Siebel Systems Positioned as a Leader in Partner Relationship Management Magic Quadrant; Independent Analyst Firm Cites Ability to Execute and Vision to Support PRM Requirements.

Business Editors/High Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--May 14, 2002

Siebel Systems, Inc. (Nasdaq:SEBL), the world's leading provider of eBusiness applications software, today announced that it has been listed in the Leader quadrant in Gartner's Partner Relationship Management (PRM) Magic Quadrant Report(1). The report, published by Gartner, Inc., a premier research and advisory firm, evaluated 19 vendors ranging from positioned point solutions to CRM suite vendors and lists Siebel Systems as the only vendor in the Leader quadrant.

"We realize companies need to go with a PRM vendor that is viable and can scale globally," said Scott Creighton, Vice President and General Manager, Partner Management Systems, Siebel Systems. "Siebel Systems provides the industry's market-leading PRM solution that automates the business processes between organizations and their partners by enabling them to work collaboratively through all channels to market to, sell to, service, and retain customers. We are proud that Gartner has positioned us in the leader quadrant in PRM applications."

Enterprises are looking to prepackaged applications to enhance the partner communications and management. Solutions need to address product scheduling, customer commitments, partner-to-partner collaboration, and distributed commerce and need to deliver measurable value.

"Siebel PRM has greatly improved the way we do business with our partners," said Warren Adair, Director of Information Technology, Vision Solutions. "The business benefits of integrating and using Siebel PRM with our other enterprise applications are significant, and we will continue to make it an integral part of our eBusiness strategy." Gartner's Magic Quadrant positions vendors in a particular market segment based on their vision and ability to execute that vision. Leaders are defined as vendors who are performing well today, have a clear vision of market direction, and are actively building competencies to sustain their leadership position in the market.

Siebel PRM provides the industry's leading PRM solution to enable organizations to more effectively manage their partner relationships. Siebel PRM delivers an enterprise-wide partner management platform that helps organizations work collaboratively with partners to increase revenues, drive customer satisfaction, and reduce partner management costs. Siebel PRM consists of three components, including Siebel Partner Manager, Siebel Partner Portal, and Siebel Partner Analytics.

-- Siebel Partner Manager is a comprehensive, employee-facing base application
that channel managers use to address a wide range of complex issues related to
managing and enabling partner relationships and operations.

-- Siebel Partner Portal, a partner-facing application, enables partners to
manage interactions with the brand owner and with joint customers to provide
seamless information sharing.

-- Siebel Partner Analytics provides brand owners with powerful performance
management capabilities and comprehensive analytic tools to deliver in-depth
information on the performance of individual partners, segments of partners, or
all partners together.

More than 400 customers have standardized on Siebel PRM, including 3Com Corporation, Cable and Wireless plc, Compaq Computer Corporation, Rockwell Automation, and VECTOR Limited.

For a copy of the report, please go to: www.gartner.com/reprints/siebel/104815.html

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.

(1) Partner Relationship Management: 1H02 Magic Quadrant, C. Marcus, R. DeSisto, March 2002. The Magic Quadrant is copyrighted February and March 2002 by Gartner, Inc. and is reused with permission. Gartner's permission to print or reference its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner's opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the Leaders segment. In some situations, firms in the Visionary, Challenger, or Niche Player segments may be the right match for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources including other published information and direct analyst interaction. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

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.