Pegasystems Positioned in Leaders Quadrant for Business Process Management by Top Industry Analyst Firm

CAMBRIDGE, Mass., June 9, 2003 — Follows Recent Positioning in Leaders Quadrant in Business-Rules Engines Market

Pegasystems Inc. (NASDAQ: PEGA), a leading provider of smart business process management (BPM) software, today announced that it has been positioned in the Leaders quadrant in Gartner, Inc.'s 2003 Pure-Play BPM Magic Quadrant. In April, Gartner positioned Pegasystems in its Leaders quadrant for Business Rules Engines (BRE), for the second year in a row.

Smart and simple-to-use business process management can only be achieved when the BPM is driven by a sophisticated business rules engine. This product approach, unique to Pegasystems, provides organizations with the agility and flexibility to manage both the processes and the business decisions that drive them. Positioning in the Leaders quadrant in both the Gartner BRE and BPM Magic Quadrants is independent acknowledgement of the company's expertise in developing and delivering rules-based BPM systems.

"Recognition in the Leaders quadrant in both Magic Quadrants strongly supports our belief that BPM's true promise can only be achieved when the solutions incorporate a built-in rules engine delivering both decisioning and fulfillment, making it easier to create and change key business processes — what we call 'simply smart BPM,'" said Henry Ancona, Pegasystems' president and COO. "Smart BPM doesn't just route and assign work, it resolves it, thanks to the power of rules. Smart BPM empowers business users with the flexibility and agility to build for change."

Released June 2nd, the Magic Quadrant for Pure-Play BPM Research Note positions nearly 50 companies based on completeness of vision and ability to execute. The report evaluated BPM companies on their technology foundation, market leadership, consistency of communication, outside investment, products, services, support and management team.

According to the Note, an evaluation of current product features plays a prominent role in the positioning of vendors on the quadrant's 'completeness of vision' axis. "Our consideration of vision also includes an assessment of how well each vendor's management team understands the technical and marketing issues, as well as its ability to innovate, differentiate its products and grow its business," the report said. Insofar as a vendor's ability to execute, Gartner's assessment for the quadrant "...takes into account the technical expertise, technology assets, and financial and marketing resources the vendor allocates to the development and support of the product."

According to Gartner in a separate, recent research note*, "...adjustable business rules, which do not require a development environment and are easy for business professionals and IS personnel to change, are important. These are found in advanced BPM tools or BREs, and provide the agility needed in the current business environment."

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 March 31, 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.

NOTE: The Magic Quadrant is copyrighted June 2003 by Gartner, Inc. and is reused with permission, which permission should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner, Inc.'s opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the "Leaders" quadrant. In some situations, firms in the Visionary, Challenger, or Niche Player quadrants may be the right matches for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources including other published information and direct analyst interaction. Gartner, Inc. expressly disclaims all warranties, express or implied, of fitness of this research for a particular purpose.

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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