Highlights / Key Facts:

--  Rules-based process automation - Reduces processing time by
automating activities such as chargeback and retrieval code validation,
duplicate checks, timeliness validation, as well as automatic write-off of
merchant liability.
--  End-to-end case management - Ensures timely completion of
processing activities in line with guidelines dictated by card
associations, local governments, and corporate policies.
--  Merchant Portal - Provides an online, Web-based portal where
merchants can check status of disputes and respond to acquirer requests for
information about the dispute.
--  Intent-led Dispute Resolution Advisor - An intuitive,
intent-driven, review portal which advises the case manager on appropriate
resolutions based on intelligence around association rules and other
corporate policies.
--  Built-in internationalization capabilities - Enables the
deployment of a single, global platform with regional specializations,
including compliance rules, multi-language user screens, tailored
correspondence, and multiple card schemes.
--  Packaged components built to be customized and extended -
Delivers industry best practices and accelerates delivery time.
--  Documentation Generator - Automatically generates correspondence
to merchants and card associations as necessary throughout the resolution
process.
--  Accounting Module - Automatically manages sub-ledger accounting
throughout the dispute process.

Supporting Quotes:

Tony Young, Director of Financial Services Industry Solutions at Pegasystems:

"Over the past 23 years, Pegasystems has been providing significant value to the leading card issuers in the world, helping them to automate processes and manage the customer experience across product and regional differences. During that time, acquirers have leveraged the flexibility of the SmartBPM suite and Smart Dispute framework to meet their needs. We are thrilled to announce that we now have a solution specifically developed for acquirers, enabling faster time-to-market and improved operational efficiency."

RSS Feeds for Pegasystems Press Releases, Pegasystems Media Coverage, Pegasystems Webcasts, and Pegasystems Events

About Pegasystems Pegasystems, the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM(R) suite to improve customer service, reach new markets and boost operational effectiveness.

Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering business people and IT staff to Build for Change, deliver value quickly and outperform their competitors.

Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.

Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia. Visit us at www.pega.com.

All trademarks are the property of their respective owners.

Media Contacts:

Brian Callahan
Pegasystems
Email Contact
(617) 866-6364
Twitter: @pegasystems

Erica Burns
PAN Communications
Email Contact
(978) 474-1900

SOURCE: Pegasystems Inc.

http://www2.marketwire.com/mw/emailprcntct?id=5A683177F2C9A2E7
http://www2.marketwire.com/mw/emailprcntct?id=6E449F53E204976C

"Sword FircoSoft typically generates thousands of sanctions alerts each day, which are passed on to Pegasystems who provide the case management around those alerts," says Reetu Khosla, director of financial crime solutions, Pegasystems. "By managing the process in this way, we're able to build efficiency and control into the case management process, enhance the internal control and ensure compliance."

The agreement is designed to allow financial institutions the ability to integrate the alerts in a central rules driven financial crime management solution adhering to rigorous compliance and regulatory scrutiny, all in a timely manner for their customers.

John Nash, Alliance Manager of Sword FircoSoft says: "This agreement now allows us together to provide an end-to-end solution for a holistic sanctions alert programme, we're delighted at the possibilities that this will bring for the future."

About Pegasystems

Pegasystems (NASDAQ: PEGA), the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organisations. Customers use our award-winning SmartBPM suite to improve customer service, reach new markets and boost operational effectiveness. Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change , deliver value quickly and outperform their competitors.

Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries. Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia. Visit us at www.pega.com.

About Sword FircoSoft

Over 335 financial institutions in more than 55 countries (representing over 650 sites) are already benefiting from the #1 watch list filtering solution* provided by Sword FircoSoft.

Sword FircoSoft, provider of multi-alphabet ready filtering solutions, also offers best-in-class straight through processing and business intelligence solutions.

For more information about the advantages that Sword FircoSoft can offer your organisation, please visit www.sword-fircosoft.com.

