AFG Successfully Transforms Its Mortgage Business into a Full-Scale Financial Services Firm Using Siebel Finance.

SAN MATEO, Calif. -- AFG Also Reduces Commissions Processing Time by 50 Percent with Siebel Incentive Compensation Management

Siebel Systems, Inc. (Nasdaq:SEBL), a leading provider of business applications software, today announced that Australia's largest mortgage broker, Australian Finance Group (AFG), has successfully deployed Siebel Finance. With Siebel Finance, the company is now able to process approximately $1.5 billion dollars of home mortgage lending per month, while reducing sales commission processing times by more than 50 percent with Siebel Incentive Compensation Management (ICM). AFG chose Siebel Finance as part of its customer-focused business initiative to integrate services across more than 800 financial services products.

AFG implemented Siebel Finance in a three-phase deployment at its headquarters in Perth and five state-based offices around Australia. More than 170 employees and 1,000 accredited brokers can access core customer and product information using Siebel Finance to gain a single view of each customer, enabling them to more effectively cross-sell and up-sell services to meet customers' needs. With Siebel Finance, AFG employees and brokers can now seamlessly offer and administer financial services, such as loans, mortgages, home and life insurance, and wealth management based on customer preferences and financial plans.

"We offer more than 800 financial services products, and servicing one customer may involve multiple specialists," said Malcolm Watkins, Executive Director, AFG. "Siebel Finance offered us a centralized platform with synchronization functionality that keeps consultants informed at every stage of a transaction, regardless of whether they are in the field or in the office. The application has helped us streamline our processes so we can maximize resources. For example, the sales commission process that previously took two days can now be completed in one day, and commission payments that could only be paid every other week, can now be paid weekly."

The commission payment process for AFG brokers is very complex, with more than 3,000 commission plans and seven to ten variables that affect the amount paid on any one transaction. Siebel ICM, a key component of Siebel Finance, enables AFG to process in excess of 150,000 commission transactions per month, which is expected to increase to 200,000 by year-end 2005 with the expansion of financial services to vertical sectors. Designed specifically to meet the needs of compensation administrators, executives, and sales and service professionals, Siebel ICM enables companies to drive revenue and profits through the use of strategic incentive programs that align employee and partner behavior with corporate objectives.

"Siebel Finance integrates product manufacturers, business divisions, member services, and the commissions pipeline, enabling us to simultaneously quote and issue consumer credit insurance, automatically lodge a finance application through to the lender, and advise wealth management consultants to contact the customer for follow-up," added Watkins. "This level of efficiency would not have been possible with our previous system, and Siebel Finance has allowed us to offer additional products and services at the point of sale as well as successfully roll out new divisions with a high degree of confidence."

"We selected Siebel Finance for built-in functionality specific to our industry that can administer customer information, manage growth, and help differentiate ourselves from the competition. Because of our commitment to deploying tier-one Siebel Finance technology, we have been able to secure business where we wouldn't have previously been considered," said Michael Grant, CIO, AFG.

With deregulation, greater competition, and slowing mortgage loan rates in Australia, AFG is complementing residential and commercial mortgages products with a range of financial services from life insurance to home and content insurance and to wealth management services. For the second consecutive year, AFG has been recognized as one of Australia's fastest growing companies -- ranking at 46, with 67 percent turnover growth. At $139 million, AFG is the largest turnover business in the BRW Fast 100, and nearly double the size of the next company listed. As the core platform for customer and product information, AFG will build on Siebel Finance to facilitate additional growth as the company continues to introduce new products and evolves into a holistic financial services firm.

Siebel Systems pioneered the industry-specific application model and today delivers 23 industry applications and more than 100 industry-specific solution sets. These solutions, which include Siebel Finance, enable companies to establish a single, enterprise-wide view of their customers and execute key customer-facing business processes more efficiently and effectively. For more information about Siebel Finance, please visit www.siebel.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.

For more information on Siebel Systems solutions and services, please visit our Web site: CRM - http://www.siebel.com/crm; OnDemand Solutions - http://www.crmondemand.com; Industry CRM - http://www.siebel.com/industry-crm; Call Center and Service - http://www.siebel.com/call-center; Sales Force Automation - http://www.siebel.com/sales-force-automation; Marketing Automation - http://www.siebel.com/marketing-automation; Business Intelligence - http://www.siebel.com/business-intelligence; Integration Solutions - http://www.siebel.com/integration-solutions; CRM Services - http://www.siebel.com/crm-services.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risk or uncertainties. Future operating results of Siebel Systems may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with customer relations, such as the availability of Siebel Systems' products and services, customer implementation of products and services, relationships with customers, third-party vendors and systems integrators, concentration of revenues in a relatively small number of customers, existence of errors or defects in products, ability to successfully manage growth, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Siebel Systems are included in Siebel Systems' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Siebel Systems assumes no obligation to update the information in this press release.

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