2004 Hurricane Season Dampens Florida Travel Plans This Year; Survey Reveals How Hotels Can Get Travelers Back.

ROCKVILLE, Md. -- The state of Florida could see a significant decline in visitors during the fall and winter travel season as a result of the recent hurricanes that battered parts of the sunshine state including Orlando, Miami and Tampa. One-quarter of Americans say they would cancel Florida travel plans because of the hurricanes, impacting the nearly 228,000 hotel rooms which are occupied each day in Florida(1) according to a recent survey(2) commissioned by Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of demand-driven supply chain management solutions.

Manugistics today released the findings from a nationwide consumer survey that revealed American adults' attitudes and behavior regarding business and leisure hotel plans to Florida following this year's worst hurricane season since 1950. The survey also found that although another one third (34%) of American adults said that the recent hurricanes would not affect travel plans to Florida, but still up to 3.4 million hotel room nights in Florida(2) could be canceled or avoided during the remainder of 2004.

But the survey also offers some hope for the Florida hotel industry. According to the Manugistics survey, respondents said that offering price incentives would be the most compelling action that hotels could take to make American consumers more likely to follow through with their leisure travel plans to Florida, despite the spate of recent hurricanes.

"Florida hotels have the opportunity to take action now to ensure that bookings remain on track for the 2004 travel year," said Graham Young, Manugistics Director of Revenue Management. "If hotels are having trouble optimizing prices and allocating room availability to reflect a shift in demand because of unanticipated events like the hurricane season, then our hotel revenue management solution can help our hotel clients manage the unexpected event and determine appropriate promotions to drive the desired outcome."

Nearly half of those surveyed indicated that a free night's stay, a discount off the cost of the room or a free room upgrade (48%, 47%, and 40% respectively) would be most effective in increasing their likelihood to stick with travel plans. Other hotel and travel amenities that could also make American consumers more likely to travel to Florida this year, include: a free rental car, a free ticket to local attractions or events, a reassuring telephone call, or an email or website posting about weather conditions.

"When consumers fail to make travel plans because of weather or security issues, hotels can be prepared to act immediately and quickly to ensure rooms are filled," said Young. "Manugistics has been assisting the hotel industry globally, by accurately predicting demand for future dates, as well as addressing demand that is much stronger or weaker than expected during the most important booking periods."

Manugistics will provide a survey summary at its Second Annual Demand and Revenue Management Summit, November 9-11, 2004, in Rockville, Maryland. The Summit will bring together top revenue management practitioners from the travel, transportation and hospitality industries to discuss and share the latest innovations in revenue management solutions.

To register for this event and to access the latest Summit information, visit: http://www.manu.com/summit/default.asp. A copy of the survey is available by request.

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, Brown & Williamson, Cingular, Circuit City, Coca-Cola Bottling, Diageo, DuPont, Harley-Davidson, John Deere, 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 economic and political uncertainty, the ability of the Company to effectively align its cost structure with revenues, and the timing and degree of business recovery. 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 August 31, 2004. Manugistics assumes no obligation to update the forward-looking information contained on this announcement.

(1) Based on the amount of hotel rooms and average monthly occupancy figures from Visit Florida, the official tourism marketing corporation for the state of Florida.

(2) StrategyOne, an independent market research and polling firm, conducted the survey among 1,055 individuals in October 2004.