* ranking by Celent since 2003

About Sword Group

Sword Group (NYSE Euronext: FR0004180578 SWP) delivers high value business applications to organizations across regulated industries. A global leader in the delivery of Governance, Risk and Compliance Management solutions, Sword's skills, infrastructure and experience help our customers improve performance, increase efficiencies and maximize return on investment.

Our flexible delivery options, including On Demand, Software as a Service (SaaS) and ASP, combined with our extensive industry expertise enables Sword to support our customers across insurance, healthcare, energy, banking & finance, telecoms, utilities, engineering & construction and government.

With operations in 37 countries, Sword today employs over 2000 people and in 2007 generated EUR179m in consolidated revenue. For more information, please visitwww.sword-group.com

CONTACT: Katy Brooks, Media & Analyst Relations Specialist, The Whiteoaks Consultancy Ltd Tel: +44 (0)1252 727 313 ext 217 Fax: +44 (0)1252 727 314 e-mail: katyb@whiteoaks.co.uk WWW: http://www.whiteoaks.co.uk

((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

The following table presents selected financial information for the third quarter and first nine months of 2009 and 2008:

                                   Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                     2009      2008      2009      2008
                                   --------- --------- --------- ---------
                                   (In thousands, except per share amounts)
Software license                   $  28,358 $  17,910 $  82,045 $  51,214
Maintenance                           12,489    10,045    36,608    29,027
Professional services                 23,974    24,743    72,413    72,054
                                   --------- --------- --------- ---------
Total revenue                      $  64,821 $  52,698 $ 191,066 $ 152,295
Gross profit                       $  40,761 $  32,142 $ 124,883 $  91,414
Income from operations             $   7,465 $   3,441 $  31,630 $   8,191
Net income                         $   6,001 $   2,351 $  25,884 $   8,147
                                   ========= ========= ========= =========
Earnings per share, basic          $    0.16 $    0.06 $    0.72 $    0.23
                                   ========= ========= ========= =========
Earnings per share, diluted        $    0.16 $    0.06 $    0.68 $    0.22
                                   ========= ========= ========= =========

Business Perspective

"Our 60% license revenue growth for the first nine months of 2009 was driven by the rapid benefits our clients are achieving in automating their customer acquisition, service, case management, and customer experience processes," said Alan Trefler, Chairman and CEO of Pegasystems. "Our ongoing investment in Build for Change(R) technology and industry frameworks continues to add capabilities that deliver pragmatic returns for clients in only a few months, an advantage in today's economic environment."

"Clients tell us that Pega's unique ability to directly capture business objectives into our software enables highly efficient collaboration between business and IT that yields exceptional quality, speed to market and continuous improvement of business processes. We are seeing increased investment and commitment from our alliance partners, as they are growing practices to address the increased market adoption of our Build for Change(R) technology in both new and traditional markets," concluded Mr. Trefler.

"In spite of the economy, we increased license signings and backlog," added Craig Dynes, Pegasystems' CFO. "This is the ninth consecutive quarter that we have set new records for quarterly revenue. We expect that in 2010 we will surpass another milestone with revenue in excess of $300 million. This is preliminary guidance that will be refined when we are able to evaluate business conditions at the end of 2009."

Messrs. Trefler and Dynes will be hosting a conference call and live Webcast associated with this announcement at 9:00 a.m. ET on November 4, 2009. Dial-in information is as follows: (866) 882-0470 (domestic) or (703) 639-1476 (international).

To listen to the Webcast log onto www.pega.com at least 5 minutes prior to the event's broadcast and click on the Webcast icon in the Investor Relations section. A replay of the call will also be available on www.pega.com in the Investor Relations section Audio Archives link.

