Halogen Software Completes Initial Public Offering and Commences Trading on the Toronto Stock Exchange

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

OTTAWA, May 17, 2013  - Halogen Software Inc. ("Halogen" or the "Company"), a leading provider of cloud based talent management solutions, announced today that it has completed its initial public offering (IPO) and secondary offering of its common shares (the "Offering"). Halogen's common shares will begin trading today on the Toronto Stock Exchange under the symbol "HGN".

"We're very proud to have completed our IPO so successfully, especially with such strong interest and support from the investment community," said Halogen's executive chairman and co-founder, Michael Slaunwhite. "This is an important milestone for us, one that will accelerate our position as a leading global provider of talent management software solutions for mid-market organizations."

Pursuant to the Offering, Halogen issued 4,365,218 common shares at a price of $11.50 for total gross proceeds to Halogen of just over $50 million. In addition, 434,782 common shares were sold by JMI Equity Fund VI, L.P. (the "Selling Shareholder") at a price of $11.50 per share, for total gross proceeds to the Selling Shareholder of approximately $5 million.

"This is truly an exciting day for Halogen and I'm extremely proud of our employees and their contribution to our success," said Paul Loucks, Halogen's CEO. "This transaction enables us to grow our operations, invest in product development, and strengthen our balance sheet. More importantly - it enables us to expand upon what we do best — which is helping our customers build exceptional workforces."

"While the market for talent management software solutions is large and growing, the mid-market is still underserved," continued Mr. Loucks. "This is a $15 billion annual total addressable market. Our powerful, organically-built suite of cloud applications, combined with our go-to-market strategy and focus on world-class customer service, have made us a recognized leader in the mid-market; a great foundation to build upon."

The Offering was underwritten by a syndicate of underwriters co-led by Canaccord Genuity Corp. and Stifel Nicolaus Canada Inc., and including Raymond James Ltd., Cantor Fitzgerald Canada Corporation and National Bank Financial Inc. (collectively, the "Underwriters"). The Company has granted the Underwriters an over-allotment option, exercisable in whole or in part at any time for a period of 30 days following the closing of the Offering, to purchase, in aggregate, up to an additional 720,000 common shares at a price of $11.50 per share.

Osler, Hoskin & Harcourt LLP acted as legal counsel to Halogen and LaBarge Weinstein LLP acted for the Underwriters.

A copy of Halogen's final prospectus is available on SEDAR (www.sedar.com).

About Halogen Software 
Halogen Software offers an organically built cloud-based talent management suite that reinforces and drives higher employee performance across all talent programs - whether that is recruiting, performance management, learning and development, succession planning or compensation. With over 1,750 customers worldwide, Halogen has been recognized as a market leader by major business analysts and has garnered the highest customer satisfaction ratings in the industry. Halogen Software's powerful, yet simple-to-use solutions, which also include industry-vertical offerings, are used by organizations that want to build a world-class workforce that is aligned, inspired and focused on delivering exceptional results.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption therefrom. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

SOURCE: HALOGEN SOFTWARE

For further information:
Tim Foran
T: 1-416-815-0700 ext. 251
Toll Free: 1-800-385-5451 ext. 251
E: tforan@tmxequicom.com