Pegasystems Named Sun iForce Application Provider and Adopts Sun as Premier Hardware Vendor.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Nov. 28, 2000

Collaboration Brings to Market Powerful Web-Based eCRM Solutions

Powered by Pegasystems' Rules-Based Workflow and Fulfillment Engine

Pegasystems (NASDAQ: PEGA) has been named by Sun Microsystems, Inc. (NASDAQ: SUNW) an iForce(SM) Application Provider for eCRM solutions. As part of Sun's iForce initiative, Pegasystems is recognized as a highly-valued, rules-based workflow and fulfillment engine to support its customer facing solutions. Pegasystems has also adopted Sun as a preferred hardware, operating system and storage provider in delivering highly scalable, flexible, and resilient eCRM solutions.

Sun's iForce(SM) initiative provides organizations with the products, services, solutions, roadmaps, and partnerships necessary to successfully plan, implement, and maintain a dot.com strategy. With the iForce(SM) initiative, Sun strengthens its competitive capabilities by bringing together strong solutions and service partners and by expediting the dot.com process for its customers, leading them from vision to reality in the Internet economy.

"Pegasystems has become one of Sun's first Global Solution Providers in our iForce(SM) community focused on the implementation of Sun hardware for eCRM solutions and our collaborative efforts provide the robust solutions required by our customers today," said Joe Womack, vice president, Americas eSun(SM) Partner Sales. "By offering full integration across Sun's products, from Sun Ray(TM) Enterprise Appliances to advanced Sun StorEdge(TM) systems, Pegasystems is leading the momentum behind solutions that truly invigorate companies' interactions with their customers."

Together, Sun and Pegasystems are demonstrating their collaboration at The Chase Manhattan Bank. Using Sun's Enterprise(TM) Servers integrated with Pegasystems' workflow technology, the companies are delivering a comprehensive solution that brings together the back office and the front office to give Chase staff real-time, personalized, secure access to customer accounts.

"This solution brings the power of back office processing and fulfillment to the multiple points of customer contact," said Tom Vicknair, executive vice president, The Chase Manhattan Bank. "Through the combination of Sun's and Pegasystems' technologies, our customer service officers have real-time access via an intranet-based browser front-end to key customer information across disparate legacy systems. This flexibility also gives our internal customers self-service capabilities via a browser-based access, helping us to deliver consistent, quality service results for our customers."

"The Sun Microsystems and Pegasystems relationship meets a growing market need to give business users control over mission-critical processes and to leverage business rules as an asset" said Joe Friscia, executive vice president of sales and service, Pegasystems. "This collaboration demonstrates the value companies can realize by investing in technology solutions that underpin leading sales, marketing and customer service applications with a powerful workflow and fulfillment engine."

Pegasystems is now demonstrating support on its Seven Series software release for a variety of Sun's latest technologies including: the Solaris(TM) Operating Environment, Java(TM) 2 Platform, J2EE(TM) with Java Server Pages(TM)(JSP) and Enterprise Java Beans(TM) (EJB) architecture. These technologies are featured in Pegasystems' customer demonstration facility, the Center of Excellence, where customers can see how Pegasystems' and Sun's technologies together form the basis for a new range of demonstrable Internet solutions. The companies are working together to co-market these solutions at several upcoming industry and corporate events.

Pegasystems is also working with the Sun Professional Services(SM) organization to leverage their service delivery capabilities in the areas of network architecture, security, and customer implementations.

About Pegasystems

Pegasystems is a leading provider of eCRM solutions that evolve traditional thinking about Customer Relationship Management to the electronic/extended/enterprise world of the Internet. Driven by the Company's patented rules engine and Internet architecture, Pegasystems' eCRM solutions have been chosen by many of the world's forward-thinking organizations to maximize customer satisfaction and retention, increase revenues, improve productivity and reduce costs.

Pegasystems' rules-based solutions institutionalize a company's best practices, personalize customer interactions and automate work. The rules architecture enables organizations to evolve the system to respond to changing market dynamics and capture new business opportunities. Leveraging the latest Internet technology, Pegasystems' eCRM solutions facilitate seamless integration of call center, Internet, intranet and other channels. Supporting major platform and database standards, Pegasystems solutions are scalable to support organizational growth and evolution.

Pegasystems uses its modular Advanced Implementation Methodology (AIM) to facilitate customer implementations. Alliance partners offer integration services, complementary technology and selected vertical industry applications.

Headquartered in Cambridge, Massachusetts, Pegasystems has regional offices in North America, Europe and Australia. Access Pegasystems on the Web at www.pegasystems.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. These statements 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 the impact of pending litigation and regulatory proceedings, material weaknesses in the Company's financial control environment, 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 1999 annual report on Form 10-K/A on file with the Securities and Exchange Commission.

NOTE: Pegasystems is a registered trademark of Pegasystems Inc. Sun, Sun Microsystems, the Sun logo, Sun Ray, StarPortal, Sun Professional Services, and The Network is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. Other product and company names may be trademarks of their respective owners.