7,000-Employee Health System Selects UltiPro® for Human Capital Management Delivered through Software-as-a-Service

Weston, FL, March 11, 2009 — Ultimate Software (Nasdaq: ULTI), a leading provider of end-to-end strategic human resources, payroll, and talent management solutions, today announced that Capella Healthcare, a hospital system with approximately 7,000 employees working at 14 hospitals in 7 states, purchased UltiPro for human resources, payroll, recruitment, and performance management delivered through Ultimate’s software-as-a-service (SaaS) delivery model, Intersourcing, in December 2008.

Capella Healthcare had been using multiple solutions and services for its human capital management (HCM) processes, but required an integrated solution with comprehensive, end-to-end workforce management functionality to handle its increasingly complex needs and provide more sophisticated reporting capabilities. Because the organization’s IT resources were limited, Capella sought a vendor that could manage the solution infrastructure, including applying version upgrades and handling day-to-day system and hardware maintenance.

“It was critical for us to find a solution that could address the entire employee life cycle and could also provide it as software-as-a-service,” said Carolyn Schneider, vice president of human resources for Capella Healthcare. “When Ultimate entered the picture, it became clear that its SaaS HCM solution, UltiPro, was a perfect fit for our needs as a large and growing healthcare organization.”

“Healthcare organizations have HR needs that include handling complex compensation practices, addressing changes in the labor pool, and staying on top of stringent reporting requirements. As a unified HCM solution, UltiPro is able to handle the full range of these challenges while our SaaS model relieves companies like Capella Healthcare of the IT responsibilities that are associated with typical HCM software,” said Greg Swick, chief sales officer for Ultimate. “We service many customers in the healthcare industry and we are pleased that Capella Healthcare has joined that list.”

About Capella Healthcare

Based in Franklin, Tenn., Capella Healthcare partners with communities to build strong local healthcare systems that are known for quality patient care. Capella operates fourteen hospitals in seven states. With the financial backing of GTCR Golder Rauner, the company has access to significant resources for the expansion and improvement of its hospitals and the services they provide. For more information, please visit www.capellahealth.com.

About Ultimate Software

A leading provider of end-to-end strategic human resources, payroll, and talent management solutions, Ultimate markets its award-winning UltiPro products as on-demand services through software-as-a-service (SaaS) and as on-premise software. Based in Weston, FL, the Company employs more than 900 professionals who are focused on developing the highest quality products and services. In 2008, Ultimate was the first HR/payroll SaaS provider to be audited and awarded the ISO/IEC 27001:2005 Certification for security management, was named the #1 “Best Product Development Team” in the nation by the American Business Awards, and was ranked the #1 best medium-size company to work for in America by the Great Place to Work® Institute. Ultimate has more than 1,700 customers representing diverse industries, including such organizations as The Container Store, Elizabeth Arden, Major League Baseball, The New York Yankees Baseball Team, Nintendo of America, Ruth’s Chris Steak House, and Sony Music Entertainment. More information on Ultimate’s products and services can be found at www.ultimatesoftware.com.