GiDEL Selects Siebel CRM OnDemand to Enable Dramatic Growth

Provider of Leading-Edge Development Platforms Chooses Top Hosted CRM Solution for Sales Effectiveness

SAN MATEO, Calif. - October 12, 2005 - Siebel Systems, Inc. (NASDAQ: SEBL), a leading provider of customer-facing solutions, today announced that GiDEL, a leading provider of powerful development tools and universal field programmable gate array (FPGA) platforms, chose Siebel CRM OnDemand over Salesforce.com for its hosted CRM solution. Siebel CRM OnDemand will allow GiDEL, headquartered in Israel and the U.S., to manage its dramatic growth on a global basis.

GiDEL was founded in 1993 as a high-end system development and integration company. With its project-level approach, GiDEL has created powerful and advanced tools for high-performance system development. GiDEL’s expertise in system-level integration and innovative development methodologies has proven valuable to companies that need to verify Application-Specific Integrated Circuit (ASIC) designs and build system-level boards.

“At GiDEL, we treat our customers as partners, and we use our vast experience at the project level and FPGA design level to focus on the success of their projects,” said Hai Migdal, Senior Sales Engineer, GiDEL. “Our development methodology offers important efficiencies for project teams and as a result, we have experienced substantial growth and a need to better manage it.”

“To help us manage our sales efforts and every touchpoint of customer interaction, we chose Siebel CRM OnDemand,” added Mr. Migdal. “With its vast expertise in customer-facing solutions, we knew we could trust Siebel Systems to deliver the business impact we were looking for in sales and marketing excellence. Throughout our implementation we have been pleasantly surprised by the world-class support and training that Siebel offers.”

GiDEL chose Siebel CRM OnDemand to support its sales forecasting, pipeline visibility, opportunity management, and sales analytics. As a global company, GiDEL employees also welcomed a familiar user interface to ease user adoption, gain access to important applications such as Microsoft Outlook, and handle a variety of languages and currency types. Consistent with its rapid growth, GiDEL was especially pleased with the rapid deployment, scalability, and security found in Siebel’s hosted CRM offering.
About Siebel CRM OnDemand

Siebel CRM OnDemand is a hosted CRM offering delivered over the Web and accessible from an Internet browser at a fixed price per user per month. Customers can deploy Siebel CRM OnDemand quickly, easily, and affordably without any up-front IT investments. Hosted by IBM, Siebel CRM OnDemand delivers complete sales, marketing, and service functionality; built-in customer analytics; virtual call center technology; embedded best practices; and world-class hosting services and support. Siebel CRM OnDemand is now available for purchase. For more information, visit www.crmondemand.com

About Siebel Systems

Siebel Systems is a leading provider of customer-facing solutions that deliver demonstrable business results and long-term competitive advantage. Siebel’s multichannel offerings allow organizations to intelligently manage and coordinate all customer interactions across the Web, contact center, field sales/service force, branch/retail network, and indirect and partner distribution channels. Siebel solutions draw upon the company’s best-in-class capabilities in customer relationship management (CRM), business intelligence, and customer data integration and can be deployed as licensed software or as a hosted service. Siebel solutions are tailored to the unique needs of 23 industries and incorporate industry-specific business processes, best practices, and business insight. They are the product of more than $2 billion in R&D investments and reflect over 11 years of experience with more than 4,000 organizations. Together with its extensive global network of alliance partners, Siebel provides the people, process, and technology expertise critical in driving business value from the deployment of customer-facing solutions. Over 3.4 million users worldwide in organizations of all sizes depend on Siebel solutions to deliver dramatic improvements in how they identify, acquire, retain, and serve customers. For more information, visit www.siebel.com.

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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.

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Shabana Khan

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Siebel Systems, Inc.

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