BAE Systems Expands Deployment of i2 SRM Worldwide; i2 SRM Helps BAE Systems Rationalize Suppliers and Reduce Cost of Goods Sold Through Improved Overall Spend Analysis.

Business Editors/High-Tech Writers

LONDON--(BUSINESS WIRE)--March 3, 2004

i2 Technologies, Inc. (OTC:ITWO), a leading provider of end-to-end supply chain management solutions, and aerospace and defense systems giant BAE Systems today announced that BAE Systems has expanded its deployment of i2 Supplier Relationship Management (SRM) solutions to additional sites in North America, Australia and the United Kingdom. To date, more than 75 BAE Systems sites have deployed i2 SRM to aggregate and analyze almost $8 billion in spend.

An i2 SRM customer since 1997, BAE Systems has been able to use the Strategic Sourcing tools to help consolidate its supplier base and reduce its cost of goods sold through improved overall spend visibility across more than 45 transaction systems. By using i2 SRM to establish and execute global sourcing strategies based on procurement and sourcing needs across the entire corporation, rather than the needs of individual business or geographical units, BAE Systems can better determine optimal sourcing strategies for each commodity and supplier.

The expansion of the SRM solutions across the company allows BAE Systems to quickly get global visibility of its expenditures which helps maximize buying leverage throughout its operations. BAE Systems is also using the i2 solutions to track spend by country, which is becoming increasingly important for regulatory reasons.

"An advantage of i2 SRM is that it can aggregate spend and supplier data from many different transaction systems," noted Mark Fleming, i2 client manager. "This is designed to make it easier for BAE Systems to add new subsidiaries or business units to the system. This has been especially important to BAE Systems, which has undergone several mergers and acquisitions over the past decade."

"To stay competitive in our complex industry, we need to be able to manage sourcing and procurement in the most efficient way possible. Data Management is at the heart of this," commented James Donlevy, business manager at BAE Systems. "i2's software is helping us evaluate our spend more effectively, which leads to a more robust sourcing strategy, a right-sizing of our supplier base and a reduction of our overall material costs. We are happy with the value that our current i2 SRM implementation has provided, which is why we have chosen to expand the program."

BAE Systems has also been a customer of i2 Component and Supplier Management (CSM) since 1994. i2 CSM is used to manage approved parts, aligning procurement and product development with corporate objectives. In addition, i2 CSM supplies BAE Systems' product engineers with a wealth of searchable information on approximately 12 million parts to assist them in selecting those to be included in new products based on both technical and business criteria.

BAE Systems has also taken advantage of i2 MOST to manage and operate its implementations of i2 SRM with a goal of ensuring sustained value delivery. i2 MOST - which stands for Manage, Operate, Sustain and Transform - is designed to allow customers to better manage and operate i2 solutions through rapid on-site response and resolution to application issues, minimizing risk of downtime and reducing interrupted business operations.

"This continued expansion confirms BAE Systems' commitment to using the latest technology for quick and intelligent sourcing decisions that are key to long-term success in their complex business environment", said Fleming. "Using i2 SRM to gain spend visibility across the whole corporation and its multiple ERP systems, BAE Systems is able to create and execute win-win strategic relationships with its suppliers."

About BAE Systems

BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The company designs, manufactures, and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defence systems.

About i2

A leading provider of end-to-end supply chain management solutions, i2 designs and delivers software that helps customers optimize and synchronize activities involved in successfully managing supply and demand. i2 has more than 1,000 customers worldwide -- many of which are market leaders -- including seven of the Fortune global top 10. Founded in 1988 with a commitment to customer success, i2 remains focused on delivering value by implementing solutions designed to provide a rapid return on investment. Learn more at www.i2.com.

i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc.

i2 Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties including forward-looking statements regarding the customer's ability to implement or integrate i2 solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors which could impact i2's financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2's recent filings with the SEC, particularly the Annual Report on Form 10-K filed on July 21, 2003 and the Quarterly Report on Form 10-Q filed on November 14, 2003. i2 assumes no obligation to update the forward-looking information contained in this news release.