CIOs Under Pressure Turn to PeopleSoft for IT Governance; More Than 500 Customers Standardize on PeopleSoft ESA for IT.

Business Editors/High-Tech Writers

2004 Leadership Summit

LAS VEGAS--(BUSINESS WIRE)--May 19, 2004

Today at its 2004 Leadership Summit, PeopleSoft, Inc. (Nasdaq:PSFT) announced that PeopleSoft(R) Enterprise Service Automation (ESA) for IT continues to gain momentum as an industry-leading solution for IT Governance. ESA for IT is enabling more than 500 organizations to more effectively manage their IT portfolio, control IT costs, and enforce IT accountability. In the last two quarters, 75 industry-leading organizations have selected PeopleSoft ESA for IT to balance competing demands for new IT programs that address regulatory compliance, security, and outsourcing. These companies include Canon Development Americas, Cincinnati Children's Hospital Medical Center, County of Napa, Deutsche Bahn, and Saint-Gobain Distribution.

According to a recent report by Gartner, Inc., 70 percent of IT organizations will have adopted Project Portfolio Management (PPM) application services such as PeopleSoft ESA for IT by 2005. These solutions will be used to prioritize and plan IT projects, enable team collaboration, manage resource allocation, and track resource utilization and costs. Additionally, the PeopleSoft IT Governance Advisory Council, composed of leading private and public sector CIOs, overwhelmingly agrees that the market needs solutions that improve visibility into IT operations, anticipate and manage IT demand, increase IT service delivery, and demonstrate the value of IT to other business units.

"There is a growing trend of organizations running IT more like a business by implementing technologies to concurrently manage resources, projects, and assets," said Melinda-Carol Ballou, senior research analyst, Technology Research Services, META Group, Inc. "The ability to assess priorities and cull the project portfolio offered by these solutions enable organizations to redirect funding appropriately across initiatives that fall into both 'run the business' and the 'grow the business' categories."

Customers Move to Control IT Costs and Improve IT Accountability

With more than EUR 19 billion in revenue, Deutsche Bahn (DB) is Europe's largest transportation and logistics company. DB recently purchased PeopleSoft ESA for IT to help them drive down the cost of internal IT services by automating and streamlining IT project planning, resource utilization, and project reporting processes.

"Deutsche Bahn is investing heavily in technology to be more competitive in a difficult business climate," said Jurgen Bodtlander, department manager of Deutsche Bahn's IT subsidiary, DB Systems. "Only PeopleSoft ESA for IT offered us the functionality we needed to optimize resource utilization and deliver real value on our IT investment portfolio. PeopleSoft ESA for IT will give us the tools and information we need to better support and advance Deutsche Bahn's complex IT infrastructure and applications."

A subsidiary of Canon, Inc., Canon Development Americas (CDA) runs hundreds of research and development projects each year in the areas of advanced networking, printing, imaging, and optics. CDA purchased PeopleSoft ESA for IT to facilitate regulatory compliance and reduce operational risk.

"Research projects are our sole source of funding and revenue, so any problems with these projects can have a material impact on our business," said Pamela Webster, manager of finance and accounting, Canon Development Americas. "Using PeopleSoft Program Management, Project Costing and ESA Portal will enable CDA to strengthen control points over our projects and reduce operational risks associated with Sarbanes-Oxley compliance. Plus, we get the benefit of being able to track costs throughout the project lifecycle, to better measure the performance of our investments and quickly communicate those results to senior management."

"CIOs are realizing that applying rigorous business practices to IT is no longer an option, but critical to success," said Renee Lorton, senior vice president and general manager, PeopleSoft Financial Management. "The rapid customer adoption of PeopleSoft ESA for IT over the last two quarters demonstrates a clear market need for comprehensive IT Governance solutions that go beyond simple project management. PeopleSoft ESA IT enables CIOs to run IT departments more efficiently by expanding and tracking accountability throughout the organization."

About PeopleSoft

PeopleSoft (Nasdaq:PSFT) is the world's second largest provider of enterprise application software with 12,200 customers in more than 25 industries and 150 countries. For more information, visit us at www.peoplesoft.com.

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