Pivotal Announces Acquisition of French-based Transitif

Pivotal to acquire leading French distributor of CRM solutions

Vancouver, Canada, December 6, 1999 — Pivotal Corporation (Nasdaq: PVTL), a leading provider of eBusiness relationship management (eBRM) solutions, today announced that the company will acquire Transitif S.A. - a leading French distributor of customer relationship management (CRM) solutions."

Transitif and Pivotal have enjoyed a tremendously successful partnership in France - and now, as part of the Pivotal team, Transitif will be a key player in our strategy to extend Pivotal's presence in the European market," said Norm Francis, president & CEO of Pivotal Corporation. "Transitif and Pivotal share a common view that customer relationship management (CRM), eCommerce and business portals are converging."

As a premier Pivotal partner since 1998, Transitif has established a network of ten leading systems integrators across France which deploy Pivotal solutions. In particular, the company has formed a close alliance with KPMG. Transitif has been responsible for localizing Pivotal's solutions for the French market and implementing an aggressive business development strategy which has lead to Pivotal eRelationship 2 becoming the fastest growing eBRM solution in France.

According to Pierre Marcel, president and general manager of Transitif, "The combined forces of Pivotal and Transitif will instantly boost Pivotal's presence in France. As an expert in Pivotal solutions, Transitif is well positioned to assume the role of extending the reach of Pivotal's solutions and services in the lucrative French market." Marcel will be appointed Pivotal's country manager for France.

Under the terms of the agreement, Pivotal has agreed to acquire 100 percent of the issued and outstanding shares of Transitif S.A. The acquisition will include an initial payment plus an earn-out based on future earnings and revenue over the next two and a half years.

The acquisition of Transitif will provide Pivotal with a strengthened direct presence in France and an ability to directly service the company's rapidly growing French and pan-European customer base. As a successful and award-winning Pivotal distributor for the past two years, Transitif has grown the French market by establishing an impressive roster of enterprise customers.

"As the newest members of Pivotal's global team, we are pleased to be able to spread the Pivotal presence even further through a dedicated team in France," said Marcel. "Transitif's track record in France is second to none - and now we can expect to advance our development of this market with even greater force."

According to Vince Mifsud, Pivotal's CFO and vice president, operations, "The acquisition of Transitif demonstrates Pivotal's commitment to expand our international presence even further and to invest in the growth of European markets. Pivotal's solutions are in global demand as companies worldwide recognize the importance of having a scalable, revenue-generating eBusiness solution."

Pivotal currently has more than 130 enterprise customers in Europe representing more than 6,000 users. European customers include Ericcson, Accor, CCI Nice, Telenor, Novartis, FPD Savills, Siemens, Agfa, Foss and Miller Freeman.
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 press release contains forward-looking statements which can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," " predicts", "potential" or "continue" or the negative of such terms or comparable terms. In particular, this release includes statements regarding anticipated benefits of the Transitif acquisition with respect to Pivotal's European expansion and the ability of Pivotal to service its growing French customer base. These statements are based on management's current projections, beliefs and opinions. Actual results could differ materially from those anticipated in these statements based upon a number of factors including: the ability of Pivotal to integrate successfully Transitif, the ability of Pivotal to successfully meet the growing service demands of its French customer base, the performance of Pivotal's competitors in Europe, particularly in France. Pivotal undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change. Jacqueline Voci
Tel: 425.897.6992
Fax: 425.897.8401
Email: jvoci@pivotal.com