Pivotal Acquires Simba Digital Conversations

Pivotal extends eBusiness capabilities with unique analytics technology


Vancouver, Canada, May 31, 2000 — Pivotal Corporation (Nasdaq: PVTL), The eBusiness Relationship Company, today announced the signing of a definitive agreement to acquire 100 percent of the common shares of Simba Digital Conversations (www.digitalconversations.com), a division of Simba Technologies Inc. Combined with Pivotal's award-winning Pivotal eRelationship 2000 solution, Simba's Digital Conversations™ technology will improve the way business relationships are conducted over the Internet.

Simba Digital Conversations is a privately-held, leading developer of eMarketing analytics solutions that empower companies with deep insight into the interests and needs of Internet customers. Together with Pivotal, the company will drive a new generation of business-to-business Web sites. The Simba Digital Conversation's technology aggregates and analyzes all Internet customer interactions into a meaningful "digital conversation". This technology will be available on a stand-alone basis and integrated with the Pivotal eRelationship 2000 and Pivotal eSelling 2000 product suites.

Under the terms of the definitive agreement, Pivotal will issue approximately 550,000 shares of common stock to the holders of securities of Simba Digital Conversations. The transaction will be accounted for as a purchase. The acquisition is subject to customary closing conditions, including regulatory approvals and the approval of Simba Digital Conversation's shareholders.

"Pivotal and Simba Digital Conversations are re-engineering marketing, selling and servicing processes by enabling companies to aggregate and analyze 'digital conversations' that take place with customers," said Norm Francis, president and CEO, Pivotal Corporation. "Until today, companies have had to rely on static, structured, time-insensitive analysis to attempt to understand the needs of their customers. Now, companies will be able to access real-time, dynamic, flexible data that will reveal the subtleties of business relationships and provide an instantaneous view into the preferences and behaviors of prospects and customers."

The Digital Conversations technology enables companies to transform multiple Internet activities -- such as email messages, Web chat sessions and Web site surfing - into a single, integrated "digital conversation". eMarketing professionals will be able to analyze the data gathered from various Internet channels to get a comprehensive perspective of each customer's preferences, needs and behavior trends. As a result, eMarketers will be able to anticipate buying patterns and tailor eMarketing campaigns to successfully encourage buying decisions.

According to Kirk Herrington, president and CEO, Simba Digital Conversations, "Together, Pivotal and Simba Digital Conversations allow companies to look at the activities conducted through all Internet channels in a new way. We enable marketing professionals to gather rich, meaningful data from Internet activity - unlike other Web-tracking solutions that merely look at Web site traffic and click stream logs. Through the integration of data from all Internet channels, Pivotal and Simba Digital Conversations enable companies to understand the development of eRelationships over time and track the progress of these relationships."

The current generation of corporate Web sites has all but ignored hot prospects and valued customers by requiring them to randomly surf for information, and demonstrating little or no capacity to remember past Internet interactions. eMarketing professionals have had to rely on sketchy information extrapolated from Web traffic and click stream logs which fail to provide the information needed for effective eMarketing, eSelling, and eServicing.

According to Herrington, "After extensive research to discover how companies are using Internet data for eBusiness, we concluded that companies are tracking the wrong data to drive eMarketing, eSelling and eServicing. The Digital Conversations solution was developed in direct response to the obvious need to collect and analyze critical information revealed through digital interactions that drive marketing, selling and servicing processes."

According to Vince Mifsud, CFO and vice-president, operations, Pivotal, "This acquisition represents another advancement in Pivotal's overall growth strategy building on the success we've achieved with the Exactium and Transitif acquisitions. This deal demonstrates our ability to identify best-in-class solutions that increase our momentum in the eBusiness market by rounding out our product offering. We are expanding our solution offering with a product that will be quickly leveraged by our global distribution network and we are simultaneously augmenting our Internet talent. The Simba Digital Conversations team brings industry-leading eMarketing analytics expertise, a strong work ethic and a similar corporate culture."
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 capability of the combined solutions of Pivotal and Simba Digital Conversations to re-engineer the Internet marketing, selling and servicing processes, and the expectation that Pivotal and Simba Digital Conversations' combined products will be able to transform Internet surfers into long-term, loyal eCustomers. 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 due to a number of risks, uncertainties and other factors, such as the need for governmental regulatory approval, unanticipated difficulties in integrating Pivotal's and Simba Digital Conversations' businesses, the possibility of technical difficulties or delay in integrating Simba Digital Conversations' technologies with Pivotal's products, in completing and releasing software solutions incorporating Simba Digital Conversations' technology or future product introductions and improvements, the possibility that competitors will introduce new and improved products and services that are superior to Pivotal's and Simba Digital Conversations' combined products and the need to compete successfully with existing and new products and services offered by competitors. 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
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