Kirkland, WA. – October 27, 2003 – Talisma today announced it has signed a definitive agreement to merge with Pivotal Corporation, the leading provider of customer relationship management (CRM) software for mid-sized enterprises. Simultaneously, Oak Investment Partners, the majority shareholder of Talisma, announced plans to purchase all outstanding shares of Pivotal. This transaction creates the only CRM vendor offering robust, best-in-class sales, marketing and service products that are specifically designed to meet the needs of the mid-enterprise market.

“We believe that there is tremendous opportunity to create a stronger solution provider for the mid-enterprise market,” said Fredric Harman, general partner, Oak Investment Partners. “Oak’s strategic and financial support combined with the Pivotal-Talisma merger creates a very compelling CRM choice for the mid-enterprise. In addition, both company’s strong India-based capabilities create powerful synergies for the combined company. Oak is excited to be part of the ongoing and future success of Pivotal.”

With more than 25 years of investment experience, Oak Investment Partners is a growth-oriented private equity firm with a total of $4.2 billion in committed capital. Investments are primarily focused on growth opportunities in enterprise application and infrastructure software, telecommunications equipment and services, data storage, financial services technology, outsourced services, healthcare services and retail. In addition, Paul Maritz, former group vice president of Microsoft’s Platforms Strategy and Developer Group, is an investor in this transaction.

“This is an outstanding opportunity for our organization,” said Ranjan Chak, chairman of the board, Talisma. “The combined product offerings and our ability to leverage the efficiencies of our India based development model, coupled with Oak Investment Partners continued support, solidify our long-term financial stability.”

According to Dan Vetras, CEO, Talisma, “Pivotal and Talisma are a winning combination. We have a strong cultural match, complementary products, architectures, services and a shared technology vision. Together, we will offer customers robust, best-in-class sales, marketing and service products and a joint commitment to deliver innovative and cost-effective services. I am excited about the opportunity for growth as we continue together to serve the unique needs of the mid-enterprise market.”

“The lack of a clear market leader in the customer relationship management software for mid-enterprise makes this a very synergistic business combination,” said Bo Manning, president and CEO, Pivotal. “We are very excited about this bold move to further solidify a leadership position in the mid-enterprise market. When you combine our complementary best-in-class product offerings, double our R&D and services capabilities we are extremely well positioned to accelerate our market leadership.”

Under the terms of the agreement, Talisma has agreed to merge with Pivotal Corporation. This transaction is subject to customary closing conditions, as well as the approval of the Supreme Court of British Columbia and Pivotal shareholders. The combination of the two companies will enable Talisma and Pivotal to increase its focus on meeting customer needs, accelerate development of next-generation products and services, and invest in long-term strategic growth. The new organization will operate as Pivotal Corporation headquartered in Vancouver, British Columbia with major field operations in Seattle, London, and Bangalore. Talisma CEO, Dan Vetras, will be appointed to the position of chief operating officer, reporting to Bo Manning, president and CEO of Pivotal.

Once these transactions are completed, Ranjan Chak, venture partner at Oak Investment Partners, will assume the position of Chairman of the Board. Chak, a cum laude graduate in Applied Mathematics from Harvard College, is a former Oracle Vice President of Indian Operations, responsible for creating one of the most successful offshore development centers in India, an organization that now has more than 3,000 employees. Chak is an important addition to Pivotal’s Board as the company accelerates its offshore development, support and services strategy.

About Talisma
Talisma is a leading provider of web-driven customer service solutions that integrate the power of email, chat, real-time collaboration and telephony applications with a mature, robust multi-channel interaction management platform, comprehensive analytics and a fully integrated system-wide knowledgebase and customer database. Our customers enjoy a 360-degree view of all customer communications—regardless of channel—within an easy-to-use and configurable interface. The results are improved business performance through lowering the overall costs of service delivery while increasing customer satisfaction and retention. Talisma’s global customers include Microsoft, Coast Capital Savings, Dell, The Arthritis Foundation, Tupperware, Ford, Getty Images, Samsung, University of Nebraska-Lincoln, EMI Records, Sony, Click 2 Learn, Florida State University, Aviva Life Insurance, and HGTV. The company is based in Seattle, with offices across the United States, Europe and Asia. For more information, visit www.talisma.com.

About Oak
Oak Investment Partners is a growth-oriented private equity firm with a total of $4.2 billion in committed capital. Investments are primarily focused on growth opportunities in enterprise application and infrastructure software, telecommunications equipment and services, data storage, financial services technology, outsourced services, healthcare services and retail. Over a 25-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 350 companies at various points in their lifecycle. We have been involved in the formation of companies, provided growth equity to mid- and late-stage businesses, as well as spinouts of operating divisions and technology assets. A representative list of Oak portfolio companies includes Aquantive, Compaq, Inktomi, InterNAP, Pivotal, Polycom, Primus, Seagate, Sybase, Synopsys, Wellfleet, and Wireless Facility Inc.

About Pivotal Corporation
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.

Contact:
Nick Ludlum
Fusion Public Relations
T: 212.651.4214
E: nick.Ludlum@fusionpr.com