The ability to use PARETO with an 'other' category is not possible in MATLAB 7.8 (R2009a).
As a workaround, you may be able to alter the code for the PARETO function. Please open pareto.m by typing 'edit pareto.m' at the Command Prompt. Then, make the following changes at the given locations:
On Lines 51-57:
The above takes care of making sure the 'Other' category will come last.
On Lines 76-79:
The above code takes care of the tail end. If we cut on 95% variability the 'Other' categories will not be included in the chart.