Pegasystems Signs Two New PegaRULES Partners; Pegasystems Deepens Commitment to Alliance Program

CAMBRIDGE, Mass., Jun 21, 2002 — Pegasystems Inc. (NASDAQ: PEGA), a leader in rules-driven, business process automation software, today announced that it has signed Virtusa Corporation and A.J. Rhem & Associates Inc. as two new partners to support the adoption of PegaRULES in the marketplace. Virtusa is a provider of global technology innovation services, and A.J. Rhem & Associates Inc. is an organization that provides system integration services to the commercial and government marketplace.

"Partners are a key element for the success of PegaRULES, and we are dedicated to identifying and expanding strategic relationships which will drive the adoption of PegaRULES," said Keith Hawker, vice president of Strategic Partnerships and Alliances. "We expect that our relationship with Virtusa and A.J. Rhem & Associates will be mutually beneficial and deliver business process management solutions with a return on investment to our customers."

Pegasystems' Alliance Program members can select from three categories of partnership: Solution Partners, Services Partners or Technology Partners. Solution Partners are software development companies that may develop repeatable market-specific solutions, based on a combination of Partner and Pegasystems' technology. Services Partners are system integrators and consultants that may scope, design, build, deploy, and/or manage Pegasystems-based implementations. Technology Partners are companies that may interact with, complement, or add value to Pegasystems technology.

"We are pleased to have signed Virtusa and A.J. Rhem & Associates as PegaRULES partners," said Paul McNulty, vice president, PegaRULES. "We are confident that through their extensive consulting, application development, and network of relationships, Virtusa and A.J. Rhem & Associates will help us maximize the adoption of our PegaRULES products while broadening our industry reach."

PegaRULES technology enables companies to develop, implement and manage a horizontal set of Business Process Management (BPM) solutions. PegaRULES Process Commander combines a patented enterprise rule base with application tools designed for developing, deploying, managing and evolving enterprise-wide business processes.

Virtusa will assist with design and implementation of Pegasystems' PegaRULES software. Virtusa has extensive expertise in process automation execution, which will help Pegasystems' customers deliver quality systems quickly and effectively. Virtusa also has strong business domain capabilities in the financial services, telecommunication services, retail, Customer Relationship Management (CRM) and storage management industries. Utilizing Virtusa's Global Delivery Model may help reduce the time and expense associated with a traditional software-development lifecycle.

"Our vision to build scalable, extendable technology solutions at a fast pace, and with a high level of precision, complements Pegasystems' core software offerings," said John Gillis, executive vice president, Virtusa. "Through this alliance, our customers, which include early adopters of emerging technology, can be confident that their process automation solutions are agile, secure and reliable."

A.J. Rhem & Associates has been engaged to deliver consulting services for Pegasystems' PegaRULES software. A.J. Rhem & Associates' target markets include government entities and Fortune 1000 corporations, specifically insurance, financial, banking, retail, transportation and telecommunications. A.J. Rhem & Associates' technical expertise will complement Pegasystems' experience of helping organizations to increase productivity and to reduce service costs to deliver comprehensive, rules-driven, business process automation solutions.

"Our customers demand solutions that can automate and fulfill their complex, transaction-heavy processes," said Tony Rhem, senior partner, A.J. Rhem & Associates. "Through this partnership, we are committed to delivering optimal solutions to manage our customers' multifaceted needs."

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About Virtusa Corporation

Founded in 1996, Virtusa Corporation is a Global Software Services provider for leading product innovators and Global 1000 corporations. Virtusa's service delivery model represents the convergence of product development best practices, global collaboration and delivery excellence through process maturity. The company's Advanced Technology Centers in Boston, Colombo (Sri Lanka) and Hyderabad (India) allow customers to leverage the full benefits of multi-site collaborative engineering, without the "pains" associated with the traditional offshore software services model.

Virtusa has an enviable track record of risk-mitigating enterprise-class application and product development and of significantly reducing the overall costs of products and solutions. Virtusa's unique collaboration framework and process maturity allow for globally distributed teams to function as seamless extensions of the customer organization to enhance the predictability, reliability, and cost-effectiveness of the customer's engineering efforts. Virtusa has successfully delivered over 400 product releases for over 100 customers, and has wide technical and business-domain competencies.

Virtusa is headquartered in Westborough, MA with office locations in the San Francisco Bay Area, Chicago, Atlanta, Austin, New York Metro Area, Hyderabad (India), and Colombo (Sri Lanka). For more information on Virtusa Corporation, visit our website at

About A.J. Rhem & Associates, Inc.

A.J. Rhem & Associates is a leader in the areas of Knowledge Management, Artificial Intelligence and Information Engineering. We incorporate a network of professionals and partners to address the needs of our clients in the commercial and government sectors. We have global mobility and rapid response capabilities to quickly respond to our clients' needs.

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 Annual Report on Form 10Q for the year ended March 31, 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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