Pivotal Signs Agreement with Cap Gemini Ernst & Young

Leading providers of solutions and consulting services to deliver demand chain solutions on the Microsoft .NET Server platform

Kirkland, WA, July 24, 2001 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT) and Cap Gemini Ernst & Young, one of the largest management and IT consulting firms in the world, today announced an agreement to jointly target the rapidly growing demand chain management market. Demand chain management combines customer relationship management (CRM) and eBusiness technologies to manage a company’s extended enterprise including business partners, customers and employees. The companies are embarking on a strategic initiative to deliver the Pivotal Demand Chain Network solution suite to high growth companies in the U.S. market.

“Companies are demanding fast, comprehensive solutions that immediately impact revenue generation and customer retention,” said Jeff Halden, vice president, High Growth CRM Practice, Cap Gemini Ernst & Young. “Cap Gemini Ernst & Young has selected Pivotal to help meet the market needs of companies that require an agile, highly customizable business infrastructure that allows them to easily adapt to their respective market and customer’s demands. The innovative Pivotal Demand Chain Network solution suite is ideally suited to meet the needs of today’s high growth companies.”

The companies will jointly deliver the Pivotal Demand Chain Network solution suite, leveraging the consulting services of Cap Gemini Ernst & Young. Cap Gemini Ernst & Young will engage a Pivotal practice team consisting of sales professionals, senior executives, practice managers and consultants. These professionals will be trained on the Pivotal solution suite and collaborate closely with the company’s corporate and field executives to deliver the Pivotal Demand Chain Network solution suite to the market.

According to Charles Stevens, vice president of the Enterprise & Partner Group, Microsoft, “The Pivotal-Cap Gemini Ernst & Young agreement represents a significant milestone in Pivotal and Microsoft’s strategy to target the demand chain management market. This winning combination of industry, solutions and services expertise will enable customers to realize tremendous value from Pivotal’s demand chain management solutions running on Microsoft’s family of .NET Enterprise Servers.”

According to Norm Francis, president and CEO, Pivotal, “Cap Gemini Ernst & Young is a dominant force that is working with companies to enable the next generation of mission-critical solutions that accelerate business success and profitable growth. Through this initiative, Pivotal and Cap Gemini Ernst & Young are drawing on our respective expertise to provide companies with compelling, safe, innovative and fast solutions that address the need for speed and usability, a major deficit in many traditional CRM solutions.”

About Cap Gemini Ernst & Young

Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology in the new economy. The organization employs about 60,000 people worldwide and reports global revenues of about 8.5 billion euros (2000 pro forma). More information about individual service lines, offices and research is available at www.cgey.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. Leslie Castellani
Pivotal Corporation
Tel: 604/699-8151
Email: lcastellani@pivotal.com