Pivotal Selected as CRM Supplier for Microsoft/Cisco Application Hosting Program

Pivotal eRelationship 2 solutions to be delivered over the Internet by best-in-class ASP alliance formed by Microsoft and Cisco

Boston, MA, October 26, 1999 — Pivotal Corporation (NASDAQ: PVTL), a leading provider of B2B solutions for 360° Customer Relationship Management™ (CRM) and eBusiness Relationship Management (eBRM), today announced that its Pivotal eRelationship™ 2 products have been selected by Microsoft and Cisco for their Internet Application Hosting program. The program, also announced today by Microsoft and Cisco, provides end-to-end solutions for Application Service Providers (ASPs). This collaborative initiative will provide ASPs with a first-rate hosting solution that enables them to host customized CRM and eBRM services based on Pivotal's award-winning solutions.

"Over the past year, Pivotal has introduced compelling new Internet solutions into the CRM marketplace," said Norm Francis, president and CEO of Pivotal. "Our Pivotal eRelationship 2 solutions were designed from the ground-up to support ASP hosting, and we are delighted to be supplying our CRM and eBusiness relationship management products to this pre-eminent alliance formed by Microsoft and Cisco. As the hosting industry evolves, we will be in front with innovative eBusiness solutions that deliver bottom-line impact for companies around the world."

To ensure that customers receive the highest level of expert support, Pivotal, along with Microsoft, Cisco, and leading ASPs such as Data Return, FutureLink, Interliant, and QWEST Cyber.Solutions, will deliver the software applications, data center, networking infrastructure, customization, implementation and support services needed for personalized, one-to-one CRM and eBRM over the Internet. The Pivotal eRelationship hosted solution enables companies to manage sales, marketing and customer service relationships between employees, business partners and customers, and enables these internal and external users to access CRM and eBRM capabilities from Web browsers on any type of network or mobile client.

"Microsoft and Cisco welcome Pivotal's participation in this hosting collaboration as a leading provider of CRM and eCommerce relationship management solutions," said Thomas Koll, vice president Network Solutions Group, Microsoft Corp. "The combined efforts of these three companies and our ASP alliance partners will give companies a dependable and convenient means of deploying a hosted eCommerce solution."

The Pivotal hosted solutions, to be marketed under the PivotalHost™ name, will be delivered on Microsoft® BackOffice® and Cisco System's intelligent networking infrastructure to provide scalability, reliability, security and superior performance.

"Our alliance with Pivotal and Microsoft streamlines the implementation and management of hosted CRM and eBusiness relationship management services for customers," said Eugene Lee, vice president of marketing for Cisco Systems. "Together we are offering the hosted solutions that the market is demanding, such as Pivotal eRelationship 2, and we are opening up new markets for these solutions."

Starting today, application service providers interested in offering CRM and eBRM services as part of their hosted solution set can download deployment kits to accelerate their ability to provide customized services. Each deployment kit includes a customizable sales presentation, a customer demonstration, an integrated installation and configuration guide, a partnership sales guide and technical white papers on how to deploy these services within an intelligent network infrastructure and service configuration that scales to meet customer needs. For more information on the deployment of these services, please visit: www.microsoft.com/isn or www.cisco.com/go/hostedapps.
Pivotal Corporation is a global supplier of 360° Customer Relationship Management and eBusiness Relationship Management (eBRM) 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 manage sales, marketing, and customer service relationships between employees, business partners and customers over the Internet and corporate networks.

Pivotal solutions are licensed on either a perpetual basis or on a monthly subscription through Pivotal's Internet application hosting services. Pivotal's international distribution channel consists of direct salespeople, certified value-added resellers, systems integrators, technology partners and distributors. The company has more than 650 customers worldwide with more than 80,000 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