cash                                                            |   |                     | 289     |   |                      |   | -       |                         |   |   | 289 |   |   |   | 289 |   |   |   | - |   |   |   | 289 |   |   |   | 288 |   |   |   | - |   |   |   | 288 |   |
| Accounts      receivable, net of allowances.                                    |   |                     | 29,558  |   |                      |   | (87     | )                            |   |   | 29,471 |   |   |   | 34,415 |   |   |   | - |   |   |   | 34,415 |   |   |   | 30,255 |   |   |   | - |   |   |   | 30,255 |   |
| Prepaid      expenses and other current assets                                  |   |                     | 6,152   |   |                      |   | (218    | )                            |   |   | 5,934 |   |   |   | 5,750 |   |   |   | (218 | ) |   |   | 5,532 |   |   |   | 5,912 |   |   |   | (218 | ) |   |   | 5,694 |   |
| Investment      credits receivable                                              |   |                     | 5,985   |   |                      |   | -       |                         |   |   | 5,985 |   |   |   | 5,214 |   |   |   | - |   |   |   | 5,214 |   |   |   | 4,734 |   |   |   | - |   |   |   | 4,734 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      current assets                                                       |   |                     | 146,719 |   |                      |   | (305    | )                            |   |   | 146,414 |   |   |   | 137,351 |   |   |   | (218 | ) |   |   | 137,133 |   |   |   | 127,324 |   |   |   | (218 | ) |   |   | 127,106 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                                |   |                     | 21,131  |   |                      |   | -       |                         |   |   | 21,131 |   |   |   | 21,925 |   |   |   | - |   |   |   | 21,925 |   |   |   | 23,178 |   |   |   | - |   |   |   | 23,178 |   |
| Restricted      cash                                                            |   |                     | 628     |   |                      |   | -       |                         |   |   | 628 |   |   |   | 838 |   |   |   | - |   |   |   | 838 |   |   |   | 838 |   |   |   | - |   |   |   | 838 |   |
| Goodwill                                                                        |   |                     | 9,707   |   |                      |   | (685    | )                            |   |   | 9,022 |   |   |   | 9,749 |   |   |   | (699 | ) |   |   | 9,050 |   |   |   | 9,785 |   |   |   | (676 | ) |   |   | 9,109 |   |
| Other      intangibles, net                                                     |   |                     | 1,186   |   |                      |   | -       |                         |   |   | 1,186 |   |   |   | 1,295 |   |   |   | - |   |   |   | 1,295 |   |   |   | 1,404 |   |   |   | - |   |   |   | 1,404 |   |
| Other      assets                                                               |   |                     | 5,721   |   |                      |   | 812     |                         |   |   | 6,533 |   |   |   | 2,373 |   |   |   | 1,039 |   |   |   | 3,412 |   |   |   | 2,147 |   |   |   | 1,039 |   |   |   | 3,186 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                               |   | $                        | 185,092 |   |                      | $      | (178    | )                            |   | $ | 184,914 |   |   | $ | 173,531 |   |   | $ | 122 |   |   | $ | 173,653 |   |   | $ | 164,676 |   |   | $ | 145 |   |   | $ | 164,821 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                 |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                       |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                   |   | $                        | 24,558  |   |                      | $      | (293    | )                            |   | $ | 24,265 |   |   | $ | 21,842 |   |   | $ | (277 | ) |   | $ | 21,565 |   |   | $ | 20,623 |   |   | $ | 64 |   |   | $ | 20,687 |   |
| Deferred      revenue - application services and customer deposits              |   |                     | 42,498  |   |                      |   | (4,458  | )                            |   |   | 38,040 |   |   |   | 39,888 |   |   |   | (4,186 | ) |   |   | 35,702 |   |   |   | 36,752 |   |   |   | (4,518 | ) |   |   | 32,234 |   |
| Deferred      revenue - consulting services                                     |   |                     |    |   |                      |   | 14,718  |                         |   |   | 14,718 |   |   |   |   |   |   |   | 14,175 |   |   |   | 14,175 |   |   |   |   |   |   |   | 13,632 |   |   |   | 13,632 |   |
| Capital      lease obligations, short-term                                      |   |                     | 18      |   |                      |   | -       |                         |   |   | 18 |   |   |   | 25 |   |   |   | - |   |   |   | 25 |   |   |   | 38 |   |   |   | - |   |   |   | 38 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      current liabilities                                                  |   |                     | 67,074  |   |                      |   | 9,967   |                         |   |   | 77,041 |   |   |   | 61,755 |   |   |   | 9,712 |   |   |   | 71,467 |   |   |   | 57,413 |   |   |   | 9,178 |   |   |   | 66,591 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      deferred revenue - application services and customer    deposits |   |                     | 1,254   |   |                      |   | -       |                         |   |   | 1,254 |   |   |   | 1,482 |   |   |   | (1 | ) |   |   | 1,481 |   |   |   | 273 |   |   |   |   |   |   |   | 273 |   |
| Long-term      deferred revenue - consulting services                           |   |                     |    |   |                      |   | 8,285   |                         |   |   | 8,285 |   |   |   |   |   |   |   | 7,725 |   |   |   | 7,725 |   |   |   |   |   |   |   | 7,236 |   |   |   | 7,236 |   |
| Other      liabilities                                                          |   |                     | 3,684   |   |                      |   | 140     |                         |   |   | 3,824 |   |   |   | 3,868 |   |   |   | 128 |   |   |   | 3,996 |   |   |   | 4,535 |   |   |   | 171 |   |   |   | 4,706 |   |
| Capital      lease obligations, long-term                                       |   |                     | 11      |   |                      |   | -       |                         |   |   | 11 |   |   |   | 14 |   |   |   | - |   |   |   | 14 |   |   |   | 16 |   |   |   | - |   |   |   | 16 |   |
| Commitments      and contingencies                                              |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class B      redeemable common stock                                       |   |                     | -       |   |                      |   | -       |                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                          |   |                     | 72,023  |   |                      |   | 18,392  |                         |   |   | 90,415 |   |   |   | 67,119 |   |   |   | 17,564 |   |   |   | 84,683 |   |   |   | 62,237 |   |   |   | 16,585 |   |   |   | 78,822 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exchangeable      share obligation                                              |   |                     | 226     |   |                      |   | -       |                         |   |   | 226 |   |   |   | 224 |   |   |   | - |   |   |   | 224 |   |   |   | 331 |   |   |   | - |   |   |   | 331 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity:                                                |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A      common stock                                                  |   |                     | -       |   |                      |   | -       |                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Additional      paid-in capital                                                 |   |                     | 159,765 |   |                      |   | -       |                         |   |   | 159,765 |   |   |   | 154,639 |   |   |   | - |   |   |   | 154,639 |   |   |   | 151,593 |   |   |   | (19 | ) |   |   | 151,574 |   |
| Accumulated      deficit                                                        |   |                     | (48,712 | )      |                      |   | (18,490 | )                            |   |   | (67,202 | ) |   |   | (49,786 | ) |   |   | (17,370 | ) |   |   | (67,156 | ) |   |   | (51,387 | ) |   |   | (16,330 | ) |   |   | (67,717 | ) |
| Treasury      stock, at cost                                                    |   |                     | (66     | )      |                      |   | -       |                         |   |   | (66 | ) |   |   | (448 | ) |   |   | - |   |   |   | (448 | ) |   |   | (195 | ) |   |   | - |   |   |   | (195 | ) |
| Accumulated      other comprehensive income                                     |   |                     | 1,856   |   |                      |   | (80     | )                            |   |   | 1,776 |   |   |   | 1,783 |   |   |   | (72 | ) |   |   | 1,711 |   |   |   | 2,097 |   |   |   | (91 | ) |   |   | 2,006 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      stockholders’ equity                                           |   |                     | 112,843 |   |                      |   | (18,570 | )                            |   |   | 94,273 |   |   |   | 106,188 |   |   |   | (17,442 | ) |   |   | 88,746 |   |   |   | 102,108 |   |   |   | (16,440 | ) |   |   | 85,668 |   |
