Manugistics Secures Multi-Year SmartBUY Award with General Services Ad

    Business Editors/Defense Writers

    ROCKVILLE, Md.--(BUSINESS WIRE)--Jan. 19, 2005--Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of demand-driven supply chain management solutions, announced it was awarded a multi-year task order as the prime contractor by the General Services Administration (GSA) in August, 2004 to improve inventory management and procurement. The award concluded a year-long investigation of potential solutions.
    GSA intends to integrate demand and replenishment planning across all depots and retail locations, allowing item managers to integrate customer demand with replenishment for both retail and wholesale customers. The software application will replace legacy functionality that currently supports Supply Management personnel at GSA Global Supply. The implementation of the new business processes and software applications, targeted for completion in late spring, will enable GSA to improve their demand forecasting accuracy, reduce inventory levels and maintain high customer service.
    "Manugistics is honored to be chosen by GSA to manage the most complex supply chain and largest inventory maintained in the Federal Civilian Sector," said Manugistics Executive Vice President & President of Worldwide Sales, Jeffrey L. Holmes. "We believe that our supply chain solutions help make dramatic improvements in the synchronization of GSA's supply chain."
    GSA will use the Manugistics solutions to manage and monitor the flow of inventory into all distribution centers, as well as retail and wholesale distribution points. With more than 100,000 items and more than 75 inventory control points to manage, GSA is responsible for one of the most complex supply chains in the public sector. Last year, The Office of Management and Budget announced the formal creation of the SmartBUY government-wide enterprise licensing initiative, which is intended to lower the cost of software for individual agencies by purchasing common applications in the biggest bulk possible.
    "The SmartBUY program uniquely rewards the government with additional discounts based on aggregate purchases, as well as bundled solutions targeted at solving the challenges faced by government supply chains," said Holmes. "Manugistics is delighted by the selection because it recognizes the company's leadership in delivering best-of-breed supply chain solutions."

    About Manugistics Group, Inc.

    Manugistics powers the demand-driven supply chain. Today, more than 1,200 clients trust Manugistics to help them drive profitable growth, unlock the value of their existing IT investments, and ensure the security and integrity of their global supply chains. Its clients include industry leaders such as AT&T, BMW, Boeing, Cingular, Circuit City, Coca-Cola Bottling, Delta Air Lines, DHL, Diageo, DuPont, Harley-Davidson, John Deere, Marriott, McCormick, Nestle, Nissan, RadioShack, Sanmina-SCI and Unilever. For more information, go to www.manugistics.com.

    FORWARD LOOKING STATEMENT

    This announcement contains forward-looking statements that involve risks and uncertainties that include, continuing weak demand for supply chain management software, the ability of the Company to effectively align its cost structure with revenues, and unintended adverse effects of the Company's recent restructuring and cost containment initiatives. More information about factors that potentially could affect Manugistics' financial results is included in Manugistics filings with the Securities and Exchange Commission, including its Annual report on Form 10-K for the year ended February 29, 2004 and Quarterly Report on Form 10-Q for the period ended November 30, 2004. Manugistics assumes no obligation to update the forward-looking information contained on this announcement.

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CONTACT: Manugistics Group, Inc. Sheila Blackwell, 301-255-5486 sblackwell@manu.com or Kristine Gager, 202-326-1747 kristine.gager@edelman.com

KEYWORD: MARYLAND INDUSTRY KEYWORD: AEROSPACE/DEFENSE GOVERNMENT SOFTWARE PRODUCT SOURCE: Manugistics Group, Inc.

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