Pegasystems Selected to Provide QBE Insurance with Business Process Management Technology

SYDNEY, Australia & CAMBRIDGE, Mass., Sep. 7, 2005 — Pegasystems Inc. (Nasdaq: PEGA) announced today that QBE's Australia Pacific Asia Central Europe Division (APACE) has selected PegaRULES Process Commander® (PRPC) as part of an initiative to use rules-driven technology to enhance the company's business process management (BPM) capabilities. QBE, winner of Australian Banking & Finance newsmagazine's award for Best General Insurance Company, will be using PRPC to help manage internal operations and provide the basis for externalization of many of its business processes.

QBE Insurance Group is Australia's largest international general insurance and reinsurance group, and one of the top 25 insurers and reinsurers worldwide. Its APACE Division operates in 24 countries, has AUD 4.2 billion in gross premiums under management, with approximately 5,500 employees. Pegasystems, the leader in rules-based BPM, was selected for the strategic value of its integrated solution, which in turn supports QBE's commitment to the continuous delivery of quality products and services.

"QBE joins a growing list of leading organizations who have adopted PRPC," said Bruce Quick, Managing Director of Pegasystems in Asia Pacific. "QBE's commitment to best-in-class technology validates our strong position in the BPM market and confirms the value of rules-driven BPM solutions for companies interested in agility for growth, productivity and compliance."

John Murphy, General Manager, Management Services, QBE APACE said, "We performed extensive due diligence to support the selection of an integrated, scaleable BPM and BRE application, and PRPC was the clear choice. We plan to use PRPC as a cornerstone of our Enterprise Architecture for the Division and look forward to realizing significant benefits from its deployment."

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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