Pegasystems Helps Blue Cross & Blue Shield of Rhode Island Achieve Superior Customer Satisfaction with New Contact Center Solution

CAMBRIDGE, Mass., Dec. 17, 2003 — Pegasystems Inc. (NASDAQ: PEGA), a leading provider of smart, rules-based business process management (BPM) software, today announced that Blue Cross & Blue Shield of Rhode Island (BCBSRI) has implemented its PegaHEALTH Member Services application, bringing a higher level of customer service to its 680,000 members.

Called BlueLYNCS (Leading Your Next Customer to Satisfaction) by BCBSRI, the solution includes 41 healthcare-specific workflows, CTI screen pops and integration to BCBSRI's legacy IT systems with full update functionality. Deployed at BCBSRI in under six months, the customer contact center solution is part of Pegasystems' integrated suite of healthcare-focused smart BPM solutions that intelligently manage customer and business interactions across the payer enterprise. Pegasystems' solutions for customer service, claims automation, sales and underwriting are installed across 20 percent of the nation's Blue Cross Blue Shield network and at many other innovative healthcare and insurance organizations worldwide.

"The PegaHEALTH Member Services application implementation is a tremendous success, and we expect to reduce training time by 20 percent," said David Zink, Blue Cross & Blue Shield of Rhode Island's CIO. "Pegasystems has also allowed us to reduce our average call handling time by approximately 20 percent. The software is easy to use and has helped us improve member care by providing detailed caller history in one application with guided scripts to most efficiently handle the call, and by providing straight through processing to resolve customers' requests. With PegaHEALTH Member Services, we're achieving superior customer satisfaction."

Continued Zink, "We were able to rapidly implement the system, in less than six months, by leveraging the software's healthcare-specific workflows. The Pegasystems architecture allowed us to retrieve the data from where it resides without replicating it, which was a notable time-saver."

"Pegasystems is committed to helping healthcare organizations control their costs and improve their productivity, while delivering a higher quality customer experience," said Tom Congoran, vice president of Pegasystems' healthcare business. "Our rapid and successful implementation of PegaHEALTH Member Services at Blue Cross & Blue Shield of Rhode Island again demonstrates our ability to deploy a proven business process management solution that helps deliver a better return on investment for our customers."

Watch Hill Partners, Inc., a CRM strategy and technology consultancy, worked closely with Pegasystems and BCBSRI in such areas as strategy, project management, training, integration oversight and business process definition.

Contrary to most other contact center solutions, with PegaHEALTH Member Services there is no need to replicate data. Instead, the application has an open architecture, with pre-configured healthcare best-practice rules, data models and interfaces that enable efficient legacy system integration and help speed time to market. At BCBSRI, PegaHEALTH Member Services works intelligently with the phone switch, the claims adjudication system and other existing back-end systems, helping to provide a seamless and smart desktop for the CSRs to deliver effective customer service and support.

PegaHEALTH Member Services is a key component of the PegaHEALTH Service Manager suite of products, which has tailored applications for a healthcare payer's primary customers — members, providers (hospitals and doctors), and employers. Pegasystems' smart BPM software allows healthcare payers to create integrated service centers, eliminating existing silos of data and information, and helping to deliver consistent, high-quality service to both members and providers across the enterprise. PegaHEALTH Member Services automates common contact center service functions, from resolving claim inquiries to ordering ID cards and enrollment forms across all contact channels. It can help improve the speed of transactions while providing both consistency and a comprehensive view of all customer experiences.

The PegaHEALTH suite of products is designed to maximize value - closing the gaps created by disconnected systems and providing organizations with smart business process management solutions that decrease operational costs, improve efficiencies and increase service quality. Built on Pegasystems' patented business rules engine, PegaHEALTH solutions enable users to change processes quickly and easily and respond with agility to evolving regulatory requirements.

About Blue Cross & Blue Shield of Rhode Island

Blue Cross & Blue Shield of Rhode Island has been the state's leading health insurer for 64 years and now covers more than 680,000 customers. Blue Cross & Blue Shield of Rhode Island is an independent licensee of the Blue Cross & Blue Shield Association.

About Watch Hill Partners, Inc.

Watch Hill Partners ( is a consulting firm offering customer relationship management (CRM) and mobile Web services. Its experienced delivery team has implemented and supported leading technology in the world's top businesses. Watch Hill Partners Optimization MethodologyTM addresses obstacles with an approach that creates and aligns clients' CRM, mobile and ecommerce strategies with the technology and change management to drive success.

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. The words "believe," "expect," "hope," "anticipate," "plan," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and 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 impact of pending regulatory proceedings, 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, 2003 on file with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.

NOTE: Pegasystems is a registered trademark of Pegasystems Inc. Other product and company names may be trademarks of their respective owners.

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

All trademarks are the property of their respective owners.

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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