Coty International Selects Manugistics to Optimize Freight Shipments.

ROCKVILLE, Md. -- Best-in-Class Transportation Management System Will Lower Costs and Streamline Supply Chain for Leading Cosmetics Company

Manugistics Group (NASDAQ:MANU), a leading global provider of demand and supply chain management solutions, today announced that it has been awarded a software licensing contract with Coty Inc., one of the world's largest marketers, manufacturers and distributors of fragrances, cosmetics, personal care and beauty care products. The contract, awarded in May, is an expansion of Manugistics' longstanding relationship with Coty.

Manugistics is currently deploying an end-to-end transportation management system to optimize inbound, outbound and inter-facility freight logistics among Coty's North American and European facilities. The deployment provides a global freight optimization program that includes track and trace, load order consolidation, automated freight pay and invoice reconciliation, dynamic pooling and exchange integration.

"The cosmetics industry is constantly evolving to bring the latest colors, scents, textures and applications to the masses, placing serious demands on our logistics and distribution processes," said Coty US Logistics Vice President Mark Y. Newberry. "We continually seek innovative ways to deliver quality products to our broad trade channels and loyal customer base, as well as untapped market segments utilizing best-in-class service and cost. Manugistics' transportation management solutions are an ideal fit for Coty to streamline our supply chain, reach our global customers and continue to cut costs. We performed an extensive review of the available solutions on the market, and Manugistics' solution clearly was the best choice for Coty."

Coty, a manufacturer and distributor of such products as Stetson, Celine Dion, Mary Kate & Ashley fragrances, Healing Garden and Calgon specialty bath products, Adidas fragrance and personal care items and fragrances from the houses of Jennifer Lopez, Davidoff, Kenneth Cole and Marc Jacobs, selected Manugistics' comprehensive NetWORKS Transport, Carrier, Freight Pay, and Delivery Manager solutions to reduce time and improve efficiencies while transporting the company's products throughout its distribution network. In addition to improving transportation efficiencies, Manugistics' solution helps Coty reduce transportation costs by leveraging both traditional and cutting edge tools.

"As a leading provider of consumer products, Coty's transportation management needs require strict scalability metrics that Manugistics' supply chain management software delivers," said Manugistics Transportation & Logistics Vice President Rod Strata. "Coty's selection of Manugistics' solutions further validates that our years of experience in developing and delivering transportation and logistics for a multitude of global consumer packaged goods (CPG) clients make us the preferred transportation management solutions provider worldwide. We are delighted to deliver a truly world-class solution to such a prominent leader in the cosmetics industry today."

About Coty International

Coty Inc., which celebrates its centennial this year, is a modern company that has risen to become one of the world's largest and most successful beauty companies with sales of $1.7 billion in 2003. With operations in more than 25 countries, Coty Inc. boasts a global brand portfolio of unrivaled breadth and scope, spanning the three core categories of fragrance, color cosmetics and skincare in the prestige, mass and "masstige" distribution sectors.

About Manugistics Group, Inc.

Manugistics is a leading global provider of demand and supply chain management solutions. 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, Continental Airlines, 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, among others, the ability to successfully implement the solutions selected by Coty, the ability to implement successfully our recent management changes, field a successful sales organization, align our cost structure with our revenue, and develop products and services that keep pace with our industry's rapidly evolving technology. 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 May 31, 2004. Manugistics assumes no obligation to update the forward-looking information contained in this announcement.