Pegasystems Positioned in Recent Analyst Findings on Software Engineering

Business Wire, July 13, 2007

CAMBRIDGE, Mass. -- Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM), was mentioned by both of the leading independent technology research firms, Forrester and Gartner, in two recent reports that focus on software engineering.

According to Gartner's June publication of its new 2Q07 Magic Quadrant for Application Infrastructure for Composite-Application Projects, "Frequently, modern composite-application projects also take advantage of business process management-enabling technology to more closely reflect users' needs through collaboration between business and IT throughout the process life cycle, speed up development by using shared explicit models, and support flexibility and adaptability requirements."

Forrester notes in its July 11, 2007, The Forrester Wave[TM]: Application Server Platforms, that platforms "like Pega's SmartBPM represent the future of this market, in which powerful and dynamic representations of business process and policy drive applications and developers don't have to know the underlying platform APIs to succeed."

Alan Trefler, president and CEO of Pegasystems agrees: "Our BPM strategy has been to create a friendly, powerful platform that business people can use to transform their operations with minimal software engineering. And, at the same time, we wanted an environment that software engineers could trust to ensure the highest levels of quality, productivity and performance. We are pleased to see that our Build for Change[R] approach is bringing business and IT together in a new and exciting way."

For more information on The Forrester Wave[TM]: Application Server Platforms or 2Q07 Magic Quadrant for Application Infrastructure for Composite-Application Projects, visit www.pega.com. To register for the July 31, 2007 webinar on "Business Driven Composite Applications," visit https://pega.webex.com/pega/onstage/g.php?t=a&d=664839266.

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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.

About the Magic Quadrant

The Magic Quadrant is copyrighted June 7, 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.

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