New Manugistics Product Revolutionizes Inventory Planning; Product Sol

    Business Editors/High-Tech Editors

    ROCKVILLE, Md.--(BUSINESS WIRE)--March 3, 2005--Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of synchronized supply chain management solutions, today unveiled its Inventory Policy Optimization (IPO) solution, a revolutionary new product that makes supply chains more profitable.
    With Manugistics IPO, customers now can optimize inventory at different locations within their supply chain to maximize customer service levels while also minimizing inventory costs. The IPO solution also allows companies to optimize inventory fill-rates while factoring in budget constraints.
    "Determining the right amount of inventory to hold and the right locations in which to hold inventory is a long-standing issue of critical importance in achieving supply chain efficiency," said Manugistics Global Marketing and Solution Management Senior Vice President (SVP) Lori Mitchell-Keller. "As a leader in supply chain management solutions, we continually address growing industry concerns such as the trade-off between inventory costs and performance. Companies using our IPO solution can easily determine how much stock should be held in the central and regional distribution centers in order to achieve optimal inventory balance while providing superior service."
    Historically, companies have stocked higher inventory so they can be prepared for the unpredictability of consumer demand. To optimally set inventory levels, it is necessary to synchronize the supply chain and look across the entire network. While holding inventory in centralized locations decreases overall costs, it also reduces customer service because of stock outs, which means lost sales. Conversely, holding more inventory at the point of sale, improves service, but also increases total inventory in the network that leads to mark downs at the end of the season and profit losses.
    "IPO is a groundbreaking solution," said Mitchell-Keller. "It helps synchronize our clients' supply chain and deliver optimal inventory balance while taking into account specific budget and cost constraints. IPO is baked into the Manugistics Supply Chain Platform, making it easy for customers to implement and optimize their supply chains to the highest levels possible."

    About Manugistics Group, Inc.

    Manugistics powers the synchronized supply chain. Today, more than 1,200 clients depend on Manugistics to position them one step ahead of demand. With Manugistics' unparalleled supply chain solutions, clients achieve maximum forecast and inventory accuracy, ensuring constant supply for constantly changing demand. Its clients include industry leaders such as AT&T, BMW, Boeing, Canadian Tire, Cingular, Circuit City, Coca-Cola Bottling, Coty International, Delta Air Lines, DHL, Diageo, Dixons, DuPont, Georgia Pacific, Harley-Davidson, H.J. Heinz, John Deere, LL Bean, Limited Brands, Kraft Foods, Marriott, McCormick, Nestle, Nissan, RadioShack, the Scott's Company, Sears, Sinotrans, Unilever and Wickes Building Supplies. 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 and recent organizational changes. 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 Edelman Kristine Gager, 202-326-1747 kristine.gager@edelman.com

KEYWORD: MARYLAND INDUSTRY KEYWORD: HARDWARE SOFTWARE RETAIL CONSUMER/HOUSEHOLD NETWORKING PRODUCT SOURCE: Manugistics Group, Inc.

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