Pegasystems Selected by EDS to Support Post-Office Card Account Through UK Post Office; Pegasystems to Provide Customer Service Support to Post-Office Card Accounts

CAMBRIDGE, Mass., Feb. 10, 2003 — Pegasystems Inc. (NASDAQ: PEGA), a leader in rules-driven business process management software, today announced that it was selected by EDS to provide call center software to support a rollout of electronic card-based accounts being launched through the UK Post Office when the UK Government changes the way benefit payments are made in April of this year.

EDS was awarded a contract by Post Office Ltd. in March 2002 to provide a full spectrum of business process outsourcing services to support the payment of benefits directly into Post Office card accounts, beginning April, 2003. Pegasystems will work with EDS to provide call center software to the Post Office, which will help enable it to manage information regarding the status of an individual's account, including payment queries, account status, support for lost and stolen cards and PIN numbers, plus the processing of applications for new accounts.

Pegasystems' rules-driven software will provide the front-end application to the EDS solution, providing 350 customer service representatives (CSRs) with a single window of customer information to help provide timely and effective resolution of queries. As part of the implementation at the Post Office, Pegasystems software will integrate with existing applications and legacy systems to retrieve customer data to resolve an inquiry. This provides the CSR with an historic view of a customer account in order to help fulfill a service request efficiently.

"Our work with the UK's Inland Revenue and now the UK Post Office is evidence of a growing trend in government to be more customer-centric," said Henry Ancona, president and COO, Pegasystems. "Our patented software — based on a powerful rules engine to deliver 'simply smart' BPM — is designed to help support this trend through a customer service platform intended to help fulfill the needs of both end users and customers."

In July of last year, Pegasystems announced that EDS had selected its software as one of the business process management platforms of choice for use within the Inland Revenue in the UK.

About Post Office Ltd.

The Post Office and the Post Office symbol are registered trademarks of Post Office Ltd. in the UK and other countries. The Post Office has over 17,500 branches across the UK and serves 28 million customers each week. For further information, visit Benefit claimants will still be able to collect their benefits in cash from Post Office branches from April by using their existing account if they bank with one of the Post Office's banking partners, through a basic bank account or through a Post Office card account.

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, 2002, 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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