KPI Joins Pegasystems Partner Program

CAMBRIDGE, Mass., May 20, 2003 — Pegasystems Inc. (NASDAQ: PEGA), a leading provider of smart business process management (BPM) software, today announced Knowledge Partners, Inc. (KPI), a leading consulting business specializing in the business rules approach to systems development, as a services partner to support the sale and implementation of PegaRULES Process Commander. Under the terms of the agreement, both companies will work to rapidly expand the adoption of PegaRULES Process Commander — software that enables companies to develop, implement and manage a wide array of BPM applications.

Business rules are the practices and processes that define how an organization works. KPI will work with Pegasystems to help organizations manage their business rules using KPI's STEP methodology, KPI's approach to rule management. Rule management facilitates business involvement in managing and changing the organization's rule assets throughout the rule "lifecycle" with IT systems support. It is a complete process for putting business people in control of capturing, maintaining and reporting on business rules and all rule-related information. KPI will assist companies in the consulting and functional design of Pegasystems' smart BPM solutions to help reduce the time and cost associated with project implementations. Other benefits include helping to reduce costs, to respond quickly to shifting market conditions, and to apply practices and procedures consistently across an organization.

"In today's marketplace, it has become a requirement for organizations to follow a business rules approach to their systems development in order to sustain a competitive advantage," said Barbara von Halle, founder, KPI. "By combining our business rules approach with PegaRULES Process Commander, we will help organizations enable faster changes through operational behavior that will, in turn, help them drive down costs, increase efficiencies, and maintain a competitive advantage."

"KPI provides the business rules expertise to enhance our Process Commander software for the benefit of our mutual customers," said Paul McNulty, vice president, PegaRULES, Pegasystems. "With KPI, we are poised to help organizations realize a significant return on investment by helping an organization define, implement and manage its business rules so that it can change operational behavior without downtime and bring applications to market faster."

Pegasystems is building an extensive Alliance Program, comprised of three types of partnerships: services partners, solution partners, and technology partners. Services partners are system integrators and consultants that scope, design, build, deploy, and/or manage client-specific, Pegasystems-based implementations. Solution partners are software development companies that develop repeatable market-specific solutions, based on a combination of partner and Pegasystems technology. Technology partners are companies that interact with, complement or add value to Pegasystems technology.

KPI's founder, Barbara von Halle, a thought leader and pioneer in the "business rules approach," is scheduled to present at Pegasystems' annual user conference, PegaVISION, on Tuesday, May 20th, from 11:15 a.m.–12:00 p.m., at the Boston Marriott in Boston, Mass. For more information on PegaVISION, visit

About Knowledge Partners, Inc.

Knowledge Partners, Inc. (KPI) is a New Jersey-based consulting business specializing in the business rules approach to systems development and all aspects of information architecture. KPI is recognized as a thought leader in the business rules approach and as a center of excellence for information architecture and data warehouse delivery. KPI's business rules approach (STEP) is documented in its newly published book, Business Rules Applied (Wiley, 2002), which covers the business rule lifecycle from scoping, discovery, analysis and design to implementation. Visit for additional company information.

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 March 31, 2003 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

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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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