Pivotal Continues Major European Expansion

Pivotal acquires French distributor, appoints senior executives to European management team, and announces new customers Siemens and Ericsson

Vancouver, Canada, December 6, 1999 — Pivotal Corporation (Nasdaq: PVTL), a leading provider of eBusiness relationship management (eBRM) solutions, today reinforced the company's continuing European expansion with the announcement of the acquisition of Transitif - a leading French distributor of eBRM solutions. The company simultaneously announced appointments to its European management team and two major customer wins.

"Today marks a significant advance in Pivotal's strategy to provide eBRM solutions around the globe," said Norm Francis, president & CEO of Pivotal Corporation. "We have agreed to acquire of one of our most successful European distributors and strengthen the ranks of Pivotal's management in Europe. We view Europe as a major growth market for eBusiness relationship management and we are accelerating the mobilization of resources to take advantage of this rich opportunity. Our customer success stories across Europe, and the recent customer wins of Siemens and Ericsson, demonstrate that Pivotal's eBRM solutions are well-matched to the unique needs of European companies."

With European demand for customer relationship management (CRM) and Internet technologies increasing rapidly, Pivotal is positioned to capture significant European market share. Hewson Group estimates that the European market for CRM technology and services is worth $1.35 billion (US) this year and will reach $5.6 billion by the end of 2002. According to a 1999 PricewaterhouseCoopers survey, European spending on Internet technology is expected to reach $425 billion (US) by 2002.

The acquisition of French-based Transitif will provide Pivotal with a strengthened presence in France and an ability to directly service the company's rapidly growing French customer base. As a highly successful and award-winning Pivotal distributor for the past two years, Transitif has grown the French market to include more than 1000 users.

According to Pierre Marcel, president and general manager of Transitif, "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. 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."

As Pivotal's country manager for France, Marcel will be responsible for Pivotal's operations in France including the sales and service of Pivotal solutions in all French-speaking markets in Europe, the Middle East and Africa. Marcel is a software industry veteran with more than ten years experience delivering customer-centric application solutions to enterprise customers.

New European Customer Wins

Pivotal simultaneously announced the recent wins of two major European customers - Siemens and Ericsson. These well-respected companies have selected Pivotal's eBRM solution as a critical component of their eBusiness strategies.

With more than 150 years of innovation, Siemens is one of the largest electrical engineering and electronics companies in the world. Ericsson is a world-leading supplier in the fast-growing and dynamic telecommunications and data communications industry. The company offers advanced communications solutions for mobile and fixed networks.

Pivotal's success in the European market is well established with a growing base of more than 130 enterprise customers in Europe representing more than 6,000 users. European customers include Telenor, Novartis, FPD Savills, Agfa, Foss and Miller Freeman.

Expansion of European Management Team

To achieve dominance of the eBusiness relationship management industry in Europe, Pivotal continues to recruit top management talent. The company has recently appointed Mark Inskipp as Vice President, Europe, Mike Antoniades as Director of Business Development for Europe, Middle East and Africa (EMEA) and Mike Carlile as Director of Sales for the U.K.

As Vice President, Europe, Inskipp is responsible for Pivotal's business development and operations in Europe, the Middle East and Africa (EMEA). Inskipp has been responsible for Pivotal's impressive growth in the European market for the past two years and has built a network of successful strategic alliances. Prior to joining Pivotal, Inskipp managed the European expansion of Information Builders as Director of Sales and Operations.

Antoniades is responsible for initiating and managing Pivotal's strategic relationships with alliance partners throughout EMEA including existing alliances such as KPMG and Microsoft. He brings extensive experience in marketing and CRM technology to his role. Prior to joining Pivotal, he was CRM Project Director for Systems Union where he was responsible for a global Pivotal deployment that spanned 20 offices worldwide. Prior to this role, he was System Union's first International Marketing Director.

Carlile brings more than 15 years of management-level experience in technology solution sales to his role at Pivotal. He is responsible for significantly growing the direct and alliance partner sales within the UK Prior to joining Pivotal, Carlile was UK Sales Director for Continuous Software where he developed the company's winning UK sales operation. Prior to this, he was in a senior management role for Intersolv where he received the "European Manager of the Year Award" in 1997.
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 Pivotal's assessment of the projected growth of the customer relationship management (CRM) and eBusiness relationship management (eBRM) markets in Europe, Pivotal's development of its European operations, Pivotal's ability to capture significant market share in the European CRM and eBRM markets, the anticipated benefits of the Transitif acquisition and the ability of Pivotal to service its growing European 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 actual growth of the CRM and eBRM markets in Europe, the ability of Pivotal to successfully expand its European operations, the performance of Pivotal's competitors in Europe, the ability of Pivotal to integrate successfully Transitif and the ability of Pivotal to successfully meet the growing service demands of its European customer base. 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