BUPA Selects Pegasystems to Deliver Improved Customer Service; Agreement with BUPA Strengthens Pegasystems' Position in the European Healthcare and Insurance Market

READING, UK, Jan. 7, 2002 — Pegasystems (NASDAQ: PEGA), experts in business process automation and management, today announced that BUPA, a leading global health care organisation has selected Pegasystems to improve their capability to respond more consistently and more efficiently to customer needs by delivering strategic, progressive customer care. BUPA will be implementing Pegasystems' customer management system, which will help enable BUPA to manage complaints and support their customer loyalty program.

Pegasystems' rules-driven customer service and process automation software will help BUPA deliver personalised and differentiated customer care and process management over the web and call centre. Pegasystems can extract information from BUPA's existing databases and legacy systems to help create a real-time, single view of customers. The system will allow BUPA's own best business practices to be configured into the software, which will help BUPA deliver customer service and care in a more timely and consistent fashion. Because the solution is built using customisable business rules, it is highly flexible, adaptable and capable of meeting frequently changing market demands.

Peter Powell, head of Business Systems, BUPA, commented, "Our call-centre operates a number of disparate systems, using a variety of technologies. Pegasystems has now provided us with the opportunity to bring these systems together. We see the ability to interface between our legacy mainframe, sales and pricing systems as key to increasing productivity and delivering consistent customer service, through the provision of a single 'rules-driven' business process."

"The partnership with BUPA represents an important achievement as Pegasystems enhances its position into the European healthcare and insurance market," said Keith Hawker, vice president North American and European Sales, Pegasystems. "Using Pegasystems, BUPA is well positioned to help provide consistent and personalised customer service across the enterprise. The solution will help enable BUPA to improve cost management and client retention. Pegasystems is delighted to play an instrumental role in BUPA's customer management strategy going forward."

About BUPA

BUPA is a global health and care organisation, with nearly four million members in 190 countries worldwide. As a provident association, BUPA has no shareholders to pay. This means that any profits can be reinvested in better schemes and services for the benefit of all its customers.

For more information about BUPA, visit www.bupa.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. The words "believe," "expect," "hope," "anticipate," "plan," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and 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 impact of pending regulatory proceedings, 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, 2001 on file with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.

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

About Pegasystems

Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.

All trademarks are the property of their respective owners.

The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.


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