HCF Selects Pegasystems' PegaMEMBER SERVICES

SYDNEY, Australia, Apr. 10, 2002 — Pegasystems Inc. (NASDAQ: PEGA), a leader in rules-driven, business process automation software, today announced that leading Australian health insurer HCF (The Hospitals Contribution Fund of Australia) has selected Pegasystems to provide Customer Relationship Management (CRM) capability throughout the organisation. After an exhaustive evaluation process, HCF selected PegaMEMBER SERVICES, a comprehensive software suite designed to facilitate consistent, seamless member service and support. HCF will use PegaMEMBER SERVICES to streamline its customer service operation by bridging existing legacy systems and multiple channels of customer interaction to help increase productivity and improve customer service across its membership base.

PegaCRM MEMBER SERVICES will be rolled out across HCF's intranet within the customer interaction centre to provide contact management and sales functionality. Subsequent rollouts will cover the branch network and the external web as well as delivering member claims functionality.

By deploying PegaMEMBER SERVICES, HCF anticipates increasing operational efficiency by standardising and automating contact centre business processes, allowing staff more time to focus on individual members' needs. Additionally, by improving service representatives' access to available data through centralised customer information, HCF can service clients more thoroughly and increase its ability to cross-sell and up-sell other HCF services.

"In an increasingly competitive marketplace, healthcare organisations are looking for ways to differentiate themselves and retain customers through improved service and by creating better value for their members," said Steve Nugent, general manager, Retail, HCF. "By using the PegaMEMBER SERVICES solution, we can offer members a personalised service because our Customer Service staff will have complete access to all the data they need in a consolidated single view of the member. It will also enable us to reduce call times, improve first call resolution, and new membership inquires, thus improving our overall operational efficiency and member service."

Pegasystems' customer service and process automation applications can help HCF increase member retention, resolve significantly more enquiries within the initial contact and provide consistently excellent member service. The system will enhance HCF best practices and will standardise activities thus reducing the need for continual follow up. This will help to increase the speed, quality and consistency of interactions and improve staff productivity and morale.

"By working with Pegasystems, HCF is well positioned to continue to improve its already high standard of expert customer service across the enterprise. The solution will help HCF to gain additional market share within this competitive market sector — also improving cost management and member retention," said Bruce Quick, vice president, Asia Pacific, Pegasystems. "We were able to differentiate our offering over other vendors by linking the value of our technology to real, quantifiable business benefits and by demonstrating outstanding return on investment. We are delighted to be working with HCF."

In addition to PegaMEMBER SERVICES, Pegasystems offers specific healthcare and insurance products to address sales channel management, claims pre-adjudication and exception management, quoting and rating, enrollment and renewals, marketing, appeals and grievances and provider services.

HCF is a not-for-profit organisation and is the fourth largest healthcare insurance provider in Australia. HCF's mission is to provide a range of products and services that meet the real needs of its diverse customer markets at an affordable price. Using Pegasystems' technology, HCF is able to support this vision while actively reducing operational costs.

About HCF

HCF is an Australian not-for-profit health fund founded in 1932 to provide a means for people to insure themselves against the cost of in-patient care in hospitals. HCF provides a flexible range of health insurance hospital covers, along with a wide offering of ancillary cover options. It has the widest network of health insurance branches in New South Wales (NSW) / Australian Capital Territory (ACT) and services more than 300,000 health memberships covering over 700,000 people, with over 265,000 policyholders with HCF life insurance. Unlike many other funds, members may be elected to the HCF board and participate in managing the direction of the health fund. For more information about HCF, visit http://www.hcf.com.au.

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 10K for the quarter ended December 31, 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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