Xerox’s Variable Information Printing Solutions Complement Siebel eBusiness Applications SAN FRANCISCO and SAN MATEO, Calif. — Oct. 21, 2002 — Xerox Corporation (NYSE: XRX), the leader in digital and variable information printing, today announced that it has joined the Siebel Alliance Program as a Strategic Platform Partner. Siebel Systems, Inc. (NASDAQ: SEBL) is a leading provider of multichannel eBusiness applications software. This development and marketing alliance will enable and promote one-to-one marketing programs that generate benchmark response rates by personalizing full-color printed materials for individual recipients. The Xerox and Siebel Systems joint development effort focuses on the market for variable content, which is projected to jump from $2.5 billion in revenue in 2001 to $6 billion in 2004, according to the Printing Industries of America, Inc. (PIA). With the Siebel Marketing 7 product suite and the Xerox Document Channel, organizations now have a comprehensive and integrated marketing solution to successfully acquire, retain, and grow profitable customer relationships and maximize marketing effectiveness. "By including personalized printing as part of a multichannel marketing strategy, companies will have a more effective means of communicating with their customers and prospects," said Gareth Herschel, Research Director, Gartner, Inc., a leading IT research and advisory firm. Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications software, and business processes, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. Siebel Marketing 7 provides a complete, closed-loop solution for the planning, management, execution, and analysis of personalized, permission-based marketing campaigns across all channels. Xerox helps customers profit and grow revenue with its expertise and leadership in digital printing, variable information, solutions, and services and by partnering with industry leaders. The integrated solution enables organizations to better understand their customers; plan and execute coordinated personalized campaigns across all channels—both eMedia and personalized print; and allow better strategic planning through continuous testing, measurement, and feedback. Hard copy documents still account for 90 percent of direct marketing communications. Full-color variable information documents have been proven to generate response rates that are 500 percent greater than similarly designed static, monochrome pieces, according to a study by the Rochester Institute of Technology. A similar study by CAP Ventures found that full-color variable documents also enhanced customer loyalty and retention, generating 34 percent faster response rates, a 48 percent increase in repeat orders, and a 32 percent increase in overall revenues. "Today’s tough economy has tightened advertising budgets, and marketers are looking for the kind of high, quantifiable return they can get from personalized, one-to-one programs," said Ursula M. Burns, president, Document Systems and Solutions Group, Xerox Corporation. "The Xerox-Siebel Systems partnership will make these programs easier to implement by making systems integration simpler and leveraging new color technologies like Xerox DocuColor Digital Presses." "The Siebel Systems–Xerox integrated solution leverages the embedded best-practice business processes contained in Siebel eBusiness Applications and the expertise of Xerox’s personalized printing competencies to drive competitive advantages for customers," said Bruce Cleveland, Senior Vice President, Marketing, Siebel Systems. "Users will better target and segment their customers, reduce the time and cost to create high-impact personalized color communications, review soft copy proofs, and measure responses and effectiveness in real time with closed-loop tracking." Attendees of the Direct Marketing Association Annual Conference and Exhibition in San Francisco, October 20–22, will have an opportunity to see a technology demonstration of the integrated solution in the Xerox Booth, No. N401, Hall D, in the 1:1 Digital Print Pavilion at the Moscone Center.