Pivotal Acquires Provider of Healthcare Demand Chain Network Solutions

Acquisition of Project One Business Technologies to support healthcare vertical initiative

Vancouver, Canada, October 5, 2000 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT), today announced the signing of a definitive agreement to acquire Project One Business Technologies Inc., a privately held provider of Internet solutions specifically designed for the healthcare industry.

Pivotal will incorporate Project One's solutions and expertise into a vertical operating unit that will deliver demand chain network solutions for the healthcare industry. Pivotal's healthcare solutions will allow organizations to leverage the power of the Internet to optimize their demand-side business processes and improve customer service.

Under the terms of the agreement, Pivotal has agreed to acquire 100 percent of the issued and outstanding shares of Project One Business Technologies Inc.

"Pivotal is building on its momentum in the healthcare market with the acquisition of Project One," said Norm Francis, president and CEO, Pivotal. "Pivotal will leverage Project One's innovative healthcare solution and team of industry experts to quickly advance its strategy to meet the needs of healthcare organizations. As a market leader in demand chain network solutions, Pivotal's solutions are designed to enable healthcare organizations to accelerate their growth by unifying Internet commerce, CRM, eSelling, and wireless technologies into an environment that builds strong customer relationships."

Using the Pivotal solution, healthcare organizations will leverage the Internet to support healthcare processes and business transactions, and integrate with existing supply-side health management systems. This quick-to-implement solution disseminates high volumes of medical product and service information and supports collaboration across integrated healthcare organizations.

Pivotal has consistently demonstrated success in the healthcare industry with an impressive list of customers including Pfizer, Premera Blue Cross, Blue Cross Blue Shield of Michigan, Red Cross Australia, CornerDrugstore.com, McKesson HBOC Automated Healthcare, and InterQual Products Group.

John McInnes, president, Project One said, "Superior customer relationships are a primary business driver for healthcare organizations - Pivotal and Project One are partnering to address this issue. Working together, Pivotal and Project One will provide healthcare companies with a fast route to building personalized, intelligent customer relationships over the Internet. Project One's technology and healthcare experts will expand Pivotal's presence in the healthcare industry."

According to Vince Mifsud, executive vice president and CFO, Pivotal, "This acquisition is another strong indicator of the momentum Pivotal is experiencing in our overall growth strategy. Once again, we have acquired a complementary piece of technology and domain expertise in a high growth market. Our new dedicated healthcare vertical unit and sales team will focus on providing advanced solutions to meet the challenges of companies in the healthcare industry."

Pivotal Corporation enables large and medium-sized businesses worldwide to make, serve, and manage customers with superior speed and efficiency by providing XML-based demand chain networks that deliver personalized customer experiences across every touch point in real-time. These networks unify Internet commerce, CRM, eSelling, and wireless technologies to manage collaborative relationships between customers, business partners, and employees; guide intelligent commerce transactions across multiple channels; seamlessly integrate the demand chain with the supply chain; and fully exploit Microsoft platform standards.

Pivotal solutions are sold in 35 countries and are available in English, French, German, Spanish, Portuguese, Swedish, Japanese and Chinese. Pivotal's worldwide customer base includes more than 1,000 organizations in traditional, commercial and public market sectors and the new digital economy, including KPMG, Intrawest Corporation, Emerson Electric, US Filter, Ericsson, Nissan Motor Corp., HarperCollins Publishers, Qiagen Inc., Deutsche Bank, Trader.com, Southern Company, Lucent Technologies, Inc., NEC, Deloitte & Touche, Principal Financial Group and Red Cross Australia.

Pivotal is a public company traded on the NASDAQ under the symbol “PVTL” and the Toronto Stock Exchange under the symbol “PVT.” More information can be found on the corporate Web site at http://www.pivotal.com.

This press release contains forward-looking statements including statements about the incorporation of Project One's healthcare solutions into a vertical operating unit of Pivotal and the anticipated capabilities and market acceptance of these newly incorporated healthcare solutions. 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 unanticipated difficulties in integrating Pivotal's and Project One's businesses, the possibility of a decline or leveling in the growth of the Internet markets, the possibility of technical difficulties or delay in future product introductions and improvements, product pricing, the possibility that competitors will introduce new and improved products and services 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