Announces 13,300 Customers and 214,000 Paying Subscribers Worldwide as of December 31, 2004 first On Demand CRM to Exceed 200,000 Subscribers; Company Reiterates Fiscal Fourth Quarter 2005 Guidance

SAN FRANCISCO, Calif. - January 11, 2005 - [NYSE: CRM], the market and technology leader in on demand customer relationship management, today announced that as of December 31, 2004, the company's customer base has grown to approximately 13,300 customers and approximately 214,000 paying subscribers worldwide.

This includes approximately 2,000 subscribers which the company had previously excluded from the subscriber count pending satisfaction of certain specific technology requirements.

"We are pleased with our progress to date this quarter, and our November and December bookings make us confident in the guidance for this quarter that we provided in our third quarter report," said Steve Cakebread, chief financial officer. "Results have been solid across all of our major geographies, and our business has remained strong across all customer segments."

In addition, is reiterating its fiscal fourth quarter 2005 financial guidance, which was provided on November 17, 2004:

• Total revenue is estimated to be between approximately $51 million and $52 million.

• Earnings per share is estimated to be between $0.01 and $0.02 per diluted share.

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