|                                                                            |   |                     |    |   |                      |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                           |   | $                        | 185,092 |   |                      | $      | (178    | )                            |   | $ | 184,914 |   |   | $ | 173,531 |   |   | $ | 122 |   |   | $ | 173,653 |   |   | $ | 164,676 |   |   | $ | 145 |   |   | $ | 164,821 |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for each of the periods ended March 31,      2008 and June 30, 2008 in connection with the filing of its Forms 10-Q for      the quarters ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                     |   | Three      months ended June 30, 2008 |   |   | Three      months ended June 30, 2007 |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                                     |   | As      Previously                    |   |   |                                  |   |   | As |   |   | As      Previously |   |   |   |   |   | As |   |
|                                                                                                     |   | Reported                              |   |   | Adjustments                           |   |   | Restated      (1) |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                                                                                 |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                              |   | $                                     | 30,875 |   |                                  | $      | (145 | ) |   | $ | 30,730 |   |   | $ | 25,596 |   |   | $ | (164 | ) |   | $ | 25,432 |   |
| Consulting                                                                                               |   |                                  | 7,929  |   |                                  |   | (757 | ) |   |   | 7,172 |   |   |   | 5,358 |   |   |   | 2 |   |   |   | 5,360 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                                       |   |                                  | 38,804 |   |                                  |   | (902 | ) |   |   | 37,902 |   |   |   | 30,954 |   |   |   | (162 | ) |   |   | 30,792 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                                    |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                              |   |                                  | 6,356  |   |                                  |   | - |   |   |   | 6,356 |   |   |   | 5,340 |   |   |   | - |   |   |   | 5,340 |   |
| Consulting                                                                                               |   |                                  | 5,559  |   |                                  |   | - |   |   |   | 5,559 |   |   |   | 4,670 |   |   |   | - |   |   |   | 4,670 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                               |   |                                  | 11,915 |   |                                  |   | - |   |   |   | 11,915 |   |   |   | 10,010 |   |   |   | - |   |   |   | 10,010 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit  / (loss)                                                                    |   |                                  | 26,889 |   |                                  |   | (902 | ) |   |   | 25,987 |   |   |   | 20,944 |   |   |   | (162 | ) |   |   | 20,782 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                 |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                                 |   |                                  | 11,832 |   |                                  |   | - |   |   |   | 11,832 |   |   |   | 8,471 |   |   |   | - |   |   |   | 8,471 |   |
| Research      and development                                                                            |   |                                  | 7,366  |   |                                  |   | (1 | ) |   |   | 7,365 |   |   |   | 5,492 |   |   |   | - |   |   |   | 5,492 |   |
| General      and administrative                                                                          |   |                                  | 7,196  |   |                                  |   | 4 |   |   |   | 7,200 |   |   |   | 6,482 |   |   |   | (88 | ) |   |   | 6,394 |   |
| Restructuring      and severance expense                                                                 |   |                                  | 281    |   |                                  |   | - |   |   |   | 281 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                            |   |                                  | 26,675 |   |                                  |   | 3 |   |   |   | 26,678 |   |   |   | 20,445 |   |   |   | (88 | ) |   |   | 20,357 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income / (loss)                                                                           |   |                                  | 214    |   |                                  |   | (905 | ) |   |   | (691 | ) |   |   | 499 |   |   |   | (74 | ) |   |   | 425 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                           |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                     |   |                                  | 518    |   |                                  |   | - |   |   |   | 518 |   |   |   | 676 |   |   |   | - |   |   |   | 676 |   |
| Interest      expense                                                                                    |   |                                  | (41    | )      |                                  |   | - |   |   |   | (41 | ) |   |   | (10 | ) |   |   | - |   |   |   | (10 | ) |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                             |   |                                  | 477    |   |                                  |   | - |   |   |   | 477 |   |   |   | 666 |   |   |   | - |   |   |   | 666 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      / (loss) before provision / (benefit) for income taxes                                       |   |                                  | 691    |   |                                  |   | (905 | ) |   |   | (214 | ) |   |   | 1,165 |   |   |   | (74 | ) |   |   | 1,091 |   |
| (Benefit)      / provision for income taxes                                                              |   |                                  | (383   | )      |                                  |   | 214 |   |   |   | (169 | ) |   |   | 2,918 |   |   |   | 102 |   |   |   | 3,020 |   |
| Net      income / (loss)                                                                                 |   | $                                     | 1,074  |   |                                  | $      | (1,119 | ) |   | $ | (45 | ) |   | $ | (1,753 | ) |   | $ | (176 | ) |   | $ | (1,929 | ) |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income / (loss) per share attributable to Class A common stockholders      — basic   |   | $                                     | 0.04   |   |                                  | $      | (0.04 | ) |   | $ | (0.00 | ) |   | $ | (0.07 | ) |   | $ | (0.01 | ) |   | $ | (0.08 | ) |
| Net      income / (loss) per share attributable to Class A common stockholders      — diluted |   | $                                     | 0.04   |   |                                  | $      | (0.04 | ) |   | $ | (0.00 | ) |   | $ | (0.07 | ) |   | $ | (0.01 | ) |   | $ | (0.08 | ) |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic                                           |   |                                  | 25,708 |   |                                  |   | 25,708 |   |   |   | 25,708 |   |   |   | 23,908 |   |   |   | 23,908 |   |   |   | 23,908 |   |
|                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — diluted                                         |   |                                  | 29,070 |   |                                  |   | 29,070 |   |   |   | 25,708 |   |   |   | 23,908 |   |   |   | 23,908 |   |   |   | 23,908 |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for the quarters ended March 31, 2008 and      June 30, 2008 in connection with the filing of its Forms 10-Q for each of      the periods ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                            |   | Three      months ended March 31, 2008 |   |   | Three      months ended March 31, 2007 |   |
|-------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                                            |   | As      Previously                     |   |   |                                   |   |   | As |   |   | As      Previously |   |   |   |   |   | As |   |
|                                                                                            |   | Reported                               |   |   | Adjustments                            |   |   | Restated      (1) |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                                                                        |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                     |   | $                                      | 30,201 |   |                                   | $      | (38 | ) |   | $ | 30,163 |   |   | $ | 23,655 |   |   | $ | 96 |   |   | $ | 23,751 |   |
| Consulting                                                                                      |   |                                   | 7,038  |   |                                   |   | (1,371 | ) |   |   | 5,667 |   |   |   | 5,062 |   |   |   | (33 | ) |   |   | 5,029 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                              |   |                                   | 37,239 |   |                                   |   | (1,409 | ) |   |   | 35,830 |   |   |   | 28,717 |   |   |   | 63 |   |   |   | 28,780 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                           |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                     |   |                                   | 6,290  |   |                                   |   | - |   |   |   | 6,290 |   |   |   | 5,100 |   |   |   | (26 | ) |   |   | 5,074 |   |
