Airgas to Implement Manugistics Supply and Inventory Management Solutions.

Business Editors/Hi-Tech Writers

ROCKVILLE, Md.--(BUSINESS WIRE)--July 31, 2002

Manugistics Group, Inc. (Nasdaq:MANU) today announced that Airgas, Inc. (NYSE:ARG), the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products, has selected Manugistics NetWORKS Demand(TM) and Manugistics NetWORKS Fulfillment(TM) solutions to help improve inventory management and visibility corporate-wide, and to enhance fulfillment of customer orders.

Airgas distributes more than $750 million annually of welding equipment, consumable supplies, related Maintenance, Repair and Overhaul (MRO) supplies and safety products through an integrated distribution network that includes more than 500 retail stores throughout the U.S. It has established five regional distribution centers to help manage the inventory in the stores and to handle direct shipment to customers of goods purchased through telesales and eBusiness channels.

Airgas will use the comprehensive Manugistics solutions for inventory planning, distribution, and allocation to better ensure that these products are available for purchase where and when customers demand. It is the latest in a series of bold steps at Airgas towards creating a fully integrated supply chain that enhances customer service levels while taking costs out of operations.

"At Airgas, we've spent the last five years standardizing items, data, software systems - and building strategically-located distribution centers - to create a centralized infrastructure for our supply chain," said Michael Molinini, senior vice president of hardgoods at Airgas. "Manugistics supply and inventory management solutions complement that strategy well, and will help ensure that we continue to exceed the expectations of our more than one million customers, by providing the right product to the right location at the time promised."

Molinini continued, "In making this selection, we surveyed several Manugistics clients and got very positive feedback on Manugistics' pre- and post-implementation support. That, coupled with the proven success of the solutions and the flexibility of their technology to run on multiple platforms, convinced us that Manugistics is the right company to support our ongoing supply chain initiatives."

The Manugistics solutions, designed to work in conjunction with the existing systems, will help enable Airgas to create more accurate forecasts down to the Stock-Keeping-Unit (SKU) level, taking into account factors such as seasonality, new product introductions and promotions, geography, and other key data. The solutions will also help to optimize management of inventory throughout Airgas' distribution network in order to meet customer needs, while minimizing inventory investment and enhancing profits.

"Strategic companies like Airgas continue to recognize the need to invest in technology and solutions that can help build long-term competitive advantage," said Glynn Perry, Manugistics' vice president of chemicals. "We value highly the addition of Airgas to our growing client base, and look forward to helping this industry leader as they continue to expand operations to include new products, services and distribution channels."

About Airgas, Inc.

Airgas, Inc. (NYSE:ARG) is the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products. Its integrated network of nearly 800 locations includes branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base.

About Manugistics Group, Inc.

Manugistics (Nasdaq:MANU) helps companies lower operating costs, improve customer service, enhance profitability, and accelerate growth by optimizing the supply-demand network from design and procurement through pricing and delivery. The company delivers Enterprise Profit Optimization(TM) (EPO) - offering solutions for pricing and revenue optimization, service and parts management, supplier relationship management, and supply chain management. Its clients include industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, Fairchild Semiconductor, Ford Motor Company, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Staples, Texas Instruments, Unilever, and United Airlines. For more information, go to www.manugistics.com.

FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-255-5330.

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, 2002 and Quarterly Report on Form 10-Q, as amended, for the quarter ended May 31, 2002. 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, Manugistics NetWORKS Demand(TM) and Manugistics NetWORKS Fulfillment(TM) 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.