Mid-Enterprise Market Represents 25% of U.S Sales, 23% of Employment

Economist predicts mid-enterprise market to drive economic growth

Vancouver, BC, August 6, 2002 — The results of a mid-enterprise market study conducted at the Merrick School of Business, University of Baltimore were released today. The study, conducted by economist Dr. Zoltan J. Acs, indicates that the mid-enterprise market segment contributes at least 25 percent to total U.S. sales and represents 23 percent of U.S. employment. It reports that the mid-enterprise segment is poised for growth relative to the large enterprise and small business markets; and that the segment is demanding technology to manage this growth.

The report entitled, “The Mid-Enterprise Market: an Economic Perspective”, is the first study to examine the economic contribution of this market segment. Unlike the Global 1000 and small business markets, the mid-enterprise segment has gone almost entirely unrecognized by the business and academic communities. It has also gone largely underserved by the technology industry which tends to view this market as an afterthought, and rarely produces products and services uniquely designed to meet its specific needs.

“The mid-enterprise market is a vital sector of the economy today,” said Dr. Zoltan J. Acs. “A power shift is occurring in the marketplace, as mid-sized companies demand relevant market research, and technology products and services that directly address their needs. Mid-sized enterprises will rely heavily on information technology to manage their growth and sustain business viability.”

Primary findings of the study include:

· Over the past three years, mid-enterprises report sales growth of 29% and profit growth of 61%.
· The mid-enterprise market has 25% of total sales in the United States.
· The mid-enterprise market has 23% of employment in the United States.
· The mid-enterprise market has 25% of payroll in the United States.

According to Bo Manning, president and CEO of Pivotal Corporation, a customer relationship management (CRM) company that is exclusively focused on the mid-enterprise market, “For years, the CRM industry presumed that mid-enterprise companies would make due with technology and services originally designed for the Global 1000 or small businesses. Now, some CRM vendors are trying to re-brand their existing offerings in an attempt to capitalize on this new market opportunity – and by doing so, they are revealing a complete lack of understanding about the unique business needs and style of this market segment.”

Pivotal is the only CRM vendor 100 percent purpose-built to serve the unique business and technology needs of the mid-enterprise market. The company is laser-focused on understanding the issues faced by mid-sized enterprises and develops its CRM offerings to address these needs.

Pivotal Corporation is the only CRM company that is 100 percent purpose-built to serve the unique requirements of mid-sized enterprises. Pivotal delivers software and services that produce meaningful increases in revenues, margins and customer loyalty for companies and business units in the revenue range of $100 million to $3 billion. More than 1,500 companies around the world use Pivotal including: CIBC, Centex Homes, HarperCollins Publishers, Hitachi Telecom Inc., Premera Blue Cross, Royal Bank of Canada, Southern Company, and Vivendi.

Pivotal's complete CRM software suite includes capabilities in marketing, sales, service, contact centers, partner management and interactive selling. For more information, visit 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, and such other 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