Peregrine Restructures Operations in Europe, Middle East and Africa (EMEA)

Many of you will have been following the recent disclosures concerning Peregrine Systems with great interest. As vice president and general manager of Peregrine in EMEA, I want to update you of our progress towards restoring the financial health of our business whilst maintaining support for our customers using our software solutions to run their businesses. This letter outlines the new operating plan for EMEA, developed to support these efforts, as well as the steps that we have taken to minimise the impact of this restructuring upon our customers and partners. The revised operating plan reflects recent announcements made by our new CEO, Gary Greenfield, as we refocus our business in Infrastructure Management. A letter from him has been posted on our Corporate website at www.peregrine.com and is available by clicking on the 'Message To Our Customers' banner.

While Peregrine's new operating plan in EMEA re-aligns resources in line with the revised business model, I want to assure you that we intend to maintain both the geographic coverage and the depth of capabilities to effectively support our customer, prospect and partner base. The plan calls for re-establishing the Remedy business line as an independent unit, which will be headed in EMEA by Dick Cahill. We also intend to strengthen our strategic relationships with a limited number of key services and solutions partners through whom our Infrastructure Management solutions can be jointly executed.

Going forward, our operations in EMEA will consolidate both the Peregrine and Remedy units around regional hubs. Peregrine hubs will be based in the UK, Germany and France, with Remedy operations centred around the UK, Germany and Italy. Peregrine intends to maintain a direct presence in the Nordics, Benelux and Southern Europe. However, subject to successful consultation with affected employees, these operations will be significantly scaled back and will access resources within the region for additional support and back office infrastructure. Outside of these geographies we will continue to fully support our established Distributor territories.

I also want to take the opportunity to introduce the regional leadership for the Peregrine and Remedy product lines in EMEA. These experienced regional management teams are committed to providing strong continuity for your relationship with Peregrine. They will be establishing contact with you in the coming weeks to provide further details of their regional structures and to confirm the forums at which we will review product direction, release schedules and development roadmaps.

Regional Leadership Teams
Peregrine (reporting to Alan Kerr)
Name Region Location
Chris Gomersall Northern Region (UK, Nordics and Netherlands) Richmond, UK
Soeren Boeving Nordics and Netherlands (reporting to Chris Gomersall) Copenhagen, Denmark
Thomas Senger Central Region (Germany, Austria, Switzerland) Frankfurt, Germany
Michel Isnard Southern Region (France, Belgium, Spain, Italy, Emerging Markets) Paris, France



Remedy (reporting to Dick Cahill)
Name Region Location
Elva Pearson Northern Region (UK, Benelux, Nordics, Middle East and Africa) Bracknell, UK
Dave Griffiths
Nordics, Benelux, Middle East and Africa (reporting to Elva Pearson) Bracknell, UK
Stephan Rasp Central Region (Germany, Switzerland, Austria and Eastern Europe) Frankfurt, Germany
Marco Bucci Southern Region (Italy, France, Spain, Portugal) Rome, Italy

How does this affect you, the customer?

From your perspective, you should see minimal change. Peregrine will continue to provide you with the industry-leading solutions and services you use to run your businesses. Our Customer Support representatives will continue to help you maintain and enhance your investment.

During this transition, we would like to thank in advance both our customers and our employees across EMEA for their patience and commitment throughout a period of unavoidable organisational change. We are making every effort to deal with all of our stakeholders professionally and, for our employees, within the framework of European employment law.

In the meantime, please do not hesitate to contact members of the regional management teams, Dick Cahill or myself if you have specific issues that require our immediate attention. We stand committed to serving your business into the future.

Yours sincerely,
Alan Kerr Dick Cahill
Vice President & General Manager Remedy Business Unit, EMEA
Peregrine Systems, EMEA