Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 15, 2001

Pegasystems' Rules-Based eCRM Workflow to Drive Web-Enabled Self

Service and Customer Service Automation Technology

In the age of multi-channel customer service, Customer Relationship Management solutions must integrate critical information from across the enterprise and manage it consistently at all points of contact. Pegasystems (NASDAQ: PEGA) today announced that the Hawaii Medical Service Association (HMSA) has signed an enterprise-wide license for Pegasystems' eCRM solutions to help enhance customer service to its more than 600,000 member network. By implementing Pegasystems' solutions, HMSA will enable eBusiness service members, providers and employees to interact with its members across all channels, maximizing customer satisfaction to consistently manage critical business processes and information from across the enterprise. HMSA is the largest provider of healthcare coverage in Hawaii, and is a member of the Blue Cross Blue Shield Association, which is a network of independent Blue Cross Blue Shield plans.

HMSA is the third Blue Cross Blue Shield organization to embrace Pegasystems' rules-driven eCRM workflow technology. The Pegasystems rules-driven workflow automation will operate on a Sun Microsystems platform with an Oracle database to augment the functionality of the core processing system. HMSA has also selected Broadvision in conjunction with Pegasystems' solution to not only enhance the service that customers receive on the Web, but to bring intelligence about the customer's Web experience and interactions back to the call center and the customer's profile.

In addition, HMSA will also incorporate the Pegasystems eCRM Foundation Template for Healthcare. The Pegasystems eCRM Foundation Template for Healthcare is an internet-architected sales, service and marketing tool. Driven by Pegasystems' patented rules engine, it offers a comprehensive range of call center and Web capabilities, facilitating consistent, seamless customer service across multiple channels while allowing real-time personalization of each customer's service experience.

"In today's competitive world, it is critical to deliver the best services possible to our members, and to achieve this, we needed to create a solid e-business environment that enables cross-channel interaction," said Michael Stollar, president, ISI and executive sponsor HMSA eBusiness. "The Pegasystems eCRM solution's architecture and strength allows us to leverage the same best practices processes across the Web and contact center, while moving forward with initiatives to provide faster, more accurate and consistent information to our members."

"Healthcare organizations are beginning to realize the value of using rules, instead of rigid code, to standardize best practices for customer service in areas like Claims and Eligibility," said David Koopman, director, healthcare business development, Pegasystems. "With Pegasystems' eCRM solution, HMSA can streamline its customer interactions while increasing customer satisfaction through systems intelligence and service consistency."

About Hawaii Medical Service Association (HMSA)

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is guided by a community board of directors that serves without compensation and includes representatives from business, labor, government, health care, education, clergy, and the community at large. It is a member of the Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. With over 600,000 members, HMSA is the most experienced provider of health care coverage in the state. Nationally, HMSA and 48 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 72 million members.

About Pegasystems

Pegasystems is a leading provider of rules-driven workflow automation that evolves traditional thinking about Customer Relationship Management to the electronic/extended/enterprise world of the Internet. Driven by the Company's patented rules engine and Internet architecture, Pegasystems' eCRM solutions have been chosen by many of the world's forward-thinking organizations to maximize customer satisfaction and retention, increase revenues, improve productivity and reduce costs.

Pegasystems' rules-driven workflow automation institutionalizes a company's best practices, personalizes customer interactions and automates work. The rules architecture enables organizations to evolve the system to respond to changing market dynamics and capture new business opportunities. Headquartered in Cambridge, Massachusetts, Pegasystems has regional offices in North America, Europe and Australia. Access Pegasystems on the Web at www.pegasystems.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. These statements 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 the impact of pending regulatory proceedings, material weaknesses in the Company's financial control environment, difficulty in predicting the completion of product implementations and consequently the timing of revenue recognition, the inability to attract and retain key employees, reliance on key third-party relationships, management of the Company's growth, 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 quarterly report on Form 10Q for the quarter ended September 30, 2000 on file with the Securities and Exchange Commission.

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