Pivotal Software Announces Steep Revenue Increase Fueled by Sales of New Pivotal eRelationship Internet Applications

Business Wire, April 23, 1999

NORTH VANCOUVER, B.C.--(BUSINESS WIRE)--April 22, 1999--

Leading Customer Relationship Management (CRM) Vendor

Announces 70 Percent Revenue Growth, Ships Market's

First eCRM Solution, Grows User Base to 38,000 and

Signs Over 65 New Customers in Banner Quarter

Pivotal Software Inc. ("Pivotal"), the leading supplier of mid-enterprise 360 (degrees) Customer Relationship Management(TM) solutions for Microsoft(R) (Nasdaq:MSFT) BackOffice(R) and Internet platforms, today announced results for its third quarter ending March 31, 1999.

Among the results, Pivotal's revenue grew 70 percent over the same quarter last year and the company's global user base grew to over 38,000. The shipment of the Pivotal eRelationship(TM) Internet application family had an immediate impact on the growth of Pivotal's user base which increased by over 8,000 users in the past quarter alone.

Pivotal's CRM applications have now been selected by over 470 companies around the world. New customers this quarter include Intel Corporation, Broadcast.com Inc., Micrografx, Inc., Merak Projects Ltd., Icarian, Inc., Crystal Group, Inc. and Eaglemark Financial Services, Inc.

"Pivotal has now moved front and center in the Internet applications industry," said Norm Francis, president and chief executive officer, Pivotal Software, Inc. "The rapid acceptance of our Pivotal eRelationship Internet applications, which went into production in February, strongly suggests that 100 percent Web-based 'eCRM' solutions are becoming a dominant trend in our marketplace."

"We were very pleased with our results during the third quarter of fiscal 1999 which were highlighted by strong revenue growth and the tremendous reception of our Internet-based Pivotal eRelationship products," said Vince Mifsud, chief financial officer and vice president of operations.

"These new products were adopted immediately by the marketplace and generated revenues in the first quarter of availability. We plan to continue to invest heavily in all facets of the company, with a particular emphasis on building both the direct and indirect sales channels and the continued investment in our Internet applications suite."

Quarterly Highlights

Pivotal eRelationship ships

To meet the exploding demand for Internet-based customer and partner relationship management solutions, Pivotal shipped Pivotal eRelationship, a new class of e-customer relationship management (eCRM) applications.

Pivotal eRelationship consists of two integrated Web applications that enable companies to build Internet Relationship Hubs(TM) for conducting online marketing, sales and customer service with enterprise Web customers, sales and service partners, and prospects. New Pivotal eRelationship customers include Micrografx, Inc., Olicom Inc. and Waggener Edstrom.

Enterprise 360 Virtual Corporation with Industry Leaders Launched

In February, 1999, KPMG LLP, Pivotal Software Inc., Microsoft Corporation and Hewlett-Packard officially launched the Enterprise 360 Customer Relationship Management consortium. This consortium delivers comprehensive, bundled CRM solutions based on the industry knowledge of KPMG's Customer Management practice, the award-winning functionality and extensibility of Pivotal's CRM software, platform solutions from Microsoft, and hardware products from Hewlett-Packard.

Awards Recognition

Pivotal continued to earn industry recognition during the past quarter. Pivotal's front office application suite, Pivotal Relationship(R) 99, was selected by Open Systems Advisors for the Crossroads A-List and Pivotal was named one of InformationWeek Magazine's "IT Innovators" for 1999.

Seasoned Professional Services Executive Recruited

During the past quarter, Pivotal added Chris Rogers, vice president, professional services for North America, to its executive team. Prior to joining Pivotal, Rogers was associate partner with Anderson Consulting's customer relationship management practice, where she was responsible for delivering CRM solutions across North America.

A recognized expert in technology-enabled customer relationship management, Rogers has a proven track record in identifying industry trends and establishing a broad range of global implementation and educational services. As Vice President of Professional Services, Rogers will lead Pivotal's aggressive growth of global service offerings.

About Pivotal Software Inc.

Named one of Upside's Hot 100 Companies and Red Herring's Top 50 Privately-Held Companies, Pivotal Software Inc. develops and markets integrated sales, marketing, and customer service solutions for 360(0) Customer Relationship Management(TM).

Its flagship products, Pivotal Relationship(R) 99 and Pivotal eRelationship(TM), are the leading CRM software applications for companies standardized on Microsoft(R) BackOffice(R) and Internet platforms, with over 38,000 users licensed worldwide. In December 1998, Pivotal Relationship 99 earned Microsoft's Best Overall Customer Management Industry Solution Award.

Pivotal is a privately held company with investor partners that include Kleiner Perkins Caufield & Byers, Integral Capital Partners, Ventures West and Oak Technology Investments. As of April 1, 1999, the company has over 240 employees and over 470 customers worldwide, including Hewlett-Packard Co. (NYSE:HWP), Kimberly-Clark Corporation,. USG Corporation (NYSE:GYP), Intel Corporation, The Principal Financial Group and Sun Healthcare Group (NYSE:SHG).