CORRECTING and REPLACING Pegasystems and Milliman Care Guidelines Announce Joint Alliance to Provide Next Generation Capabilities for Care Management

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PEGASYSTEMS AND MILLIMAN CARE GUIDELINES ANNOUNCE JOINT ALLIANCE TO PROVIDE NEXT GENERATION CAPABILITIES FOR CARE MANAGEMENT

Milliman, whose evidence-based clinical guidelines are widely used by major U.S. health plans, works with Pegasystems, the industry leader in BPM, to deliver technologically advanced Care Management

Pegasystems Inc., (NASDAQ: PEGA), the leader in Business Process Management (BPM), and Milliman Care Guidelines, the standard-bearer in evidence-based clinical guidelines, announced a strategic alliance partnership that combines the two companies’ best-in-class offerings for the benefit of healthcare organizations and their members. Pegasystems will offer seamless integration from its Care Management Framework to Milliman’s clinical content. This combination will allow healthcare organizations to utilize industry-leading clinical care expertise with cutting-edge BPM technology and automated best-practice healthcare workflow capabilities to deliver care management services to their member populations. The alliance will enable healthcare organizations to improve the efficiency and quality of patient services through a single, integrated portal.

"To date, there has been no clear leader in the care management space. Many vendors provide clinical content but lack proven solutions on robust technology platforms,” said Joanne Galimi, research vice president at Gartner. "A comprehensive solution that combines standardized clinical strengths with a sophisticated rules-based workflow solution will be a great addition to the care management market for healthcare insurers.”

Seamless integration will be provided through Pegasystems’ Care Management Framework solution to CareWebQI^®; software that provides interactive access to evidence-based clinical content of the Milliman Care Guidelines^®. These annually updated guideline products include Ambulatory Care, Inpatient and Surgical Care, General Recovery Guidelines, Recovery Facility Care, Home Care, Chronic Care Guidelines and Behavioral Health Guidelines, enabling case workers to support appropriate clinical decisions with evidence-based medicine across the continuum of care. Packaged integration capabilities are expected to be available in early 2009.

"After evaluating Pegasystems’ Care Management Framework, we were impressed by the company’s technology and unique breadth of experience in providing workflow process management solutions across the healthcare enterprise,” said Scott Harris, Milliman Care Guidelines Senior Vice President of Sales and Marketing. "Our working relationship will make the Care Guidelines more actionable to healthcare providers across the continuum of care, and further extends our commitment to ensure best-practices and standards of excellence in healthcare.”

"Care Management is being recognized as a critical capability to improve member health while simultaneously reducing the cost of service. This area has been underserved by technology for too long, and the impressive response to our Care Management Framework shows that the market is ready for comprehensive technology solutions,” said Elizabeth Hart, Senior Director, Healthcare Solutions for Pegasystems. "By joining forces with Milliman Care Guidelines, we are now able to meet the totality of our customers’ needs – technical as well as clinical. Adding robust integration to clinical content through Pegasystems’ rules-based BPM engine is an important step towards fully automating processes while ensuring the right care is given when and where it is needed.”

About Pegasystems’ Care Management Framework (CMF)

Built on Pegasystems’ industry-leading SmartBPM® platform, CMF is a patient-centric business process management solution that automates the creation and on-going improvement of personalized care management programs. By unifying disease management, case management, and utilization management across the healthcare enterprise, CMF gives care professionals the ability to provide whole person care and also collaborate in real-time with the entire patient-network. CMF can also reduce overall care management complexity, cut utilization costs, and reduce cost of care management program development by 40-60 percent. These efficiencies are especially needed now as the healthcare system faces a tidal wave of aging baby boomers, more likely to demand and respond well to proactive care programs.

Pegasystems’ healthcare solutions are widely-used by major healthcare organizations including three of the top five US health plans and more than 50 percent of the Blues network, representing over 100 million covered lives. To find out more about Pegasystems’ healthcare offerings visit www.pega.com/industries/healthcare.

About Milliman Care Guidelines

Milliman Care Guidelines is located in Seattle, and independently develops and produces evidence-based clinical guidelines and a variety of software options that are used by more than 1,000 clients, including seven of the country’s eight largest health plans, to support the care of nearly two-thirds of US health plan members. Covering the continuum of care, the seven-product Care Guidelines series is updated annually by an experienced team of clinicians. For more information, visit www.careguidelines.com.

Milliman Care Guidelines LLC is a wholly owned subsidiary of Milliman, Inc. Milliman is among the world’s largest independent actuarial and consulting firms. Founded in Seattle in 1947 as Milliman & Robertson, the company currently has 48 offices in key locations worldwide. Milliman employs over two thousand people, with a professional staff of more than a thousand qualified consultants and actuaries, including specialists ranging from clinicians to economists. The firm has consulting practices in healthcare, employee benefits, property & casualty insurance, life insurance and financial services. Milliman serves the full spectrum of business, financial, government, union, education and nonprofit organizations. For further information, visit www.milliman.com.

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^® 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.

All trademarks are the property of their respective owners.

The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.