Pegasystems Announces Integration Between its ECRM Solution and the Claims and Eligibility System for Blue Cross and Blue Shield of Massachusetts

Pegasystems' Rules-based Workflow Engine and eCRM User Interface Uses IBM MQSeries on Sun Microsystems Hardware for Integration

CAMBRIDGE, Mass., Oct. 10, 2000 — Pegasystems (NASDAQ: PEGA), a leading provider of rules-based, Internet-architected electronic Customer Relationship Management (eCRM) solutions, today announced a successful live interface between the Pegasystems eCRM solution and the claims and eligibility system used by Blue Cross Blue Shield of Massachusetts (BCBSMA). BCBSMA is the leading health insurer in New England, with more than two million members.

BCBSMA is one of the first Blue Cross Blue Shield organizations to embrace rules-based workflow-enabled eCRM to improve member services. The Pegasystems rules-based workflow engine works with IBM MQ Series messaging middleware to augment the functionality of the core processing system. This information exchange capability makes possible the tight integration between the Pegasystems eCRM-based member services desktop application and the claims and eligibility systems. The ability to integrate key operational back-end systems with the Pegasystems rules-based eCRM application will help BCBSMA deliver even higher levels of customer service, in a HIPAA-compliant fashion, without the time and expense of overhauling or replacing existing systems.

"Member satisfaction is our number one goal, and we look to utilizing the strongest technology solutions available to help us achieve that," said Frank Campanella, director of IT, BCBSMA. "The Pegasystems eCRM solution's architecture and strength in host systems integration allows us to leverage our existing infrastructure investment, while moving forward with initiatives for enhancing the quality of our customer service."

"We are very pleased with the results of our work for BCBSMA in creating a strong information exchange interface between key processing systems and our rules-based workflow engine and end-user application," said David Koopman, director, Healthcare Business Development, Pegasystems. "This integration will provide members with faster, more accurate and consistent information, improving their service experience."

About Blue Cross and Blue Shield of Massachusetts

With more than two million members, BCBSMA is the largest and fastest-growing HMO and health insurance company in New England. For 1999, BCBSMA posted a net gain of $61.3 million. For the first six months of 2000, the company posted a $12.1 million operating gain and achieved its 13th consecutive quarter of positive financial performance with a year-to-date net gain of $30 million. With member satisfaction at a high of 90 percent, and health care provider satisfaction at 84 percent, BCBSMA has become the choice for health care consumers seeking affordable, reliable, and high quality health care coverage.

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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