Pivotal Corporation Announces Steep Revenue Increase Fueled by Sales of New Pivotal eRelationship Internet Applications

Leading Customer Relationship Management (CRM) vendor announces 70 percent revenue growth, ships market’s first eCRM solution, grows user base to 38,000 and signs over 65 new customers in banner quarter

North Vancouver, BC, April 22, 1999 — Pivotal Corporation ("Pivotal"), the leading supplier of mid-enterprise 360º Customer Relationship Management™ solutions for Microsoft® (NASDAQ:MSFT) BackOffice® and Internet platforms, today announced results for its third quarter ending March 31, 1999. Among the results, Pivotal’s revenue grew 70 percent over the same quarter last year and the company’s global user base grew to over 38,000. The shipment of the Pivotal eRelationship™ Internet application family had an immediate impact on the growth of Pivotal’s user base which increased by over 8,000 users in the past quarter alone.

Pivotal’s CRM applications have now been selected by over 470 companies around the world. New customers this quarter include Intel Corporation, Broadcast.com Inc., Micrografx, Inc., Merak Projects Ltd., Icarian, Inc., Crystal Group, Inc. and Eaglemark Financial Services, Inc.

"Pivotal has now moved front and center in the Internet applications industry," said Norm Francis, president and chief executive officer, Pivotal Corporation. "The rapid acceptance of our Pivotal eRelationship Internet applications, which went into production in February, strongly suggests that 100 percent Web-based "eCRM" solutions are becoming a dominant trend in our marketplace."

"We were very pleased with our results during the third quarter of fiscal 1999 which were highlighted by strong revenue growth and the tremendous reception of our Internet-based Pivotal eRelationship products," said Vince Mifsud, chief financial officer and vice president of operations. "These new products were adopted immediately by the marketplace and generated revenues in the first quarter of availability. We plan to continue to invest heavily in all facets of the company, with a particular emphasis on building both the direct and indirect sales channels and the continued investment in our Internet applications suite."

Quarterly Highlights

Pivotal eRelationship ships

To meet the exploding demand for Internet-based customer and partner relationship management solutions, Pivotal shipped Pivotal eRelationship, a new class of e-customer relationship management (eCRM) applications. Pivotal eRelationship consists of two integrated Web applications that enable companies to build Internet Relationship Hubs™ for conducting online marketing, sales and customer service with enterprise Web customers, sales and service partners, and prospects. New Pivotal eRelationship customers include Micrografx, Inc., Olicom Inc. and Waggener Edstrom.

Enterprise 360 Virtual Corporation with Industry leaders launched

In February, 1999, KPMG LLP, Pivotal Corporation, Microsoft Corporation and Hewlett-Packard officially launched the Enterprise 360 Customer Relationship Management consortium. This consortium delivers comprehensive, bundled CRM solutions based on the industry knowledge of KPMG’s Customer Management practice, the award-winning functionality and extensibility of Pivotal’s CRM software, platform solutions from Microsoft, and hardware products from Hewlett-Packard.

Awards Recognition

Pivotal continued to earn industry recognition during the past quarter. Pivotal’s front office application suite, Pivotal Relationship® 99, was selected by Open Systems Advisors for the Crossroads A-List and Pivotal was named one of InformationWeek magazine’s "IT Innovators" for 1999.

Seasoned Professional Services Executive Recruited

During the past quarter, Pivotal added Chris Rogers, vice president, professional services for North America, to its executive team. Prior to joining Pivotal, Rogers was associate partner with Andersen Consulting’s customer relationship management practice, where she was responsible for delivering CRM solutions across North America. A recognized expert in technology-enabled customer relationship management, Rogers has a proven track record in identifying industry trends and establishing a broad range of global implementation and educational services. As Vice President of Professional Services, Rogers will lead Pivotal’s aggressive growth of global service offerings.

Pivotal Corporation enables large and medium-sized businesses worldwide to make, serve, and manage customers with superior speed and efficiency by providing XML-based demand chain networks that deliver personalized customer experiences across every touch point in real-time. These networks unify Internet commerce, CRM, eSelling, and wireless technologies to manage collaborative relationships between customers, business partners, and employees; guide intelligent commerce transactions across multiple channels; seamlessly integrate the demand chain with the supply chain; and fully exploit Microsoft platform standards.

Pivotal solutions are sold in 35 countries and are available in English, French, German, Spanish, Portuguese, Swedish, Japanese and Chinese. Pivotal's worldwide customer base includes more than 1,000 organizations in traditional, commercial and public market sectors and the new digital economy, including KPMG, Intrawest Corporation, Emerson Electric, US Filter, Ericsson, Nissan Motor Corp., HarperCollins Publishers, Qiagen Inc., Deutsche Bank, Trader.com, Southern Company, Lucent Technologies, Inc., NEC, Deloitte & Touche, Principal Financial Group and Red Cross Australia.

Pivotal is a public company traded on the NASDAQ under the symbol “PVTL” and the Toronto Stock Exchange under the symbol “PVT.” More information can be found on the corporate Web site at http://www.pivotal.com.

This release contains certain forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that may cause actual results of events to differ materially from those anticipated in our forward-looking statements. Factors that could cause actual results to differ materially include: rapid technological changes in the industry; volatility in the market price of the company's common stock; the company's ability to successfully manage its growth; the ability to maintain and grow successful third party relationships, to improve current products and develop new products, to adequately protect the company's proprietary rights, and other factors as described in the company's SEC filings. Although we believe that the expectations reflected in our forward-looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy or completeness of forward-looking statements. Jacqueline Voci
Tel: 425.897.6992
Fax: 425.897.8401
Email: jvoci@pivotal.com