Adopts Inducement Equity Incentive Plan

SAN FRANCISCO, Calif. — May 12, 2006 — [NYSE: CRM], the technology and market leader in on-demand customer relationship management (CRM), today announced that its Board of Directors approved the 2006 Inducement Equity Incentive Plan (the "Plan"). The Plan reserves 400,000 shares of common stock solely for the granting of inducement stock options and other awards. The Plan was adopted by the Board of Directors in accordance with New York Stock Exchange Rule 303A.08.

Under the Plan, the Company has granted options to purchase a total of 268,150 shares of its common stock to 26 new employees in connection with its previously announced acquisition of Sendia Corporation. Each of the new employees was previously a Sendia employee who joined the Company as a result of the acquisition. The grants were made as of April 25, 2006 at an exercise price of $35.15 per share. All of the above stock options were granted on terms that include the following: five year term; exercise price equal to the closing price of Company stock on the New York Stock Exchange on date of grant; and vesting of 25% of the shares on the first anniversary of the grant date, with the balance vesting monthly thereafter in 36 equal installments.

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