BOSTON, MA, Oct. 17, 2005 -- Siebel Systems, Inc. (Nasdaq:SEBL), a leading provider of customer-facing solutions, today unveiled the latest addition to its rapidly expanding Siebel Business Analytics product family. Siebel Real-Time Decisions (RTD) solutions enable organizations to optimize every customer interaction at the moment of contact by combining innovative predictive analytics technology with dynamic business and treatment rules. The Siebel RTD products help organizations reap maximum value from customer interactions in their contact centers, Web sites and other customer-facing channels, by identifying customer needs in real-time and responding with the most relevant offers and messages.

The new Siebel RTD products include prebuilt analytic applications for intelligent offer generation, cross-selling and customer retention management, as well as highly-scalable predictive analytics and real-time decisioning infrastructure products. The Siebel RTD analytic applications are appropriate for any direct-to-customer industry, and industry-specific editions are now available for the communications and media, and financial services industries. With the Siebel RTD analytic applications, organizations can significantly improve performance in critical business areas such as increasing share-of-wallet in financial services, reducing customer churn in telecommunications, and increasing cross-selling and up-selling in B2C companies.

The Siebel RTD infrastructure products provide the ability to integrate the power of real-time predictive intelligence and decisioning into any application or business process, such as intelligent call routing, predictive service management and expert sales advising. With its Services Oriented Architecture (SOA) and support for industry standards such as XML, SOAP, JMS and JDBC, Siebel RTD integrates easily with existing IT applications and customer touch point systems, including Web sites, interactive voice response (IVR) systems, ATMs and POS terminals, and 3rd party customer interaction applications.

Siebel RTD, an integrated part of Siebel Business Analytics, includes prebuilt integration with Siebel CRM applications. Siebel RTD is a critical element underlying Siebel's new Customer Adaptive Applications Strategy and Architecture, announced separately today. Siebel Customer Adaptive Solutions enable organizations to better understand and adapt to the needs of their customers in response to rapidly changing business requirements.

"Siebel RTD heralds a new era when organizations can significantly increase levels of customer acquisition, retention and value by seamlessly applying our unique analytics solutions in real-time to optimize each and every customer interaction," said Larry Barbetta, Senior Vice President and General Manager, Siebel Business Analytics. "This represents an important milestone in our vision of providing innovative solutions that enable organizations to become truly Customer Adaptive and Insight-Driven."

Optimizing Inbound Customer Interactions

High customer turnover, increasing cost and declining success of traditional marketing tactics are just a few of the business challenges forcing consumer-oriented organizations to make the most of every customer interaction. Inbound customer interactions represent an underutilized opportunity for retaining customers and selling more products and services. Traditional outbound marketing messages sent through mediums such as direct mail, email, or broadcast advertising tend to reach customers unexpectedly, rarely address individual customer needs, and get lost in a sea of competing messages. In comparison, customers who initiate an interaction with an organization are usually engaged and ready to listen, granting permission to the organization to make effective use of their time.

"Yankee Group analyzed the success of inbound versus outbound marketing and found that conversion rates are significantly higher with inbound marketing," stated Sheryl Kingstone of Yankee Group. "Companies that used personalized, targeted offers during an inbound interaction saw impressive results, such as call center acceptance rates about 25 percent higher than channel average, improved web click-through rate improvements ranging 7 to 40 percent, and average offer acceptance rate of 3 percent compared to under 0.5 percent for more mass marketed materials with direct response. Predictive analytics technology that adapts to every customer interaction, like Siebel RTD, promises to supercharge inbound marketing."

Driving Intelligent Customer Interactions with Advanced Predictive Analytics

Siebel RTD determines the right message at the right time and place for each individual customer or prospect. As soon as the customer is identified, and whenever new information becomes available during a customer interaction, the Siebel RTD engine determines the most appropriate treatment using powerful predictive analytics. Observations of historic customer interactions, the most up-to-date knowledge of the specific customer, and the context of the current interaction are taken into account at all times to form intelligent decisions in real time.

Siebel RTD solves the challenges faced in attempting to implement individualized customer treatment through traditional business rules, data mining or statistical methods and learns from the outcome of each customer interaction in order to continuously improve future recommendations. Through unique self-learning and adaptive models, coupled with dynamic business logic, Siebel RTD enables organizations to optimize offer selection continuously, and gain unexpected insights into changing customer behavior.

Siebel RTD uses the most advanced predictive analytics technology available for real-time decisioning, and incorporates many innovations over prior generations of rules-based, data-mining, and real-time predictive solutions. Unique features include:

-- Self-Learning Predictive Analytics - In contrast to solutions based on traditional data mining models, the Siebel RTD engine automatically learns from each customer interaction by autonomously updating its predictive models in real-time. Siebel RTD solutions don't require statistical experts to manually build, retrain, or update offline data mining models. Marketing users with normal business skills can deploy offers to Siebel RTD and gain constantly updated insight about which offers are being accepted by which customers.

-- Multi-Channel Support - Channels usually show varying response characteristics, and predictive models that naively pool channel data are suboptimal. Solutions that provide separate analytic "silos" for each channel are even less effective. Siebel RTD provides partitioned learning models that can support multi-channel decision applications using a common set of decision logic and metadata.

-- Time-Aware Learning - Customer behavior changes over time. Self-learning predictive models must reflect this fact and not give equal weight to all customer interaction history. Siebel RTD maintains a sliding time window that places greater emphasis on current customer behavior, avoiding the need to drop models to clear out stale influences and begin relearning from scratch.

-- Balanced Business-Driven and Model-Driven Decisioning - Siebel RTD enables a balance between user-defined business logic and predictive models based on empirical data. Subject matter experts can express their knowledge of the business in the form of declarative logic while taking full advantage of predictive decisioning. This enables a progressive deployment of analytics into business processes by replicating "business as usual" while demonstrating additional benefits of predictive analytics.

Siebel Real-Time Decisions is generally available now.

About Siebel Business Analytics

Siebel Business Analytics enables organizations to empower every person with rich customer and business insight to drive superior business performance. Siebel Business Analytics includes a comprehensive suite of packaged analytic applications that span business functions and incorporate best practices from over 20 industries, and a next-generation BI platform that delivers enterprise-wide usability, scalability, and performance. Learn more at www.siebel.com/analytics.

About Siebel Systems

Siebel Systems is a leading provider of software solutions and services that drive value and loyalty in client-customer relationships, providing best-in-class capabilities in on-premise and hosted customer relationship management (CRM), business analytics, and customer data integration. Siebel's new Customer Adaptive Solutions enable organizations to model their customer-centric business processes in order to drive the most effective customer interactions, gain increased insight over time, and continually realign those processes for systemic and consistent improvement. With more than $2 billion in R&D investments, 11-plus years of customer software experience, an extensive global ecosystem of alliance partners, and more than 4,000 customers and 3.7 million live users, Siebel is the proven choice in helping organizations of all types and sizes achieve customer-driven business results. For more information, visit www.siebel.com.

For more information on Siebel Systems solutions and services, please visit our Web site: CRM - http://www.siebel.com/crm; OnDemand Solutions - http://www.crmondemand.com; Industry CRM - http://www.siebel.com/industry-crm; Call Center and Service - http://www.siebel.com/call-center; Sales Force Automation - http://www.siebel.com/sales-force-automation; Marketing Automation - http://www.siebel.com/marketing-automation; Business Intelligence - http://www.siebel.com/business-intelligence; Integration Solutions - http://www.siebel.com/integration-solutions; CRM Services - http://www.siebel.com/crm-services.

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 our pending merger with Oracle Corporation, 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.

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