CAMBRIDGE, Mass., July 17, 2006 — Pegasystems Inc. (Nasdaq: PEGA), the leader in unified process and rules technology, today announced that Electric Insurance Company, a leading personal lines insurance carrier, is using Pegasystems SmartBPM^™ Suite to optimize its customer service operations. Originally incorporated in 1966 to serve the needs of General Electric's employees, Electric Insurance today provides auto, homeowners, renters, condo and umbrella insurance to general consumers through its independent agent channel and direct-to-consumer website and call centers.

Pegasystems' PegaRULES Process Commander^® (PRPC) offers an end-to-end, process-oriented approach to customer service with flexible decision and process rules that integrate front- and back-office systems. Deployed in less than six months, PRPC provides Electric Insurance service representatives with guided processing and context-specific advice to strengthen customer relationships. "We pride ourselves on being able to offer a full suite of insurance products and outstanding customer service," said Jack Schumaker, Vice President, Call Center Operations, Electric Insurance Company. "Pegasystems significantly helps us in this effort by delivering a solution that allows our service representatives to anticipate and resolve customer needs in an efficient, high quality manner. This is a catalyst in putting our customers' needs first and to staying competitive."

"We are delighted to add Electric Insurance to our client roster of innovative organizations that are raising the bar with near real-time business process management," said Leon Trefler, Managing Director, North American Sales, Pegasystems. "We have proven time and again we understand the demands not only of the insurance industry, but also of the customer service process."

About Electric Insurance

Electric Insurance Company offers personal lines insurance products at competitive rates with outstanding customer service. Originally incorporated in 1966 to serve the needs of General Electric's (GE's) employees, Electric Insurance today provides auto, homeowners, renters, condo and umbrella insurance to general consumers through its independent agent channel and direct-to-consumer website and call centers. The Company is a direct benefit provider of Personal Excess Liability insurance for the GE workforce as well as an insurer, reinsurer, and third-party administrator for many of GE's insurance programs. Electric Insurance manages approximately $160 million in personal lines premium for nearly 125,000 policyholders and holds solid credit ratings of "A-/Excellent" from A.M. Best and "A/Strong" from Standard & Poor's. For more information, visit http://www.electricinsurance.com or call 1-800-227-2757.