Press Release 2004

Siebel Systems Launches Global Business Process Outsourcing Alliance Program

Alliance Program Expands to Address Its Global Partners’ Requirements in Growing BPO Marketplace

SAN MATEO, Calif. - August 23, 2004 - Siebel Systems, Inc. (NASDAQ: SEBL), a leading provider of business applications software, today announced the launch of its Global Business Process Outsourcing (BPO) Alliance Program. This new program expands Siebel Systems' Global Alliance Program to deliver product, maintenance and support offerings that meet the needs of its alliance partners in the BPO marketplace. The addition of the Global BPO Alliance Program enhances Siebel's industry-leading alliance programs to cover the full spectrum of technology partners -- more than 750 partners with expertise in consulting, software, hardware platforms and services that meet the needs of Siebel Systems customers worldwide.

"Clients realize their greatest return on investment in Siebel's technology when they focus on business outcomes and re-architect key processes to achieve desired business results," said William R. Winters, Vice President and GM, Alliances, Siebel Systems. "Business Process Outsourcing firms are experiencing unprecedented growth because they are willing to align their business return in proportion to the business value their clients receive. Siebel is endorsing the power of this alignment with our new BPO offerings."

Siebel's Global BPO Alliance Program offers participants flexible pricing, inventory management and support models that enhance the ability of outsourcing partners to meet their clients' demands by offering creative pricing structures that directly correlate benefit with expense. The program requires a separate authorization process and is open to Siebel partners that are market leaders in providing outsourcing services to their customers. Important program elements include:

• BPO-Specific Pricing Models: Siebel Systems architected unique pricing structures that allow partners to map expense to value for a variety of client engagement models. In addition, Siebel now offers various subscription models with flexible term options to help partners meet their revenue needs.
• Flexible Inventory Management: Partners have the ability to apply BPO pricing to all product configurations to accommodate the broadest range of user type; from entry level call center personnel to sophisticated business analysts that require access to advanced analytics applications.
• Prioritized Support for Partners: Siebel is offering additional marketing and technology support for partners that develop focused go-to-market plans in defined markets -- segments defined by industry, geography, application, business process and client size. Partners benefit from a prioritized go-to-market distribution model that includes access to dedicated marketing, sales and consulting resources, and volume pricing for support that will protect the return on partners' investment.

"Siebel Systems' key partners in the BPO sector are developing standardized offerings that will be centrally managed to reduce support costs, eliminate duplicate processes and increase operational control," said William R. Winters. "Siebel has designed the Global BPO Alliance Program to support these efforts, ultimately enhancing partners' client satisfaction by delivering more robust solutions, improving time-to-market and reducing costs."

"The market for business process outsourcing can only continue to grow as service providers continue to fine-tune delivery methods and client adoption and understanding continue to grow in parallel," said Michael Doane, senior vice president at META Group, a leading provider of IT research, advisory services and strategic consulting. "This proactive reach into the BPO market may well signal greater BPO market efforts on the part of major enterprise software firms."

As part of the program, Siebel Systems will team with its partners to define the relationships, resources and processes to create a shared presence in the BPO marketplace, and will leverage each other's strengths and capabilities. As a result, Siebel and its Global BPO Alliance Partners will architect industry-oriented product and services solutions and shared customers will gain access to agile approaches to conducting business, reduce total cost of service delivery, and gain the ability to access required CRM technology on a utility basis.

Additional information about the Global BPO Alliance Program can be found at http://www.siebel.com/.

About Siebel Systems

Siebel Systems, Inc. is a leading provider of business applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 4,000 customer deployments worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, market-leading analytics products, 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 30 countries.

Media Contact:

Stacey Burbach
Siebel Systems Public Relations
Tel: (480) 377-3725
Email: stacey.burbach@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 agreements 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 new versions and new products, the availability of Siebel Systems' products and services, implementation of products and services, existence of errors or defects in products, rapid technological change, dependence on the Internet, 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 http://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.