JDA Software Completes Manugistics Acquisition; JDA Establishes Leadership as First to Deliver Comprehensive Optimization Solution for Global Supply & Demand Chain Market

Business Wire, July 6, 2006

SCOTTSDALE, Ariz. -- JDA(R) Software Group, Inc. (Nasdaq:JDAS) announced that it has purchased all of the outstanding equity of Manugistics Group, Inc. (Nasdaq: MANU) for approximately $213 million in cash, or $2.50 per share. By finalizing the acquisition, JDA has achieved its goal of significantly growing its size and reach up the supply chain with the addition of Manugistics 800 customers and synchronized supply chain and revenue management solutions. JDA is now uniquely positioned to offer the first vertically-focused optimization solution to the global supply and demand chain market that addresses mission critical requirements from raw materials to the consumer.

"Today begins a new era of growth and opportunity for JDA and Manugistics worldwide customers, associates and shareholders," commented JDA CEO Hamish Brewer. "With our unbeatable combination of advanced optimization and execution solutions, JDA is now best positioned to deliver clearly differentiated expertise and compelling innovation to the global supply and demand chain market. We have a highly skilled team primed to deliver transformational business benefit at a low total cost of ownership for our 5,500 customers worldwide."

"With synergies in operations, administrative functions and infrastructure costs expected to produce annual savings of $25 to $30 million dollars within the next twelve months, we expect significantly improved operating leverage and strong financial results," added Brewer.

Michael Relich, CIO of Guess? Inc., a long-time JDA customer and vertically-integrated retailer, said that he was "impressed to see how JDA has expanded its portfolio of applications through acquisition and as new technology has emerged."

"Since we originally signed a license with JDA in 1994, they've gone from a merchandise management company to one that offers everything for retail from POS to planning. With the acquisition of Manugistics, JDA's offering becomes even more compelling with the value proposition of optimizing operations all the way up the vertically integrated supply chain to the point of raw materials," stated Relich.

"Based on our experience with the Arthur products, JDA dedicates the resources in both R&D and experienced professionals to further enhance and support the products it acquires. This has enabled us to get even greater economies of scale and efficiencies from our JDA investment," added Relich.

Manugistics Supply Chain Customers Endorse JDA Vision, Integration Plans

JDA presented its vision and preliminary product integration plans to nearly 200 leading consumer goods manufacturers and other customers at Manugistics Executive Forum and Client Steering Committee in Orlando, Florida from June 19-21st.

"There is still untapped potential in improved visibility to the consumer signal in a truly integrated demand/supply chain. Many companies share that vision and recognize that unlocking that potential opens the door to significant opportunities. If JDA can successfully translate its experience in acquisitions, their presence in the retail sector combined with Manugistics supplier optimization capabilities means we'll have a single company focusing their resources and energy on developing integrated solutions with a real end-to-end perspective," stated Bill Nienburg, vice president of sales and operations planning, at Sara Lee.

"This is a great opportunity to gain solutions that will help the industry make some real progress towards realizing that vision of a lean and consumer driven demand chain and having JDA/Manugistics focused on the tools means we can fully focus on using them to drive results - from a business standpoint, that's exciting," added Nienburg.

Another Manugistics customer present at the event and encouraged by JDA's acquisition is Greg Gries, data systems manager at Perdue Farms Incorporated, a leading international food and agriculture business.

"From a cash flow perspective, this acquisition has eliminated the concern about the viability of Manugistics. While there is communication that all Manugistics customers need to hear from JDA regarding the product strategy and industry commitment, overall we're excited. There's opportunity to achieve some synergistic results with the integration of JDA and Manugistics applications. For example, we are looking forward to learning more about how JDA's best-of-breed demand planning solutions can enhance what we've implemented with Manugistics," stated Gries.

"It sends good signals to me that some Manugistics' senior management will take on executive roles at JDA. It's also a positive sign that JDA is retaining the office in Maryland and having some senior management in this location," added Gries.

Brewer announced to customers that JDA planned to complete the integration of the JDA Portfolio(R) and Manugistics products over the next 18-24 months using JDA's smart client technology based on Microsoft .NET. He pledged to provide a powerful and consistent user experience across JDA's entire product suite along with advanced workflow capabilities based on the Microsoft Windows Workflow Foundation. JDA plans to release an initial product road map to all JDA and Manugistics customers at the end of July 2006.