Subaru of America Implementing Manugistics Automotive Industry Solutions

    ROCKVILLE, Md.--Oct. 23, 2001--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 that Subaru of America, Inc., a pioneer of crossover all-wheel drive vehicles designed for the active lifestyle, is implementing Manugistics automotive industry solutions to enhance the customer buying experience, reduce inventory and costs, and decrease the company's order-to-delivery cycle.
    More than 180,000 imported and U.S.-produced vehicles annually flow through Subaru's port offices in Vancouver, Wash. and Lafayette, Ind., ready for accessorization at nearby facilities before being transported to nearly 600 dealerships throughout the United States. The Manugistics solutions will enable Subaru to automatically match and optimize the balance of vehicle supply from port and manufacturing facilities, with customer demand. Powerful planning and sequencing capabilities will enable the company to better allocate labor and capacity to process and accessorize vehicles. In addition, the solutions will better enable Subaru to optimize and execute the outbound movements of accessorized vehicles, across multiple modes of transportation, to its dealer network.
    In addition, Subaru personnel throughout the organization - as well as Subaru dealers - will gain Web-based visibility into shipment vehicle status and delivery information. Reporting and analysis capabilities will also help Subaru measure supply chain success, and improve future performance. According to Subaru, the company aims to create a dealer service process that rivals the customer service of today's best-known and respected retail chains.
    "Subaru of America is committed to ensuring that our customers can take delivery on their vehicles of choice when and where they want them," said Robert Mayo, CIO of Subaru of America. "Using Manugistics' proven automotive industry solutions, we expect to shave at least two days, or more, off of our already short order-to-delivery cycle, while giving our many dealers a much needed new Web-based view into the status of their stock and sold orders. More importantly, we believe Manugistics has the right combination of proven technology, industry expertise, and commitment to help us meet our corporate objectives."
    "Manugistics order-to-delivery solutions are being adopted by automotive industry leaders like Subaru of America for their ability to deliver quick value while helping to transform the supply chain into a strong competitive advantage," said Jim Kowalski, Manugistics group vice president, automotive, transportation and third party logistics providers. "In addition, we continue to gain traction throughout the automotive industry with innovative new industry-focused solutions such as supplier collaboration and pricing optimization, that can quickly deliver the real, measurable ROI this industry demands."

    About Subaru of America, Inc.

    Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan. Subaru pioneered the concept of the passenger car/sport-utility vehicle with the introduction of the Subaru Outback, the "World's First Sport Utility Wagon(R)." The Subaru Legacy (including Outback models) is the best selling All-Wheel Drive car sold in America, based on the Polk Company retail registration statistics as of 12/31/00.
    Headquartered near Philadelphia, the company markets and distributes Subaru vehicles, parts and accessories through a network of 582 dealers across the United States. All Legacy and Outback models sold in the United States are produced at the Subaru-Isuzu Automotive Inc. manufacturing plant near Lafayette, Ind. Over the past eight years, the company has achieved year-over-year retail sales increases thanks to its popular line of car-based sport utility vehicles, and is among the fastest growing brands in the automobile industry.

    About Manugistics Group, Inc.

    Manugistics pioneered the powerful new business discipline of Enterprise Profit Optimization, which helps enable 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, 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, please go to 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 new business areas, international expansion, business combinations and strategic alliances, increased economic uncertainty following the tragedy of September 11, 2001, lengthening of sales cycles for software products and services, the effectiveness of the cost reduction efforts undertaken by Manugistics, and the timing and degree of any business recovery in light of the continuing economic downturn. 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 August 31, 2001. Manugistics assumes no obligation to update the forward-looking information contained in this announcement.

    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.