Siebel Systems Ships Universal Application Network; First and Only Business Process-Based Integration Solution Delivers Lowest Cost of Integration.

Business Editors/High-Tech Writers

Siebel Worldwide User Week 2002

LOS ANGELES--(BUSINESS WIRE)--Oct. 21, 2002

Siebel Systems, Inc. (Nasdaq:SEBL), a leading provider of multichannel eBusiness applications software, today demonstrated and announced the shipment of Universal Application Network, the industry's first standards-based vendor-independent application integration solution at Siebel Worldwide User Week 2002 in Los Angeles. Together with industry-leading integration server vendors, systems integrators, and application software vendors, Siebel Systems is providing a customer-driven business process integration solution that can be deployed across multiple applications. Building on this initiative, first announced in April 2002, Siebel Systems has released the first set of industry-specific business processes based on best practices for Universal Application Network. The business process solution minimizes the need for organizations to custom-build strategic processes and leverages proven best practices to dramatically reduce the risk, complexity, and cost of integration.

According to a recent CIO Magazine survey, 36 percent of CIOs rank integration as a top priority.(1) As organizations struggle to unify myriad disparate business processes, integration has become increasingly expensive and complex. Siebel Systems' customers must reconcile from 20 to more than 5,000 applications consisting of legacy, packaged, and homegrown programs.(2) Organizations will drive revenue growth, improve business performance visibility, deliver higher levels of customer satisfaction, and benefit from lower costs by developing standardized business processes that can span multiple applications.

"HP recognizes that application integration is one of the top challenges facing organizations, as we have thousands of applications in our new IT environment," said Mike Winkler, Executive Vice President of Worldwide Operations at HP. "Universal Application Network provides a comprehensive business process integration solution and will prove useful for any enterprise to leverage their investments in best-of-breed applications and improve productivity, while significantly reducing overall integration efforts."

"Industry leaders have joined forces with Siebel Systems to help drive down the extraordinary worldwide cost of integrating applications," said Ed Abbo, Senior Vice President and Chief Technology Officer, Siebel Systems. "By reducing the need for time-intensive custom integration, our customers can choose from best-of-breed applications and dramatically accelerate the time to benefit from their IT investments. Based on Siebel Systems' established success with its Universal Application Network partners and our collective domain expertise, we are confident that Universal Application Network will address a widespread market need."

Based on XML and Web Services industry standards, Universal Application Network enables organizations to select best-in-class applications and ensures that customers are not locked into vendor-specific proprietary architectures. Universal Application Network includes three primary

components:

-- Best-Practice Business Process Library -- A library of prepackaged industry-specific business processes based on best practices. These prebuilt, quality-assured business processes, provided by Siebel Systems, can be executed across multiple applications, departments, organizations, and enterprises.

-- Business Process Design Tools -- A selection of business process design tools, provided by leading integration server vendors, are used to model and configure existing business processes and create new ones.

-- Integration Server -- An integration server, also provided by Siebel Systems' integration server partners, is used to execute business processes and coordinate interapplication communication.

Best Practice Business Process Library Drives Real-Time Visibility of Business Performance

Leveraging the domain and industry expertise of Siebel Systems, the best-practice business process library for Universal Application Network helps solve the application integration problem by allowing organizations to automate the specific steps that complete common business processes. The first set of business processes released by Siebel Systems focuses on the strategic areas of Customer Life Cycle Management, Product Life Cycle Management, Order Management, Partner Relationship Management, and Employee Relationship Management. Siebel Systems complements its customer-facing expertise in sales, marketing, and service with back-office workflow templates and common object models from Global Strategic Partner IBM, offering true end-to-end business processes. These prebuilt, extensible processes enable companies to seamlessly execute processes that without Universal Application Network would require users to map out all steps themselves, as well as aggregate information from various applications.

For instance, by relying on one of Siebel Systems' business processes for Universal Application Network, a call center representative can update customer information by first entering the customer data into Siebel Call Center. The data will automatically be sent to the Siebel Universal Customer Master, where it is validated for accuracy and enhanced, and the customer information is updated in the customer master before updating several ERP and legacy systems. The result is more streamlined customer management that enables organizations to maximize cross-selling opportunities and improve the customer experience while reducing data management costs.

Business Process Design Tools Provide Optimal Deployment Flexibility

To easily build new or manipulate existing business processes for Universal Application Network, customers may use market-leading design tools to model and configure the process. The design tool has import and export capabilities to accept and emit definitions of the processes in XML standards. Siebel Systems partners BEA, IBM, Mercator, Microsoft, SeeBeyond, TIBCO, Vitria, and webMethods are providing intuitive graphical tools for developing and configuring business process solutions.

Integration Servers Execute Business Processes, Coordinate Interapplication Communication

Universal Application Network leverages proven integration servers from BEA, IBM, Mercator, Microsoft, SeeBeyond, TIBCO, Vitria, and webMethods to allow customers to coordinate business processes from Siebel eBusiness Applications with other enterprise applications such as HR, back-office, ERP, supply-chain, and legacy systems. The integration server enables the interapplication communication required to execute inter- and intra-organizational business processes. Robust, scalable integration platforms from Siebel Systems' partners, combined with Siebel Systems' end-to-end, industry-specific business processes, significantly reduce the cost, complexity, and implementation time of application integration.

"Integration of business processes across multiple heterogeneous applications is critical for today's organizations to maximize the value of their existing technology investments and drive operational efficiency through improved collaboration among disparate organizational constituents with customers," said Steve Bonadio, Senior Program Director, META Group, Inc. "By leveraging standards-based, prepackaged solutions that combine industry-tested business processes with design tools and underlying integration technologies, organizations can facilitate the enablement of a seamless engage-transact-fulfill-service customer life cycle and apply consistent customer treatments across siloed operations, disparate channels, and multiple points of interaction."

Systems Integrators and Software and Content Partners Offer Solutions to Support Key Business Processes

Drawing on their extensive industry knowledge and experience with technology selection and the implementation of customer-driven business processes, a growing number of Siebel Systems' systems integrator partners, such as Accenture, BearingPoint, Cap Gemini Ernst & Young, Deloitte Consulting, and IBM Global Services will implement Universal Application Network-based solutions.

"Siebel Systems and Accenture are working together to define business processes to help speed development and integration of technology solutions for customers and help them generate more value from their IT investments. In addition, we are working closely with Siebel product development to design and test Universal Application Network to maximize customer viability," said Steve Lorack, a Partner at Accenture. "During the past ten years, Accenture and Siebel Systems have partnered extensively to deliver industry-specific CRM solutions to our clients. Working together on Universal Application Network further underscores our commitment to delivering innovative solutions to our clients' business and technology challenges across the enterprise."

Siebel software and content partners, including BMC Software, FileNET, Firstlogic, Jacada, Portal Software, PTC, Quest Software, and WRQ will deliver out-of-the-box connectivity between their products and Universal Application Network, providing customers the freedom to use standards-based architectures. These partners and many more are demonstrating their integrated solutions in the Universal Application Network Partner Pavilion at Siebel Worldwide User Week 2002 in Los Angeles, October 20-23.

Availability

Universal Application Network has been installed at a number of customer beta test sites and is planned for general availability this quarter.

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 customers 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.

(1) CIO Magazine, March 1, 2002.

(2) Siebel customer survey, November 2001.

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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