Pegasystems Positioned in Visionary Quadrant in Leading Analyst Firm's Customer Service and Support Suites Report; Business Process Management Is Reshaping Customer Service and Support Software

Business Wire, April 25, 2005

CAMBRIDGE, Mass. -- Gartner, Inc.'s "Magic Quadrant"(a) report evaluating the leading companies in the CRM Customer Service and Support market positions Pegasystems (Nasdaq: PEGA) in the 'visionary' quadrant, Pegasystems Inc. announced today.

"Products built around business process management are reshaping customer service and support software in the contact center," said Michael Maoz, Vice President and Research Director, Gartner Research in the report.

Built on Pegasystems' rules-driven business process management platform, Pegasystems' customer service and support frameworks help extend the reach of customer relationship solutions. The frameworks feature packaged business processes and rules that automate complex service requests by integrating with, and driving value from, back-end systems in real-time. By unifying front-end solutions with automation efficiencies to complete the often complex and detailed follow-up activities associated with customer interactions, Pegasystems offers differentiated customer service solutions.

Pegasystems' customer service and support solutions feature built-in intelligence that guides customer service representatives through tasks. Pegasystems' frameworks can eliminate wasteful toggling between applications by automatically queuing business processes based on an organization's policies. These guided, intelligent workflows enable companies to provide a standard level of service across all departments. Pegasystems' rules foundation gives companies the agility to respond to changing customer, market and competitive conditions by implementing new objectives and/or processes in days, not months.

Pegasystems offers general-purpose and industry-specific customer service frameworks that leverage more than 20 years of experience helping Fortune 500 and other leading corporations. The frameworks provide:

--Process automation and systems integration that minimizes manual work and non-customer-facing activities such as data retrieval from multiple systems;

--Interaction Driver(TM), which prompts agents with suggested processes such as when customers have an open service case, or have missed a payment;

--Smart Dialog(TM) scripts that ensure agents comply with best practices and prompt for system messages or disclaimers;

--Guided processing that enable front-line agents to complete even the most complex service requests, reducing call transfers and training times.

"We are delighted with the recognition that our BPM platform, along with our best-practice solution frameworks, can provide significant benefits to our customers in the customer service and support area," said Samir Gulati, Vice President, Corporate Marketing, Pegasystems.

(a) Magic Quadrant for CRM Customer Service and Support Applications, 2005, March 21, 2005 by Michael Maoz. Gartner Magic Quadrants provide an analysis of a particular marketplace and how vendors measure against each other at a specific time in that marketplace. According to Gartner, Visionaries have a clear vision of market direction and are focused on preparing for that, but they can still improve in terms of optimizing service delivery. Gartner Magic Quadrants provide an analysis of a particular marketplace and how vendors measure against each other at a specific time in that marketplace.

About Pegasystems

Pegasystems Inc. (Nasdaq: PEGA) provides software to automate complex, changing business processes. Our Business Process Management (BPM) solutions provide organizations with the agility critical to managing growth, productivity and compliance. Our solution unifies pure-play BPM software with a sophisticated Business Rules Engine to drive business effectiveness. This patented technology enables organizations to "build for change" and overcome the execution gap that occurs as evolving business objectives outpace the ability of business systems to respond.

Pegasystems' BPM suite offers standards-based technology built in a rapid-solution development environment. Our BPM solution combines the capability to solve a full range of business process challenges with the opportunity to leverage existing technology investments. By enabling business process responsiveness, Pegasystems makes it easier for people and systems to work together.

Pegasystems' award-winning BPM suite is complemented with best-practice solution frameworks based on more than 20 years of experience helping Fortune 500 and other leading corporations in the financial services, insurance, healthcare, manufacturing and government markets.

Headquartered in Cambridge, MA, Pegasystems has regional offices in North America, Europe and the Pacific Rim. For more information, visit www.pega.com.

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

Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted March 21, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.