Pivotal Joins with Leading ASPs and Internet Infrastructure Providers for PivotalHost eBRM Outsourcing Program

Cisco, Data Return, Exodus, FutureLink, Interliant, KPMG, Level 3, Microsoft and Qwest Cyber.Solutions align with new eBRM hosting program

North Vancouver, BC, October 12, 1999 — Pivotal Corporation (Nasdaq: PVTL) today announced PivotalHost™, a comprehensive, global Internet hosting program for Pivotal's award-winning eBusiness Relationship Management (eBRM) solutions. PivotalHost Internet solutions are available to companies worldwide through an unprecedented alliance of hosting infrastructure leaders, including suppliers of data center and network services, application service providers (Asps), platform software vendors, systems integrators, and consulting service providers. Companies such as Cisco Systems, Data Return, Exodus, FutureLink, Interliant, KPMG, Level 3, Microsoft and Qwest Cyber.Solutions are aligned with the PivotalHost program.

"PivotalHost marks the beginning of a new era in eBRM application hosting," said Norm Francis, president and CEO, Pivotal Corporation. "Pivotal has established an unrivaled hosting program consisting of the world's top hosting technologies and service providers. Through PivotalHost, companies of any size, in any industry, can take advantage of the power of eBRM and the Internet."

PivotalHost provides the software applications, data center and networking infrastructure, customization, implementation and support services needed to conduct personalized, one-to-one eBusiness Relationship Management over the Internet. This includes automating sales, marketing and customer service activities between employees, business partners and customers and enabling these users to access eBRM capabilities from Web browsers on any type of network or mobile client.

Pivotal is working closely with Microsoft to offer eBRM services with select Asps and to build the deployment tools to offer rapid implementation of hosted eBRM services.

Pivotal is also a member of the Cisco Systems' Hosted Applications Initiative and has participated in the Cisco Hosted Applications lab to ensure optimal application performance in Internet-enabled environments. "Pivotal and Cisco are working together to accelerate adoption of networked business applications," said Eugene Lee, vice-president of marketing for small/medium line of business, Cisco Systems.

According to Phil Garland, chief operating officer of Qwest Cyber.Solutions, "Our arrangement with Pivotal is an important step in our aggressive plan to establish a leadership position in the application services sector. Pivotal's eBRM solutions have been proven in hundreds of companies worldwide and form the necessary foundation for a customer-centric eBusiness strategy. We believe Pivotal's eBRM solution will give Qwest Cyber.Solutions a significant competitive advantage and enable us to maintain a commanding lead in the ASP industry."

The California Trade and Commerce Agency recently signed as one of the first PivotalHost customers in alliance with Data Return Corporation and Level 3 Communications. Trade and Commerce is the state's lead organization for business development, corporate attraction and job creation. The agency will utilize the eBusiness Relationship Management solution to enable it to serve its customers better with the goal of bringing additional business and jobs to the state of California. PivotalHost was selected as the best option for building better relationships with the agency's stakeholders and customers.

The PivotalHost Alliance

Pivotal's strategic alliances have long been a cornerstone of the company's successful business strategy. Worldwide alliances with leading technology and service providers offer Pivotal customers access to best-in-class eBRM products and services. To provide customers a compelling application hosting solution, PivotalHost incorporates products and services from the following leaders in the application hosting industry:

Qwest Cyber.Solutions, a global joint venture between Qwest Communications and KPMG, will be a Premier PivotalHost partner. Positioned to be among the industry's largest, full-service Asps, Qwest will provide Pivotal customers with turnkey eBRM solutions, including solution customization, implementation, end-user training, application hosting and ongoing support. Qwest Cyber.Solutions provides Internet-based, end-to-end ASP and application management (AM) services. This hosting alliance is a powerful complement to the Enterprise 360 eBRM alliance between Pivotal, KPMG, Hewlett-Packard and Microsoft announced in November 1998.

Cisco Systems is the worldwide leader in networking for the Internet. The Cisco Hosted Applications Initiative is a program that provides businesses of all sizes with access to powerful applications that were previously beyond their reach and creates an emerging ecosystem of software application vendors, hardware vendors, application service providers, Internet service providers, co-location providers, system integrators and technology partners to deliver a variety of hosted business applications. Pivotal's applications are being deployed in Cisco's Hosted Applications lab to optimize application performance in Internet-enabled environments.

Data Return Corporation is focused on providing advanced hosting services for the Microsoft platform and will be a Premier PivotalHost partner with Pivotal Corporation. Data Return will provide hosting, implementation and technical support for Pivotal's eBRM solutions. This Texas-based ASP has secure data center facilities worldwide and currently provides hosting solutions to more than 600 customers.

Purchase, N.Y.-based Interliant Corporation will be another Premier PivotalHost partner providing a complete selection of hosting and support services to Pivotal customers. Interliant has secure, state of the art data centers in Atlanta, Houston and the Washington, D.C. area which are monitored around the clock. This ASP currently provides application hosting solutions to more than 1,300 customers and Web hosting solutions to more than 65,000 customers.

Pivotal will also join with FutureLink Distribution Corporation which has expertise in application hosting on a monthly subscription basis, outsourcing and facility management and business practices consulting. FutureLink is headquartered in Irvine, California.

Pivotal Corporation is a global supplier of 360° eBusiness Relationship Management solutions that enable organizations to increase revenue by enhancing relationships with customers and business partners and conducting personalized online commerce. Pivotal's eBRM solutions fuse eCommerce, customer relationship management and business portals to automate sales, marketing, and customer service relationships between employees, business partners and customers over the Internet and corporate networks.

Pivotal's international distribution channel consists of direct salespeople, certified value-added resellers, systems integrators, technology partners and distributors. The company has more than 600 customers worldwide with more than 65,000 licensed users. Customers include Yahoo, Excite@Home, BottomLine Technologies, Micrografx, Hewlett-Packard Co., UNOCAL, Inc., Kimberly-Clark Corporation, Intel Corporation, Siemens Electric Ltd., USG Corporation, Lucent Technologies, Holophane Corporation, The Principal Financial Group and Sun Healthcare Group.

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