Pegasystems' PegaRULES Process Commander V4 Makes Smart BPM Simpler to Develop, Manage and Use.

Business Editors/High-Tech Writers

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 3, 2004

Next-Generation Business Process Management Software Adds

Extensive New Functionality: BAM, Rules-Based Localization, Web-Based

Development Tools, Enhanced Business User Control, Support for More

Complex Business Rules, and More

Pegasystems Inc. (NASDAQ: PEGA), a leading provider of smart, rules-based business process management (BPM) software, today released the latest version of its industry-leading smart BPM software, PegaRULES Process Commander Version 4. Process Commander is the only BPM product built on top of a rich business rules management system. This single system offers both business rules and business process management, including robust system integration, localization and business activity monitoring (BAM) capabilities - all capable of running in a distributed, heterogeneous environment.

Process Commander V4 enables large companies to respond to changing customer, market and competitive conditions by creating new applications and automated processes in days, not months. Its browser-based rules forms and embedded MS Visio makes it easy for business users to change process applications, with minimal IT support. Process Commander's easy-to-use interfaces enable business line managers to monitor, change and integrate processes that automate the essential functions of BPM: receiving, routing, reporting, researching, resolving and responding to complex customer and partner work.

"In the past, users were interested in simple workflows or low-level rules requirements," said Vinay Mummigatti, lead consultant, Consulting & Enterprise Solutions, Satyam Computer Services Ltd. "Today, however, customers understand the importance of scalability and flexibility to get the best value-add from their IT investments. Process Commander is a BPM solution that allows the business user to take control and make changes as the business requirement changes - a 'must-have' with today's ever-changing business requirements." Satyam (NYSE: SAY), a leading global provider of IT services, is a Pegasystems services partner.

"We've recently completed an evaluation of Process Commander V4, which confirms that Pegasystems has strengthened its position as the provider of an enterprise-class BPM solution based on a native business rules engine," said Bill Chambers, principal analyst, Doculabs. "We were very impressed with the wide array of business manager and developer tools Pegasystems has added to this product, which makes it easier to build and use even very complex business process applications. This is a significant step for Pegasystems."

PegaRULES Process Commander V4 is a Java and XML-based enterprise platform built for scale, performance and change, with features such as built-in versioning; simple rules creation forms oriented to business users; and a built-in, browser-based development environment.

Among Process Commander V4's new and enhanced features are:

-- business activity monitoring - real-time monitoring and access

to business processes and work-in-process that balances

information requirements with historical perspective to

improve the effectiveness of business operations;

-- user-friendly wizards for building simple or complex reports;

-- localization - Process Commander can be easily adapted for

different geographical locations, helping to save time and

money by bringing applications to global markets faster;

-- a developer's portal, to make it easy to develop, change,

deploy and manage business processes and business rules within

a single Web-based environment;

-- ready-to-run HTML forms, optimized for usability and visual

appeal, fast application development and user productivity;

-- skills-based routing, easy vacation substitution, and

one-click transfer of work, which make process management easy

for business managers;

-- JSR-94 API support to embed Process Commander into other

applications and JSR-168 support to plug Process Commander

HTML "gadgets" into portal servers;

-- system set-up wizards and an application accelerator to speed

time to install, build, and deploy BPM applications; and

-- backward chaining (in addition to forward chaining), which

automatically detects and prompts for missing data as part of

the business process, simplifying development and reducing the

need for manual exception handling.

One of the nation's largest publicly held personal lines insurers, a Pegasystems PegaRULES Process Commander customer, recently said, "Pegasystems has helped us leverage information across our enterprise and allowed us to increase both cross-selling opportunities and satisfaction among our customer base. It allowed us to manage their insurance needs around life events, such as buying a home, getting married and deciding to retire. With Process Commander, we are able to provide the right service to the right customer at the right time."

Platforms and availability

PegaRULES Process Commander V4 is available starting next week through Pegasystems and its partners. It runs on Windows, Solaris, Linux, AIX and mainframe platforms, and the Oracle, Microsoft SQL and IBM DB2 databases. Contact Pegasystems or an authorized partner for pricing information.

About Pegasystems

Pegasystems Inc. (NASDAQ: PEGA) provides rules-based, smart business process management (BPM) software to large organizations, helping to deliver significant ROI and providing them with the flexibility and agility to respond to changing business needs. With annualized revenues of approximately $100 million and a blue-chip customer base, the company offers applications for the financial services, healthcare, insurance and government markets, as well as a cross-industry BPM application. Pegasystems is headquartered in Cambridge, Mass., and has regional offices in North America, Europe and the Pacific Rim. For more information, visit www.pega.com.

Forward-Looking Statements

Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include impact of pending regulatory proceedings, difficulty in predicting the completion of product implementations and consequently the timing of revenue recognition, the inability to attract and retain key employees, reliance on key third-party relationships, management of the Company's growth, and other risks and uncertainties. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Quarterly Report on Form 10Q for the quarter ended September 30, 2003 on file with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.

NOTE: Pegasystems is a registered trademark of Pegasystems Inc. Other product and company names may be trademarks of their respective owners.