Press Release

WESTBOROUGH, Mass. – October 18, 2006 – Virtusa Corporation, a global provider of software development and IT services, today announced from PegaWORLD 2006 the successes of its recently launched joint Pega-Virtusa Business Process Management (BPM) practice. PegaWORLD 2006, taking place in Boston from October 18 - 20, is a thought leadership event focused on learning and leveraging Business Process Management.

Virtusa’s dedicated Pegasystems BPM practice was announced in May 2006 and since its launch, Virtusa has added three new BPM client accounts to its portfolio;

• One of the largest banking and financial services organizations in the world for whom Virtusa will provide services in the UK for Pega RULES Process Commander (PRPC) and Smart Investigate. In addition Virtusa will provide teams for PRPC, QA services and training in Europe and in India.

• A large services organization requiring Virtusa to drive better adherence and monitoring of compliance with its sales and equipment recovery processes. The client has also selected Virtusa as its only offshore partner to re-architect its enterprise around PRPC moving away from a .NET framework to drive its business through a more flexible business process automation approach.

• Integration of PRPC to an existing portal server framework at a mid-tier bank through the implementation of its account opening process.

“Industry analysts predict that the worldwide market for BPM will reach $2.7 billion by 2009,” said John Gillis, Virtusa co founder and executive vice president. “We have been very pleased by the quick successes of our dedicated Pega practice, particularly among clients in the financial services market – they are continuously streamlining and optimizing their process-intensive businesses. Our strong domain knowledge and deep experience with Pega’s BPM products has made this a win-win for Virtusa, Pegasystems and our clients.”

About Pegasystems
Pegasystems Inc. (NASDAQ: PEGA) provides software to automate complex, changing business processes. Pegasystems, the leader in unified process and rules technology, gives business people and IT depaartments the ability to use best processes across the enterprise and outperform their competition.

Our new class of Business Process Management (BPM) technology makes enterprise systems easy to use and easy to change. By automating policy manuals, system specifications and lines of manual coding with dynamically responsive updates, Pegasystems powers the world's most sophisticated organizations to Build for Change™.

Pegasystems’ award-winning, standards-based BPM suite is complemented with best-practice solution frameworks to help leaders in the financial services, insurance, healthcare, manufacturing and government markets drive growth and productivity.

NOTE: Pegasystems and SmartBPM are registered trademarks or trademarks of Pegasystems Inc. Other product and company names may be trademarks of their respective owners.