Siebel Systems Positioned as a Leader in the Magic Quadrant for B2C CRM Suites; Siebel 7 Provides Unrivaled Breadth and Depth of Functionality

Business Wire, May 13, 2002

Business Editors/High-Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--May 13, 2002

Siebel Systems, Inc. (Nasdaq:SEBL), the world's leading provider of eBusiness applications software, today announced that it has been positioned in the Leader quadrant in Gartner's B2C CRM Applications Suites Magic Quadrant Report for 2002(1). The report, published by Gartner, Inc., a premier research and advisory firm, evaluated nine vendors in the B2C CRM market based on their vision and ability to execute. Siebel Systems was the only vendor listed in the Leader quadrant.

"Siebel Systems has consistently raised the bar in delivering application functionality and innovation to meet our customers' requirements, and this further demonstrates our ability to provide valuable eBusiness solutions to our customers," said Richard Gorman, Senior Vice President of Products, Siebel Systems. "We are pleased that Siebel Systems has been listed as the sole leader in the B2C Magic Quadrant."

Siebel eBusiness Applications respond to the needs of B2C companies, who sell directly to the consumer, by providing CRM solutions with campaign management; telesales and telemarketing; Web site personalization; and high-quality customer service via the Web, call centers, and retail stores.

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. Specifically, Gartner's evaluation criteria for B2C CRM suites are:

-- Integrated functionality to support two of the three major CRM domains
(sales, marketing, and customer service)

-- Conformance to CRM application architecture

-- Differentiable or broad horizontal functionality

-- Strong vendor viability

"Siebel eBusiness Applications are crucial to our ability to track customer data and streamline operations," said Sal Luongo, Vice President Information Technology at Home Shopping Network. "Siebel eBusiness Applications enable our 24x7 call center agents to share information across the enterprise and offer specialized services that allow us to cater to each unique consumer, resulting in a superior customer experience and increased customer value."

Siebel Systems provides the industry's most comprehensive family of multichannel eBusiness applications and services, enabling organizations to create a single source of customer information. As an integrated solution, Siebel Sales 7, Siebel Call Center and Service 7, and specifically Siebel Marketing 7, deliver a comprehensive B2C solution for the planning, management, and analysis of personalized, permission-based campaigns and the sales and service support functionality required to manage customer interaction across all channels.

Global leaders across all industries have selected Siebel Systems as their B2C CRM standard, including The Hershey Foods Corporation; the Kellogg Company; Marks & Spencer; Schering-Plough HealthCare Products, Inc.; and Staples, Inc.

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) B2C CRM Application Suites 1H02 Magic Quadrant, G. Herschel, 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.