Serono Selects Manugistics' Collaborative Planning & iHub Solutions

Business Wire, April 2, 2002

Business Editors/Hi-Tech Writers

BASEL, Switzerland--(BUSINESS WIRE)--April 2, 2002

Manugistics Group, Inc. (Nasdaq:MANU), the leading global provider of Enterprise Profit Optimisation (EPO) solutions that help companies enhance margins by lowering costs and improving revenues across their supply-demand networks, today announced that Serono S.A. - one of the world's top 3 biotechnology companies - has selected Manugistics' collaborative planning and Intelligent Hub (iHub) solutions to improve planning capabilities and enhance visibility across its extended global supply chain.

Serono's global network produces and distributes approximately 1,000 items, which are distributed through more than 50 locations serving over 100 markets. Rapid growth has led to an increase in sales and distribution channels as well as a significant increase in the number of Stock-Keeping-Units (SKUs). Earlier this month, Serono announced the launch of Rebif(R) (interferon beta-1a) in the United States. The U.S. Food and Drug Administration (FDA) approved Rebif(R) for the treatment of patients with relapsing forms of multiple sclerosis to decrease the frequency of relapses and delay the accumulation of physical disability.

Serono will use the Manugistics Web-based solutions to more effectively collaborate internally across business groups as well as externally with suppliers and customers; and to help create a backbone for centralised planning that can be executed across Serono's multiple Enterprise Resource Planning (ERP) systems. Using the solutions, Serono expects to achieve significant reductions in lead-times and supply chain inventory, as well as improvements in on-time shipments and revenue capture, while ensuring that its life-enhancing products are available when and where customers demand.

"We selected Manugistics solutions for several key reasons," commented Dr. Peter Laurence, Global Supply Chain Project Director for Serono. "Serono has been a Manugistics customer since 1998 when we selected the company's global fulfilment management solution. We were impressed with both the speed and ease of implementation of that solution - it went live in just five months - and the benefits it has enabled for Serono. Similarly, our thorough technology assessment rated Manugistics' collaborative planning and iHub solutions extremely high. The solutions proved to have the strongest fit to our technical and functional requirements, with an implementation track-record and ease of integration superior to that offered by Manugistics' competitors."

Dr. Laurence continued, "We remain impressed with the support provided by our Manugistics team, which continues to demonstrate an excellent knowledge of our market and a deep understanding of our needs."

Manugistics' iHub solution is designed to connect an enterprise with its extended trading network and provide visibility, event monitoring, and business process optimization across multiple tiers of suppliers and customers. The solution enables a collaborative environment in which demand and supply plans, commitments, orders, and shipments can all be shared across multiple tiers of suppliers and customers. By minimizing information delays and distortion across tiers in the supply chain, the solution can enable Serono to improve end-to-end visibility to help synchronize the company's extended supply chain.

In addition, Serono selected Manugistics WebConnect to help enable rapid integration of the solutions into Serono's existing systems and to ease integration with future systems. Manugistics analysis and reporting tools will also help Serono ensure that its network is operating at peak performance.

Tim Moylan, Director of Life Sciences Europe, commented, "We are extremely gratified that Serono has chosen to deepen their relationship with Manugistics as they enter a critical phase of global growth. With 7 of the top 10 FORTUNE 500(R) life sciences companies as Manugistics clients, Serono's commitment to Manugistics is further evidence that our solutions are a preferred technology choice for industry leaders."

About Serono

Serono is a global biotechnology leader. The Company has six recombinant products on the market, Gonal-F(R), Luveris(R), Ovidrel(R)/Ovitrelle(R), Rebif(R), Serostim(R) and Saizen(R) (Luveris(R) is not approved in the USA). In addition to being the world leader in reproductive health, Serono has strong market positions in neurology, metabolism and growth. The Company's research programs are focused on growing these businesses and on establishing new therapeutic areas. Currently, there are fifteen new molecules in development.

In 2001, Serono achieved worldwide revenues of US$1.38 billion, and a net income of US$317 million, making it the third largest biotech company in the world based on revenues. The Company operates in 45 countries, and its products are sold in over 100 countries. Bearer shares of Serono S.A., the holding company, are traded on the SWX Swiss Exchange (SEO) and its American Depositary Shares are traded on the New York Stock Exchange (SRA).