Ariba and Siebel Systems Form Alliance to Deliver End-to-End eCommerce Solutions over the Internet.

SAN MATEO, Calif.--(BUSINESS WIRE)--Nov. 8, 1999--

Ariba, Inc. (Nasdaq:ARBA), the leader in business-to-business eCommerce solutions for operating resources, and Siebel Systems, Inc. (Nasdaq:SEBL), the world's leading supplier of Web-based, front office software solutions, today announced an alliance that will integrate Ariba(R) eCommerce solutions and the Ariba Network(TM) platform with Siebel Front Office Applications.

For the first time, organizations will be able to share information between their Ariba eCommerce solutions and Siebel Systems' multi-channel sales, marketing and customer service systems to create a complete system for integrating and synchronizing the selling, purchasing, delivery and service processes. As a result, Ariba and Siebel Systems expect to create more effective, profitable, streamlined e-commerce between business buyers and their suppliers.

Ariba eCommerce solutions allow organizations to electronically capture and direct employee purchases of operating resources -- from IT equipment and printing services to chemicals and machine tool parts -- over the Web to approved suppliers on the Ariba Network platform.

Using Ariba solutions, individual employees use a consistent intranet-based user interface to obtain detailed product information online, quickly create purchase requests, route requests through an organization's pre-defined approval cycle, place orders and make electronic payments. Business suppliers use cXML (Commerce Extensible Markup Language), an open XML industry standard for business-to-business eCommerce, to integrate their sell-side eCommerce environments with the Ariba Network platform.

Today, the purchasing process is complete once the buyer receives the ordered products. Unfortunately, a wealth of customer information -- including purchase history, product and vendor preferences, and buying patterns -- is lost from the process as soon as the transaction is complete. From the buyers' standpoint, specific information that could lower costs and increase productivity -- including targeted product information based on purchasing history, aggressive pricing from promotional opportunities, and the confidence that they can obtain "24 by 7" customer service -- is not available. If captured, this essential information could be used to help suppliers better serve their customers in every subsequent interaction, while providing a more efficient buying process.

As a result of the integration of Siebel Front Office Applications and the Ariba Network platform, organizations can access the Ariba cXML Internet Catalog and link to the supplier's Web site to search for, configure and select products using Siebel eSales. Siebel eSales, a core component of the Siebel Front Office family, allows suppliers to deploy eCommerce sites that include a rich multimedia product catalog, on-line quotations, a product configurator to configure solutions, and the ability to take orders for business to businesses and business to consumer eCommerce over the web.

The Siebel eSales application then transfers the selected products and services into the Ariba user's electronic purchase requisition via cXML data feeds, which the Ariba application routes for approval according to the buying organization's business rules.

Once a customer places an order with a supplier, all of the specific information associated with that individual customer will be automatically captured in Siebel Front Office Applications and instantly shared across Siebel Systems' sales, marketing and customer service information systems.

This enables the suppliers' sales professionals to automatically cross-sell related products, allows marketing professionals to create personalized campaigns to alert customers to promotions and special offers, and ensures that the customer service department is offering service packages directly related to each purchase. Most importantly, the suppliers' organization can fully recognize customers every time they interact with them, regardless of the channel they choose -- via the call center, through the field or the Internet.

"Business buyers and their suppliers need to electronically integrate their business processes to remain competitive in the Internet age," said Tim Minahan, director of e-business research at Aberdeen Group, a Boston-based market research firm.

"Ariba and Siebel Systems are well positioned to provide each business with a single point of deep integration to its buyers and suppliers, using cXML and the Internet-based Ariba Network platform, to connect the buyer's Ariba-powered buying processes to the supplier's Siebel-powered sales processes. This is a highly scalable, efficient model to accelerate business-to-business eCommerce integration."

Through this partnership, Siebel Systems has made a significant commitment to the cXML standard and to the Ariba Network platform, the industry's leading open, global platform for business-to-business commerce on the Internet. Siebel Systems has adopted cXML as the standard across its entire e-business product suite to create a common, standards-based infrastructure between Siebel Systems and Ariba solutions.

Siebel Systems also plans to build single-click registration to the Ariba Network directly into Siebel eSales, Siebel eService, Siebel eChannel, and other Siebel eBusiness applications. Now, suppliers can deploy their Web sites using Siebel eSales, and instantly register their sites on the Ariba Network platform to obtain access to millions of potential buyers who use Ariba solutions.

"Siebel Systems sets the standard for front office solutions and is an ideal partner to deliver end-to-end sales, marketing and customer service solutions that are highly synergistic with Ariba's business-to-business eCommerce applications. Together, we share the mission of helping organizations leverage the business benefits of the Internet to become more competitive," said Keith Krach, chairman and CEO of Ariba. "Through our partnership with Siebel Systems, we will offer our respective customers a combination of best-of-class applications and services, integrated through open standards on the Internet."

"Ariba is changing the way companies manage the corporate buying process," said Thomas M. Siebel, chairman and CEO, Siebel Systems. "This partnership links the market leaders in electronic purchasing with the market leaders in sales, marketing and customer service, to create an end-to-end buying and selling infrastructure that is completely integrated through the Internet. Together, we are committed to accelerating the adoption of business-to-business eCommerce."

The two organizations also announced today that they have standardized on each other's products for internal use.

Availability

Both companies plan to make Siebel Front Office Applications and Ariba eCommerce connectivity available to their customers in Q1 2000.

About Ariba

Ariba, Inc. is the world's leader in business-to-business electronic commerce services and software for operating resources, the non-production goods and services companies require for day-to-day operations. The company provides the Ariba Network platform, the industry's leading open, global platform for business-to-business commerce on the Internet.

Together, Ariba's software and services leverage the Ariba Network platform to automate and integrate the internal and external commerce processes of buyers, suppliers, and value-added service providers, delivering a global eCommerce infrastructure that provides cost saving and revenue opportunities for businesses of all sizes. Ariba can be contacted in the U.S. at 650/930-6200 or at www.ariba.com.

About Siebel Systems

Siebel Systems, Inc. (Nasdaq:SEBL) is the world's leading supplier of Web-based front office software systems. Siebel Systems provides an integrated family of sales, marketing and customer service application software for field sales, customer service, telesales, telemarketing, field service, third-party resellers and Internet based eCommerce. Siebel Systems' products are designed to meet the needs of small, medium and large businesses. Siebel Systems' sales and service facilities are deployed locally in more than 20 countries and can be reached through the World Wide Web at www.siebel.com.

Information in this release may involve expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statement. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Some of the factors and risks associated with our business are discussed in the company's registration statement on Form S-1 declared effective by the Securities and Exchange Commission ("SEC") on June 22, 1999, and in the other reports filed from time to time with the SEC.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The success of the agreements and products described above and the future operating results of Siebel Systems, Inc. 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 the Front Office market, dependence on the Internet, risks associated with new versions and new products and risks associated with rapid technological change. Further information on potential factors that could affect the financial results of Siebel Systems, Inc. are included in Siebel Systems, Inc.'s Report on Form 10-Q for the fiscal quarter ended March 31, 1999 and its other filings with the Securities and Exchange Commission.

Note to Editors: Ariba is a registered trademark of Ariba, Inc. Ariba ORMS, Ariba ORMX, Ariba IBX and Ariba Network are trademarks of Ariba, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners. Siebel is a trademark of Siebel Systems, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.