Pivotal and Microsoft Sign Agreement to Deliver Joint Financial Services Solutions to European Market

Comprehensive business development agreement includes joint investments in marketing, sales and product development

London, England, July 25, 2001 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT), today announced the signing of an agreement with Microsoft to target the financial services market across Europe, Middle-East and Africa (EMEA). Based on the global goals of the Microsoft-Pivotal business development agreement announced in December 2000, Pivotal and Microsoft are addressing the vast need in financial services for fast-to-implement demand chain management solutions that merge customer relationship management (CRM) with eBusiness.

“We are advancing our global alliance goals with Pivotal to provide financial services companies in EMEA with a solution that empowers them to conduct business and serve customers with greater speed, flexibility and agility,” said Enrico Bonatti, director, Partner Group, Microsoft EMEA. “By combining Pivotal’s powerful technologies and Microsoft .NET enterprise servers, we are enabling financial services companies to adapt quickly to market and customer demands. We are excited to work with an innovative company like Pivotal to target the tremendous market opportunities in EMEA.”

To effectively compete in an industry overwhelmed by rapid consolidation, strict regulations and a redefinition of customer values, financial services companies in EMEA are fine-tuning their customer service strategies, improving enterprise collaboration and streamlining sales, marketing and service processes. Working with leading systems integrators, Pivotal and Microsoft are addressing the vast demand for a solution that enables financial services companies to respond to market and customer demand with speed, intelligence and agility.

According to John O’Hara, executive vice president of EMEA, Pivotal, “Pivotal and Microsoft are driving their leadership in demand chain management to a new level for the financial services industry in EMEA. The Pivotal Demand Chain Network solution suite for finance combined with Microsoft .NET technologies offers companies enterprise scalability, unmatched agility and proven success. Through this agreement, Pivotal and Microsoft are demonstrating a clear commitment to customer success in financial services.”

Pivotal and Microsoft have already achieved joint success in the financial services market in EMEA. According to Peter Froude, head of client administration services, GMO Woolley -- a joint Pivotal-Microsoft customer, “GMO Woolley is using the Pivotal solution suite to apply a consistent, quality driven approach to the management of client service for our worldwide customers. The Pivotal solution suite is fast-to-deploy and will enable GMO Woolley to deliver the high standard of personalized service that our customers expect.”

As part of the alliance, Pivotal and Microsoft have initiated extensive sales, marketing and services activities specific to financial services. The companies are participating in joint marketing activities including advertising, lead generation and joint participation at industry events. Microsoft sales and service professionals, trained on the Pivotal Finance Demand Chain Network solution suite, will collaborate with Pivotal professionals in sales engagements.

The Pivotal Demand Chain Network solution suite for finance, based on the Microsoft .NET platform fuses CRM and eBusiness to synchronize all the people, processes and touch-points that contribute to making and servicing customers. It enables financial services companies to extend their enterprises to tightly incorporate partners into demand chain processes in order to create a seamless customer experience. By leveraging all Internet and traditional communication channels, it creates a dynamic business infrastructure that allows financial services companies to respond to customer and market demand 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. 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 and/or market changes in the industry; the ability to maintain and grow successful third party and customer 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