| Consulting                                                                                      |   |                                   | 5,724  |   |                                   |   | - |   |   |   | 5,724 |   |   |   | 3,789 |   |   |   | (21 | ) |   |   | 3,768 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                      |   |                                   | 12,014 |   |                                   |   | - |   |   |   | 12,014 |   |   |   | 8,889 |   |   |   | (47 | ) |   |   | 8,842 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit  / (loss)                                                           |   |                                   | 25,225 |   |                                   |   | (1,409 | ) |   |   | 23,816 |   |   |   | 19,828 |   |   |   | 110 |   |   |   | 19,938 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                        |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                        |   |                                   | 10,670 |   |                                   |   | - |   |   |   | 10,670 |   |   |   | 8,517 |   |   |   | (45 | ) |   |   | 8,472 |   |
| Research      and development                                                                   |   |                                   | 7,033  |   |                                   |   | - |   |   |   | 7,033 |   |   |   | 5,403 |   |   |   | (13 | ) |   |   | 5,390 |   |
| General      and administrative                                                                 |   |                                   | 6,567  |   |                                   |   | 21 |   |   |   | 6,588 |   |   |   | 5,394 |   |   |   | (38 | ) |   |   | 5,356 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                   |   |                                   | 24,270 |   |                                   |   | 21 |   |   |   | 24,291 |   |   |   | 19,314 |   |   |   | (96 | ) |   |   | 19,218 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income / (loss)                                                                  |   |                                   | 955    |   |                                   |   | (1,430 | ) |   |   | (475 | ) |   |   | 514 |   |   |   | 206 |   |   |   | 720 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                  |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                            |   |                                   | 778    |   |                                   |   | - |   |   |   | 778 |   |   |   | 673 |   |   |   | - |   |   |   | 673 |   |
| Interest      expense                                                                           |   |                                   | (45    | )      |                                   |   | - |   |   |   | (45 | ) |   |   | (19 | ) |   |   | - |   |   |   | (19 | ) |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                    |   |                                   | 733    |   |                                   |   | - |   |   |   | 733 |   |   |   | 654 |   |   |   | - |   |   |   | 654 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      / (loss) before provision  for income taxes                               |   |                                   | 1,688  |   |                                   |   | (1,430 | ) |   |   | 258 |   |   |   | 1,168 |   |   |   | 206 |   |   |   | 1,374 |   |
| Provision      / (benefit) from income taxes                                                    |   |                                   | 87     |   |                                   |   | (390 | ) |   |   | (303 | ) |   |   | 260 |   |   |   | 229 |   |   |   | 489 |   |
| Net      income                                                                                 |   | $                                      | 1,601  |   |                                   | $      | (1,040 | ) |   | $ | 561 |   |   | $ | 908 |   |   | $ | (23 | ) |   | $ | 885 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share attributable to Class A common stockholders —      basic   |   | $                                      | 0.06   |   |                                   | $      | (0.04 | ) |   | $ | 0.02 |   |   | $ | 0.04 |   |   | $ | (0.00 | ) |   | $ | 0.04 |   |
| Net      income per share attributable to Class A common stockholders —      diluted |   | $                                      | 0.06   |   |                                   | $      | (0.04 | ) |   | $ | 0.02 |   |   | $ | 0.03 |   |   | $ | (0.00 | ) |   | $ | 0.03 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic                                  |   |                                   | 25,369 |   |                                   |   | 25,369 |   |   |   | 25,369 |   |   |   | 22,804 |   |   |   | 22,804 |   |   |   | 22,804 |   |
|                                                                                            |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — diluted                                |   |                                   | 28,899 |   |                                   |   | 28,899 |   |   |   | 28,899 |   |   |   | 26,014 |   |   |   | 26,014 |   |   |   | 26,014 |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for the quarters ended March 31, 2008 and      June 30, 2008 in connection with the filing of its Forms 10-Q for each of      the periods ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                     |   | Three      months ended December 31, 2007 |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                     |   | As      Previously                        |   |   |   |   |   | As |   |
|                                                                                                     |   | Reported                                  |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |
| Revenue:                                                                                                 |   |                                      |   |   |   |   |   |   |   |
| Application                                                                                              |   | $                                         | 28,412 |   |   | $ | 74 |   |   | $ | 28,486 |   |
| Consulting                                                                                               |   |                                      | 6,114  |   |   |   | 519 |   |   |   | 6,633 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                                       |   |                                      | 34,526 |   |   |   | 593 |   |   |   | 35,119 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                                    |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                              |   |                                      | 6,651  |   |   |   | - |   |   |   | 6,651 |   |
| Consulting                                                                                               |   |                                      | 4,767  |   |   |   | 1 |   |   |   | 4,768 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                               |   |                                      | 11,418 |   |   |   | 1 |   |   |   | 11,419 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                        |   |                                      | 23,108 |   |   |   | 592 |   |   |   | 23,700 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                                 |   |                                      | 9,979  |   |   |   | - |   |   |   | 9,979 |   |
| Research      and development                                                                            |   |                                      | 6,466  |   |   |   | - |   |   |   | 6,466 |   |
| General      and administrative                                                                          |   |                                      | 5,591  |   |   |   | 40 |   |   |   | 5,631 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                            |   |                                      | 22,036 |   |   |   | 40 |   |   |   | 22,076 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                                                                    |   |                                      | 1,072  |   |   |   | 552 |   |   |   | 1,624 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                           |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                     |   |                                      | 939    |   |   |   | - |   |   |   | 939 |   |
| Interest      expense                                                                                    |   |                                      | (66    | ) |   |   | - |   |   |   | (66 | ) |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                             |   |                                      | 873    |   |   |   | - |   |   |   | 873 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Income      before benefit from income taxes                                                             |   |                                      | 1,945  |   |   |   | 552 |   |   |   | 2,497 |   |
| Benefit      from income taxes                                                                           |   |                                      | (550   | ) |   |   | (81 | ) |   |   | (631 | ) |
| Net      income                                                                                          |   | $                                         | 2,495  |   |   | $ | 633 |   |   | $ | 3,128 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Net      income  per share attributable to Class A common      stockholders — basic |   | $                                         | 0.10   |   |   | $ | 0.03 |   |   | $ | 0.12 |   |
