Fandeli Seeing Strong ROI From Manugistics' Manufacturing Planning and Scheduling Solution; Order Lead Times Cut in Half; Finished Goods Inventory Significantly Reduced.

Business Editors/Hi-Tech Writers

ROCKVILLE, Md.--(BUSINESS WIRE)--Feb. 28, 2002

Manugistics Group, Inc. (Nasdaq:MANU), the leading global provider of Enterprise Profit Optimization(TM) (EPO) solutions that help companies enhance margins by lowering costs and improving revenues across their supply-demand networks, today announced that Fabrica Nacional de Lija, S.A. de C.V. (Fandeli) is seeing significantly improved customer service, reduced finished goods inventory, and enhanced inventory visibility following the implementation of Manugistics' manufacturing planning and scheduling solution.

Fandeli is the leading manufacturer of coated abrasives in Mexico. The company is highly integrated, and manufactures a comprehensive array of sanding and polishing products that it sells to metal and automotive industry clients.

Pulling data from Fandeli's Enterprise Resource Planning (ERP) system, the Manugistics solution has provided Fandeli with much needed visibility into its existing inventory and available production capacity, as well as the relative value of customers to the company. Using this data, the solution is creating optimized finished goods production plans that can meet customer demands in a more timely and effective way. Success has prompted Fandeli to extend the solution down to the continuous process level in order to schedule manufacturing sequences that can minimize changeover, maximize throughput, reduce waste, and increase asset utilization.

"Fandeli is committed to advanced technologies and commercial best practices that can bring us even closer to the needs of our clients," said Javier Perez Olagaray, Fandeli's CEO. "Using the Manugistics solution, we have already slashed our order cycle time in half, and expect to significantly add to these customer service gains over the coming months. Inventory levels continue to drop, especially at our manufacturing plants. In addition, productivity has increased as planning and scheduling processes previously done manually become automated. Going forward, we believe we can sustain our now enhanced ability to keep inventory low and customer service high."

Javier Perez Olagaray, Fandeli's CEO continued, "We also believe that Manugistics - with its deep Latin American client base, robust manufacturing solutions suite, and proven implementation track record - is well-suited to help us address other key business challenges."

"The goal of any manufacturing organization is to create an effective manufacturing foundation to support enhanced financial performance and improved customer service," said Rich Bergmann, Manugistics' president. "Thanks to an aggressive technology strategy, we now offer leading companies such as Fandeli robust, collaborative manufacturing solutions that can address their critical business processes - from procurement to fulfillment."

At Fandeli, Manugistics is a key part of a team that includes PricewaterhouseCoopers, as well as corporate sponsors and planners, who have come together to help the company achieve its manufacturing objectives.

Fandeli will be one of the many client speakers at Manugistics' award-winning enVISION conference in San Diego, May 5-8, 2002. For more information about Manugistics and enVISION2002 San Diego, go to www.manugistics.com.

About Fabrica Nacional de Lija, S.A. de C.V. (Fandeli):

Fandeli is the leading manufacturer of coated abrasives in Mexico. The company is highly integrated, with a comprehensive array of products for client procedures that require heavy sanding to the finest polishing. Fandeli's main market is Mexico, where it offers service through five distribution centers in Estado de Mexico, Jalisco, Nuevo Leon, Baja California and Queretaro. The company also exports to countries throughout the Americas, with a distribution center in Houston, Texas, and representatives in Argentina, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and Venezuela. For more information, go to www.fandeli.com.mx.

About Manugistics Group, Inc.

Manugistics 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 provides comprehensive solutions - for supplier relationship management, supply chain management, and pricing and revenue optimization. Its clients include industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Fairchild Semiconductor, Ford Motor Company, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Staples, Texas Instruments, Timberland, Unilever, and United Airlines. For more information, go to www.manugistics.com.

FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301/984-5330.

FORWARD LOOKING STATEMENT

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, increased economic uncertainty following the tragedy of September 11, 2001, the timing and degree of any business recovery in light of the continuing economic downturn, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, 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. A decreased demand for computer 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, 2001 and Quarterly Report on Form 10-Q for the quarter ended November 30, 2001. 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 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.