FLAG Telecom Selects Pivotal CRM Solution for Expanded Worldwide Sales Force

Pivotal eRelationship CRM solution suite adopted by leading UK-based telecommunications provider

London, UK, March 6, 2001 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT) today announced that FLAG Telecom, a leading independent global carrier, has selected the Microsoft-based Pivotal eRelationship CRM solution suite for its robust functionality, scalability and agile customization tools which are critical to FLAG's strategy to expand rapid business growth and improve global account management.

FLAG Telecom was founded in 1990 to provide a global high-bandwidth service using fiber optic cable technology. The company selected the Pivotal eRelationship CRM solution suite to assist in the global mobile deployment of its sales of long-distance high-bandwidth capacity to other telecoms operators. The use of customer relationship management (CRM) to support this process is a new venture for FLAG Telecom and is necessary to meet the rapid expansion expected with the completion of its global network. CRM is a critical component of demand chain management, an emerging market in which Pivotal is a leader.

"We selected Pivotal because of its ability to meet our three key sales criteria - flexibility, speed of deployment and improved global account management," Mehrdad Mansourpour, CIO, FLAG Telecom. "The Pivotal CRM solution suite will allow us to adapt our worldwide business to meet changing market demands and implement an increased range of products and services. In addition, the first phase of deployment is due to take just three months - this speed is a major benefit in the rapidly evolving telecoms marketplace."

Deployment has begun in the UK and will be rolled-out across FLAG Telecom's worldwide territories over the next few months. An important factor in the decision was the strong relationship between Pivotal and Microsoft, a relationship that gave FLAG Telecom the confidence that Pivotal provides a global business infrastructure optimized for a world leading technology.

According to Kevin McDaniel, partner business development manager, Microsoft, "The major strength of the Microsoft and Pivotal alliance, and the differentiator for companies such as FLAG Telecom, is the agility that the companies jointly offer to businesses. The combination of the flexible Microsoft platform and Pivotal's advanced solutions means that companies can adapt to meet changing market needs and trends at short notice with very little impact on their underlying systems."

Another consideration for FLAG Telecom when choosing its CRM solution was the need to provide its sales force with more structured information systems in order to improve the effectiveness of global sales, particularly in major accounts. Pivotal was selected over the competition because it offered a flexible and agile solution, capable of supporting a major global enterprise.

According to Norm Francis, president and CEO, Pivotal, "FLAG Telecom is an excellent example of a company that has selected Pivotal to swiftly deploy customer relationship management solutions across its global operation. The Pivotal eRelationship CRM solution suite will quickly impact revenue generation and improve customer retention at FLAG Telecom by improving collaboration with its key customers."

The Pivotal eRelationship CRM solution suite is a state-of-the art customer relationship management solution that allows companies to increase revenue generation and customer retention by synchronizing market, sales, and customer service activities over the Internet.

About FLAG Telecom
FLAG Telecom (LSE: FTL) is a leading independent global carriers' carrier providing an innovative range of products and services to the international carrier community, Application Service Providers (ASPs) and Internet Service Providers (ISPs) across a global network platform optimized to support the next generation of IP over optical data networks. Network Services is a growing part of the FLAG Telecom business portfolio and is expected to generate recurring revenues for the company. Its enhanced range of products and services enables companies across the globe to innovate and thrive in the new e*economy.

FLAG Telecom has established IP gateways in San Francisco, New York, London, Tokyo, Madrid and Cairo. Additional POPs are located in Hong Kong and Seoul and Singapore is expected to be added to the network shortly. Principal shareholders are: Verizon Communications (NYSE:VZ) (formerly Bell Atlantic and GTE) (USA) and Dallah Al Barakah Group (Saudi Arabia). For further information, visit http://www.flagtelecom.com.
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 release contains certain forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that may cause actual results of events to differ materially from those anticipated in our forward-looking statements. Factors that could cause actual results to differ materially include: rapid technological changes in the industry; volatility in the market price of the company's common stock; the company's ability to successfully manage its growth; the ability to maintain and grow successful third party relationships, to improve current products and develop new products, to adequately protect the company's proprietary rights, and other factors as described in the company's SEC filings. Although we believe that the expectations reflected in our forward-looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy or completeness of forward-looking statements. Jacqueline Voci
Tel: 425.897.6992
Fax: 425.897.8401
Email: jvoci@pivotal.com