Pivotal Signs Alliance Agreement with IFS, Leading Global Enterprise Application Provider

Pivotal and IFS partner to deliver end-to-end eBusiness solutions


Vancouver, Canada and Linköping, Sweden, April 12, 2000 — Pivotal Corporation (NASDAQ:PVTL), The eBusiness Relationship Company, today announced an alliance agreement with one of the world's fastest-growing enterprise resource planning (ERP) providers - Industrial & Financial Systems AB (IFS AB). Pivotal simultaneously announced the signing of the definitive agreement to acquire Exactium Ltd., a leading eSelling solution provider which prior to the closing has been majority-owned by IFS.

By integrating Pivotal's industry-leading, sell-side eBusiness solution with IFS's powerful enterprise application solution, IFS will provide companies with a comprehensive, end-to-end eBusiness solution. Both companies are experiencing dramatic growth as a result of their leadership roles in these complementary markets. IFS will market the combined solution globally through its branches and distributors.

"Pivotal is pleased to announce an agreement to provide IFS with the innovative Pivotal eRelationship 2000 solution for integration and distribution with IFS's ERP solutions," said Norm Francis, president and CEO of Pivotal. "The fusion of sell-side eBusiness with the back-office is a critical step in eBusiness technology that companies around the world are demanding. The integration of Pivotal eRelationship 2000 with IFS's applications will provide a powerful, yet cost-effective end-to-end eBusiness solution."

According to Bengt Nilsson, President & CEO, IFS AB, "Pivotal and IFS are a powerful combination that will provide the industry's most compelling eBusiness relationship management and back-office technology in a single, unified solution. IFS has selected Pivotal as a premier partner to leverage the award-winning IFS Application 2000 Suite and the award-winning Pivotal eRelationship 2000 product suite for eSelling, eMarketing and eService. IFS benefits by gaining access to Pivotal's solutions while taking advantage of Pivotal's eCommerce expertise to continue rapid development of these products. Pivotal's critical sell-side eBusiness capabilities are an ideal complement to our existing suite of back-office solutions. In addition, this opens up an exciting new migration path for our Exactium and IFS customers and prospects."

Working together, Pivotal and IFS will enable companies to move step-by-step from their present operations to a digital economy business model that integrates the Internet and traditional business channels. IFS applications include Web-based ERP components, connectivity to other ERP solutions, and collaboration with process control systems with a variety of eCommerce engines. IFS applications offer more than 50 functional business components for improving business processes in large and mid-sized companies.

According to Terje Vangbo, president, IFS-North America, "IFS's agreement with Pivotal provides our existing customers and prospects with a solid commitment to continued technology innovation. IFS will continue to support and help our customers as part of our 'eVolve' initiative to move into the world of eCommerce. Pivotal will apply its expertise in sell-side eBusiness to further enhance Exactium's eSelling technology. We are pleased to offer Pivotal solutions to the market in tandem with our existing eBusiness solutions."

Conference Call for the Investment Community:

Pivotal will host a conference call to discuss this announcement at 11:00 am PDT (2:00 pm EDT) on Wednesday, April 12, 2000. Please access the call a few minutes prior to the start time to ensure you are on the line when the call begins. To access the call, please note the following information:

Date: Wednesday, April 12, 2000
Start Time: 11:00 am PDT (2:00 pm EDT)
Within the U.S. or Canada: 1-800-628-7190
Outside the U.S. or Canada: 1-706-634-5511
Ask for conference call name: Pivotal Corporation Conference Call

The conference call will be available for replay for 48 hours after the announcement. For callers within the U.S. or Canada, the replay number is 1-800-642-1687. For callers outside the U.S. or Canada, the replay number is 706-645-9291. The replay pass code for all callers is 185939.

If you have any questions or would like a copy of the release, please call 604-988.9982 and ask for investor relations or email: investor-relations@pivotal.com.

About IFS

Industrial & Financial Systems, IFS AB, develops and supplies business applications that span the entire demand and supply chain. The company's approach to e-business allows customers to move step-by-step from their present operations to a solid e-business strategy that seamlessly integrates web storefronts, front office applications and back office operations right down to the shop floor.

The IFS business concept is to increase a company's freedom of action and competitiveness by offering integrated solutions consisting of standardized business components. IFS uses proven, third-generation component technology and it is, therefore, easy to add a wide variety of new e-business or ERP capabilities.

IFS applications include Web-based ERP components, Internet storefronts, customer relationship management (CRM) applications, connectivity to other ERP solutions, and collaboration with process control systems with a variety of e-commerce engines. IFS applications offer over 50 functional business components for improving business processes in medium-to-large size companies.

IFS is the fastest-growing among major vendors of enterprise applications in the world. The company has 3,200 employees with products sold in 38 countries through 57 offices around the world.

Pivotal Corporation, The eBusiness Relationship Company, enables organizations, globally, to increase revenue and improve customer loyalty by providing highly scalable, Microsoft-based Internet solutions for managing relationships between customers, employees, and business partners. Pivotal's eRelationship 2000 solution provides integrated applications for eSelling, eMarketing, eCommerce, and eService, and an industrial-strength Internet platform for building and deploying personalized, intelligent Web sites for customers and business partners integrated with context-sensitive Web portals for front-office employees. Pivotal solutions are designed for Web, wireless and hosted deployment, and are provided on a flexible license, lease, or subscription basis to support a wide variety of business models.

Pivotal solutions are sold in 34 countries and available in English, French, German, Spanish, Portuguese, Swedish, Japanese and Chinese. Pivotal's worldwide customer base includes more than 800 organizations in traditional, commercial and public market sectors and the new digital economy, including KPMG, CornerDrugstore.com, Ericsson, Medpool.com, Nissan Motor Corp., HarperCollins Publishing, Deutsche Bank, Trader.com, Southern Company, Lucent Technologies, NEC, Deloitte & Touche, Principal Financial Group and Red Cross Australia.

Pivotal is a public company traded on the NASDAQ under the symbol "PVTL" and can be found on the Web at http://www.pivotal.com.

This press release contains forward-looking statements including statements about the integration of Pivotal products with the IFS solution, and the ability of IFS customers to successfully deploy and utilize the integrated products. These statements are based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements based upon a number of factors including the possibility of technical difficulties or delay in the integration of the products; the continued commitment of IFS to the deployment of the integrated solution, the risks involved in developing software solutions and integrating them with third-party software and services and the manner and timing of deployment and performance of the combined solution once deployed by IFS customers. Forward-looking statements are based on management's estimates, beliefs and opinions on the date the statements are made. Pivotal assumes no obligation to update forward-looking statements if circumstances or management's estimates, beliefs or opinions should change. Jacqueline Voci
Tel: 425.897.6992
Fax: 425.897.8401
Email: jvoci@pivotal.com