Pegasystems Helps Streamline Payment Investigations At Germany's Second Largest Private-Sector Bank

CAMBRIDGE, Mass., Oct. 20, 2003 — Pegasystems Inc. (NASDAQ: PEGA), a leading provider of rules-based, smart business process management (BPM) software, today announced that HVB Group, the second largest private-sector bank in Germany, with eight million customers and thousands of branch offices, is deploying a suite of Pegasystems applications that police the transfer of millions of euros changing hands internationally on a daily basis. The agreement was signed in the first quarter of 2003.

"Mitigating risk is too often an inexact science in financial systems, and there are numerous ways that payments can go awry," said Martin Buehler, HVB Group. "Pegasystems' software is scalable, allowing many thousands of users to use the software at once. Its graphical approach to business rules is easy and intuitive, allowing us to quickly adapt to changes in a rapidly evolving environment."

HVB Group has integrated Pegasystems software with its existing payments and reconciliation systems and other back-office systems. The new solution automatically routes payment exceptions — discrepancies that can arise in the complicated process of transferring large amounts of money internationally — into the Pegasystems application to help HVB Group resolve them more quickly and efficiently. Pegasystems' rules-driven software helps to decrease the number of steps involved, to reduce manual re-keying of data, to automate reporting, and to help provide standardized message templates so that operators can respond to customers consistently. The software also helps reduce the time and expense involved in processing exceptions, and helps to reduce the number of faults that occur in payment transactions, while also helping to minimize operational risk.

"Pegasystems' software helps put financial institutions like HVB Group in the driver's seat through smart, simple BPM that automates processes and makes it easier to control them," said David Wells, vice president and general manager, Pegasystems Europe. "The software's scalability also makes it possible to extend its functionality across other areas of the banking group and branch offices."

Pegasystems' software automates a full range of investigations, including payments, compensation claims and reconcilement. The software creates records for reporting, allowing historical research for instruction detail, transaction messages and confirmation detail. It also includes Web self-service capabilities that extend the solution to branch offices, customers and partners. The software parses messages directly from SWIFT, the international financial communications system, strips out the relevant data, and creates an electronic case that an HVB Group employee can immediately begin processing. The file is integrated with the institution's databases and applications so it can directly access information relevant to a query or investigation.

About HVB Group

HVB Group is the second largest private-sector bank in Germany and, with Bank Austria Creditanstalt, the undisputed market leader in Austria. With over 66,500 employees, 2,100 branch offices and more than 8.5 million customers, HVB Group is number one in the heart of Europe, i.e., in its core markets of Germany and Austria and in the dynamic region of Central and Eastern Europe, where it has positioned itself as the premier bank network. HVB Group concentrates on European retail and mid-cap customer business, supplemented by customer-oriented capital market activities. As of June 30, 2003, HVB Group assets amounted to €669.1 billion.

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 June 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.

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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