Pivotal Acquires Marketing Automation Provider MarketFirst

Pivotal advances leadership in CRM market for mid-sized enterprises


Vancouver, BC, October 3, 2002 — Pivotal Corporation (Nasdaq: PVTL; TSE: PVT), the leading provider of customer relationship management (CRM) software for mid-sized enterprises, today announced the signing of a definitive agreement to acquire MarketFirst Software Inc. This acquisition marks an important milestone in Pivotal’s strategic plan to provide the mid-enterprise market with a complete, cost-effective CRM suite.

“Mid-sized enterprises are turning to marketing automation as a key application for increasing revenue, margins, and customer loyalty, and decreasing the cost of customer acquisition. MarketFirst brings world-class marketing automation software that extends the Pivotal CRM suite and expands Pivotal’s revenue opportunity with new and existing customers. MarketFirst is a strong technical and cultural match with Pivotal – together we’re a powerful combination for mid-sized enterprises,” said Bo Manning, president and CEO, Pivotal.

MarketFirst is a privately-held company based in Mountain View, California that provides technology to help companies boost brand awareness, execute marketing campaigns, and decrease marketing costs. The company’s customer roster includes companies such as Documentum, Pharmacia and Sharp Electronics. Under the terms of the agreement, Pivotal will issue common shares in exchange for all of the issued and outstanding securities of MarketFirst. The transaction is subject to customary and regulatory closing conditions.

According to Manning, “Mid-sized enterprises are taking a new, more pragmatic marketing approach – the days of massive marketing budgets and vast ad buys are gone. Leading marketing organizations are focused on delivering fast, measurable business results. Mid-sized enterprises are leveraging affordable marketing automation technologies to target well-defined markets with precision. These companies are using marketing automation as part of an overall CRM strategy to steal market share from larger, slower competitors.”

According to David Lambert, president and CEO of MarketFirst, “Pivotal and MarketFirst are a great match for today’s market. Companies want to buy marketing automation as part of a complete CRM suite from a single vendor. The combined Pivotal and MarketFirst products will reduce the cost and complexity of implementing CRM. Together, we can offer our customers best-in-class marketing automation and the ability to implement world-class sales, service, contact center, partner relationship management and interactive selling capabilities.”

Pivotal Corporation is the number one choice for mid-enterprise CRM. The company 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 including statements about the closing of the purchase by Pivotal of all of the shares of MarketFirst, the anticipated ease of integration of Pivotal and MarketFirst, the future exploitation of the marketing automation market due to the combined solutions of MarketFirst and Pivotal, the ability of Pivotal to integrate Pivotal and MarketFirst's products and the continued development, deployment and performance of the Pivotal and MarketFirst products. These statements are based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements due to a number of risks, uncertainties and other factors, including but not limited to such risks as the need for regulatory approval, unanticipated difficulties in integrating Pivotal's and MarketFirst's businesses and products, the possibility of a decline or leveling in the growth of the CRM and marketing automation markets, the possibility of technical difficulties or delay in future product introductions and improvements, product pricing 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. Pivotal undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change. Leslie Castellani
Pivotal Corporation
Tel: 604/699-8151
Email: lcastellani@pivotal.com