Big Apple Service Picks Siebel CRM OnDemand to Launch Key Initiative; NYC Department of Small Business Services Selects Hosted CRM Leader to Help Improve Its Small Business Climate.

SAN MATEO, Calif. -- Siebel Systems, Inc. (NASDAQ:SEBL), the leading provider of customer-facing solutions, today announced the New York City Department of Small Business Services (NYC-SBS) chose Siebel CRM OnDemand for its hosted CRM solution. The decision was the result of a competitive RFP process. Siebel CRM OnDemand allows the NYC-SBS to track the number and types of interactions with small businesses and the progress and results of different service types.

NYC-SBS was developed as part of New York City's ongoing commitment to increase opportunities for local businesses and improve the level and quality of service that the City provides to its business community. The NYC.gov business portal provides easy access to business-related information and services. Various units within the NYC-SBS interact with local businesses on a daily basis.

"The agency needed one system to track interactions with businesses and provide access to a variety of services through all SBS units that provide direct services to businesses," said Mark Newhouse, Deputy Commissioner, New York City. "Rapid deployment, analytics and reporting, and total cost of ownership were the prime factors contributing to our decision. For the New York City Department of Small Business Services, Siebel is the standard CRM by which all others are measured."

NYC constituents expect to have their service requests answered as quickly as possible. But the NYC-SBS takes service requests a step further by using core constituent data to "cross-sell" and offer additional programs and services. This higher level of service is exemplified when a citizen entrepreneur inquires about opening up a new business in Manhattan. The NYC-SBS representative can readily offer additional services, including financing options, resources, and entitlements to energy incentives.

The NYC-SBS leverages Siebel CRM OnDemand's customizable reports, service request management, solutions knowledge base, and service analytics to deliver a great first impression and the best service in the shortest period of time.

About NYC Department of Small Business Services

New York City Mayor Michael R. Bloomberg created the Department of Small Business Services and its primary initiative, NYC Business Solutions, to fully support and grow New York City's more than 200,000 small businesses. It can be accessed by calling 311, logging on to www.nyc.gov/smallbiz, or visiting one of the Business Solutions centers located in each of the City's five boroughs. NYC Business Solutions provides free, comprehensive, and reliable assistance for doing business in all corners of the City. By connecting entrepreneurs to capital and incentives, cutting the red tape of navigating government, helping firms compete for contracts, and recruiting and training workers for businesses, the professionals at NYC Business Solutions serve as free consultants for a wide spectrum of business and their needs. To learn more about its services, visit www.nyc.gov/smallbiz or call 311 (from outside New York City, dial 212-NEW-YORK).

About Siebel CRM OnDemand

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 is the world's leading provider of customer-facing solutions that deliver demonstrable business results and long-term competitive advantage. Siebel's multichannel offerings allow organizations to intelligently manage and coordinate all customer interactions across the Web, contact center, field sales/service force, branch/retail network, and indirect and partner distribution channels. Siebel solutions draw upon the company's best-in-class capabilities in customer relationship management (CRM), business intelligence, and customer data integration and can be deployed as licensed software or as a hosted service. Siebel solutions are tailored to the unique needs of 23 industries and incorporate industry-specific business processes, best practices, and business insight. They are the product of more than $2 billion in R&D investments and reflect over 11 years of experience with more than 4,000 organizations. Together with its extensive global network of alliance partners, Siebel provides the people, process, and technology expertise critical in driving business value from the deployment of customer-facing solutions. Over 3 million users worldwide in organizations of all sizes depend on Siebel solutions to deliver dramatic improvements in how they identify, acquire, retain, and serve customers. For more information, visit www.siebel.com.

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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