Pivotal Achieves Leader Placement on Mid-Enterprise CRM Quadrant

Pivotal succeeds in the fastest growing segment of CRM


Vancouver, BC, February 28, 2002 — Pivotal Corporation (Nasdaq: PVTL; TSE: PVT), the leading provider of sensible customer relationship management (CRM) software, achieved leader placement on Gartner’s quadrant for mid-enterprise CRM, according to Gartner, Inc.’s latest mid-enterprise magic quadrant research*. Pivotal’s quadrant placement is the latest confirmation of the market momentum the company is achieving in the industry with its new corporate strategy, advanced software and innovative selling model.

Gartner conducted a rigorous evaluation of each mid-enterprise CRM vendor’s vision and ability to execute. Pivotal achieved leader placement on the 'Gartner Magic Quadrant for North American CRM Suites for Mid-Enterprise Businesses'.

“Pivotal targets the high-end of the mid-enterprise and the low-end of the enterprise markets,” according to the recent Gartner report authored by Joe Outlaw.

Pivotal’s market momentum is due in part to a significant technology partnership and go-to-market initiative with Microsoft Corp (Nasdaq: MSFT). According to Martin Hooper, Microsoft's Director for Worldwide Strategic ISV Partners, “Pivotal's success in the mid-enterprise CRM market is due in part to its ability to leverage the Microsoft .NET platform to help companies increase customer loyalty and revenues. Microsoft's long-standing relationship with Pivotal, and Pivotal’s ongoing commitment to our .NET platform, will continue to provide a compelling CRM value proposition.”

According to Bo Manning, president and CEO, Pivotal, “Pivotal’s success is driven by our focus on mid-enterprises and their unique needs and buying style. This is the fastest growing market for CRM - there are more than 45,000 organizations globally that fit into this segment. These companies are making buying decisions based on proof and value, not brand alone.”

A recent Gartner Dataquest report found that, “…the sharpest increase in CRM deployments will occur in companies with revenue ranging from $500 million to $1 billion.”**

Pivotal’s success in the market stems from its understanding and foresight of what is needed by mid-enterprises. Pivotal offers customers the opportunity to conduct thorough technology evaluations, ‘test-drive’ its CRM software, and implement the software in results-driven, manageable phases.

According to Manning, this unique strategy has been very well received. “CRM buyers in our market need clear, tangible proof that a technology is right for their business. They can’t afford to take risks with their technology decisions. Pivotal has reduced the inherent risk of embarking on a new technology strategy by allowing buyers to conduct careful technical evaluations and test how the software will work with their users, in their business environment.”

* The Magic Quadrant is copyrighted February 2002, by Gartner, Inc. and is reused with permission. Gartner’s permission to print or reference its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner’s opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the Leaders segment. In some situations, firms in the Visionary, Challenger, or Niche Player segments may be the right match for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources and the reader should not rely solely on the Magic Quadrant for decision-making. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

** Gartner Dataquest "The User Demand Handbook for CRM, E-Commerce, ERP, Procurement and Supply Chain Management",D. Sinha, January 2002.

Pivotal Corporation offers clear, complete and sensible Customer Relationship Management (CRM) software that delivers results for a fraction of the cost of typical CRM software. Pivotal’s customers are companies and business units in the revenue range of $100 million to $3 billion. Pivotal and its partners provide the software, services, and support required to produce significant improvements in marketing, sales, and service effectiveness for mid-enterprise companies. More than 1,400 companies globally use Pivotal including: Hewlett Packard, CIBC, HarperCollins Publishers, Hitachi Telecom Inc., Intrawest Corporation, Vivendi, Royal Bank of Canada, Southern Company, and Ziff Davis Media Inc.

Pivotal's advanced software technology includes powerful capabilities in: CRM, Internet commerce, interactive selling, partner management, corporate portals, and wireless technologies. For more information visit http://www.pivotal.com
This press release contains 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 a number of risks, uncertainties and other factors, such as the need to develop, integrate and deploy applications to meet our customer's requirements, the possibility of development or deployment difficulties or delays, the dependence on our customer's satisfaction with Pivotal’s CRM software, its continued commitment to the deployment of the solution, the risks involved in developing software solutions and integrating them with third-party software and services, the possibility that competitors will introduce new and improved products and services and the need to compete successfully with existing and new products and services offered by competitors. 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