11 © 2013 Pegasystems Inc.

Pegasystems Inc.

Build for Change®

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Certain statements contained in this presentation may be construed as “forward-looking statements” as defined in the

Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “hope,” “anticipate,” “plan” and similar

expressions identify forward-looking statements, which speak only as of the date the statement was made. The

company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise. 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

volatility of our quarterly operating results, difficulty in predicting the completion of product acceptance and

consequently the timing of our license revenue recognition, the level of term software license renewals, our ability to

develop new products and evolve existing ones, the impact on our business of the ongoing consolidation in the

financial services and healthcare markets, our ability to attract and retain key employees, reliance on certain key third-

party relationships, management of the Company’s growth, and other risks and uncertainties. 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 presentation is contained in the Company’s most recent form 10-K and

other recent filings on file with the Securities and Exchange Commission. 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.

Safe Harbor

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What We Do…

Pega software revolutionizeshow leading organizations optimize the customer experience& automate operations

44

We Serve the World’s Leading Organizations

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LEGACYAPPLICATIONS

SERVICE ORIENTED ARCHITECTURE (SOA)Infrastructure (App Server, Database, etc.)

The Problem We Solve

CHANNELS

SILOS

“Make it easy!”“Meet my needs”“Understand me”Execution GapsArchaic

Development

Chaotic Processes

Ineffective Systems

66

LEGACYAPPLICATIONS

SERVICE ORIENTED ARCHITECTURE (SOA)Infrastructure (App Server, Database, etc.)

SILOS

Execution GapsArchaic

Development

Chaotic Processes

Ineffective SystemsDIRECTLY CAPTURE

OBJECTIVES

1

6R CASE AUTOMATION

3

Anticipatory Retrieval

Adaptive AnalyticsOpen Database

Productivity & Quality Alerts

Model & Simulate

Priority

Cases & Folders

Skill BasedRouting Tailored Interactions

Next Best Action

Multi-Channel

Imaging

Web Services

TelephonySystem-Driven

Processing

Guided Processing

AutomatedTransactions

Business Outcome Architecture

SITUATIONAL LAYER CAKE

2

CHANNELS

77

Pega Solutions Portfolio

Technology Solution

Business Solutions

Horizontal CRM

MarketingAutomation

Sales ForceAutomation

CustomerService

FS HC Ins Comms Energy Public Sector Life Sciences Manufacturing

Pega BPM (PRPC)Unified Development Platform

Rules, Process, UI, Case Management, Reporting,Integration, Mobile, Decisioning

Horizontal Case Management

On Premise or PegaCloud

Exceptions Case Mgmt

ClaimsCase Mgmt

VerticalSolutions

IncidentCase Mgmt

88

Go To Market Model

� Target Accounts in Target Industries

� Land, Expand, Transform

� Strategic SI Partnerships-Pega as Expert Services

� Invest in Enablement-Pega Academy

99

A Great Business

2005 2006 2007 2008 2009 2010 2011 2012 2013

$100$126

$162

$212

$264

$337

$416

$461

*$5108 YEARS OF

REVENUE GROWTH 24% CAGR

* Guidance

1010

First Quarter 2013 Financial Results

1111

Strong Backlog and Balance Sheet

Balance March 31, 2012 $210.4 Balance March 31, 2012 $88.1

Increase 32.9 Increase 92.8

Balance March 31, 2013 $243.3 Balance March 31, 2013 $180.9

Remainder of 2013 55.0$

2014 69.1

2015 52.7

2016 45.8

2017 and beyond 20.7

Total 243.3$

License Backlog

Cash, Cash Equivalents and

Marketable Securities*

* From the Liquidity Section of the Q1 2013 10-Q

1212

Analysts Agree: Pega is THE Leader

PEGAPEGA

LEADER IN CRMBY GARTNER AND FORRESTER

PEGA

PEGA

IN BPMBY GARTNER AND FORRESTER

#1

IN CASE MANAGEMENTBY FORRESTER

#1

PEGA

1313

A Large And Growing Market

BPM for Case Mgmt$18b

BPM for CRM$6b

Pure Play BPM$2b

1414

DOUBLED MARKET SHAREIN ONE YEAR

We went from having people in a room talking about what was possible, to having something for our agents to use in 5 months. That’s pretty lightning speed in my view…

Mhayse SamalyaPresident of Farmers Commercial Business Insurance

Cut submission-to-policy-issue process

FROM 14 DAYS TO 14 MINUTES

CONSISTENT AGENT & UNDERWRITER EXPERIENCE

BUSINESS GOALS

INCREASEin policy umbrella sales70%QUOTES IN 1.5 MINUTES

instead of 45 MINUTES

� Seize market opportunity

� Personalize for each client

� Support 15,000 agents

� Rejuvenate core systems

� Business/IT empowerment

Business owner policy solution live in

29 STATES IN 5 MONTHS

RESULTS

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$275 MILLION NET BENEFIT30 PROGRAMS UNDERWAY WITH 40 MORE ON DECK

“We have 70 programs in the pipeline with over 30 of them underway…and the net benefit for those 30 is $275 million – NET benefit.”

Alistair JacquesSenior Vice President and Chief Information Officer, Medicare and Retirement

50% IRR & CONSOLIDATION OF 5 GROUPS / 8 SYSTEMSfor appeals & grievances

BUSINESS GOALS

AUTO APPROVAL

60%

$26 MILLION NET BENEFIT� Create enterprise alignment to

improve quality & decrease costs

� Drive demonstrable value for customers and employees

� Deliver a consistent approach to maximize business / IT collaboration

� Move from tactical to strategic orientation to support growth and agility

RESULTS

Pega selected as

BPM ENTERPRISE STANDARD

for CMS reconciliation

IMPROVEMENTin physician contracting cycle time

of prior authorizations for pharmacy benefit managers

9x

1616

INCREASING PROFITS IN JUST 9 WEEKS

“We shipped six million units in two months and had to have the Batman title in shops all on the same day. If someone is running late with artwork, that adds risk. Pega gave our ERP system the agility to handle that.”

Andi MutlowProject Manager of MIS

DASHBOARD MANAGES 9 KEY MILESTONES across 3 disparate systems

BUSINESS GOALS

Visibility of overall process

FOR ALL PARTICIPANTS

SAVING £5 MILLION PER YEAR � Provide visibility across global

supply chain

� Leverage and enhance existing SAP investment

� Improve operational processes

� Increase speed of deployment

� Communicate process changes quickly

RESULTS

WEEKS TOGO-LIVE

BUSINESS USERS ABLE TOown and change their processes

9

PEGA CLOUD BASED SUPPLY CHAIN SOLUTION DRIVES AGILITY

1717

Investment Highlights

� Strong Long Term Growth Profile

� Strong Balance Sheet-No Debt

� Technology Leader in an interesting Market̶ subsuming other traditional categories

� Strong Presence in the World’s Leading Organizations̶ 70% of bookings from existing clients

� Seasoned Management Team

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Build for Change®

Pega software revolutionizes how leading organizations optimize the customer experience & automate operations