Forward-Looking Statements

Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "project," "expect," "plan," "intend," "believe," "estimate," "target," "forecast," "could" "preliminary" and similar expressions, among others, identify forward-looking statements, which speak only as of the date the statement was made. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include, without limitation, variation in demand and the difficulty in predicting the completion of product acceptance and other factors affecting the timing of our license revenue recognition, the mix of perpetual and term licenses and the level of term license renewals, our ability to develop new products and evolve existing ones, the impact on our business of the recent financial crisis in the global capital markets, the negative global economic trends and the ongoing consolidation in the financial services and healthcare markets, our ability to attract and retain key personnel, reliance on key third party relationships, the potential loss of vendor specific objective evidence for our professional services, and management of the Company's growth. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and other recent filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent the Company's views as of November 3, 2009. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved. Although subsequent events may cause the Company's view to change, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to November 3, 2009.

About Pegasystems

Pegasystems (NASDAQ: PEGA), the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM(R) suite to improve customer service, reach new markets and boost operational effectiveness.

Our patented SmartBPM(R) technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM(R) unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change(R), deliver value quickly and outperform their competitors.

Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.

Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia Pacific. Visit us at www.pega.com.

All trademarks are the property of their respective owners.

                             Pegasystems Inc.
              Unaudited Condensed Consolidated Balance Sheets
                                                    As of         As of
                                                September 30, December 31,
                                                    2009          2008
                                                ------------- -------------
                                                      (in thousands)
Current Assets:
   Cash and cash equivalents                    $      56,419 $      36,087
   Marketable securities                              141,936       131,142
                                                ------------- -------------
        Total cash, cash equivalents, and
         marketable securities                        198,355       167,229
   Trade accounts receivable, net                      27,708        42,801
   Short-term license installments                      2,951         5,445
   Deferred income taxes                                4,338         4,351
   Income taxes receivable and other current
    assets                                             10,729         4,151
                                                ------------- -------------
        Total current assets                          244,081       223,977
Long-term license installments, net                     3,321         5,413
Property and equipment, net                             7,487         5,723
Long-term deferred income taxes and other assets        8,536         8,117
Intangible assets, net                                    372           479
Goodwill                                                2,391         2,141
                                                ------------- -------------
        Total assets                            $     266,188 $     245,850
                                                ============= =============
Current liabilities:
   Accounts payable                             $       5,333 $       4,726
   Accrued expenses                                     6,605         9,925
   Accrued compensation and related expenses           18,123        18,015
   Deferred revenue                                    27,818        32,231
                                                ------------- -------------
        Total current liabilities                      57,879        64,897
Income taxes payable                                    5,274         5,665
Other long-term liabilities                             1,909         2,174
                                                ------------- -------------
        Total liabilities                              65,062        72,736
Stockholders' equity:                                 201,126       173,114
                                                ------------- -------------
        Total liabilities and stockholders'
         equity                                 $     266,188 $     245,850
                                                ============= =============
                             Pegasystems Inc.
          Unaudited Condensed Consolidated Statements of Income
                                    Three Months Ended  Nine Months Ended
                                       September 30,       September 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------- --------  --------- --------
                                   (in thousands, except per share amounts)
Revenue:
  Software license                  $  28,358 $ 17,910  $  82,045 $ 51,214
  Maintenance                          12,489   10,045     36,608   29,027
  Professional services                23,974   24,743     72,413   72,054
                                    --------- --------  --------- --------
    Total Revenue                      64,821   52,698    191,066  152,295
                                    --------- --------  --------- --------
Cost of revenue:
