Pegasystems Business Process Management Solution Supports Implementation of Medicare Prescription-Drug Improvement and Modernization Act

CAMBRIDGE, Mass., Aug. 3, 2005 — Pegasystems today announced its selection by ViPS, a WebMD company, to participate in the Retiree Drug Subsidy (RDS) contract. As part of the Medicare Prescription-Drug Improvement and Modernization Act (MMA), the RDS contract was awarded by the Centers for Medicare and Medicaid Services (CMS), the federal agency responsible for Medicare Program operations.

The ViPS team, including Pegasystems, will work in support of developing, implementing, and maintaining an enrollment and payment system for the successful execution and management of the RDS program. Pegasystems' BPM solution was selected for its ease of integration and rapid deployment, as well as functionality including correspondence tracking and management, statistical reporting, and full audit-ability.

Tom Congoran, Vice President, Business Development, Pegasystems, said, "We look forward to contributing to the business process management needs of this project, working closely as part of the ViPS team."

The Medicare drug benefit plan, as mandated by Congress, will go into effect on January 1, 2006.

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.

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