Pegasystems Announces Continuing Customer Service Agreement with America Online

CAMBRIDGE, Mass., Aug. 21, 2000 — Pegasystems (NASDAQ: PEGA), a leading provider of rules-based, Internet-architected electronic Customer Relationship Management (eCRM) software and solutions, today announced an extended agreement with America Online Inc. (NYSE: AOL) under which America Online will continue using Pegasystems' eCRM solution to help improve customer service delivery to its more than 23 million members.

With Pegasystems' patented workflow management technology, customer service consultants work from a consolidated view of the customer through an easy-to-use interface that results in more efficient and accurate service for the customer. The Pegasystems solution has an intelligent, rules-based workflow and dialogue manager that intuitively guides the service consultant through service interactions. The rules-driven system will help guide the conversation from a dynamic and intelligent analysis of the member's complete service and billing history.

"AOL's success stems from its absolute commitment to delivering superior service to its members," said Alan Trefler, chairman and chief executive officer, Pegasystems. "Pegasystems is pleased to bring our unique rules-driven eCRM solutions to help AOL bring its members an improved customer service experience. We think Pegasystems' powerful, resilient and scalable eCRM systems offer unique value in their ability to capture a business' best practices through rules and leverage them for improved service."

"At AOL, delivering the highest standards of customer service to our members has always been a top priority, and we look forward to working with Pegasystems as they help us continue adding value for our members," said Keith Jenkins, senior vice president, AOL Member Services.

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 litigation and 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 1999 annual report on Form 10-K/A on file with the Securities and Exchange Commission.

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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Pegasystems Inc.
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Cambridge, MA 02142
Phone +1 617-374-9600
Fax +1 617-374-9620