Compaq and Siebel Systems Expand Global Alliance to Provide eBusiness Solutions to Small and Medium-Size Businesses.

Business Editors

HOUSTON, Texas & SAN MATEO, Calif.--(BUSINESS WIRE)--Oct. 23, 2000

Solutions Designed to Increase Revenue, Customer Satisfaction and

Employee Productivity

Today, Compaq Computer Corporation (NYSE:CPQ) and Siebel Systems (Nasdaq:SEBL) expanded their global strategic alliance to deliver a suite of customized and integrated eBusiness solutions for small and medium-size businesses (SMB). For the first time, SMBs can purchase complete solutions from a single source that can be quickly deployed and result in a more rapid return on their investment. These solutions will be available in the United States through a select group of Channel Partners in November 2000.

The new solutions combine Compaq's ProLiant server hardware and Siebel eBusiness 2000, MidMarket Edition application software, to be sold and implemented by a select group of certified channel partners. These partners will comprise Siebel Consulting Partners and authorized resellers in Compaq's Enhanced Agent Program. This will provide incremental local expertise to meet the specific requirements of small and medium-size businesses.

Siebel eBusiness 2000, MidMarket Edition provides a comprehensive, integrated, multichannel eBusiness solution that allows small and medium-size companies to easily integrate their Web sites, call centers, field sales and service organizations. When combined with Compaq's industry-leading family of ProLiant servers that are pre-configured and pre-tested for optimal performance, these integrated solutions will offer small to medium-sized businesses rapid deployment, reliability and scalability. The suite of solutions will support up to 200 users and includes high availability options for continuous uptime and accessibility.

The expansion of this long-standing partnership will leverage a select network of Siebel Consulting Partners and Compaq Authorized Resellers who have the full training and expertise necessary to sell, configure and implement the integrated eBusiness solution. Compaq and Siebel Systems will provide these certified solution resellers with a full complement of technical and sales training, marketing support and shared lead management.

"Together, Compaq, Siebel Systems, and this highly skilled network of resellers will enable small and medium-size businesses to achieve unprecedented levels of customer satisfaction, increased profitability, and a rapid return on investment," said Thomas M. Siebel, chairman and CEO at Siebel Systems. "These flexible, scalable solutions from two industry leaders will level the eBusiness playing field for small and medium-size businesses. Growing businesses can now match the ability of much larger organizations to serve and satisfy their customers across multiple communication channels, without compromising on functionality, performance, service and support."

"The combination of Siebel eBusiness 2000, MidMarket Edition and Compaq ProLiant servers provides the scalability and support that small and medium-size businesses need to manage rapid growth and better compete or partner with larger organizations on a global scale," said Michael Capellas, Compaq Chairman and CEO. "Siebel Systems and Compaq have established a proven track record of customer success through our Global Strategic Alliance. Backed by these trained and certified resellers, this solution is easy to configure and fast to deploy."

Siebel Systems and Compaq offer full investment protection for small and medium-size businesses: Siebel Systems eBusiness 2000, MidMarket Edition allows small companies to seamlessly upgrade into Siebel Systems' comprehensive line of eBusiness applications as their businesses grow. By integrating with Compaq's award-winning and scalable ProLiant family of servers, midmarket businesses can start with the right configuration and functionality for today and easily expand and enhance their systems to meet changing customer and business needs.

"The programs resulting from the expanded alliance between Compaq and Siebel Systems recognizes the importance of the reseller channel in delivering solutions to the MidMarket," said Major Nijjer, President of KSI, a Siebel Consulting Partner in Chicago. "This pre-configured, fully integrated hardware and software solution provides a compelling value proposition for the mid-sized company seeking to increase customer satisfaction, improve employee productivity, and maximize revenue."

According to reports by leading industry analysts such as Dun & Bradstreet, there are approximately 155,000 small and medium size businesses representing $11 billion dollars in potential eBusiness opportunity. This strategic initiative is the first of many new innovative and integrated eBusiness solutions being offered by Siebel Systems and Compaq.

To learn more about Siebel eBusiness 2000, MidMarket Edition on Compaq Proliant servers, please visit www.Siebel.com/MidMarket.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.

About Siebel Systems

Siebel Systems, Inc. (Nasdaq: SEBL) is the world's leading provider of eBusiness applications software. Siebel Systems provides an integrated family of eBusiness application software enabling multichannel sales, marketing and customer service systems to be deployed over the Web, call centers, field, reseller channels, retail and dealer networks. Siebel Systems' sales and service facilities are located in more than 28 countries. For more information, please visit Siebel Systems' Web site at www.Siebel.com.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The success of the alliance 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 eBusiness applications and systems markets, the availability of products and services, customer implementation of products and services, relationships with customers, third-party vendors, systems integrators and other partners, ability to successfully manage growth, significant current and expected additional competition, rapid technological change 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 for the year ended December 31, 1999 and its other filings with the Securities and Exchange Commission.

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.