Pep Boys Jumpstarts Succession Planning Initiative With SuccessFactors; Goes Live in Just 45 Days; New Succession Program Ensures Automotive Retailer Management Team Bench Strength; Protects $1M Investment

SAN MATEO, Calif.--Sept. 1, 2005--SuccessFactors, Inc., the leading supplier of workforce performance management software, today announced that The Pep Boys -- Manny, Moe & Jack , the nation's leading automotive aftermarket retail and service chain, has successfully implemented the company's succession planning technology throughout their entire organization in record breaking time. Pep Boys chose to implement SuccessFactors' technology with the goals of increasing the company's management team bench strength, protecting the recent recruiting investment of management personnel, and providing a clear development path for top performing associates.

In 2004, due to an operating model restructure, Pep Boys spent over $1 million in recruiting, relocation and training costs to quickly increase the number of area directors, divisional vice presidents and senior vice presidents within the organization. Moving forward, Pep Boys needed an effective strategy to protect this investment and to develop and retain this highly specialized talent pool. The company also wanted a technology-based best practice to identify and groom internal, high performing talent for future key roles. Pep Boys chose SuccessFactors as the technology driver for these efforts. SuccessFactors enabled an immediate upgrade to Pep-Boys' paper-based, corporate succession planning program and kicked off a corporate-wide initiative in record time.

"Seasoned and successful talent with multi-unit experience in the service repair industry is scarce. When someone leaves a service role, it is imperative that Pep Boys have the talent available to immediately fill that void in order to maintain our leadership position," said Liviu Dedes, Pep Boys' Director of Training and Organizational Development. "SuccessFactors' ASP-based business model enabled Pep Boys to have our succession planning initiative up and running quickly while the technology is proving to be instrumental in identifying and developing the talent pool necessary to effectively fill business critical positions within our organization."

In addition to the company's succession planning initiative, Pep Boys is also implementing SuccessFactors' entire performance management suite, including performance management, compensation planning, and 360 Degree review modules. Pep Boys will leverage SuccessFactors to more effectively tie goal setting with compensation and foster a more equitable compensation distribution based on performance.

"SuccessFactors' succession planning technology ensures the development and readiness of the employee talent required to execute on business strategies in ways that have never been possible," said Lars Dalgaard, SuccessFactors' Founder and CEO. "Pep Boys has shown itself to be incredibly nimble and smart in their understanding of how to best utilize SuccessFactors' technology to reap immediate as well as long term benefits. I'm looking forward to continuing to partner with them in their industry leading efforts."

Pep Boys' Dedes will be presenting the company's succession planning strategy and best practices during a September 14th webinar sponsored by CLO Media's Workforce Performance Solutions magazine. The interactive session will review succession planning technology capabilities, assess the different options available to effectively manage talent, and showcase companies like Pep Boys who are using succession planning and talent management technology to ensure the development and readiness of the employee talent required to achieve business success. Individuals who would like to attend this webinar can register at http://events.interwise.com.

About SuccessFactors Technology

The SuccessFactors Workforce Performance Management Suite is delivered as a service, enabling organizations to rapidly align, develop, motivate and maintain a high-performance workforce, while providing visibility, accountability and results for the customer. Built on an industry-standard architecture, the Workforce Performance Management Suite is composed of distinct capabilities, all of which are fully integrated. Its ease-of-use and rapid deployment features allow customers to solve immediate needs by getting to productive events in record time. The entire suite is highly scalable and modular, allowing customers to add new modules when they are ready -- "on demand."

About Pep Boys

Pep Boys has 593 stores and over 6,000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting pepboys.com.

About SuccessFactors

With the highest industry renewal rate, SuccessFactors is the established global leader in providing on-demand, Web-based, integrated workforce performance management solutions. SuccessFactors, founded in 2001, delivers software and solutions that help companies of all sizes implement effective workforce performance management strategies that align employee performance with bottom-line business results. The company's customer roster encompasses industry leaders including General Motors, Cooper Tire & Rubber Company, Invitrogen, MasterCard International, Volkswagen of North America, McKesson, Reebok International, MeadWestvaco, PG&E, Lancaster General Hospital, Grant Thornton, Friendly's Ice Cream and HP Hood. SuccessFactors is headquartered in San Mateo, CA, and has multiple worldwide offices. The applications are being used in 75 countries and in multiple languages. For more information on SuccessFactors, visit www.successfactors.com or call 1-800-809-9920.