Leading South-Pacific Hotel Chain Improves Franchise Management with Pivotal

Flag Choice Hotels manages franchisees and customers using Pivotal


Vancouver, B.C., January 13, 2004 — Pivotal Corporation (Nasdaq: PVTL; TSX: PVT), a leading provider of customer relationship management (CRM) software for mid-sized enterprises, today announced that Flag Choice Hotels, a South-Pacific accommodation franchiser, is using Pivotal to manage its franchisees and customers. Using Pivotal, Flag Choice has improved franchise management effectiveness, enhanced service to franchisees, increased marketing effectiveness, and significantly increased its business reporting capabilities.

From its headquarters in Melbourne Australia, Flag Choice Hotels provides ongoing sales and marketing support for a network of more than 350 franchised accommodation properties throughout the South Pacific. Flag Choice recognized that the key factor in successfully managing these diverse properties was the wealth of franchisee and customer information contained in the company’s numerous separate systems. With increasing market competition, a wide variety of accommodations, and responsibility for supporting a world-wide reservation system, Flag Choice needed to centralize systems and gain a comprehensive view of its franchisees and their customers. To address this requirement, Flag Choice selected Pivotal for its flexibility and potential for quick, real-time integration with legacy systems including Flag Choice’s global reservation system.

“We required the ability to capture, process and analyze incoming and legacy data to make intelligent decisions about guest relations, marketing and portfolio positioning,” said David Blackman, IT Manager, Flag Choice Hotels. “Right from the beginning Pivotal struck us as being a flexible solution that would grow and develop with us at our pace. Our business is extremely complex and we have a layered approach to dealing with our various markets and to reporting on them. We’ve doubled the number of Pivotal users since our original deployment and Pivotal is more widely used than originally envisioned - effectively becoming an indispensable tool for Flag Choice's day-to-day operations.”

Since implementing the Pivotal system and integrating with existing systems such as Flag Choice’s financial package, the company has greatly improved the information Flag Choice management has to make decisions. Today, Pivotal CRM coupled with Flag Choice’s reservation and financial systems provides instant access to complete historical information on every franchise property and its customers. Equipped with accurate customer histories and data, Flag choice is now in a better position to identify successful franchisees and potential growth areas while understanding and capitalizing on shifting market trends.

“The hospitality and tourism market is growing increasingly competitive and franchisors must demonstrate superior service and support in order to attract new investors, expand business opportunities, and enhance the relationships that franchisees have with their customers,” said Bo Manning, president and CEO, Pivotal. “Flag Choice Hotels is a great example of an accommodation franchisor that is demonstrating its commitment to service excellence and franchisee support by investing in CRM in a smart, manageable way.”

About Flag Choice Hotels
Flag Choice Hotels ( www.flagchoice.com.au) representing Comfort Inn, Quality, Clarion and Flag offers more than 330 hotels, inns, suites, resorts and apartments located across Australia, New Zealand, Papua New Guinea, Fiji, American Samoa and Singapore. Flag Choice is a wholly-owned subsidiary of Choice Hotels International which has more 5000 hotels in 46 countries around the globe.

Pivotal Corporation is the only CRM company that is 100 percent purpose-built to serve the demanding requirements of mid-sized enterprises – a powerful, highly flexible application platform, a complete set of CRM applications, and low-cost, results-producing implementation services. 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 1,600 companies around the world have licensed Pivotal including: CIBC, Centex Homes, Farm Credit Services of America, HarperCollins Publishers, Hitachi Telecom Inc., Palm, Inc., Pharmacia Corporation, Premera Blue Cross, Royal Bank of Canada, Sharp Electronics Corporation, Southern Company, Vivendi and WebEx Communications.

Pivotal's complete CRM software suite includes a powerful application platform and 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 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
Tel: 604/699-8151
Email: lcastellani@pivotal.com