Salesforce.com Takes 4 Cent Legal Charge

On June 7, 2011, the salesforce.com CRM Company entered into a preliminary settlement agreement with respect to a California state wage and hour lawsuit that had been filed against the Company early in 2011 in the Superior Court of California, County of San Francisco. The settlement agreement is subject to approval of the court, which is expected to rule by late 2011. The Company currently estimates the expense charge for the settlement to be approximately $0.04 per diluted share. This charge will be reflected in the Company's financial results for the fiscal quarter ending July 31, 2011 and will reduce both GAAP and non-GAAP diluted projected results. Other than noting the impact of this expense, the Company is not otherwise updating its current guidance for the fiscal quarter ending July 31, 2011.