Pivotal and Interpath Expand Agreement for Hosted Demand Chain Management Market

Companies target Global 1000 and mid-enterprise companies

Kirkland, WA and Research Triangle Park, NC, August 7, 2001 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT), and Interpath Communications, Inc., an established, full-service application service provider (ASP), today announced the signing of a multi-year business development agreement. Under the terms of the agreement, Interpath is the preferred ASP provider for the Pivotal Demand Chain Management solution suite in the United States and Australia. Together the companies are targeting Global 1000 and mid-enterprise companies with a cost-effective, fast-to-implement hosted solution that integrates sales, marketing and service processes.

“Companies are demanding cost-effective implementation options that allow them to move forward quickly with a demand chain management strategy that fuses the powers of CRM, PRM and sell-side eCommerce,” said Norm Francis, president and CEO, Pivotal. “Pivotal has teamed up with Interpath to deliver business-impacting solutions that increase productivity, improve business efficiencies and accelerate revenue-generation across the demand chain. Pivotal has chosen Interpath as its preferred ASP partner because of the company’s solid business model and proven history of customer success.”

Hosted applications are gaining in popularity largely because they offer cost-efficiencies that companies require in the current economy. Aberdeen Group projects that worldwide spending on ASPs will grow from $3 billion this year to $16 billion in 2005.

According to Joel Schleicher, chairman and CEO, Interpath, “Interpath and Pivotal have teamed up to fulfill the rapidly growing market for hosted demand chain management solutions. These solutions allow companies to service their customers the way they want to be serviced. Our powerful combination of skills, support, security and market expertise enables companies to invest in demand chain management solutions without the cost of maintaining IT resources internally. As a result, companies can stay focused on their core businesses while increasing productivity, improve efficiencies and enhance customer retention.”

As Pivotal’s preferred ASP partner, Interpath has already created a Pivotal practice team consisting of sales, operations and research and development professionals. This team is extensively trained on the Pivotal solution suite and is working closely with Pivotal to achieve aggressive joint revenue commitments. Customers selecting the joint solution will receive full service and support from Interpath for technical requests, including all hardware and software issues. As part of the next phase of the agreement, Pivotal and Interpath will co-locate sales and technical resources in regional offices, including a joint team located at Interpath’s headquarters.

About Interpath

Interpath is an established, full-service Application Service Provider/Application Infrastructure Service Provider. Through a combination of scalable skills, support, and security, along with financial stability, Interpath enables customers to be secure in the knowledge they can focus on their core competencies.

Interpath partners with customers to offer application development, integration and hosting solutions and services. Interpath's applications expertise, combined with its state-of-the-art data and operations centers, offers customers a single, high-quality source for application development, management and hosting. The company is based in Research Triangle Park, North Carolina and recently launched Interpath Australia Ltd. In August 2000, after the acquisition of Alta, one of Australia's leading ASPs.

In June 2000, Interpath announced that Bain Capital, a global private equity firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with over $12 billion in assets under management, gained majority ownership of the corporation with Progress Energy, Inc. maintaining a minority ownership. For more information about Interpath, visit the company's Web site at: http://www.interpath.net.

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 management solutions that deliver personalized customer experiences across every touch point in real-time. The Pivotal Demand Chain Management solution suite unifies 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