Pivotal and Alcatel eBusiness Distribution GmbH Sign Strategic Business Development Agreement

Industry leaders join forces to deliver Pivotal Demand Chain Network solutions to German enterprises

Mainz, Germany, July 11, 2001 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT) today announced the signing of a strategic business development agreement with Alcatel eBusiness Distribution GmbH, the German subsidiary of Alcatel. The companies will jointly market and sell the Pivotal Demand Chain Network solution suite to mid-size and large enterprise companies across Germany. This alliance establishes a heightened presence for Pivotal in the German market and provides Alcatel with a go-to-market partner for customer relationship management (CRM) and eBusiness solutions.

“There are tremendous market opportunities in Germany to deliver fast-to-implement solutions that merge CRM and eBusiness,” said Martin Stirm, director of sales and marketing, Alcatel eBusiness Distribution GmbH. “For German companies, speed-of-deployment, ease of customization, integration with legacy systems and lower total-cost-of-ownership are driving factors in technology decision-making. Working together, we are offering these companies, low-risk demand chain management solutions that quickly impact revenue and business efficiencies by streamlining sales, marketing and service processes.”

As part of the agreement, Alcatel eBusiness Distribution has created a Pivotal practice team consisting of sales professionals, senior executives and consultants. These professionals will be trained on the Pivotal solution suite and will collaborate closely with Pivotal corporate and field executives to deliver the Pivotal Demand Chain Network solution suite to the German market.

According to Harald Krohmer, country manager, Pivotal Germany, “German enterprises are selecting the Pivotal solution suite to unify all the people, processes, activities and touch-points that go into making, serving and managing customers. Alcatel is an industry leader that brings deep expertise in eBusiness, CRM and multi-channel contact center solutions. Leveraging Alcatel’s expertise, Pivotal will empower German companies with results-driven strategies that drive revenue generation and customer retention.”

The Pivotal Demand Chain Network solution suite is a set of advanced technologies for demand chain management. It allows companies to extend their enterprises to tightly incorporate partners into all demand chain processes to create a seamless customer experience. The solution suite leverages all Internet, traditional and wireless communication channels to create a dynamic business infrastructure that allows companies to respond to customer and market demands quickly and effectively.

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.

About Alcatel eBusiness Distribution GmbH

Alcatel eBusiness Distribution, a subsidiary of Alcatel, is the European leading integrator of eBusiness communication. In Germany, Alcatel eBusiness Distribution GmbH offers an extensive range of solutions and services for converged voice and data infrastructure, customer relationship management solutions and e-learning applications to more than 60.000 customers. The company employs 1.600 sales representatives, consultants, project and service engineers in 7 sales regions. 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. Leslie Castellani
Pivotal Corporation
Tel: 604/699-8151
Email: lcastellani@pivotal.com