Australian Finance Group to Double Sales with Siebel eBusiness Applications; Australian Finance Group goes live with phase one of nationwide Siebel eFinance 7 rollout.

Business Editors/High-Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--Dec. 23, 2002

Siebel Systems, Inc. (NASDAQ:SEBL), a leading provider of multichannel eBusiness applications software, today announced that Australia's largest independent finance wholesaler, Australian Finance Group (AFG), has successfully deployed the first phase of its nationwide rollout of Siebel eFinance 7. This achievement marks a key milestone in the company's customer relationship management initiative to drive sales in an increasingly competitive deregulated finance sector.

The Siebel eFinance 7 deployment enables AFG to provide one single interface and central repository of customer and product information to its 1500-strong member base and 140 internal staff. It is a cornerstone of the company's business strategy to increase sales of mortgage and other finance products through its members by more than 100% by the end of the 2003 financial year by effectively targeting the existing customer base with relevant products and services.

"The financial services industry in Australia is experiencing rapid change," says Malcolm Watkins, Executive Director of AFG. "With deregulation, greater competition, aggressive pricing, and the reduced customer loyalty associated with these factors, financial products are becoming commoditized and margins are being squeezed.

"In the current tough environment, growth hotspots are in areas such as home loan refinancing within the existing customer base, as well as new loan generation. Siebel CRM allows our brokers to target their existing customers and the huge chunk of business that, without sophisticated CRM capability, would potentially be sitting in a filing cabinet somewhere."

In the past, AFG has relied on advanced, but isolated, databases and individual broker compensation structures in each state. Siebel eFinance 7 is providing one common interface, available on every AFG member's desktop across Australia, enabling them to gain access to the best product information and prices, track and analyze their dealings with customers, and provide them with meaningful, needs-based advice.

According to Watkins, Siebel eFinance 7 also addresses the increasing compliance requirements and scrutinization of the industry, which make consistent standards of information, disclosure and reporting mechanisms a key priority for all parties.

"AFG's business relies on our ability to provide the most comprehensive product and customer information available to our members, so they can target and touch the end-customer in the most meaningful and effective way. This is where CRM becomes central to our business strategy."

The first phase of the Siebel eFinance 7 deployment, now live in Western Australia, provides the back-end commission calculation and administrative functions, as well as the front-end sales tool to an initial group of AFG members. Both back- and front-end capability are rolling out across Australia on a state-by-state basis over the next four months.

About Siebel Systems

Siebel Systems, Inc. is a leading provider of eBusiness applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 3,500 customers worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, 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 28 countries.

About AFG

Independently owned AFG is the largest independent finance wholesaler in Australia with a total of A$9 billion in funds under management. AFG's 1500 independent member base is made up of mortgage brokers, accountants, financial planners and real estate agents. The company's revenue is principally derived from the 30 lending institutions with which it works.

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.

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 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 new versions and new products, the availability of Siebel Systems' products and services, implementation of products and services, existence of errors or defects in products, rapid technological change, dependence on the Internet, 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.