Continental Airlines Cargo Signs Agreement with Manugistics; Major Airline's Cargo Division Installs World-Class Revenue Management Modules for Enhanced Revenues and Better Forecasting.

ROCKVILLE, Md. -- Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of synchronized supply chain and revenue management solutions, today announced it has signed an agreement with Houston-based Continental Airlines Cargo. The company will install the latest application of the Manugistics Cargo Revenue Management Suite of Solutions, providing Continental with leading-edge demand forecasting and business planning capabilities for maximum return on investment.

"Since we began utilizing revenue management solutions as a means of improving profit margins, we have consistently been impressed by the high level of service, value and innovation Manugistics has provided Continental," said Continental Airlines Cargo Revenue Management Director Ed O'Meara. "Manugistics has continued to pioneer best-of-breed revenue management solutions and we feel confident that our relationship will continue to grow with this new technology extension."

Continental Airlines Cargo has been a Manugistics customer since 1996. Manugistics has bolstered Continental's bottom line by developing solutions that help maximize the airline's network profitability, obtain network cargo capacity and demand estimates, improve utilization, coordinate alternate routing options and quantify key costs. Manugistics' Cargo Revenue Optimizer (CRO) solution will facilitate the forecast capacity within Continental's network for thousands of shipments per day.

"This is an exciting time for Continental Airlines Cargo," said Continental Airlines Cargo Revenue Management and Distribution Manager Blair Prinz. "The Manugistics Cargo Revenue Management Suite of Solutions will provide us with the toolset to grow our business in an extremely competitive environment. Our customers will benefit from new routing alternatives available through their preferred e-commerce channel."

"Our latest agreement with Continental demonstrates Manugistics' strength in supplying such service-based industries as the airline industry with dynamic solutions that address their changing needs and directly contributes to bottom line costs and topline revenues," said Manugistics Senior Vice President Ed Daihl. "In a time when the airline industry faces extreme financial challenges, we have proven that Manugistics solutions and expertise contribute to a company's fiscal success. We look forward to helping Continental sustain its competitive edge."

Under the terms of the agreement, Manugistics will install its upgraded versions of the following solutions: Capacity Management, Sales and Allocation Planning, Flight Management and Real-time Booking Evaluation. This newest version enables enhanced demand forecasting capabilities as well as a range of medium-term business planning capabilities such as allocation planning and scenario analysis. Additionally, Continental purchased Manugistics best-of-breed solutions Demand, Monitor and Reporting. The full implementation is expected to be completed in approximately 17 months.

About Manugistics Revenue Management Group

Manugistics has pioneered industry leading pricing and revenue management solutions for travel providers. Today, leading companies in the Travel, Transportation and Hospitality industries leverage Manugistics' expertise to maximize their profits. Manugistics clients include Harrah's-Caesars Entertainment, Eurostar, Omni Hotels, Princess Cruise Lines, TUI (formerly Thomson Holidays), Continental Airlines Cargo, and other leading travel and hotel industry companies.

About Manugistics Group, Inc.

Manugistics powers the synchronized supply chain. Clients depend on Manugistics to position them one step ahead of demand. With Manugistics' unparalleled supply chain and revenue management solutions, clients achieve improved forecast and inventory accuracy and leverage industry leading pricing and yield management solutions to maximize profits while ensuring optimum supply for constantly changing demand. Its clients include industry leaders such as Boeing, Canadian Tire, Cingular, Circuit City, Coca-Cola Bottling, Coty International, DHL, Diageo, Dixons, DuPont, Eurostar Group Ltd., Georgia-Pacific, Great North Eastern Railway (GNER), Harley-Davidson, Harrah's Entertainment, H.J. Heinz, L.L. Bean, Limited Brands, Kraft Foods, Marriott, McCormick, Nestle, RadioShack, The Scotts Company, Sears, Roebuck & Co., Sinotrans, Unilever and Wickes Building Supplies. For more information, visit our website at www.manugistics.com.

About Continental Airlines

Continental Airlines is the world's sixth-largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 151 domestic and 133 international destinations -- more than any other carrier in the world. With 42,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

FORWARD-LOOKING STATEMENT 

This release contains forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially, including, but not limited to, the following: Manugistics' ability to generate sufficient cash flow to meet its existing debt obligations and effectively conduct its business operations; the implementation of the Company's exit and disposal plans and other cost reduction measures to align its cost structure with its revenue; effects from recent significant changes in the Company's organizational structure and senior management; Manugistics' ability to motivate, hire and retain its highly skilled and qualified workforce; continued softness in the market for enterprise application software, as well as political upheaval and unrest; the Company's ability to overcome its difficulties in sales execution; the Company's ability to maintain its competitive place in the markets for its products and services, to keep pace with the rapid technological advances or to introduce new products or product versions that satisfy customer demand, achieve market acceptance or meet competitive challenges; and changes in our competitive environment, including industry consolidation. 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 fiscal year ended February 28, 2005 and Quarterly Report on Form 10-Q for the period ended November 30, 2005. This information is accurate only as of the date of this release and we do not undertake any obligation to update any of the information contained herein.