CallTower Chooses Siebel CRM OnDemand Over Salesforce.com

Leading Provider of Always-On Hosted Communications Solutions for Businesses Cites Intuitive Interface, Business Intelligence, and Lower Cost as Differentiators

SAN MATEO, Calif.-November 2, 2005 - Siebel Systems, Inc. (NASDAQ: SEBL), a leading provider of customer-facing solutions, today announced that CallTower, Inc., the leading provider of always-on, scalable, enterprise-class hosted communications, selected Siebel CRM OnDemand over Salesforce.com for its strategic CRM implementation.

Headquartered in San Francisco, Calif., CallTower delivers hosted VoIP communications solutions built with high-end features and applications not found in other VoIP products, and based upon Cisco infrastructure, to growing businesses throughout North America. CallTower provides growing companies with a comprehensive scalable suite of vertical market applications, enterprise-class reliability, single point of support, productivity-enhancing features, and 24/7 service for a fixed monthly fee. CallTower’s outsourced solution suites eliminate companies’ need to maintain dedicated IT resources to manage the communications infrastructure. CallTower is the only hosted VoIP communications solution provider that combines advanced applications and solutions into a convenient, scalable solution for growing businesses.

When it came time to replace its CRM solution, CallTower looked at hosted offerings that provide rapid deployment capabilities with no up-front IT investment. “Siebel CRM OnDemand quickly proved it was the right solution for our explosive growth,” said Mark Harris, Executive Vice President of Sales and Marketing, CallTower. “We were impressed by the intuitive interface, the built-in business intelligence, and the product’s ability to scale as our business grows. Plus it offered these features at a lower price than Salesforce.com, enabling CallTower to deliver increased business value to customers across the healthcare, financial services, legal, and consulting markets.”

The explosive growth in the VoIP communications solutions market has incrementally increased demand for CallTower’s advanced, scalable, always-on suite of communications solutions. As a result, the Siebel CRM OnDemand solution is designed to support CallTower’s opportunity management and forecasting for its sales organization and lead tracking for the marketing group. CallTower considers Siebel CRM OnDemand’s service request management capability critical to maintaining and improving excellent customer support, especially in its role as the single point of service for all its customers’ communications needs.

The professional services team at Siebel offered CallTower a turnkey solution that included tightly integrated workflow capabilities from WebQA, a Siebel CRM OnDemand Alliance Partner offering an integrated hosted self-service solution.

“We’re eager to really understand historical opportunities-in order to identify, for example, if the forecasts we made three months ago were accurate,” continued Harris. “The built-in business intelligence in Siebel CRM OnDemand will allow us to fine-tune our forecasting so we can more accurately plan our business. It’s this kind of true business value that attracted us to Siebel CRM OnDemand. No one else is doing anything like it today.”

Siebel’s hosted software solutions and deployment capabilities are a critical enabler of its new Customer Adaptive Solutions Applications Strategy and Architecture. Companies embracing Siebel Customer Adaptive Solutions will be able to more effectively and quickly anticipate customer needs, realign their customer-facing business processes for systemic and consistent improvement, and direct the right actions across their businesses to maximize customer satisfaction and profitability.
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 CallTower

CallTower is the leading provider of hosted enterprise-class VoIP communications for growing businesses nationwide. The CallTower solution integrates technologies from Cisco, Microsoft and Good with CallTower’s proprietary VoiceCubeT VXML engine. CallTower’s solution provides all the communication needs for its business customers including business phones, email, voice and fax messaging, local and long distance, conferencing, mobile devices and more. The service is available for a fixed price per seat, including Cisco 7960 telephones. CallTower is headquartered in San Francisco with operations in Salt Lake City and Oklahoma City, and sales offices throughout the United States. CallTower provides nationwide service. CallTower can be found on the Web at www.calltower.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

Siebel Systems, Inc.

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