Exhibit 99.1 PEGASYSTEMS INC. Schedule II Valuation and Qualifying Accounts Additions Charged Balance at to beginning costs Balance at of and end of Description period expenses Deductions period - ------------------------------- ---------- -------- --------- ---------- Year ended December 31, 1995 Allowance for doubtful accounts $ 0 $793,310 $359,423(a) 433,887 Year ended December 31, 1994 Allowance for doubtful accounts 340,041 0 340,041(a) 0 Year ended December 31, 1993 Allowance for doubtful accounts 18,087 325,862 3,908(a) 340,041 (a) Deductions are related to accounts receivable write-offs