| Net      income per share attributable to Class A common stockholders —      diluted          |   | $                                         | 0.08   |   |   | $ | 0.02 |   |   | $ | 0.11 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic                                           |   |                                      | 25,084 |   |   |   | 25,084 |   |   |   | 25,084 |   |
|                                                                                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — diluted                                         |   |                                      | 29,541 |   |   |   | 29,541 |   |   |   | 29,541 |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for the quarters ended March 31, 2008 and      June 30, 2008 in connection with the filing of its Forms 10-Q for each of      the periods ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                     |   | Six      months ended June 30, 2008 |   |   | Six      months ended June 30, 2007 |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                     |   | As      Previously                  |   |   |                                |   |   | As |   |   | As      Previously |   |   |   |   |   | As |   |
|                                                                                                     |   | Reported                            |   |   | Adjustments                         |   |   | Restated      (1) |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                                                                                 |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                              |   | $                                   | 61,076 |   |                                | $      | (183 | ) |   | $ | 60,893 |   |   | $ | 49,251 |   |   | $ | (68 | ) |   | $ | 49,183 |   |
| Consulting                                                                                               |   |                                | 14,967 |   |                                |   | (2,128 | ) |   |   | 12,839 |   |   |   | 10,420 |   |   |   | (31 | ) |   |   | 10,389 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenue                                                                                       |   |                                | 76,043 |   |                                |   | (2,311 | ) |   |   | 73,732 |   |   |   | 59,671 |   |   |   | (99 | ) |   |   | 59,572 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue:                                                                                    |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Application                                                                                              |   |                                | 12,646 |   |                                |   | - |   |   |   | 12,646 |   |   |   | 10,440 |   |   |   | (26 | ) |   |   | 10,414 |   |
| Consulting                                                                                               |   |                                | 11,283 |   |                                |   | - |   |   |   | 11,283 |   |   |   | 8,459 |   |   |   | (21 | ) |   |   | 8,438 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      cost of revenue                                                                               |   |                                | 23,929 |   |                                |   | - |   |   |   | 23,929 |   |   |   | 18,899 |   |   |   | (47 | ) |   |   | 18,852 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit  / (loss)                                                                    |   |                                | 52,114 |   |                                |   | (2,311 | ) |   |   | 49,803 |   |   |   | 40,772 |   |   |   | (52 | ) |   |   | 40,720 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                 |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      and marketing                                                                                 |   |                                | 22,502 |   |                                |   | - |   |   |   | 22,502 |   |   |   | 16,988 |   |   |   | (45 | ) |   |   | 16,943 |   |
| Research      and development                                                                            |   |                                | 14,399 |   |                                |   | (1 | ) |   |   | 14,398 |   |   |   | 10,895 |   |   |   | (13 | ) |   |   | 10,882 |   |
| General      and administrative                                                                          |   |                                | 13,763 |   |                                |   | 25 |   |   |   | 13,788 |   |   |   | 11,876 |   |   |   | (126 | ) |   |   | 11,750 |   |
| Restructuring      and severance expense                                                                 |   |                                | 281    |   |                                |   | - |   |   |   | 281 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses                                                                            |   |                                | 50,945 |   |                                |   | 24 |   |   |   | 50,969 |   |   |   | 39,759 |   |   |   | (184 | ) |   |   | 39,575 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income / (loss)                                                                           |   |                                | 1,169  |   |                                |   | (2,335 | ) |   |   | (1,166 | ) |   |   | 1,013 |   |   |   | 132 |   |   |   | 1,145 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income / (expense):                                                                           |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                     |   |                                | 1,296  |   |                                |   | - |   |   |   | 1,296 |   |   |   | 1,349 |   |   |   | - |   |   |   | 1,349 |   |
| Interest      expense                                                                                    |   |                                | (86    | )      |                                |   | - |   |   |   | (86 | ) |   |   | (29 | ) |   |   | - |   |   |   | (29 | ) |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                                             |   |                                | 1,210  |   |                                |   | - |   |   |   | 1,210 |   |   |   | 1,320 |   |   |   | - |   |   |   | 1,320 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      / (loss) before provision / (benefit) for income taxes                                       |   |                                | 2,379  |   |                                |   | (2,335 | ) |   |   | 44 |   |   |   | 2,333 |   |   |   | 132 |   |   |   | 2,465 |   |
| (Benefit)      / provision for income taxes                                                              |   |                                | (296   | )      |                                |   | (176 | ) |   |   | (472 | ) |   |   | 3,178 |   |   |   | 331 |   |   |   | 3,509 |   |
| Net      income / (loss)                                                                                 |   | $                                   | 2,675  |   |                                | $      | (2,159 | ) |   | $ | 516 |   |   | $ | (845 | ) |   | $ | (199 | ) |   | $ | (1,044 | ) |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income / (loss) per share attributable to Class A common stockholders      — basic   |   | $                                   | 0.10   |   |                                | $      | (0.08 | ) |   | $ | 0.02 |   |   | $ | (0.04 | ) |   | $ | - |   |   | $ | (0.04 | ) |
| Net      income / (loss) per share attributable to Class A common stockholders      — diluted |   | $                                   | 0.09   |   |                                | $      | (0.07 | ) |   | $ | 0.02 |   |   | $ | (0.04 | ) |   | $ | - |   |   | $ | (0.04 | ) |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — basic                                           |   |                                | 25,538 |   |                                |   | 25,538 |   |   |   | 25,538 |   |   |   | 23,359 |   |   |   | 23,359 |   |   |   | 23,359 |   |
|                                                                                                     |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      Class A common shares — diluted                                         |   |                                | 28,994 |   |                                |   | 28,994 |   |   |   | 28,994 |   |   |   | 23,359 |   |   |   | 23,359 |   |   |   | 23,359 |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for the quarters ended March 31, 2008 and      June 30, 2008 in connection with the filing of its Forms 10-Q for each of      the periods ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                 |   | Three      months ended March 31, 2008 |        |   | Three      months ended March 31, 2007 |    |
|------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-------------|--------|----------------------------------------|---------|
|                                                                                                 |   | As      Previously                     |        |   |                                   |    |   | As |   |   | As      Previously |   |   |   |   |   | As |   |
