Officers to Adopt Rule 10b5-1 Plans

SAN FRANCISCO, Calif. — December 15, 2004 — (NYSE: CRM), the market and technology leader in on-demand customer relationship management (CRM), today announced that Chairman and CEO Marc Benioff and Chief Financial Officer Steve Cakebread are establishing plans under Rule 10b5-1 of the Securities Exchange Act of 1934 to provide for pre-arranged sales of common stock as part of their individual long-term strategies for asset diversification and tax and estate planning.

Rule 10b5-1 provides directors and officers of public companies with a systematic method of gradually diversifying their investment portfolios, while minimizing potential disruption to the financial markets by spreading stock sales over a defined period of time. Also, because these plans are established in advance of the planned trades when these officers could have otherwise traded in the open market, they help avoid concerns about whether these officers had material, non-public information when they made the decision to sell their stock.

According to the terms of their respective 10b5-1 plans, up to 2.4 million shares of the company's common stock may be sold on Mr. Benioff's behalf at a rate of up to 10,000 shares per day, starting three trading days after reports Fiscal Year 2005 results (currently scheduled for Feb. 17, 2005) and ending on Feb. 15, 2006; and up to 240,000 shares of the company's common stock may be sold on Mr. Cakebread's behalf at a rate of up to 20,000 shares per month, from Jan. 1, 2005 through Dec. 31, 2005.

Mr. Benioff currently controls 28,179,071 shares of If all of the shares contemplated under his plan were sold in 2005, Mr. Benioff would still own approximately 25.7 million shares, or approximately 25 percent of the company's total shares (based on the company's share count as of Oct. 31, 2004). He would continue to be the largest holder of common stock.

Mr. Cakebread currently owns 1,250,000 shares of stock and vested and unvested options. If all of the shares under the plan are sold in 2005, Mr. Cakebread would still own 1,010,000 shares of stock and vested and unvested options.

All transactions will be subject to certain price restrictions established under the plans and may be terminated at any time. Proposed and actual transactions will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.

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