Manugistics Continues to Capture Market Share in Automotive Industry

       Two of World's Three Largest OEMs and Leading Industry Suppliers
                       All Using Manugistics Solutions

    TRAVERSE CITY, Mich., Aug. 7 Manugistics Group, Inc.
, the leading global provider of Enterprise Profit
Optimization(TM) (EPO) solutions -- the market's first solutions to
simultaneously optimize a company's supply- and demand-side business processes
-- today announced at the 2001 Management Briefing Seminars, the flagship
seminars for the automotive industry, that it continues to grow its automotive
industry client base. Six of the top 10 Fortune 500(R) automotive companies --
including two of the world's three largest original equipment manufacturers
(OEMs) and many of their suppliers -- are now using Manugistics solutions to
help enhance margins while improving customer service.
    Automotive industry leaders faced with industry consolidation, changing
customer demands, and a migration to platform rationalization and system and
module sourcing, are increasingly turning to Manugistics for proven solutions.
The company's automotive industry clients include innovators such as BMW AG,
DaimlerChrysler Corporation, Dana Corporation, Deere & Co., Exide
Technologies, Ford Motor Company, Harley-Davidson, Inc., Mitsubishi Motor
Sales of America (MMSA), PPG Industries, Co., Subaru of America, Inc., Tenneco
Automotive - Monroe Auto Equipment, and The Goodyear Tire & Rubber Company.
    "Manugistics continues to capture market share at an increasing rate by
providing innovative automotive industry solutions like vehicle order-to-
delivery, supplier collaboration, and pricing optimization that can quickly
deliver the real, measurable ROI this industry demands," said Dan Stoks,
Manugistics senior vice president, automotive, transportation and third party
logistics providers. "That emphasis on real business value -- coupled with our
more than 10 years experience in the automotive industry and a commitment to
innovation -- is positioning Manugistics to become the industry's preferred
provider of supply- and demand-side optimization and execution solutions."
    Stoks noted that Manugistics NetWORKS(TM) supply chain optimization and
execution solutions are currently being used in DaimlerChrysler's Supplier
Network Collaboration pilot programs. The Web-based collaborative network is
designed to improve supplier relationships, create common and streamlined
processes, and provide information in real-time, ultimately leading to
increased speed and agility between DaimlerChrysler and its multi-tier
supplier base.
    Ford Motor Company, utilizing Manugistics pricing optimization solutions,
is saving over $800 million in promotions expenditures. In addition, across a
broad range of industries, Manugistics pricing and revenue optimization
solutions have enabled companies to experience as much as a 2 to 8 percent
increase in incremental revenue annually.
    Utilizing Manugistics supply chain optimization and execution solutions,
Mitsubishi Motor Sales of America launched what is believed to be the first
real-time order-to-delivery system in the North American auto industry. MMSA
has slashed collective vehicle inventory, reduced the average age of vehicles
and decreased vehicle lead times, creating millions of dollars in savings. In
an April 9, 2001 Automotive News feature, Frances Oda, vice president for
sales operations at Mitsubishi Motor Sales of America, said of the MMSA
system, "It keeps the entire supply chain much cleaner and more efficient."
    Differentiating Manugistics automotive industry solutions is a proven
multi-phase value delivery process that can synchronize a company's supply-
side and demand-side business processes to create a more responsive and
flexible supply chain. The solutions have helped companies improve global
visibility and network and asset utilization. In addition, the solutions are
easily configurable - to better address the automotive industry's critical
business processes such as: logistics and manufacturing optimization; vehicle
order-to-delivery; aftermarket dealer managed inventory; real-time supplier
collaboration; and pricing and revenue optimization.
    Added Jim Kowalski, Manugistics group vice president, automotive,
transportation and third party logistics providers, "With our innovative
Enterprise Profit Optimization solutions, we can help automotive industry
leaders optimize the balance among cost-of-goods sold, cost-of-service, and
revenue maximization -- while improving customer service."
    Manugistics also offers robust Supplier Relationship Management (SRM)
solutions for the automotive industry to help enterprises, and their raw
material suppliers, finished goods suppliers, outsourced manufacturers and
transportation and logistics providers improve visibility to supply
conditions, reduce inefficiencies and shrink cycle times. In addition, the
company is developing enhanced buy-side order management capabilities in order
to create an SRM solution that can help enterprises streamline and better
manage purchasing processes for direct material components, work-in-process,
finished goods and strategic maintenance, repair and operations (MRO)
materials.

    About Manugistics Group, Inc.
    Manugistics pioneered the powerful new business discipline of Enterprise
Profit Optimization, which refers to a company's ability to drive profitable
growth through the simultaneous optimization of its supply-side and demand-
side business processes. Made possible through innovative combinations of
Supply Chain Management, Pricing and Revenue Optimization, and Supplier
Relationship Management solutions, Manugistics EPO solutions help enterprises
and their trading partners lower operating costs, enhance profitability and
accelerate growth. The company's list of clients includes industry leaders
such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco
Systems, Coca-Cola Bottling, Compaq, Converge, DuPont, eConnections, Ford
Motor Company, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co.,
Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United
Airlines. For more information, go to http://www.manugistics.com.
    For additional information regarding this announcement, contact the
Manugistics Newsbureau Hotline at 301-984-5330.

    This announcement contains forward-looking statements that involve risks
and uncertainties that include, among others, anticipated losses,
unpredictability of future revenues, potential fluctuations in quarterly
operating results, competition, risks related to quarterly performance, risks
of system interruption, management of potential growth, and risks of new
business areas, international expansion, business combinations, and strategic
alliances. A decreased demand for computer software due to weakening economic
conditions could result in decreased revenues or lower revenue growth rates.
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 28, 2001, and Quarterly Report on Form 10-Q for the quarter
ended May 31, 2001.
    Manugistics is a registered trademark, and the Manugistics logo, the
phrase "Leveraged Intelligence," Enterprise Profit Optimization and
Manugistics NetWORKS are trademarks of Manugistics, Inc. All other product or
company names mentioned are used for identification purposes only, and may be
trademarks of their respective owners.

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