  Cost of software license                 28       30         90       64
  Cost of maintenance                   1,558    1,454      4,452    4,006
  Cost of professional services        22,474   19,072     61,641   56,811
                                    --------- --------  --------- --------
    Total cost of revenue (1)          24,060   20,556     66,183   60,881
                                    --------- --------  --------- --------
Gross Profit                           40,761   32,142    124,883   91,414
                                    --------- --------  --------- --------
Operating expenses:
  Selling and marketing                19,568   15,698     51,663   45,036
  Research and development              9,930    7,936     28,198   22,832
  General and administrative            3,798    5,067     13,392   15,355
                                    --------- --------  --------- --------
    Total operating expenses (1)       33,296   28,701     93,253   83,223
                                    --------- --------  --------- --------
Income from operations                  7,465    3,441     31,630    8,191
Installment receivable interest
 income                                    74       95        224      248
Other interest income, net                721    1,151      2,404    4,104
Foreign currency transaction gain
 (loss)                                   266   (2,010)     2,377   (1,759)
Other income, net                           -       40         17      139
                                    --------- --------  --------- --------
Income before provision for income
 taxes                                  8,526    2,717     36,652   10,923
Provision for income taxes              2,525      366     10,768    2,776
                                    --------- --------  --------- --------
    Net income                      $   6,001 $  2,351  $  25,884 $  8,147
                                    ========= ========  ========= ========
Earnings per share
Basic                               $    0.16 $   0.06  $    0.72 $   0.23
                                    ========= ========  ========= ========
Diluted                             $    0.16 $   0.06  $    0.68 $   0.22
                                    ========= ========  ========= ========
Weighted-average number of common
 shares outstanding
Basic                                  36,462   36,419     36,035   36,201
Diluted                                38,441   38,212     37,955   37,668
Cash dividends declared per share   $    0.03 $   0.03  $    0.09 $   0.09
                                    ========= ========  ========= ========
(1) Includes stock-based
 compensation as follows:
Cost of revenue                     $     250 $    238  $     884 $    703
Operating expenses                  $     715 $    591  $   2,639 $  1,849
                             Pegasystems Inc.
        Unaudited Condensed Consolidated Statements of Cash Flows
                                                        Nine Months Ended
                                                          September 30,
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
                                                          (in thousands)
Operating activities:
    Net income                                          $ 25,884  $  8,147
    Adjustments to reconcile net income to cash
     provided by operating activities:
         Excess tax benefit from stock options and
          deferred income taxes                          (15,310)   (4,046)
         Depreciation, amortization, and other non-cash
          items                                            4,984     2,668
         Stock-based compensation expense                  3,523     2,552
         Change in operating assets and liabilities,
          and other, net                                  19,758    23,550
                                                        --------  --------
    Cash provided by operating activities                 38,839    32,871
                                                        --------  --------
    Cash used in investing activities                    (17,650)  (12,318)
                                                        --------  --------
    Cash used in financing activities                     (2,071)   (5,526)
                                                        --------  --------
Effect of exchange rate on cash and cash equivalents       1,214      (560)
                                                        --------  --------
Net increase in cash and cash equivalents                 20,332    14,467
Cash and cash equivalents, beginning of period            36,087    26,710
                                                        --------  --------
Cash and cash equivalents, end of period                $ 56,419  $ 41,177
                                                        ========  ========

For Information, contact:
Craig Dynes
Chief Financial Officer
617-866-6020
Email Contact

SOURCE: Pegasystems Inc.

http://www2.marketwire.com/mw/emailprcntct?id=43AB2A555140F92F

A replay of the call will also be available on www.pega.com in the Investor Relations section, Audio Archives link.

About Pegasystems Pegasystems (NASDAQ: PEGA), the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM(R) suite to improve customer service, reach new markets and boost operational effectiveness.

Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change(R), deliver value quickly and outperform their competitors.

Pegasystems' suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.

Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia Pacific. Visit us at www.pega.com.

All trademarks are the property of their respective owners.

For more information, contact:
Brian Callahan
Pegasystems Inc.
Email Contact
(617) 866-6364
Twitter: @Pegasystems

Erica Burns
PAN Communications
Email Contact
(978) 474-1900

SOURCE: Pegasystems Inc.

http://www2.marketwire.com/mw/emailprcntct?id=345EC71E3E4C30EA
http://www2.marketwire.com/mw/emailprcntct?id=D764A1B1ED51A6D1