Pegasystems Positioned in the Leaders Quadrant in 2007 BPMS Magic Quadrant

Business Wire, Dec 18, 2007

Evaluation based on Ability to Execute and Completeness of Vision

CAMBRIDGE, Mass. -- Pegasystems (NASDAQ: PEGA) was positioned in the Leaders quadrant by Gartner, a leading independent technology research firm, in its recent report, Magic Quadrant for Business Process Management Suites 2007.1

This Magic Quadrant selected 22 vendors in the BPMS market and assessed 10 areas of functionality that buyers consider when selecting a BPMS. Gartner positioned vendors based on their ability to execute and their completeness of vision. According to the report, "leaders exhibit superior sales and marketing execution. Many leaders exhibit strong innovation in their products..."

The authors note that "BPMS vendors that have evolved from a BPM pure-play heritage continue to lead the market in capabilities and vision." Gartner also estimates the market "will have a compound annual growth rate of more than 24% between 2006 and 2011," and "reach $5.1B in total software revenue by 2011." The report continues that "they (vendors positioned in the Leaders quadrant) excel at enabling collaboration between business users and IT professionals, from the design and modeling phase through execution and optimization, using an iterative process improvement methodology..."

"We're proud of the inclusion of Pegasystems in this Gartner report. Our approach helps companies increase revenue, improve customer retention and drive productivity with technology," said Alan Trefler, founder and CEO of Pegasystems. "Many of the world's most sophisticated companies are turning to Pegasystems SmartBPM[R] Suite with our Build for Change[R] technology to help them manage business change and acquire the agility needed to compete in today's challenging business environment. By enabling alignment between business operations and business goals, only Pega's BPM software is explicitly designed to drive process improvement, even as business goals change and we are grateful to be recognized in the leaders quadrant."

A complimentary copy of this report is available at http://www.pega.com.

About the Magic Quadrant

The Magic Quadrant is copyrighted December, 2007 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.

About Pegasystems

Pegasystems (NASDAQ: PEGA), the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM[R] suite to improve customer service, reach new markets and boost operational effectiveness.

Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change[R], deliver value quickly and outperform their competitors.

Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.

Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia. Visit us at www.pega.com.

(1) Gartner, Inc., "Magic Quadrant for Business Process Management Suites, 2007" by Janelle B. Hill, Michele Cantara, Eric Deitert and Marc Kerremans, December 14, 2007.

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