Class Action Suit against Dismissed with Prejudice by Federal Court

Securities Class Action Suit, In re, Inc. Securities Litigation, Case No. C-04-3009 JSW (N.D. Cal.) Dismissed by the Federal Court in the Northern District of California

SAN FRANCISCO — December 23, 2005 — [NYSE: CRM], the technology and market leader in on-demand customer relationship management (CRM), today announced that on December 22, 2005 a purported securities class action suit, In re, inc. Securities Litigation, Case No. C-04-3009 JSW (N.D. Cal.) was dismissed with prejudice by federal court in the Northern District of California. The action was originally filed in July 2004.

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