RS Medical Selects Pegasystems' Smart BPM Software To Automate Front-to-Back-Office Business Processes

CAMBRIDGE, Mass., Aug. 10, 2004 — As further testimony to growing market demand for sophisticated business process management software, Pegasystems Inc. (NASDAQ: PEGA) today announced that RS Medical of Vancouver, WA, has purchased its PegaRULES Process Commander "smart" BPM platform to automate a full suite of front-to-back-office business processes.

RS Medical, which designs, manufactures and markets electrical stimulators, will deploy PegaRULES Process Commander as the foundation for its core business systems, including order fulfillment, invoicing, customer support, inventory management and product distribution, in order to deliver improved service to its 5,000 medical professionals serving more than 400,000 patients. The company also plans to drive new revenue streams from Web-based product ordering enabled by applications built on the Pegasystems platform.

"We are committed to exceeding our customers' expectations and are confident that Pegasystems' software, with its ability to manage complex, changing processes, will provide us with the support to do just that," said Rick Terrell, president of RS Medical.

Alan Trefler, chairman and CEO of Pegasystems, said, "PegaRULES Process Commander enables organizations to respond to changing customer, market and competitive conditions by creating and changing applications and automated processes in days, not months. We believe our software will help RS Medical develop and drive the best possible customer-facing and back-office processes possible, all while allowing them to build for change as they evolve and grow."

PegaRULES Process Commander's easy-to-use interfaces and BAM capabilities enable business line managers to create, monitor and change the critical processes that comprise true BPM — not just the receiving, routing, and reporting of complex customer and partner work but, more importantly, the researching, responding and resolving of that work.

About RS Medical

Headquartered in Vancouver, WA, RS Medical designs, manufactures and markets electrical stimulators and provides a broad range of related services. Since its founding in 1990, RS Medical has established itself as the leading provider of electrotherapy for use by patients at home. RS Medical is a privately-held Washington corporation registered as International Rehabilitative Services, Inc., d/b/a RS Medical. For more information, visit

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 including, without limitation, our financial guidance with respect to 2004 revenue, profit before tax, tax rate, earnings per share and cash from operating activities. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions, among others, 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 volatility of our quarterly operating results, difficulty in predicting the completion of product implementations and consequently the timing of our license revenue recognition, the timing of term software license renewals, customer acceptance of our new PegaRULES Process Commander technology, our ability to develop new products and evolve existing ones, the impact on our business of the ongoing consolidation in the financial services market, historically our core market, our ability to attract and retain key employees, reliance on certain key third-party relationships, 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 most recent report on form 10-K and other recent filings on file with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent the Company's views as of August 10, 2004. 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. Although subsequent events may cause the Company's view to change, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to the date of this release.

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

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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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