Lighthouse1 Selects Siebel CRM OnDemand as Strategic CRM and Contact Center Solution

Innovator in Employee Benefits Administration Deploys Siebel CRM OnDemand-Integrated with Siebel Contact OnDemand-for Comprehensive Sales, Marketing, Service, and Contact Center Capabilities

SAN MATEO, Calif.-November 15, 2005 - Siebel Systems, Inc. (NASDAQ: SEBL), a leading provider of customer-facing solutions, today announced that Lighthouse1, a leading provider of hosted consumer-directed healthcare (CDHC) administration solutions, has selected Siebel CRM OnDemand to support its customer-facing business processes, including sales, marketing, and customer service.

Based in Minneapolis, Lighthouse1 provides the benefits administration industry with the premier hosted solution for the administration of Section 125, 105, 132, and other pre-tax healthcare spending programs. To support the company’s dramatic growth, Lighthouse1 evaluated a number of hosted CRM solutions to replace its spreadsheet-driven infrastructure across sales, marketing, and customer service. Siebel CRM OnDemand, coupled with Siebel Contact OnDemand, met Lighthouse1’s requirements for an easy-to-deploy, comprehensive CRM and contact center solution.

“As a Software as a Service (SaaS) provider ourselves, we intrinsically knew the benefits of a hosted solution, including faster time to value, very low start-up costs, and scalability,” said Jeff Fritz, Chief Executive Officer at Lighthouse1. “With its completeness across all customer-facing processes, Siebel’s offering really impressed us. From sales pipeline visibility to lead generation management and powerful contact center capabilities for streamlining customer support, Siebel CRM OnDemand was the only solution that had everything we needed.”

Another key factor in the selection process was that Siebel CRM OnDemand and Siebel Contact OnDemand featured built-in business intelligence reporting capabilities that captured all phases of the company’s growth. For example, in the sales organization Lighthouse1 utilizes the analytic capabilities of Siebel CRM OnDemand to improve pipeline management, drive higher close rates, and accelerate the sales process. With the analytic capabilities of Siebel Contact OnDemand, it is now easy to gain insight into contact center metrics and service metrics, including measuring and shortening call wait times, capturing customer satisfaction and feedback, facilitating cross-selling and up-selling opportunities, and identifying areas for improvement across contact center staff.

“Our Siebel CRM OnDemand solution gives us everything we need to run our customer-facing business,” said Jeff Bakke, Chief Operating Officer at Lighthouse1. “By automating processes and giving us the analysis and reporting we need to make real-time decisions across the company, we can spend more time interacting with and building relationships with our customers. And with Siebel’s vision for the future of hosted CRM, we know we’ll be able to add future functionality as we need it.”

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 Lighthouse1

Lighthouse1 delivers consumer directed healthcare (CDHC) administration software solutions including Lighthouse1 OnDemand™, the high performance Software as a Service (SaaS), to resolve challenges in the administration of Section 125, 105, 132 and other pre-tax spending programs in the healthcare and employee benefits industry. Its mission is to use the latest technology and services to assist and support CDHC administrators in the management of health care account services. Lighthouse1 OnDemand™ allows third party administrators and healthcare providers to manage services for employer plans that include: flexible spending accounts, health reimbursement arrangements, variable employee benefits arrangements, health savings accounts and transit plans. More information is available at www.lighthouse1.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.

***

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.

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.

Contact Information

Shabana Khan

Siebel Systems, Inc.

Contact via E-mail