Manugistics Providing Innovative, Top-Ranking Solutions for Automotive Industry

TRAVERSE CITY, Mich.--Aug. 5, 2003--

Industry Analyst Validation, Ongoing Client Successes Prove Strength of Manugistics Supply and Demand Chain Management Solutions

From the floor of the Management Briefing Seminars 2003, Manugistics Group, Inc. , a leading global provider of supply and demand chain management solutions, said today that the company's powerful solutions for the automotive industry continue to earn industry analyst praise, and are delivering measurable benefits for an influential client base of automotive industry leaders. As the industry moves to a more demand-driven business model, Manugistics' top-ranking product offering for demand management can help these highly competitive organizations keep in step with unique marketplace demand for widely varying vehicle models and features.

Manugistics' demand management solutions are designed to help organizations improve forecast accuracy, reduce market uncertainty and strengthen overall financial performance. Forrester Research recently named Manugistics as an industry leader in continuous demand management solutions, stating in a July 25, 2003 Forrester Wave(TM) Brief that Manugistics delivers the most complete solution.

In 2003, Forrester has repeatedly cited Manugistics as a leader in effective demand forecasting and demand shaping, coming at time when leading automotive OEMs are starting to unlock value from demand signals -- the leading indicators of near-term sales volume, option mix, and price-sensitivity. (Auto's First Demand Dashboards, July 2003)

According to Forrester, Manugistics products are a good fit for firms looking for strong demand forecasting and demand shaping functionality. (Scorecard Summary: Manugistics' NetWORKS, Solutions 7.1, DEMAND MANAGEMENT, June 12, 2003)

Helping to pave the way Forrester states are OEM leaders like General Motors' Director of Demand Sensing, Clifford Hodges, and Ford's Vice President of Revenue Management, Lloyd Hansen, who are bringing awareness of the value of demand signals to the C level. (Auto's First Demand Dashboards July 2003) The firm notes Ford's use of demand planning apps from Manugistics helped lift 2002 average wholesale price per unit during a period of industry-wide negative pricing. (2003 Predictions For The US Auto Industry January 24, 2003)

Sophisticated promotions incentive applications - which can help determine in advance how much return a particular incentive program is likely to create - have helped propel Manugistics into a leadership position in demand management. "For the automotive industry, demand and revenue management applications can generate accurate forecasts of model volumes," said Thad Dungan, Manugistics director, solutions consulting. "As a result, automakers can optimally allocate their promotional spend. And they can then take the next step - align customer demand and production supply at a very fine level of detail."

Forrester has also noted that it takes more incentive to lift sales today, so market planners need to understand future demand to know exactly where to apply rebates. (Start Sensing Auto Demand With Configuration Data Brief: March 12, 2003) According to Dungan, that makes the need for advances demand sensing applications all the more critical.

"The goal is to capture and incorporate both leading and lagging data to help merge the planning and analytical functions into an integrated format that effectively improves order fulfillment. It's one thing to use shipment and sales histories but quite another to incorporate web configurations, incentives, dealer referrals, days supply, sales rates and other factors," said Dungan.

Manugistics' offers innovative supply and demand chain solutions based on a two-decade track record of providing value to the automotive industry. The innovative solutions can help organizations to improve asset utilization, reduce inventory levels, and boost customer service. Automotive leaders can improve internal collaboration and relationships with external suppliers, and more effectively manage pricing - balancing supply and demand while respecting capacity constraints and reducing transportation and logistics costs.

Manugistics was the first software company to be recognized as a PACE Automotive News finalist in the category of supply chain management. The company was recognized for its order-to-delivery solution which powers forecasting and planning for several automotive manufacturers. Building on that success, Manugistics was again named a finalist for this past year's PACE award, in the Information Technology and Services category, recognized for its Web-based Supplier collaborative supply solution.

With more than 20 years experience, Manugistics is the preferred supply chain management and revenue optimization software-solution provider trusted by 5 of the top 7 automotive OEMs and suppliers to help reduce costs, improve customer service and enhance margins. Companies like American Honda, BMW, Ford Motor Company, Nissan North America and Robert Bosch have all turned to Manugistics for innovative software and attendant consulting services to help address their most critical business challenges.

For more information on Manugistics and the automotive industry, go to http://www.manugistics.com/proof/automotive/.

About Manugistics Group, Inc.

Manugistics is a leader in delivering innovative supply and demand chain software solutions. Today, more than 1,200 clients trust Manugistics to help them reduce costs, increase revenues and enhance margins. The company provides comprehensive solutions for supply chain management, demand and revenue management, service and parts management and supplier relationship management. Its clients include industry leaders such as AT&T, Airgas, BMW, Boeing, Brown & Williamson, Caterpillar, Circuit City, Coca-Cola Bottling, Continental Airlines, Diageo, DuPont, Fairchild Semiconductor, Ford Motor Company, Harley-Davidson, Nestle, RadioShack, Smith & Nephew 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, among others, continuing economic and political uncertainty, the timing and degree of business recovery, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, unexpected competition, risks related to quarterly performance, risks of new business areas, international expansion, business combinations and strategic alliances, lengthening of sales cycles for software products and services, and the effectiveness of the cost reduction efforts undertaken by Manugistics and their impact on the company's ability to operate its business. A decreased demand for enterprise application software due to weakened 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, 2003 and Quarterly Report on form 10-Q for the period ended May 3, 20031, 2003. 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 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.