|                                                                                                 |   | Reported                               |        |   | Adjustments                            |    |   | Restated      (1) |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                           |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                      |   | $                                      | 1,601       |   |                                   | $       | (1,040 | ) |   | $ | 561 |   |   | $ | 908 |   |   | $ | (23 | ) |   | $ | 885 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:          |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                   |   |                                   | 2,364       |   |                                   |    | - |   |   |   | 2,364 |   |   |   | 1,268 |   |   |   | - |   |   |   | 1,268 |   |
| Amortization      of tenant inducements                                                              |   |                                   | (38         | )      |                                   |    | - |   |   |   | (38 | ) |   |   | (55 | ) |   |   | - |   |   |   | (55 | ) |
| Stock-based      compensation expense                                                                |   |                                   | 2,476       |   |                                   |    | 20 |   |   |   | 2,496 |   |   |   | 1,385 |   |   |   | (25 | ) |   |   | 1,360 |   |
| Director      fees settled with stock                                                                |   |                                   | 59          |   |                                   |    | - |   |   |   | 59 |   |   |   | 40 |   |   |   | - |   |   |   | 40 |   |
| Bad      debt expense (reversal)                                                                     |   |                                   | (86         | )      |                                   |    | - |   |   |   | (86 | ) |   |   | 95 |   |   |   | - |   |   |   | 95 |   |
| Interest      earned on restricted cash                                                              |   |                                   | -           |   |                                   |    | - |   |   |   | - |   |   |   | 1 |   |   |   | - |   |   |   | 1 |   |
| Changes      in assets and liabilities, net of effect of acquisition:                                |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                             |   |                                   | (4,163      | )      |                                   |    | - |   |   |   | (4,163 | ) |   |   | (8,422 | ) |   |   | 610 |   |   |   | (7,812 | ) |
| Prepaid      expenses and other assets                                                               |   |                                   | (112        | )      |                                   |    | (71 | ) |   |   | (183 | ) |   |   | (596 | ) |   |   | (122 | ) |   |   | (718 | ) |
| Investment      credits receivable                                                                   |   |                                   | (682        | )      |                                   |    | - |   |   |   | (682 | ) |   |   | 1,775 |   |   |   | - |   |   |   | 1,775 |   |
| Accounts      payable and accrued liabilities                                                        |   |                                   | 1,129       |   |                                   |    | (65 | ) |   |   | 1,064 |   |   |   | 6,990 |   |   |   | 399 |   |   |   | 7,389 |   |
| Deferred      revenue and customer deposits                                                          |   |                                   | 4,479       |   |                                   |    | 1,403 |   |   |   | 5,882 |   |   |   | 10,513 |   |   |   | (722 | ) |   |   | 9,791 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash by provided by operating activities                                               |   |                                   | 7,027       |   |                                   |    | 247 |   |   |   | 7,274 |   |   |   | 13,902 |   |   |   | 117 |   |   |   | 14,019 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                           |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                             |   |                                   | (1,902      | )      |                                   |    | - |   |   |   | (1,902 | ) |   |   | (746 | ) |   |   | - |   |   |   | (746 | ) |
| Change      in restricted cash                                                                       |   |                                   | -           |   |                                   |    | - |   |   |   | - |   |   |   | 2,507 |   |   |   | - |   |   |   | 2,507 |   |
| Acquisition      of business, net of cash acquired                                                   |   |                                   | -           |   |                                   |    | - |   |   |   | - |   |   |   | (3,072 | ) |   |   | - |   |   |   | (3,072 | ) |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash used in investing  activities                                                |   |                                   | (1,902      | )      |                                   |    | - |   |   |   | (1,902 | ) |   |   | (1,311 | ) |   |   | - |   |   |   | (1,311 | ) |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                           |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Principal      payments on capital lease obligations                                                 |   |                                   | (14         | )      |                                   |    | - |   |   |   | (14 | ) |   |   | (142 | ) |   |   | - |   |   |   | (142 | ) |
| Treasury      stock acquired to settle employee withholding liability                                |   |                                   | -           |   |                                   |    | (253 | ) |   |   | (253 | ) |   |   | - |   |   |   | (167 | ) |   |   | (167 | ) |
| Proceeds      from stock options, ESPP Shares and warrants exercised                                 |   |                                   | 414         |   |                                   |    | - |   |   |   | 414 |   |   |   | 2,542 |   |   |   | - |   |   |   | 2,542 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                       |   |                                   | 400         |   |                                   |    | (253 | ) |   |   | 147 |   |   |   | 2,400 |   |   |   | (167 | ) |   |   | 2,233 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash and cash equivalents                                    |   |                                   | 23          |   |                                   |    | 6 |   |   |   | 29 |   |   |   | 157 |   |   |   | 1 |   |   |   | 158 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      in cash and cash equivalents                                                           |   |                                   | 5,548       |   |                                   |    | - |   |   |   | 5,548 |   |   |   | 15,148 |   |   |   | (49 | ) |   |   | 15,099 |   |
| Cash      and cash equivalents:                                                                      |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                             |   |                                   | 86,135      |   |                                   |    | - |   |   |   | 86,135 |   |   |   | 58,785 |   |   |   | - |   |   |   | 58,785 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End      of period                                                                                   |   | $                                      | 91,683      |   |                                   | $       | - |   |   | $ | 91,683 |   |   | $ | 73,933 |   |   | $ | (49 | ) |   | $ | 73,884 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow disclosures:                                                             |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                          |   | $                                 |  1     |   |                                   | $       |  - |   |   | $  |  1 |   |   | $  |  4 |   |   | $ |  - |   |   | $  |  4 |   |
|                                                                                                 |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing and investing      activities:               |   |                                   |        |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment purchases included in accounts payable and acrrued      liabilites  |   | $                                 |  2,811 |   |                                   | $  |  - |   |   | $  |  2,811 |   |   | $  |  229 |   |   | $  |  - |   |   | $  |  229 |   |
| Class      B common stock exchanged for Class A common stock                                    |   | $                                 |  96    |   |                                   | $  |  - |   |   | $  |  96 |   |   | $  |  219 |   |   | $  |  - |   |   | $  |  219 |   |
| Treasury      stock required to settle employee withholding    liability                        |   | $                                 |  253   |   |                                   | $  |  (253 | )  |   | $  |  - |   |   | $  |  166 |   |   | $ |  (166 | )  |   | $  |  - |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for the quarters ended March 31, 2008 and      June 30, 2008 in connection with the filing of its Forms 10-Q for each of      the periods ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                 |   | Six      months ended June 30, 2008 |        |   | Six      months ended June 30, 2007 |    |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|--------|-------------------------------------|---------|
|                                                                                                 |   | As      Previously                  |        |   |                                |    |   | As |   |   | As      Previously |   |   |   |   |   | As |   |
