Lockheed Martin and Siebel Systems Form Strategic Alliance

Business Wire, Nov 20, 2002

Business Editors/High-Tech Writers

BETHESDA, Md.--(BUSINESS WIRE)--Nov. 20, 2002

Largest Federal Systems Integrator and Leading Applications

Software Provider to Jointly Target Federal IT Market

Lockheed Martin Corp. (NYSE:LMT) and Siebel Systems (Nasdaq:SEBL) have formed a strategic alliance to pursue business opportunities in the federal information technology market.

This partnership formalizes ongoing efforts between the two companies and will provide powerful, proven solutions for federal agencies looking to improve operational effectiveness and productivity. The terms of the agreement allow Lockheed Martin technical personnel to train and become certified on the implementation of Siebel eGovernment and Siebel Homeland Security Applications.

"This alliance enables government agencies to leverage the complimentary capabilities and expertise of the foremost federal systems integrator and the world's leading provider of eGovernment applications software," said Arthur Johnson, Lockheed Martin Senior Vice President, Corporate Strategic Development. "Our customers are demanding reliable, high-performance, highly-scalable commercial-off-the-shelf (COTS) products. By using a COTS-based solution that integrates with existing government systems, government agencies will realize significant savings and increased effectiveness."

The product capabilities of Siebel Systems combined with the demonstrated success of Lockheed Martin in the federal IT marketplace will enable federal agencies to rapidly move toward an eGovernment model, incorporating commercial off-the-shelf technologies to meet the complex system requirements of the U.S. military and civil government agencies. Siebel eGovernment Applications support a broad range of government work processes, including entitlements management; tax and revenue management; enforcement and compliance; healthcare services; logistics management; recruiting; training; education; and homeland security.

"In our effort to deliver best-in-class eGovernment and homeland security applications to the federal government, it is only natural that Siebel Systems would partner with the premier systems integrator in this market," said Tom Siebel, Chairman and Chief Executive Officer, Siebel Systems. "As our nation faces a disturbing array of security concerns, improved threat detection and information sharing within and among agencies is critical to our national safety. Our new partnership offers the software functionality, scalability, performance and federal government expertise needed to meet some of the U.S. government's most pressing challenges."

Siebel Systems, Inc. is a leading provider of eBusiness and eGovernment 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.

Headquartered in Bethesda, Md., Lockheed Martin is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. Employing about 125,000 people worldwide, Lockheed Martin had 2001 sales of $24 billion. For more information, please visit Lockheed Martin's Web site at www.lockheedmartin.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 service 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.