Pivotal Completes Second Phase of Strategic Transformation

New CEO announces new organizational structure, appoints new CFO; COO resigns

Vancouver, BC, October 1, 2001 — Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT), the leading provider of cost-effective CRM and eBusiness software, today announced the completion of the second phase of its strategic transformation with the unveiling of a new organizational structure. This new structure follows phase one of the corporate transformation -- the recent appointment of Bo Manning as president and CEO. This new structure increases strategic and operational effectiveness across the company.

Effective immediately seven core business functions report to Bo Manning. These functions include marketing, sales, alliances, professional services, international operations, finance and administration, and research and development. Previously only the offices of the COO and CTO reported to the president and CEO.

“Pivotal’s new organizational structure is a scalable model that synchronizes strategic activities across the company in a new way that allows us to aggressively deliver our products to the market,” said Bo Manning, president and CEO, Pivotal. “Having analyzed our company and our market opportunity, I’ve determined that this is the optimal operational model to ensure efficiency and a smart balance of responsibilities throughout the company.”

As part of this transformation, Divesh Sisodraker has been appointed as the company’s new CFO. Sisodraker’s promotion comes after a successful 18-month term as Pivotal’s vice president of corporate development. Sisodraker, a chartered accountant, has been a critical member of Pivotal’s management team leading key finance and operational projects. Prior to joining Pivotal, he held senior financial roles with KPMG and HSBC Group, one of the largest bank holding corporations in the world. He is a chartered accountant and holds a Bachelor of Business Administration with honors in finance and accounting from Simon Fraser University.

According to Manning, “Divesh has the financial expertise, business acumen and demonstrated management capabilities that Pivotal requires to achieve growth and profitability within a disciplined financial model. Sisodraker’s proven commitment to Pivotal and financial leadership will allow us to quickly expand our global business.”

Former COO Vincent Mifsud has decided to leave the company to spend more time with his family and to pursue other interests.
Pivotal Corporation enables large and medium-sized businesses worldwide to make, serve, and manage customers with superior speed and efficiency by providing CRM and eBusiness solutions that deliver personalized customer experiences across every touch point in real-time. The Pivotal 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 the newest industry 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 1300 organizations including, Hewlett Packard, CIBC, Goldman Sachs, HarperCollins Publishers, Hitachi Telecom Inc., Intrawest Corporation, Vivendi, Royal Bank of Canada, Southern Company, and Ziff Davis Media Inc.

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