Pivotal Wins Microsoft .Net Server Innovation Award for Contact Center Implementation

Award recognizes Pivotal for its innovative approach to CRM at leading German telecommunications company

Vancouver, BC, July 10, 2002 — Pivotal Corporation (Nasdaq: PVTL; TSE: PVT), the leading provider of sensible customer relationship management (CRM) software for mid-sized enterprises, today announced that the company has won the prestigious Microsoft GmbH .Net Server Innovation Award for ‘Best Industry Solution in Telecommunications’. Pivotal was recognized as the leader in this category for the success of its CRM implementation at Alcatel eBusiness Distribution GmbH -- a contact center deployment for two hundred service agents.

“This award demonstrates Pivotal’s success in providing CRM and contact center technologies for the telecommunications industry,” said Ingo Blunck, general manager, Microsoft Germany. “Pivotal’s CRM technologies combined with Microsoft .NET servers are a powerful choice for companies that want high performance, Web services-enabled CRM technology built on open standards -- making it fast and easy to customize and integrate with other systems.”

Microsoft Germany’s .NET Server Innovation Awards recognize outstanding CRM initiatives that demonstrate excellence using the latest Microsoft technologies. To receive an award, vendors must meet rigorous business and technical criteria, and provide real-life customer solutions. Award submissions require detailed analysis of customer solutions across a range of critical business metrics including business benefits, scalability, ease of adoption, integration with other applications, and technical architecture. Final decisions are based on live presentations before a panel of judges of CRM industry experts and analysts.

Alcatel eBusiness Distribution GmbH is using Pivotal’s CRM software to create a high-efficiency contact center at a sensible cost. Using Pivotal, the company’s two hundred service agents receive up-to-the-minute customer information and account history making it significantly easier for the company to sell, market and provide superior customer service. Agents are using their improved insight into customer needs to identify cross-selling and up-selling opportunities, and to ensure customers get the right technical resources to solve their service issues. As a result, Alcatel is simultaneously improving the customer experience, reducing the cost of customer service, and increasing its revenue opportunities.

According to John O’Hara, executive vice president, EMEA, Pivotal, “Together Pivotal and Microsoft are providing companies with a cost-effective, quick-to-implement contact center offering that delivers fast business results. Pivotal’s contact center offering makes world-class customer service available to mid-sized companies – and mid-sized business units of large companies.”

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

About Microsoft Corporation
Microsoft is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device. Microsoft was founded as a partnership on April 4, 1975, by William H. Gates III and Paul G. Allen, and incorporated on June 25, 1981. Headquartered in Redmond, Wash., the company operates subsidiary offices in more than 60 foreign countries and employs nearly 49,000 people worldwide.

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, and the risks involved in developing software solutions and integrating them with third-party software and services. 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