Leading Analyst Firm Validates Siebel Systems' Impressive First Year in Hosted CRM

SAN MATEO, Calif. -- Feb. 7, 2005 -- Siebel Systems, Inc. (NASDAQ:SEBL), a leading provider of business applications software, has been recognized for its enterprise-class hosted Customer Relationship Management (CRM) solution. Siebel was among the select companies that Forrester invited to participate in its January 2005 Hosted Sales Force Automation TechRankings which evaluated Siebel CRM OnDemand Release 6, launched earlier this year. In the Scorecard Summary(1), Forrester cites several of Siebel CRM OnDemand's capabilities including field-leading analytics built on the industry's first hosted data warehouse, enterprise-caliber customization, built-in sales process coaching (sales workflow), and pre-built industry-specific editions. Also of note, the report finds Siebel's unique ability to offer hybrid deployments with Siebel on-premise solutions a major advantage for existing on-premise customers. With this capability, divisions in these companies can be up and running in days or weeks.

"After only one year, we have established ourselves as a leader in hosted CRM and we're just getting started," said Bruce Cleveland, Senior Vice President and General Manager, OnDemand and SMB, Siebel Systems. "We are pleased that Forrester has highlighted Siebel CRM OnDemand, which is built on Siebel's proven platform and reflects more than a decade of innovation. We are the only company that can deliver a complete and smart solution designed to meet the sales, marketing and service requirements of any customer, regardless of size or complexity."

According to Forrester Analyst Liz Herbert, "Siebel has made impressive strides in its first year on the market to create an enterprise-class product.(2)" Herbert adds, "Besides its vast resources, Siebel's biggest advantage in this market is its breadth and depth of vertical expertise... Additionally, the vendor's January 2005 release provides enterprise-caliber setup and customization tools, including sophisticated user management, strong access controls like field-level security, and a sales process coach.(3)"

Siebel CRM OnDemand uniquely delivers critical industry-specific functionality at the user-interface (UI), data model and process levels that are not available in a generic CRM solution. Siebel's pre-built industry-specific solutions provide organizations with time and cost savings versus the alternative of attempting to customize a generic solution. Unlike other offerings in the market today, Siebel also uniquely provides industry leading analytic capabilities built on a hosted data warehouse that are bundled into the core offering at no additional cost.

The Forrester report specifically highlighted a number of Siebel CRM OnDemand's key strengths in areas including: Solution Breadth; Setup and Configuration; Sales Management; Sales Analysis; Usability; Access; Integration; Market Presence and Cost. For instance:

-- Market Presence: With $1.5 billion in annual revenue and more than 2.8 million end users running its on-premise CRM product, Siebel Systems dwarfs other vendors in the hosted space. The company also has hosting partners including IBM in North America, BT Group in the UK and T-Systems in Germany.

-- Solution Breadth: Siebel CRM OnDemand is a full CRM solution. It offers five recently released industry specific editions: automotive, high-tech, life sciences, wealth management and insurance. These editions go beyond simple templates to include built-in support for processes like marketing funds management in the high-tech edition and risk profiling in the insurance edition.

For more information on how to obtain a copy of the entire report, please contact Forrester Research at www.forrester.com.

Siebel CRM OnDemand is a hosted CRM offering delivered over the Web and accessible from an Internet browser at a fixed price per user per month. Customers can deploy Siebel CRM OnDemand quickly, easily, and affordably without any up-front IT investments. Hosted by IBM, Siebel CRM OnDemand delivers complete sales, marketing, and service functionality; built-in customer analytics; virtual call center technology; embedded best practices; and world-class hosting services and support. Siebel CRM OnDemand is now available for purchase. For more information, visit www.crmondemand.com.

About Siebel Systems

Siebel Systems, Inc. is a leading provider of business applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 4,000 customer deployments worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, market-leading analytics products, and business processes, empowering them to consistently deliver superior customer experiences and establish more profitable customer relationships. Siebel Systems' sales and service facilities are located in more than 30 countries.