|                                                                                                 |   | Reported                            |        |   | Adjustments                         |    |   | Restated      (1) |   |   | Reported |   |   | Adjustments |   |   | Restated      (1) |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                           |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income / (loss)                                                                             |   | $                                   | 2,675       |   |                                | $       | (2,159 | ) |   | $ | 516 |   |   | $ | (845 | ) |   | $ | (199 | ) |   | $ | (1,044 | ) |
| Adjustments      to reconcile net income / (loss) to net cash provided by operating      activities: |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                   |   |                                | 4,726       |   |                                |    | - |   |   |   | 4,726 |   |   |   | 2,827 |   |   |   | - |   |   |   | 2,827 |   |
| Amortization      of tenant inducements                                                              |   |                                | (76         | )      |                                |    | - |   |   |   | (76 | ) |   |   | (93 | ) |   |   | - |   |   |   | (93 | ) |
| Stock-based      compensation expense                                                                |   |                                | 5,232       |   |                                |    | 19 |   |   |   | 5,251 |   |   |   | 2,965 |   |   |   | (114 | ) |   |   | 2,851 |   |
| Director      fees settled with stock                                                                |   |                                | 119         |   |                                |    | - |   |   |   | 119 |   |   |   | 112 |   |   |   | - |   |   |   | 112 |   |
| Bad      debt expense                                                                                |   |                                | 100         |   |                                |    | - |   |   |   | 100 |   |   |   | 310 |   |   |   | - |   |   |   | 310 |   |
| Interest      earned on restricted cash                                                              |   |                                | -           |   |                                |    | - |   |   |   | - |   |   |   | 1 |   |   |   | - |   |   |   | 1 |   |
| Changes      in assets and liabilities, net of effect of acquisition:                                |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                             |   |                                | 544         |   |                                |    | 87 |   |   |   | 631 |   |   |   | (5,986 | ) |   |   | (46 | ) |   |   | (6,032 | ) |
| Prepaid      expenses and other assets                                                               |   |                                | (3,824      | )      |                                |    | 176 |   |   |   | (3,648 | ) |   |   | (1,272 | ) |   |   | (122 | ) |   |   | (1,394 | ) |
| Investment      credits receivable                                                                   |   |                                | (1,393      | )      |                                |    | - |   |   |   | (1,393 | ) |   |   | 1,115 |   |   |   | - |   |   |   | 1,115 |   |
| Accounts      payable and accrued liabilities                                                        |   |                                | 4,355       |   |                                |    | (478 | ) |   |   | 3,877 |   |   |   | (218 | ) |   |   | 179 |   |   |   | (39 | ) |
| Deferred      revenue and customer deposits                                                          |   |                                | 6,818       |   |                                |    | 2,221 |   |   |   | 9,039 |   |   |   | 10,747 |   |   |   | 140 |   |   |   | 10,887 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash by provided by operating activities                                                    |   |                                | 19,276      |   |                                |    | (134 | ) |   |   | 19,142 |   |   |   | 9,663 |   |   |   | (162 | ) |   |   | 9,501 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                           |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                             |   |                                | (3,625      | )      |                                |    | - |   |   |   | (3,625 | ) |   |   | (4,082 | ) |   |   | - |   |   |   | (4,082 | ) |
| Change      in restricted cash                                                                       |   |                                | 210         |   |                                |    | - |   |   |   | 210 |   |   |   | 2,704 |   |   |   | - |   |   |   | 2,704 |   |
| Acquisition      of business, net of cash acquired                                                   |   |                                | -           |   |                                |    | - |   |   |   | - |   |   |   | (3,071 | ) |   |   | - |   |   |   | (3,071 | ) |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash used in investing  activities                                                |   |                                | (3,415      | )      |                                |    | - |   |   |   | (3,415 | ) |   |   | (4,449 | ) |   |   | - |   |   |   | (4,449 | ) |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                           |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Principal      payments on capital lease obligations                                                 |   |                                | (24         | )      |                                |    | - |   |   |   | (24 | ) |   |   | (308 | ) |   |   | - |   |   |   | (308 | ) |
| Treasury      stock acquired to settle employee withholding liability                                |   |                                | -           |   |                                |    | (572 | ) |   |   | (572 | ) |   |   | - |   |   |   | (292 | ) |   |   | (292 | ) |
| Proceeds      from stock options, ESPP Shares and warrants exercised                                 |   |                                | 2,725       |   |                                |    | 701 |   |   |   | 3,426 |   |   |   | 5,083 |   |   |   | 450 |   |   |   | 5,533 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                       |   |                                | 2,701       |   |                                |    | 129 |   |   |   | 2,830 |   |   |   | 4,775 |   |   |   | 158 |   |   |   | 4,933 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash and cash equivalents                                    |   |                                | 38          |   |                                |    | 5 |   |   |   | 43 |   |   |   | 246 |   |   |   | 4 |   |   |   | 250 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      in cash and cash equivalents                                                           |   |                                | 18,600      |   |                                |    | - |   |   |   | 18,600 |   |   |   | 10,235 |   |   |   | - |   |   |   | 10,235 |   |
| Cash      and cash equivalents:                                                                      |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                             |   |                                | 86,135      |   |                                |    | - |   |   |   | 86,135 |   |   |   | 58,785 |   |   |   | - |   |   |   | 58,785 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End      of period                                                                                   |   | $                                   | 104,735     |   |                                | $       | - |   |   | $ | 104,735 |   |   | $ | 69,020 |   |   | $ | - |   |   | $ | 69,020 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow disclosures:                                                             |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                          |   | $                                   |  1     |   |                                | $  |  - |   |   | $  |  1 |   |   | $ |  4 |   |   | $  |  - |   |   | $  |  4 |   |
| Cash      paid for income taxes                                                                      |   | $                                   |  -     |   |                                | $  |  - |   |   | $ |  - |   |   | $ |  124 |   |   | $  |  - |   |   | $ | 124 |   |
|                                                                                                 |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing and investing activities                          |   |                                |        |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment included in accounts payable and accrued      liabities                  |   | $                                   |  2,487 |   |                                | $  |  - |   |   | $ |  2,487 |   |   | $  |  3,686 |   |   | $ |  - |   |   | $  |  3,686 |   |
| Class      B common stock exchanged for Class A common Stock                                         |   | $                                   |  96    |   |                                | $       | - |   |   | $ |  96 |   |   | $  |  393 |   |   | $  |  - |   |   | $ |  393 |   |
| Treasury      stock issued to employees under ESPP                                                   |   | $                                   |  701   |   |                                | $       |  (701 | )  |   | $  |  - |   |   | $  |  450 |   |   | $ |  (450 | )  |   | $  |  - |   |
| Treasury      stock acquired to settle employee withholding liability                                |   | $                                   |  573   |   |                                | $       | (573 | )  |   | $ |  - |   |   | $  |  292 |   |   | $  |  (292 | ) |   | $ |  - |   |

