| News May 13, 17:09 Eastern Time 
 AMERICA ONLINE SELECTS PEGASYSTEMS TO DELIVER CONTACT CENTER
 SOLUTION
 
 Deal With Largest Internet Service Provider (ISP) in the U.S. Advances Pegasystems' Presence in Customer
 Relationship Management Marketplace
 
 CAMBRIDGE, Mass., May 13 /PRNewswire/ -- Pegasystems Inc. (Nasdaq: PEGA), a leading provider of
 Customer Relationship Management (CRM) solutions, announced today an agreement to deliver a best-of-breed
 contact center solution to American Online (AOL), the world's leading interactive service provider. AOL will use the
 Pegasystems solution to improve the quality of service delivered to its 17 million members.
 
 The Pegasystems solution is expected to be implemented in the Acquisition & Payments (A&P) department --
 representing approximately 2, 000 call center consultants -- within AOL's Member Services division. A&P will use
 Pegasystems' solution to automate all inbound customer care requests, such as billing inquiries and membership
 changes, as well as automate cross-selling and up-selling capabilities.
 
 "The customer service we provide must create a positive and lasting impression about AOL to its members," said
 Charlie Knadler, America Online's Director of Technical Services Planning. "Pegasystems has an excellent
 reputation among many blue-chip organizations for its ability to automate work, scale, and integrate with disparate
 back-end systems. Together with its impressive contact center expertise, we are confident that Pegasystems will
 enable us to provide faster, more efficient service, generate additional revenue from existing customers, and
 increase customer retention."
 
 "AOL understands the strategic value that quality customer service has on the success of an organization. Using
 the Pegasystems solution to integrate multiple channels of customer communication -- with consistent service
 delivery -- will allow AOL to respond to worldwide market demands, and differentiate itself in the eyes of its
 customers," said David Valovcin, Pegasystems' Vice President of North American Sales. "With technology
 playing such a pivotal role in today's Internet economy, AOL's ability to rapidly integrate the functions of
 marketing, sales, and service will enable the Company to continue in its leadership role."
 
 The solution will consist of PegaWORKS, Pegasystems' patented workflow management engine, to automate
 customer care requests; PegaCONNECT, providing connectivity to legacy applications and databases;
 PegaREACH, a sophisticated 32-bit thin client front-end graphical user interface; and PegaCALL, an interface with
 various third-party solutions to provide inbound computer- telephony integration (CTI) functions such as screen
 pop, pre-fetch, and intelligent call routing. Pegasystems will offer additional call center functionality, including
 composite screen, dialog scripting, contact history, account retention, and name/address change. In a future
 phase, AOL plans to implement PegaWEB, a Web-enabling interface, to allow for member self-service.
 
 
 About America Online, Inc.
 Founded in 1985, America Online, Inc., based in Dulles, Virginia,
 is the world's leader in interactive services, Web brands, Internet
 technologies, and e-commerce services.  America Online, Inc. operates:
 two worldwide Internet services, America Online, with more than 17
 million members, and CompuServe, with approximately 2 million members;
 several leading Internet brands including ICQ and Digital City, Inc.;
 the Netscape Netcenter and AOL.COM portals; and the Netscape Navigator
 and Communicator browsers.  Through its strategic alliance with Sun
 Microsystems, the Company develops and offers easy-to-deploy,
 end-to-end e-commerce and enterprise solutions for companies operating
 in the Net Economy.
 
 About Pegasystems
 Pegasystems is a leading provider of Customer Relationship
 Management solutions.  These solutions allow large organizations to
 better manage customer interactions, and to automate the business
 processes within their sales and service delivery operations.  Many of
 the world's largest institutions use Pegasystems' solutions to manage
 mission-critical customer activities.  The Pegasystems solutions
 support multiple channels of customer contact, helping organizations
 improve staff productivity, operational efficiency, and customer
 satisfaction.  Pegasystems' solutions are Internet- enabled, and
 operate in multi-tiered, client/server environments. Pegasystems'
 headquarters is located in Cambridge, Massachusetts.  The company has
 regional offices in North America, Europe, and Australia.  Access
 Pegasystems on the World Wide Web at www.pegasystems.com.
 
 Forward-Looking Statements
 Except for the historical information contained in this
 announcement, the matters discussed in this announcement are
 "forward-looking statements" (as that term is used in the Private
 Securities Litigation Reform Act of 1995) that involve risks and
 uncertainties detailed from time-to-time in Pegasystems' filings with
 the Securities and Exchange Commission (the "SEC"). Pegasystems draws
 the reader's attention to the factors described in its annual report on
 Form 10-K for the fiscal year ending December 31, 1998 under the
 heading "Certain Statements for Purposes of the 'Safe Harbor'
 Provisions of the Private Securities Litigation Reform Act of 1995."
 Any such forward- looking statements speak only as of the date such
 statements are made, and the company undertakes no obligation to
 publicly release the results of any revision to these forward-looking
 statements.
 SOURCE  Pegasystems Inc.
 
 
 |