SIEBEL PUTS $20 MILLION AD ACCOUNT IN REVIEW

Move Follows Revenue Lag; Incumbent Hal Riney Will Not Defend

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SAN FRANCISCO (AdAge.com) -- Troubled applications software firm Siebel Systems is conducting a review for an anticipated $20 million advertising
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account, according to executives familiar with the situation.

Hal Riney
Siebel, which makes customer service software, had been with Publicis Groupe's Publicis & Hal Riney, San Francisco, since the spring of 2001. The Riney work featured a cowboy riding in a beautifully photographed scene, with the tagline "Good service is good business."

Lagging revenue
Last week, however, Siebel reported to Wall Street that revenue was lagging and would not meet expectations.

A Riney spokesman said the agency would not defend the account in the review.

Siebel had not returned a request for comment by press time.

Contenders
Contenders for the account include San Francisco-based McCann-Erickson Worldwide, part of Interpublic Group of Cos.; Grant, Scott & Hurley; Kirshenbaum Bond & Partners West; Godfrey Q. & Partners; and DDB Worldwide, part of Omnicom Group, executives said.

Siebel spent $12.5 million in measured media in 2002, and $3 million for the first quarter of 2003, according to TNS Media Intelligence/CMR

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Tobi Elkin contributed to this report.

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