| (1) | As discussed in Note 2, the      Company has restated its annual consolidated financial statements for 2006      and 2007. In addition, the Company intends to file restated consolidated      quarterly financial statements for the quarters ended March 31, 2008 and      June 30, 2008 in connection with the filing of its Forms 10-Q for each of      the periods ending March 31, 2009 and June 30, 2009,      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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HAN

ROCED

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|   | · | We      engaged an external advisor knowledgeable in revenue recognition, to,      assist us in the interpretation of the nuances of EITF 00-21, and how EITF      00-21 applies to our Software-as-a-Service business  model; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      enhanced our order to cash and revenue processes to include, on a      continual basis, the following analyses to be performed in light of the      insights gained from our re-interpretation of EITF 00-21: (i) A      review of the terms of  service contracts associated with our      Taleo Enterprise Edition products, and (ii) A      review of the consistency of our pricing of service contracts to consider      whether fair value of contract elements exist;      and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      revised our policies to determine when elements should be considered      combined in a single arrangement or sold  separately. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

NFORM

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UTIVE

| Name                  |   | Age |   | Position                                                  |
|-----------------------|--------|-----|--------|-----------------------------------------------------------|
| Michael      Gregoire |   | 43  |   | President,      Chief Executive Officer and Director      |
| Neil      Hudspith    |   | 51  |   | Executive      Vice President, Worldwide Field Operations |
| Guy      Gauvin       |   | 41  |   | Executive      Vice President, Global Services            |
| Katy      Murray      |   | 40  |   | Executive      Vice President and Chief FinancialOfficer  |

COMPEN

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ENEFI

RELATE

OUN

HIBI

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NAT

|   | TALEO      CORPORATION |                         |
|--------|------------------------|------------------------------|
|   |                   |                         |   |
|   | By:     | /s/      Katy      Murray    |   |
|   |                   | Katy      Murray             |   |
|   |                   | Chief      Financial Officer |   |

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| Signature                      | Title                                                  | Date                     |
|--------------------------------|--------------------------------------------------------|--------------------------|
|                           |                                                   |                     |
| /s/Michael      Gregoire       | Chairman      of the Board and Chief Executive Officer | April 30,      2009 |
| Michael      Gregoire          |  (Principal      Executive Officer)               |                     |
|                           |                                                   |                     |
| /s/      Katy Murray           | Chief      Financial Officer                           | April 30,      2009 |
| Katy      Murray               | (Principal      Accounting and Financial Officer)      |                     |
|                           |                                                   |                     |
|  /s/      Eric      Herr  | Lead      Independent Director                         | April 30,      2009 |
| Eric      Herr                 | of      the Board of Directors                         |                     |
|                           |                                                   |                     |
| /s/      Gary      Bloom       | Director                                               | April 30,      2009 |
| Gary      Bloom                |                                                   |                     |
|                           |                                                   |                     |
| /s/      Patrick      Gross    | Director                                               | April 30,      2009 |
| Patrick      Gross             |                                                   |                     |
|                           |                                                   |                     |
| /s/      Howard      Gwin      | Director                                               | April 30,      2009 |
| Howard      Gwin               |                                                   |                     |
|                           |                                                   |                     |
| /s/      Greg      Santora     | Director                                               | April 30,      2009 |
| Greg      Santora              |                                                   |                     |
|                           |                                                   |                     |
| /s/      Jeffrey      Schwartz | Director                                               | April 30,      2009 |
| Jeffrey      Schwartz          |                                                   |                     |
|                           |                                                   |                     |
| /s/      Jeffrey      Stiefler | Director                                               | April 30,      2009 |
| Jeffrey      Stiefler          |                                                   |                     |
|                           |                                                   |                     |
| /s/      Michael      Tierney  | Director                                               | April 30,      2009 |
| Michael      Tierney           |                                                   |                     |

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| ExhibitNumber |   |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1           |   | Asset      Purchase Agreement dated as of March 2, 2007, by and among the Taleo      Coporation, JobFlash, Inc., and, with respect to Article X,      Article XI and Article XII thereof only, U.S. Bank National      Association as Escrow Agent (incorporated herein by      referenceto      Exhibit 2.1 to the Registrant’sCurrent Report on      Form 8-K,filed on March 8,      2007)                                                                           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 2.2           |   | Agreement      and Plan of Reorganization dated as of May 5, 2008, by and among Taleo      Corporation, Dolphin Acquisition Corporation, Porpoise Acquisition LLC,      Vurv Technology, Inc., and with respect to Articles VII, VIII and IX only      Derek Mercer as Stockholder Representative and U.S Bank National      Association as Escrow Agent(incorporated herein by      referenceto      Exhibit 2.1 to the Registrant’sCurrent Report on      Form 8-K,filed on May 7,      2008) |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.1           |   | Amended      and Restated Certificate of Incorporation (incorporated herein byreference to      Exhibit 3.1 to theRegistrant’s Registration      Statement onForm S-1, Commission      FileNo. 333-114093, filed      onSeptember 13,      2005)                                                                                                                                                                                                                                      |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.2           |   | Bylaws      (incorporated herein by      referenceto      Exhibit 3.2 to the Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onMay 13,      2004)                                                                                                                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.1           |   | Form      of Class A common stock certificate (incorporated herein byreference to      Exhibit 4.1 to theRegistrant’s Registration      Statement onForm S-1, Commission      FileNo. 333-114093, filed      onSeptember 13,      2005)                                                                                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.2           |   | Form      of Class B common stock certificate (incorporated herein byreference to      Exhibit 4.2 to theRegistrant’s Registration      Statement onForm S-1, Commission      FileNo. 333-114093, filed      onSeptember 13,      2005)                                                                                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.3           |   | Second      Amended and Restated Investor Rights Agreement, dated October 21,      2003 (incorporated      herein by referenceto Exhibit 4.3 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onMarch 31,      2004)                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4           |   | Covenant      Agreement, dated November 24, 1999, between the Registrant and      ViaSite Inc. (incorporated herein by      reference toExhibit 4.4 to the      Registrant’sRegistration Statement      onForm 10-12G, Commission      FileNo. 000-51299, filed      onMay 2,      2005)                                                                                                                                                                                         |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.1*         |   | 1999      Stock Plan and form of agreement thereunder (incorporated herein by      reference to Exhibit 10.1 to the Registrant’s Registration Statement      on Form S-1, Commission File No. 333-114093, filed on      March 31, 2004)                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2*         |   | ViaSite      Inc. Stock Plan (incorporatedherein by reference to      Exhibit 10.2to the Registrant’s      RegistrationStatement on      Form S-1,Commission FileNo. 333-114093, filed      onMarch 31,      2004)                                                                                                                                                                                                                                                                    |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.3          |   | 2003      Series D Preferred Stock Plan and form of agreement thereunder (incorporated herein by      reference toExhibit 10.3 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onMarch 31,      2004)                                                                                                                                                                                                             |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.4*         |   | 2004      Stock Plan and form of agreement thereunder (incorporated herein byreference to      Exhibit 10.4 to theRegistrant’s Registration      Statement onForm S-1, Commission      FileNo. 333-114093, filed      onJanuary 28,      2005)                                                                                                                                                                                                                                        |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.5*         |   | Form      of Taleo Corporation 2004 Stock Plan Restricted Stock Agreement (incorporated herein by      reference toExhibit 10.1 to the      Registrant’sCurrent Report on      Form 8-K,filed on June 6,      2006)                                                                                                                                                                                                                                                                        |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.6*         |   | Form      of Taleo Corporation 2004 Stock Plan Performance Share Agreement (incorporated herein by      reference toExhibit 10.2 to the      Registrant’sCurrent Report on      Form 8-K,filed on June 6,      2006)                                                                                                                                                                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.7*         |   | 2004      Employee Stock Purchase Plan (incorporated herein by      reference toExhibit 10.5 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onJanuary 28,      2005)                                                                                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.8*         |   | 2005      Stock Plan and form of agreement thereunder (incorporated herein byreference to      Exhibit 10.24 to theRegistrant’s Registration      Statement onForm S-1, Commission      FileNo. 333-114093, filed      onSeptember 13,      2005)                                                                                                                                                                                                                                     |

