BT Retail Anticipates Cost Savings of $200 Million by 2004 Using Siebel eBusiness Applications.

Business Editors/High-Tech Writers

Siebel European User Week

CANNES, France--(BUSINESS WIRE)--June 6, 2003

Leading Communications Company Increases Revenues,

Improves Customer and Employee Satisfaction Using

Integrated Multichannel CRM Model

Speaking at Siebel European User Week, BT Retail Chief Executive Officer, Pierre Danon, this week showcased one of the largest implementations of Siebel multichannel eBusiness applications software. During a fact-filled presentation, Danon announced to more than 1,500 Siebel customers, partners, and industry observers that BT Retail anticipates cost savings of more than $200 million by 2004.

In one of the largest and most ambitious CRM implementations ever, involving more than 22,500 users, the retail division of one of the world's leading communications companies is creating a single view of more than 21 million consumer and business customers and transforming itself into an agile, customer-focused business.

"BT Retail's goal is to create clear blue water between ourselves and the competition when it comes to customer satisfaction," says Pierre Danon, CEO, BT Retail. "Siebel Systems is a crucial partner in that vision. By extending our channel reach, capacity, and capability, Siebel empowers BT to enhance the customer experience through improved choice, convenience, and responsiveness. We are optimizing efficiency by migrating transactions to lower-cost channels. We are accelerating revenue growth by leveraging our field sales force on complex sales deals and introducing highly effective targeting. For these reasons, Siebel is one of BT's most trusted and most visionary business partners."

Customer-focused behavior is at the heart of the way BT Retail engages every one of its 20 million UK consumer and 1 million small business customers -- its "volume" business. BT is rationalising up to 104 disparate call centers and investing $179.4 million to create a network of 33 multi-functional, next-generation contact centers (31 in the UK and 2 in India), powered by Siebel CRM applications. By integrating multiple disconnected customer information systems, BT is creating a single, complete view of each and every one of these customers.

This integrated customer understanding enables BT Retail to provide a consistent, fast, and accurate response to all 850 million inbound customer inquiries received each year -- whether it is through the Internet, the telephone, mobile device, field sales, or channel partners. With total commitment from BT Retail staff, this CRM program will save BT more than $200 million by March 2004. Already, overall customer satisfaction has increased by 3.5 percent, customer dissatisfaction arising from call waiting time has been reduced from 28 percent to 2 percent, and the volume of transferred calls has fallen by 27 percent.

The case for Siebel CRM applications is equally compelling in BT Retail's value business, which manages relationships with 26,000 midmarket, public sector and large corporate customers. With account sales and service teams, specialists, and business partners now sharing the same seamless customer view, business processes and performance have changed forever. Using Siebel CRM applications, BT Retail is able to develop and execute personalized, compelling, multichannel marketing campaigns. Sales opportunities from these and other campaigns are immediately transferred from the contact center to the dedicated sales team, together with automatic customer meeting assignment. This team is able to draw on a group of specialists -- all sharing the same customer view -- to accelerate contract closure.

Following the adoption of Siebel CRM applications, BT Retail has recorded a 10 percent increase in customer satisfaction among these midmarket and large corporate customers, achieved a 70 percent increase in employee satisfaction, and a 4 percent reduction in SG&A costs. Through improved profiling and targeting, the company has experienced a $27 million incremental increase in revenues from its desk-based sales teams. As a result, BT anticipates cumulative benefits of $27 million by 2004 for its Value business.

About BT

BT Group plc is the listed holding company for the BT Group of companies, while British Telecommunications plc (BT) is a wholly owned subsidiary. BT is one of the world's leading providers of telecommunications services and one of the largest private sector companies in Europe. Its principal activities include local, long distance and international telecommunications services, internet and broadband services and IT solutions. In the UK, BT serves more than 28 million exchange lines as well as providing network services to other licensed operators.

The company is organised in to self-contained business units:

-- BT Global Services, an international broadband network

business, focused primarily on corporate and wholesale

markets;

-- BT Openworld, an international, mass-market internet business;

-- BT Retail, serving businesses and residential customers; and

-- BT Wholesale, selling network capacity and call terminations

to other carriers.

Further businesses make up the BT Group, including BTexact Technologies, an internationally renowned engineering and technology research and development business.

In the year to March 31, 2001, BT's group turnover was GBP 18,727m with profit before taxation of GBP 1,829m.

For more information, visit www.btplc.com.

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 customer implementations 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.

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.

Note to Editors: 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.