Pegasystems Breaks New Ground with Business Rules Technology; PegaRULES Technology Powers Business Change

CAMBRIDGE, Mass., Feb. 5, 2001 — Aligning day-to-day operations with corporate goals has long been a major problem due to difficulty in evolving systems and processes to reflect management directives. Pegasystems (NASDAQ: PEGA) today announced PegaRULES, its next generation of business rules technology that drives alignment across enterprises by making systems smarter and processes more responsive. PegaRULES is a business rule development and deployment engine automating rules management for a wide range of business functions.

From supply chain management to handling customer interactions, organizations deliver value through the rules that define their business practices. The rules of a business are the brains of a business, making them a critical asset that needs an enterprise approach to organizing and executing those rules. The PegaRULES engine allows companies to aggregate their diverse business rules and lets business managers rapidly implement strategy changes.

"Enterprises can no longer afford to build the complex systems of business without regarding business processes in a new light. A new vision is emerging that is elevating business processes to a much higher, more explicit profile. In the end, a new tier of application development will emerge: a process flow tier. Gartner expects strong growth in those products that provide for explicit process management (e.g., business process management — BPM), especially where those products attempt to address human-centric and application integration-driven process requirements," said David McCoy, vice president of research and advisory services, Gartner.

Organizations today have their business practices buried in manuals, user interfaces, database procedures, and application code. These repositories fail to provide the flexibility or cost-effectiveness required by e-Business because accessing the practices requires expensive management oversight, manual work and extensive training. PegaRULES standardizes and automates business practices by creating an independent rules layer that can be shared by multiple systems to drive change across an enterprise. PegaRULES enables non-technical users to create, modify and deploy rules in real-time, while allowing IT to retain control and minimize risk to the production environment.

PegaRULES features:

  • Rules base — Structures an enterprise's business practices in a visible, accessible relational database; PegaRULES-based systems can be evolved by business users, as opposed to needing developers to translate specifications into programming languages;

  • Rule control — Allows authorized HTML Web browser users to view and change their rules while providing control for modification, deployment, security, and auditing;

  • Execution engine — Executes actions dictated by rules in real-time as they evolve, without the delays experienced when changing and deploying software code;

  • Enterprise rules hierarchy — Organizes rules through a patented architecture and reconciles both similarities and specializations across an enterprise; and

  • Component-deployment architecture — Allows rapid, incremental integration of rules-based capabilities with an organization's existing systems.

PegaRULES development began three years ago to leverage advances in computing power and Internet technologies. Operating in a high-performance C++ shell, PegaRULES is based on an open component architecture built on standards including XML, Corba, EJB, Java, HTTP, and SOAP. Initial implementations of PegaRULES are available on Sun Solaris and Oracle or Windows NT and SQL Server. The open core enables third-party developers to enhance the engine through their own Java modules, allowing unparalleled extensibility and interoperability.

"Rules change how change is implemented," said Alan Trefler, founder and CEO, Pegasystems. "PegaRULES makes the imperative to change a competitive advantage by driving change across an organization quickly and effectively. Pegasystems has taken the lead in the business rules market by introducing the patented concept of an enterprise rules layer distinct from applications and databases, turning business rules into living business assets."

The PegaRULES engine will be released through the PegaRULES Process Commander in Q2 2001.

Editorial Note: Please refer to the "Pegasystems Announces PegaRULES Process Commander" press release, dated February 5, 2001

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 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 quarterly report on Form 10Q for the quarter ended September 30, 2000 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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