Microsoft and Siebel Systems Announce Availability of Siebel’sWeb-Based Front Office Applications Integrated With SQL Server 7.0

REDMOND, Wash., and SAN MATEO, Calif., June 30, 1999 — Microsoft Corp. (Nasdaq
) and Siebel Systems Inc. (Nasdaq
“SEBL” ) today announced they have signed a strategic agreement to deliver the Microsoft® SQL Server TM 7.0 relational database as a core component of the Siebel Web-based front office application family. The agreement enables Siebel to package and ship the award-winning SQL Server 7.0 database with Siebel’s market-leading sales, marketing and customer service applications for its nearly 1,000 customers running the Windows NT® operating system worldwide and its future customer base. Beginning in July, Siebel Systems will ship its front office applications prepackaged with Microsoft SQL Server 7.0, backed by worldwide technical support from both companies. In addition, Siebel Systems will offer a compelling upgrade package for Oracle customers to convert to SQL Server.

“The demand for SQL Server from both our midmarket and large global customers has dramatically increased,”
said Thomas M. Siebel, chairman and CEO of Siebel Systems.
“We have found SQL Server 7.0 to offer compelling price/performance and functionality for the Windows NT platform. Our customers tell us that it has exceeded their expectations in ease of use, reliability and scalability. For these reasons, Siebel Systems recommends SQL Server 7.0 to our customers running on Windows NT.”

This agreement allows companies to deploy Siebel Systems’ sales, marketing and customer service applications with pre-engineered SQL Server optimization. New Siebel customers that purchase the integrated solution will pay substantially less than if they acquired Siebel applications and SQL Server separately. Organizations that standardize on Siebel and SQL Server can be assured that both companies will work together to provide tight integration and optimization between Siebel Front Office Applications and the Microsoft Office and Windows® operating system family of products.

“As a leading provider of sales, marketing and customer service solutions, Siebel Systems is a strategic line-of-business partner for us,”
said Steve Ballmer, president of Microsoft.
“We see a tremendous surge among our customers – from small organizations to global enterprise-scale companies – to deploy front office solutions. Through this alliance, Siebel Systems can provide its customers with a total solution that is tightly integrated with the full suite of Microsoft products. Companies of all sizes now have a cost-effective way to deploy Siebel applications and SQL Server quickly and easily.”

Microsoft will also provide customer service and support, ensuring that Siebel’s SQL Server customers have the most knowledgeable support professionals assisting them firsthand.

“After careful evaluation, we chose to implement SQL Server 7.0 to complement our Siebel front office solution, which supports our commitment to delivering personalized client service nationwide,”
said Jerry Blalock, senior vice president, general manager at ProBusiness Services Inc.
“We have standardized on Microsoft Windows NT, Microsoft Office and Siebel Front Office Applications, and found that SQL Server was the most reliable and most scalable database solution for our organization. This expanded relationship between Siebel and Microsoft is welcome news, enabling us to leverage best-of-breed technology to meet our expanding Web-based client service and support needs. It is always in our best interest when our technology partners choose to work together and pass the benefits of the relationship along to their clients.”

Siebel and Microsoft have also created a Joint Technology Solution Center, located in Redmond, Wash. The center will be staffed by engineers from both Siebel and Microsoft, who will collaborate to ensure optimal performance of Siebel products with the Microsoft platform and technologies.

Pricing and Availability

Siebel Systems plans to begin shipping its complete family of front office applications, packaged with Microsoft SQL Server 7.0, on July 15, 1999. Current customers as of Sept. 30, 1999, can receive a license upgrade from Oracle, or any other database, to SQL Server 7.0 for $170 per user, which includes customer support for two years from Siebel Systems and Microsoft as well as maintenance upgrades to future releases of SQL Server.

About Siebel Systems

Siebel Systems is the world’s leading supplier of Web-based front office software systems. Siebel Systems provides an integrated family of Web-based sales, marketing and customer service application software for field sales, customer service, telesales, telemarketing, field service, third-party resellers and Internet-based e-commerce and self-service. Siebel Systems products are designed to meet the needs of small, medium-sized and large businesses. Siebel Systems sales and service facilities are deployed locally in over 20 countries and can be reached through the World Wide Web at

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The success of the alliance and products described above and the future operating results of Siebel Systems Inc. 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 enterprise relationship management markets, dependence on the Internet, risks associated with new versions and new products, and risks associated with rapid technological change. Further information on potential factors that could affect the financial results of Siebel Systems Inc. are included in Siebel Systems Inc.’s Report on Form 10-Q for the fiscal quarter ended Sept. 30, 1998, and its Registration Statement on Form S-3 dated Nov. 27, 1998, which are on file with the Securities and Exchange Commission.

Microsoft, Windows NT and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Siebel is a trademark of Siebel Systems Inc. and may be registered in certain jurisdictions.

Other product and company names herein may be trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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