09:15:09 - 08 July 2005

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Siebel Systems, Inc. (www .www.siebel.com), the leading provider of customer-facing solutions, today announced preliminary financial results for the quarter ended June 30, 2005.

The Company expects total revenues for the second quarter of 2005 to be approximately $312 million to $314 million. The Company expects license revenues for the quarter to be approximately $78 million. Maintenance revenues are expected to be approximately $123 million. Services and Other revenues are expected to be approximately $111 million to $113 million. In addition, total contract value for the second quarter of 2005 for Siebel CRM OnDemand, Siebel’s hosted CRM offering, is expected to be approximately $20 million.

The Company currently expects to incur additional restructuring charges in the third quarter of 2005 of approximately $10 million to $15 million, primarily related to further consolidation of leased facilities.

Including the impact of the $75 million charge, operating margin and operating income for the second quarter of 2005 are expected to be approximately (25)% to (24)% of total revenues and $(77) million to $(74) million, respectively. Excluding the charge, operating margin and operating income for the second quarter of 2005 are expected to be approximately breakeven.

Including the $75 million charge, pre tax income for the second quarter of 2005 is expected to be approximately $(63) million to $(60) million. Excluding the charge, pre tax income for the second quarter of 2005 is expected to be approximately $12 million to $15 million.

The Company’s cash, cash equivalents and short term investments are expected to be approximately $2.24 billion as of June 30, 2005, reflecting cash generated during the second quarter of 2005 of approximately $55 million to $57 million offset by a $15 million cash outlay related to the Company’s acquisition of edocs, Inc., which resulted in a net increase in cash during the period of approximately $40 million to $42 million.

As of June 30, 2005, headcount was 5,089, down 171 from the end of the first quarter of 2005. “Siebel’s preliminary second quarter results show encouraging signs of progress but also underscore clear areas for improvement”, said George T. Shaheen, Chief Executive Officer of Siebel Systems.

Shaheen continued, “We have recently taken steps to enhance sales execution, including reorganizing the Americas sales force, simplifying sales compensation, and realigning and adding senior management. We are committed to taking additional steps to improve license sales execution, further reduce costs and drive towards increased profitability over time.”

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