Pivotal and Gladwyne Software Surety Announce First Bonded Guarantee for CRM Projects

Surety bond insures on-time, on-budget delivery of KPMG projects developed with Pivotal solutions

Vancouver, Canada, December 8, 1999 — Pivotal Corporation (Nasdaq: PVTL), a leading provider of eBusiness relationship management (eBRM) solutions and Gladwyne Software Surety (GSS), a leader in information technology (IT) risk management services, today announced a ground-breaking initiative that provides a third-party guarantee for KPMG implementations of Pivotal solutions. As the first-ever insurance-backed IT initiative, this program marks a turning point in the software industry by establishing true accountability for IT implementation.

"KPMG, Gladwyne Software Surety and Pivotal have created the model for bondable IT implementation," said Norm Francis, president & CEO of Pivotal Corporation. "The IT industry must adopt a valid and authoritative method of accountability. The model we have created will solidly protect the investments of KPMG/Pivotal customers. Companies can embark on cutting edge eBusiness relationship management projects with confidence that their investments are fully protected."

The insurance - called a surety bond - ensures that KPMG implementations of Pivotal solutions are on time and on budget. The surety bonds are issued by several leading insurance companies and are based on the risk mitigation principles used successfully in the insurance industry for more than a century. Surety bonds are used in high-value engineering and construction projects to validate the qualifications of a contractor and insure successful project completion. Based on its initial application, KPMG and Pivotal have received approval for a bond-line of up to $50 million to insure approved projects.

According to Emery Kobor, research director at the World Research Advisory, "As recent high-profile snafus have demonstrated, companies can lose valuable time, money and competitive edge when IT projects fail. IT projects are frequently delivered late or over budget - surety bonds and the independent, disciplined management of risk are the right solution at the right time to ensure that technology providers are accountable to customers."

According to Mort Goldman, chairman, CEO and founder of Gladwyne Software Surety, "KPMG/Pivotal deployments are bondable because these two companies have a track record that clearly demonstrates success. KPMG and Pivotal have proven time and time again that they are able to fulfill customer expectations by delivering projects according to specification - on time and on budget."

The surety bonds are issued through the GSS Risk Management Program and provide a high-degree of assurance for executives making IT purchasing decisions.

"Incorporating a surety bond with KPMG and Pivotal's solutions builds even further confidence in our reputations," said Francis. "With the GSS assessment, third-party bonding and project auditing services, we've set a new industry standard for ensuring project success."
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.

About Gladwyne Software Surety

Gladwyne Software Surety, Inc. is the leading provider of information technology risk management products and services that maximize corporate return on investment. The GSS Risk Management Program guarantees the delivery of customer relationship management (CRM) and enterprise resource planning (ERP) applications and includes project assessments, third-party surety bonds, and ongoing project audits. For more information about Gladwyne Software Surety, visit www.itsurety.com.

This press release contains forward-looking statements which can be identified by terminology such as "may," "will," "should," "expects," "plans," "continue" or the negative of such terms or comparable terms. In particular, this release includes statements regarding Pivotal's assessment of the value of surety bonds as they relate to the IT industry and the customer relationship management (CRM) and eBusiness relationship management (eBRM) markets and the anticipated benefits of surety bonds to Pivotal and KPMG's mutual customers. 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 this surety bond program to secure successful deployment of Pivotal products by KPMG. Pivotal and GSS 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