Pegasystems Introduces New Frameworks for Human Resources, Technical Support and Procurement; Number of SmartBPM Frameworks Now Totals More Than 25

CAMBRIDGE, MA, Oct. 17, 2005 -- Pegasystems Inc. (Nasdaq: PEGA), the leading provider of smart business process management (BPM) software, today announced the release of several new solution frameworks for Human Resources, Support and Procurement. These frameworks provide best-practice processes and rules for internal operations across varied business units in any industry.

"Pegasystems has long been known for its deep expertise and industry solution frameworks for banking, insurance and healthcare. With today's announcement, we demonstrate how BPM solution frameworks provide real business value to the HR, procurement and IT departments in any company," said Jay Sherry, vice president, Solutions and Marketing for Pegasystems. "By applying our years of process expertise to solve particular business problems, we now have developed more than 25 solution frameworks to help our customers quickly realize the value of BPM."

The Human Resources frameworks include:

• New Hire - manages the myriad administrative responsibilities related to new employees including the allocation of office space, a telephone, a computer, business cards, building access, network access, payroll, etc.; Employee Performance - enables employee goal-setting and evaluations to streamline performance and compensation reviews;
• Time Off - provides employees the convenience of self-service, while ensuring compliance with corporate time off policies; and
• Benefits Enrollment - simplifies employees' access to benefits enrollment, promoting greater participation and employee satisfaction while automating back-office HR functions.

Pegasystems' Support solution framework provides technical support staff with a tool for managing and monitoring customer support issues from initiation to resolution. With its foundation of best practices, combined with its ability to specialize, Pegasystems makes it easy to customize IT service and support levels.

Finally, Pegasystems' Procurement solution framework helps organizations manage purchase requests from user initiation through approval, procurement, receipt and payment. This framework allows organizations to manage and enforce purchasing policies, including business expenses, without placing an unnecessary burden on employees. Through its purchase request management, purchase order management, correspondence and reporting, this framework uses SmartBPM to automate mission critical work processes and help increase productivity while affording greater control over spending and more accurate forecasting.

The New Hire, Time Off, Procurement and Support frameworks are available October 2005. Planned availability for Benefits Enrollment and Employee Performance is December 2005.

About Pegasystems

Pegasystems Inc. (Nasdaq: PEGA) provides software to automate complex, changing business processes. Our Business Process Management (BPM) solutions provide organizations with the agility critical to managing growth, productivity and compliance. Our solution unifies pure-play BPM software with a sophisticated Business Rules Engine to drive business effectiveness. This patented technology enables organizations to "build for change" and overcome the execution gap that occurs as evolving business objectives outpace the ability of business systems to respond.

Pegasystems' BPM suite offers standards-based technology built in a rapid-solution development environment. Our BPM solution combines the capability to solve a full range of business process challenges with the opportunity to leverage existing technology investments. By enabling business process responsiveness, Pegasystems makes it easier for people and systems to work together.

Pegasystems' award-winning BPM suite is complemented with best-practice solution frameworks based on more than 20 years of experience helping Fortune 500 and other leading corporations in the financial services, insurance, healthcare, manufacturing and government markets.

Headquartered in Cambridge, MA, Pegasystems has regional offices in North America, Europe and the Pacific Rim. For more information, visit www.pega.com.

NOTE: Pegasystems and SmartBPM are registered trademarks or trademarks of Pegasystems Inc. Other product and company names may be trademarks of their respective owners.

CONTACT:

Pegasystems Inc.
Beth Lewis, 617-866-6077
Director, Public and Investor Relations
beth.lewis@pega.com

or

Rosalind Morville, 617-866-6029
Sr. Public Relations Manager
rosalind.morville@pega.com