Czech Telecom Reports Significantly Improved Efficiency and Enhanced Customer Retention Following Rapid Siebel eBusiness Applications Deployment.

Business Editors/High-Tech Writers

BARCELONA, Spain--(BUSINESS WIRE)--April 9, 2002

Eight-Week Siebel eCommunications Deployment Helps Leading Czech Republic Communications Provider Record Annual Operating Efficiencies

of $6 Million and 5.6 Percent Increase in Customer Retention

Siebel Systems, Inc. (Nasdaq: SEBL), the world's leading provider of eBusiness applications software, today announced that Czech Telecom, the leading telecommunications company in the Czech Republic, has reported cost savings, enhanced customer satisfaction, and increased productivity following the introduction of Siebel eCommunications Call Center and Siebel eCommunications Sales. By uniting customer information across multiple channels and streamlining sales and service processes, the company is recording annual operating efficiencies of $6 million, achieving a 5.6 percent increase in customer retention, and reducing average call handling time from more than eight minutes to two-and-a-half minutes.

Czech Telecom has implemented Siebel eCommunications Call Center, Siebel Systems' application software that helps communications organizations and Siebel eCommunications Sales, which helps communications organizations grow revenues more quickly, predictably, and profitably by providing the means to focus on the right deals at the right time. By rolling out applications to 1,200 sales, marketing, and service professionals, Czech Telecom is replacing up to 15 disconnected order management, billing, and other customer-facing applications in front offices. Streamlining the sales and service process and creating a single, integrated view of its personal and business customers, has allowed Czech Telecom to increase its sales effectiveness -- including the ability to cross-sell and up-sell additional products and services. As part of a recent telemarketing campaign, the single customer view enabled Czech Telecom during the first six months after implementation to sell three times as many ISDN lines as it had sold in the previous six months.

By connecting customer applications, Czech Telecom is also experiencing dramatically improved customer satisfaction, increased loyalty, and reduced churn: Czech Telecom's customer churn has decreased by 2.9 percent and customer retention has increased by 5.6 percent. Customers can communicate with Czech Telecom through whichever channel is most convenient to them -- including email; telephone; in person at one of the company's call centers, called 'Telepoints'; or by post or fax -- and be certain of receiving a high-quality response to their inquiry. In the call center, the workflow automation capabilities of Siebel eCommunications Call Center, combined with computer telephony integration (CTI) and IVR, have enabled Czech Telecom to significantly reduce the call time from more than eight minutes to two-and-a-half minutes.

"Siebel eCommunications is playing a pivotal role in sustaining Czech Telecom's market leadership," says Vladimir Luzar, Executive Director, CRM, Czech Telecom. "The software's prebuilt communications functionality, together with its ease of integration with our communications solutions, enabled Czech Telecom to implement Siebel eCommunications in just eight weeks. This rapid deployment capability allows us to record significant operating efficiencies, improved customer retention, lower customer churn, and enhanced service capability."

With nearly 4 million telephone lines in operation, Czech Telecom is the leading telecommunications company in the Czech Republic and one of the largest publicly traded corporations in Central and Eastern Europe. Through its mobile phone subsidiary Eurotel, it also has a significant representation in the Czech mobile services market. Czech Telecom employs more than 15,000 people and has a market capitalization of $4.2 billion (2000).

About Siebel Systems

Siebel Systems, Inc. is the world's leading provider of eBusiness applications software. Siebel Systems provides an integrated family of eBusiness applications software, enabling multichannel sales, marketing, and customer service systems to be deployed over the Web, in call centers, in the field, through reseller channels, and across retail and dealer networks. Siebel Systems' sales and service facilities are located in more than 32 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 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.

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.