Sun Microsystems and Siebel Systems Sign Multiyear Software Development Agreement to Accelerate Customer Return on Investment.

Business Editors/High-Tech Writers

SANTA CLARA, Calif. & SAN MATEO, Calif.--(BUSINESS WIRE)--Sept. 1, 2003

Companies Expand Joint Development and Testing on Sun(TM) ONE Software

Sun Microsystems and Siebel Systems, Inc. (Nasdaq:SEBL) today announced a multifaceted software development agreement to enhance the performance of Siebel eBusiness Applications running on the Solaris(TM) Operating Environment (OS) and selected Sun ONE software products. The agreement underscores the companies' increased commitment to collaborative product development, testing, support and integration of Siebel eBusiness Applications with Sun ONE software. Siebel eBusiness Applications, which help organizations maximize the value of every customer interaction and drive superior corporate performance, and Sun ONE software -- Sun's open, integratable software platform enabling the development and delivery of Java(TM) Web services -- will work together to deliver greater stability, faster deployment and lower implementation costs for customers.

"Many of our customers rely on Siebel applications and Sun infrastructure to make their companies more customer-centric and competitive," said Thomas M. Siebel, Chairman and Chief Executive Officer of Siebel Systems. "With this software development agreement, we'll be able to ensure that customers integrating best-of-breed applications from Sun and Siebel realize the quickest possible return on their investment."

"The message here is all about Sun and Siebel making sure that customers can rely on superior products and services that are highly available and integrated to reduce cost and complexity," said Scott McNealy, Chairman, President and CEO of Sun Microsystems. "Customers don't have to spend time integrating Sun ONE software with Siebel eBusiness Applications -- we've done it for them -- and more, with an added level of security and service like no one else."

The multiyear software integration and collaboration agreement includes Siebel Systems' support for the new Sun Cluster 3.0 High Availability (HA) Agent, which helps Siebel customers achieve higher levels of application availability through faster recovery time, improved stand-by database capabilities, and simplified management with the SunPlex(TM) environment -- while also significantly reducing overall deployment and service level costs.

Additional features of the agreement include Siebel Systems' validation of the Sun ONE Identity Server 6.0 with Siebel 7.5 to help enable better integration and secure access to Web-based resources. Sun and Siebel are also working to validate Sun ONE Portal Server 6.0 with Siebel Employee Relationship Management (ERM) 7.5, which helps companies improve corporate performance by enabling consistent execution of corporate strategy and decreasing operating costs across the enterprise.

Rounding out the agreement is Siebel Systems' support for the Sun ONE Web Server, Sun ONE Directory Server, and Sun ONE Messaging Server.

Today's announcement is part of a rich history of advancements between the two companies aimed at providing outstanding customer value and quality engineering. After a successful three-year business relationship, Siebel Systems and Sun Microsystems expanded their joint market presence by entering into a global strategic alliance in 2001. This alliance represents strengthened commitments by both companies for mutual solution development and technology initiatives, global marketing campaigns and regional sales engagement for optimal customer satisfaction. In addition, Siebel Systems is a Premium Member of the Sun Vendor Integration Program (SunVIP), which allows for service call facilitation between both companies to provide a single point of support for customers who deploy Siebel eBusiness Applications on the Solaris(TM) Operating System (OS).

For more information on the Siebel Systems-Sun Microsystems global strategic alliance, please visit the alliance web site at http://www.sun-siebel.com.

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 customer deployments 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.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision -- "The Network Is The Computer(TM)" -- has propelled Sun Microsystems, Inc. (Nasdaq:SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://www.sun.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.

Sun, Sun Microsystems, the Sun logo, Solaris, SunPlex, SunVIP, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.