IBM and Siebel Systems Form Global Strategic Alliance to Deliver CRM Solutions for e-business

Alliance Includes Joint Marketing, Sales, and Development

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Armonk, NY & San Mateo, Calif. - 28 Oct 1999: - IBM (NYSE: IBM) and Siebel Systems (NASDAQ: SEBL) announced today that they have formed a global strategic alliance to integrate Siebel Systems' multi-channel CRM software applications with IBM's e-business capabilities. The scope of the alliance includes worldwide joint marketing, collaborative selling, software integration and extensive joint development.

The integration of Siebel Systems' CRM software applications with IBM's industry expertise, hardware, software and services will provide a powerful platform for customers, dramatically reducing cost and risk, accelerating deployment, and improving return on investment.

"We are very pleased to learn about the alliance between IBM and Siebel Systems, as we have independently standardized on both vendors' solutions. Now, with them providing a fully-integrated solution, I expect that Country Companies Insurance will be able to dramatically accelerate our application deployment and greatly increase our overall project success," said Barbara Baurer, chief operating officer, Country Companies Insurance.

The two organizations will jointly market and sell Siebel CRM applications, which fully support IBM's DB2 Universal Database and are highly optimized for IBM's S/390, RS/6000, NUMA-Q, AS/400 and Netfinity servers. Dedicated engineering, product marketing and quality assurance teams will manage the integration and optimization of the entire, integrated e-business solution. The Siebel CRM solutions will fully support the IBM Application Framework for e-business and embrace IBM's enabling middleware, and component-based technologies, including MQ Series, WebSphere, net.commerce and IBM's Computer Telephony Integration products. In addition, the two companies have agreed to integrate the functionality of Visual Banker and Siebel Finance to deliver more robust industry-specific CRM solutions for the financial services sector.

"This relationship is huge. Siebel Systems and IBM have the potential to redefine CRM and e-business by delivering a fully integrated, multi-channel CRM solution," said Tim Bajarin, President, Creative Strategies.

IBM Global Services has formed a worldwide team within its Customer Relationship Management Services practice to deliver world-class business processes, software configuration, integration, training, and customer support for Siebel CRM applications. Throughout North America, Europe, and Asia Pacific, prospective customers will be able to visit IBM's CRM Solutions Centers that will feature Siebel Systems' customer deployments and industry best practices in sales, marketing, and customer service. IBM experts in Siebel products will help customers identify, build, integrate, and deploy solutions that meet their specific business requirements.

IBM and Siebel Systems have agreed to a collaborative distribution strategy that includes jointly selling the integrated e-business solution globally. The two companies will initially target customers in the finance, insurance, communications and consumer packaged goods industries. Thousands of IBM global sales and service professionals will be trained on Siebel CRM products and will now have the unique ability to market and deliver a comprehensive CRM e-business solution that includes Siebel's industry leading applications, IBM servers, database and enabling software, and the full suite of services and support.

To launch and promote the integrated e-business solution, IBM and Siebel Systems have funded a large-scale co-marketing program that includes joint advertising and participation in targeted CRM industry events.

"This alliance will quickly generate financial returns and competitive advantage for our joint customers. IBM's global reach, industry knowledge, and strength in hardware, software, and services, combined with Siebel Systems' CRM market leadership, will deliver compelling value for customers seeking improved customer retention and loyalty. I couldn't be more pleased with our partnership," said Thomas M. Siebel, Chairman and CEO, Siebel Systems, Inc.

"We are delighted to be forming this new relationship with Siebel Systems. CRM is a top priority for virtually all companies as they look to transform themselves in the age of e-business. The combination of Siebel's CRM applications with IBM's industry relationships, hardware, software and services will be an important element in our solution portfolio," said Bill Etherington, Senior Vice President & Group Executive, IBM Sales & Distribution. "Together we can provide an end-to-end capability to customers that no other competitor can match."

This alliance represents a significant expansion of IBM and Siebel Systems' existing relationship. Previously, the two companies announced a joint development, marketing and sales agreement to deliver out-of-the-box integration between Siebel CRM applications and the IBM DB2 Universal Database. IBM Global Services also became a Siebel strategic alliance partner to deliver support services for Siebel Front Office Applications.

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