Pegasystems Chosen In Support of Medicare Part D Drug Benefit Plan; CSC Selects BPM Leader for MemberHealth Initiative

CAMBRIDGE, Mass., Nov. 9, 2005 — Pegasystems (Nasdaq: PEGA) today announced it has been selected by Computer Sciences Corporation (NYSE: CSC) as part of a team led by MemberHealth Inc. to help the Centers for Medicare and Medicaid Services (CMS) establish one of 10 national prescription drug benefit plans in accordance with the Medicare Modernization Act (MMA), Part D.

The drug benefit program, called the Community Care RxSM (CCRx), is an initiative that offers beneficiaries the choice of three nationwide prescription drug plans under Medicare Part D. MemberHealth, the prime contractor to CMS under the MMA, has created an exceptional team of industry leaders that include CSC, and The National Community Pharmacists Association (NCPA) which represents nearly 25,000 independent pharmacies across the U.S.

Charles E. Hallberg, MemberHealth CEO, commented, "MemberHealth is proud to be one of the few companies offering this benefit to Medicare beneficiaries nationwide. This is not just about price discounts, but also about improved care and service. We look forward to working with world-class solution providers in support of this major Medicare program expansion."

Hallberg further commented, "MemberHealth is working hard, with the help of our partners, to bring the Medicare population a long awaited prescription drug program that will meet the needs of this deserving population. The Medicare prescription drug program has brought about a renaissance in pharmaceutical care delivered through its most trusted provider, the pharmacist."

"We have more than 45 years of experience partnering with government agencies to meet their requirements on time, under budget and with a focus on customer service," said Marcia Kim, vice president of CSC's Citizen's Services organization. "We look forward to working with Pegasystems as we continue this tradition."

Pegasystems, in partnership with CSC, will provide the CCRx program with the software solution to support services, including call center operation, enrollment processing and financial management. The team will also provide compliance management and reporting services to satisfy guidelines of the MMA, the Privacy Act and the Health Insurance Portability and Accountability Act of 1996.

Pegasystems SmartBPM technologies make it easier for people and systems to work together to solve a full range of business process challenges with the opportunity to leverage existing technology investments. Tom Congoran, vice president of Business Development for Pegasystems, added, "We look forward to providing the necessary agility and scale to contribute to the success of this important new government initiative, the greatest expansion of Medicare services since the program began in 1965."

About MemberHealth and the Contract Team

MemberHealth, Inc. (MH) is an Ohio corporation established in 1998 with operating headquarters in Solon. MemberHealth operates a prescription benefit management organization and operates as a risk bearing entity under the MMA. The marketing for these programs is conducted principally through three distribution channels: insurance and brokerage agencies, consumer direct marketing and through retail pharmacies.

In addition to Pegasystems Inc., members of the contract team include the CSC, National Community Pharmacy Association (NCPA) and Ameri-Life and Health Service. The NCPA represents nearly 25,000 independent pharmacies across the U.S. and will provide medication therapy management to millions of Medicare beneficiaries who fill their prescriptions at independent pharmacies. Ameri-Life and Health Service will provide enrollment outreach and education services in support of the CCRx program.

About CSC

Founded in 1959, Computer Sciences Corporation is a leading global information technology (IT) services company. CSC's mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 78,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.3 billion for the 12 months ended July 1, 2005. For more information, visit the company's Web site at www.csc.com.

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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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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