Pegasystems Selected to Provide Aetna With Customer Process Management Technology

Business Wire, May 4, 2004

Business Editors/High-Tech Writers

CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 4, 2004

Pegasystems' Smart, Rules-based, Business Process Management Systems Will Be Deployed to Over 7,000 users, Across Multiple Departments, in 40 Contact Centers Nationwide

Pegasystems Inc. (NASDAQ: PEGA) announced today that Aetna has selected its PegaHEALTH(TM) contact center solution as part of a corporate-wide initiative to provide easy-to-use tools and resources that enhance the value of the company's benefit offerings.

Aetna, one of the nation's leading providers of healthcare, dental, pharmacy, group life, disability and long-term care benefits, will use Pegasystems' customer service desktop solution in its 40 national contact centers, which serve 590,000 healthcare service providers and 13 million members. The applications will ultimately support Aetna member services, provider services and patient management as the company continues to integrate its technology solutions across lines of business to improve customer service and create a competitive advantage.

Aetna, an $18 billion corporation based in Hartford, Conn., chose Pegasystems after a rigorous 18-month selection process. The contract was finalized in Q1 of this year.

Combining agility, intelligence and automation

PegaHEALTH Member Services and PegaHEALTH Provider Services, key components of the PegaHEALTH Customer Process Manager Product family, will enable Aetna to deliver consistent, high-quality service throughout the enterprise. Pegasystems combines intent-led processing with pre-packaged best-practice workflows to efficiently handle processes ranging from claim inquiry resolution to the ordering of ID cards. This approach intelligently guides customer service representatives (CSRs) to provide responsive and personalized service. Building upon and extending Aetna's current assets, this product suite directly integrates in real time with legacy systems and multiple channels, to ultimately include phone, Web, interactive voice response, e-mail and fax. As a result, CSRs can provide 'one-and-done' processing - automatically resolving customers' issues without transferring them, placing them on hold, calling them back or passing the service fulfillment to the back office. Comprehensive scripting, dialog management, and role-based routing make service consistent across departments, and significantly reduce training for new users.

"Pegasystems' technology underpins our efforts to improve the quality, affordability and ease of use of our products and services," said Russell D. Fisher, senior vice president, National Accounts and Aetna Global Benefits. "With this solution, Aetna can concentrate on creating better workflows and application functionality to serve its members and providers, and ultimately use its IT investments more efficiently."

Aetna plans to phase in the Pegasystems applications this year. Pegasystems will help Aetna create a "model office" that will simulate the real-world conditions the applications will face before they are extended to live customers.

"It's an honor to be chosen as a partner by one of the world's most prestigious insurance companies," said Tom Congoran, vice president of Pegasystems' healthcare business. "Aetna's strategic commitment to our PegaHEALTH solutions validates our strong position in the healthcare industry and confirms that business processes like customer service are significantly enhanced by integrated BPM and business rules software."

About Aetna Inc.

Aetna (NYSE: AET) is one of the nation's leading providers of healthcare, dental, pharmacy, group life, disability and long-term care benefits, serving approximately 13.0 million medical members, 10.9 million dental members, 7.4 million pharmacy members and 12.3 million group insurance customers, as of December 31, 2003. The company has expansive nationwide networks of more than 600,000 healthcare services providers, including over 362,000 primary care and specialist physicians and 3,626 hospitals. For more information about Aetna, please visit the company's web site at www.aetna.com.

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. 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 including, without limitation, our financial guidance with respect to 2004 revenue, profit before tax, tax rate, earnings per share and cash from operating activities. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions, among others, 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 volatility of our quarterly operating results, difficulty in predicting the completion of product implementations and consequently the timing of our license revenue recognition, the timing of term software license renewals, customer acceptance of our new PegaRULES Process Commander technology, our ability to develop new products and evolve existing ones, the impact on our business of the ongoing consolidation in the financial services market, historically our core market, our ability to attract and retain key employees, reliance on certain key third-party relationships, 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 most recent report on form 10-K and other recent filings on file with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent the Company's views as of May 4, 2004. 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. Although subsequent events may cause the Company's view to change, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to the date of this release.