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Medallia Delivers Record Financial Performance Despite Souring Economy

Medallia Triples Revenues in the Hard-hit Retail and Financial Services Sectors

10% of Top 50 Global Brands Switch to Medallia to Improve the Customer Experience

Menlo Park, CA — February 19, 2009— Medallia, the global leader in Enterprise Feedback Management (EFM) solutions, today announced strong FY 2008 results. The company sustained its historical revenue growth rate of more than 50% for the year. And in two of the industries hit hardest by the current economic downturn – financial services and retail – Medallia increased its revenues by more than 200%. The fourth quarter saw a 20%+ increase in the dollar value of bookings, positioning the company for another banner year in 2009.

“We couldn’t be happier with the results,” said Borge Hald, CEO of Medallia. “We built the Medallia solution for companies that care the most about the customer experience. This year, five of the top 50 companies on InterBrand’s/BusinessWeek’s Global Most Valuable Brand list switched from existing solutions to Medallia. That’s a huge vote of confidence from iconic companies that place such importance on their customer relationships.”

“Choosing Medallia is ultimately about driving results,” said Hald. “The average customer experience score of Medallia customers has steadily increased and now hovers between 50 and 60 (in the superior range) on the popular Net Promoter scale. The average value of Medallia customers’ shares has increased by about 100% in the past five years, at the same time the S&P 500 Index has declined. Clearly the market view is that our customers have been making good decisions. Universally, they see their decision to implement Medallia as a key contributor to their success with customers.”

Hald also explained why Medallia’s solutions are an attractive investment for customers during a recession: “The ability to measure and improve the customer experience is critical during tough times when existing customers account for a greater share of revenue. Equally important, our solution represents a paradigm shift in terms of functionality and is more affordable than traditional solutions. ‘More for less’ — always an attractive value proposition — particularly resonates in this environment. We believe it helped drive our dramatic growth in financial services this year.”

The company also fared well in the hotel industry, which suffered a 4.2% year-over-year drop in occupancy rate during 2008. Medallia added several new hotel brands, including in the luxury segment, and continued global expansion of many customers’ programs. Medallia is now used at more than 60% of nationally branded hotel properties.

“We believe the company is on track to match or exceed its historical growth rate in 2009. The signals are good: so far in 2009, the value of booked deals and the sales pipeline are significantly larger than at this time last year,” said Hald. “Medallia’s customer experience management solutions continue to defend their value, even – and, many would argue, more so – in a souring economy,” he added.

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