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SAN MATEO, Calif.-January 5, 2004-Siebel Systems,
Inc. (NASDAQ: SEBL), a leading provider of eBusiness applications
software, today announced preliminary results for the fourth
quarter ended December 31, 2003.

The company expects total revenues for the fourth quarter of
2003 to be approximately $365 million and license revenues to be
approximately $150 million. Earnings per share for the fourth
quarter of 2003 are expected to be approximately $0.08 per share.
The company’s estimated cash, cash equivalents, and short-term
investments are approximately $2.02 billion as of December 31,
2003, the net result of over $40 million in cash generated from
operations during the quarter offset by a reduction for
acquisitions and other investments including the UpShot and Motiva
transactions which closed in the fourth quarter.

Previous management guidance provided on October 15, 2003 had
been for total revenues for the fourth quarter of 2003 to be in the
range of $335 million to $355 million, license revenues to be in
the range of $120 million to $140 million, and earnings per share
to be $0.05-$0.06 per share.

In addition, Siebel announced the completion of its 2003
reorganization and restructuring activities with the realignment of
its worldwide sales organization into three geographic operating
units – the Americas, Europe Middle East and Africa, and Asia
Pacific. Each of these units will be headed by veteran Siebel sales
executives with broadened operational responsibilities who will
report directly to the CEO. No additional charges are expected as a
result of this realignment.

Siebel Systems will host a conference call today at 7:15 a.m.
EDT (4:15 a.m. PDT) to discuss its preliminary financial results
and other matters. The call can be accessed live over the Internet
at www.siebel.com/investor or by dialing 888-434-1242 in
the U.S. or 415-908-6258 outside the U.S. A replay will also be
available over the Internet at www.siebel.com/investor or by dialing 800-633-8284 in
the U.S. or 402-977-9140 outside the U.S. with passcode
21179191.

Siebel Systems will announce final results for the fourth
quarter of 2003 and for the full year 2003 on January 21, 2004.

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.
This press release contains forward-looking statements that involve
risks and uncertainties. The final results for the fourth quarter
of 2003 and for the full year 2003 of Siebel Systems, Inc. may
differ from the management guidance discussed above due to factors
that include, but are not limited to, risks associated with final
review of the results and preparation of quarterly and annual
financial statements. Future operating results of Siebel Systems,
Inc. may differ from that forecasted in the forward-looking
statements due to factors that include, but are not limited to,
risks associated with financial, economic, political and other
uncertainties, the eBusiness software applications market,
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 its
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.