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| 10.9   |   | Vurv      Technology, Inc. Stock Option Plan, as amended and restated as of March      23, 2006 (incorporated      herein byreference to Exhibit 99.4      to theRegistrant’s Registration      Statement onForm S-8, Commission      FileNo. 333-152720, filed      onAugust 1,      2008)                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.10  |   | Form      of Vurv Stock Plan Agreement (incorporated herein byreference to      Exhibit 99.5 to theRegistrant’s Registration      Statement onForm S-8, Commission      FileNo. 333-152720, filed      onAugust 1,      2008)                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.11* |   | Employment      Agreement, dated March 14, 2005, between Taleo      Corporation and Michael Gregoire (incorporated herein by      reference toExhibit 10.16 to the      Registrant’sRegistration Statement      onForm 10-12G, Commission      FileNo. 000-51299, filed      onMay 2,      2005)                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.12* |   | Employment      Agreement between Taleo Corporation and Katy Murray dated      August 4, 2006 (incorporated herein by reference to Exhibit 10.1      to the Registrant’s Current Report on Form 8-K, filed on      August 10, 2006)                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.13* |   | Employment      Agreement, dated March 8, 2006, between Taleo (Canada) Inc. and Guy      Gauvin (incorporated      herein byreference to      Exhibit 10.11 to theRegistrant’s Annual Report      onForm 10-K, filed      onApril 17,      2006)                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.14* |   | Employment Agreement      between Taleo Corporation and Neil Hudspith dated May, 1 2008, as      amended                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.15* |   | Employment      Agreement, dated March 8, 2006, between Taleo      Corporation and Jeffrey Carr (incorporated herein byreference to      Exhibit 10.10 to theRegistrant’s Annual Report      onForm 10-K, filed      onApril 17,      2006)                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.16* |   | Separation      Agreement by and between Jeffrey Carr and Taleo Corporation, dated May 8,      2008                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.17* |   | Waiver      of Rights and Release of Claims Agreement by and between Taleo Corporation      and Jeffrey Carr, dated as of December 30, 2008                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.18* |   | Promissory      Note issued by Jeffery Carr to Taleo Corporation, dated December 29,      2008                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.19* |   | Summary      of the 2008 Executive Incentive Bonus Plan (incorporated herein byreference to      Exhibit 10.1 to theRegistrant’s Current Report      onForm 8-K,      filed onFebruary 7,      2008)                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.20* |   | Summary      of the 2009 Executive Incentive Bonus Plan (incorporated herein byreference to      Exhibit 10.1 to theRegistrant’s Current Report      onForm 8-K/A, filed      onJanuary 20,      2009)                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.21* |   | Form      of Indemnification Agreement entered into by the Registrant and each of      its directors and executive officers (incorporated herein by      reference toExhibit 10.6 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onMarch 31,      2004)                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.22  |   | Agreement,      dated September 1, 2002, between the Registrant and Internap Network      Services Corporation (incorporated herein by      reference toExhibit 10.13 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onJanuary 28,      2005)                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.23  |   | Master      Services Agreement dated April 14, 2006, by and between the      Registrant and Equinix Operating Co., Inc. (incorporated herein by      referenceto      Exhibit 10.1 to the Registrant’sCurrent Report on      Form 8-K,filed on April 20,      2006)                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.24  |   | Lease      for 575 Market Street, Eighth Floor, San Francisco, California (incorporated herein by      reference toExhibit 10.9 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onSeptember 13,      2005)                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.25  |   | Sublease      Agreement dated October 19, 2006 by and between the Registrant, as      sublessor, and Cyworld, Inc., as sublessee, for the premises located at      575 Market Street, San Francisco, California (incorporated herein byreference to      Exhibit 10.1 to theRegistrant’s Current Report      onForm 8-K,      filed onOctober 25,      2006) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.26  |   | Lease      for 330 St. Vallier East, Suite 400, Quebec, QC, Canada (incorporated herein by      reference toExhibit 10.10 to the      Registrant’sRegistration Statement      onForm S-1,      Commission FileNo. 333-114093, filed      onMay 13,      2004)                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.27  |   | Lease      for 4140 Dublin Blvd., Suite 400, Dublin, California (incorporated herein by      reference toExhibit 10.1 to the      Registrant’sCurrent Report on      Form 8-Kfiled on March 22,      2006)                                                                                                                                                        |

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| 10.28        |   | Master      Services Agreement, dated as of June 27, 2008, by and between Taleo      (Europe) B.V. and Equinox Netherlands B.V (incorporated herein by      reference toExhibit 10.1 to the      Registrant’sReport on Form 10-Q,      filed on August      11, 2008)                 |
|--------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                                                                                  |
| 10.29‡ |   | Oracle      License and Service Agreement, dated May 30, 2007, by and between      Taleo Corporation and Oracle USA, Inc. (incorporated herein by      reference toExhibit 10.1 to the      Registrant’sQuarterly Report on      Form 10-Q,filed on August 9,      2007)    |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 10.30‡ |   | Payment      Schedule Agreement, dated May 30, 2007, by and between Taleo      Corporation and Oracle Credit Corporation, (incorporated herein byreference to      Exhibit 10.2 to theRegistrant’s Quarterly Report      onForm 10-Q      filed onAugust 9,      2007) |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 10.31*       |   | Amendment      to Employment Agreement between Taleo Corporation and Michael Gregoire,      dated December 26, 2008                                                                                                                                                                                   |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 10.32*       |   | Amendment      to Employment Agreement between Taleo Corporation and Katy Murray, dated      December 26, 2008                                                                                                                                                                                        |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 10.33*       |   | Amendment      to Employment Agreement between Taleo Corporation and Guy Gauvin, dated      December 24, 2008                                                                                                                                                                                         |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 10.34*       |   | Amendment      to Employment Agreement between Taleo Corporation and Nei Hudspith, dated      December 30, 2008                                                                                                                                                                                       |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 21.1         |   | List of      Subsidiaries as of April 30, 2009                                                                                                                                                                                                                                                   |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 23.1         |   | Consent      of Deloitte & Touche LLP, Independent Registered Public      Accounting Firm                                                                                                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 24.1         |   | Power      of Attorney (see the signature page of this Annual  Report)                                                                                                                                                                                                                                |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 31.1         |   | Certification      of Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                     |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 31.2         |   | Certification      of Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                     |
|         |   |                                                                                                                                                                                                                                                                                                  |
| 32.1         |   | Certification      of Chief Executive Officer and Chief Financial Officer pursuant to      18 U.S.C. Section 1350, as adopted pursuant to Section 906      of the Sarbanes-Oxley Act of2002                                                                                            |

| *       | Indicates      management compensatory plan, contract or arrangement.       |
|---------|-----------------------------------------------------------------------------|
|    |                                                                        |
| ‡ | Confidential      treatment has been granted for portions of this  exhibit. |

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