Value Delivered by Manugistics Pricing and Revenue Optimization Solutions Driving Market Adoption -- PRO Solutions Seen as Important Addition to Corporate Growth Strategies.

Business Editors

SAN DIEGO, Calif.--(BUSINESS WIRE)--May 6, 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, said today at its award-winning client conference enVISION2002 that the high value realized by early adopters of its Pricing and Revenue Optimization (PRO) solutions is enabling these solutions to gain market traction across multiple sectors as companies look for innovative ways to increase revenues and margins, without making new investments in their capital infrastructures.

Speaking at the award-winning annual conference, Greg Owens, Manugistics' chairman and chief executive officer, pointed to several factors driving the Company's PRO success, including "the largest group of PRO design, implementation and support experts in the world, a storehouse of intellectual property, and more than 20 years experience delivering industry-focused PRO solutions that deliver tangible business results. Together these factors are delivering the industry's most compelling value proposition for generating significantly higher revenue and margin."

Manugistics' growing PRO client base now includes business leaders such as: American Trans Air, Inc., (ATA), APL, Archstone-Smith, Harrah's Entertainment, Inc., Continental Airlines, DHL Aviation, Ford Motor Company, the Canadian Broadcasting Corp. (CBC), Fairchild Semiconductor, GE Lighting, Hertz Corporation, Marriott International, Omni Hotels, P&O Princess Cruises, Staples, Inc., Television New Zealand (TVNZ), Thompson Holidays and UPS. Leading systems integrators are also building practices and committing resources to sell and deliver the significant value of PRO solutions.

Andy Hogenson, Manugistics' senior vice president of pricing and revenue optimization, reinforced Owens' remarks, stating, "PRO has an extremely compelling value proposition - a client has the potential to see up to an eight percent incremental revenue lift, and a reduction in promotions spending of up to 5-15 percent - all with no incremental investment in capital infrastructure." Hogenson also pointed to actual results of several Manugistics PRO clients:

- Using the Manugistics NetWORKS Precision Pricing(TM) solution, aided by some
effective teamwork, the Fairchild Semiconductor pricing team reduced the $1.4
billion manufacturer's pricing cycle time by more than 70 percent.

- According to an October 2001 Hospitality Technology article titled "Mastering
the Yield," Harrah's Entertainment Inc. indicated that, in some markets, the
Company has seen a 10-percent improvement in total revenue per available room,
year-over-year in the first 12 months of using a Manugistics PRO solution.

- Continental Airlines calculates that the incremental benefit from CargoProf -
its Manugistics-powered revenue management system implemented in 1999 - is now
in excess of $9 million, equaling a 2.5 percent increase in net revenues on the
flights managed by the system.

- Omni Hotels achieved a 4 percent-plus revenue increase using a Manugistics'
PRO solution for the hotel industry, according to a November 2001 Internet Week
story titled "Omni Maximized Revenue."

- Archstone-Smith has completed pilot implementations of Manugistics' PRO
solution for the apartment industry. R. Scot Sellers, chairman and chief
executive officer, recently stated, "We are very encouraged by the initial
results, and expect to implement this system throughout our entire portfolio by
the first quarter of 2003."

Manugistics' solutions are designed to provide clients with a comprehensive price management solution - from price creation, to price application, to price execution. Manugistics PRO solutions can enable companies to create better starting prices, articulate pricing policies and distribute prices, negotiate profitable deals in real time, deliver more accurate orders to back-end systems, and then track results to continually improve performance.

Pat Snell, at Robert W. Baird and Co., in a First Call Note dated April 25, 2002, said that Manugistics' "packaged PRO solution set, and its EPO vision, are unique among its competitors and are beginning to gain a lot of traction with current and potential customers" and that PRO "represent[s] the biggest point of competitive differentiation and the most significant potential driver to upside financial performance" for Manugistics.

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 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 Consolidated, Compaq, DuPont, eConnections, 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.

The enVISION conference series, hosted by Manugistics, is an award-winning conference series which gathers industry leading customers and partners to explore the future of Enterprise Profit Optimization.

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 uncertainty, the timing and degree of business recovery, 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 continued 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.