ROCKVILLE, Md., Oct. 13, 2004 -- Manugistics Group, Inc., a leading global provider of demand-driven supply chain management solutions, has announced that McDonald's Europe has successfully implemented its advanced Forecasting and Replenishment solutions enabling the company to make more informed decisions on likely demand, the availability of products and shipment delivery.

The system is already deployed and live in France and Germany where it is meeting the goals of increasing McDonald's Europe's responsiveness to market demand, reducing company costs and further optimizing McDonalds existing supply chain. McDonald's Europe now plans to roll out Manugistics' advanced Forecasting and Replenishment solutions in the UK, Sweden and Austria. The food service retailer then plans to deploy Manugistics' solutions in its operations throughout Europe's major countries within two years.

McDonald's Europe's supply chain, in the countries already deployed, is supported and operated by its logistics partners LRServices (France) and Alpha Management (Germany).

Business scope for the Manugistics solutions include all food and non-food products, franchised and company-owned restaurants, distribution centers, as well as dedicated and non-dedicated suppliers. The functional scope covers sales forecasting at item and restaurant level over a one-year horizon and takes into account a wide variety of factors including likely promotional and competition impacts. The Manugistics solutions will also enable planners to model 90 day replenishment plans across the McDonald's Europe's supply chain and simulate supplier capacity constraints for critical items.

"The Manugistics' solution was seamlessly integrated into the legacy execution system, and has proven to be an advanced and robust backbone for the planners on the McDonald's Europe integrated supply chain," said Olivier Chasseloup, Supply Chain Director for LRServices. "The appointment of Manugistics with a world-wide remit has also resulted in first class local consulting and support services. We have already formed a strong basis for a lasting partnership."

Thomas Schachner, McDonald's Senior Director of Global Logistics and Supply Chain Integration added: "McDonald's Europe intends to strengthen its leadership and competitive advantage through on-going service level and efficiency improvements. These are delivered through an integrated supply chain approach, supported by market-leading applications of Manugistics. Through high-levels of forecast accuracy, supply chain visibility and decision support, we have already achieved payback, with outstanding gains in the areas of restaurant inventory levels and in-restaurant efficiencies - including product and recipe usage yields - as well as reductions in wastage, transport and purchasing costs. Based on these very significant results across a network of nearly 2,000 European restaurants live as of today, we shall be rolling out aggressively across the rest of the region."

Jean Claude Walravens, President of EMEA at Manugistics added: "We are very pleased with what we have accomplished for the McDonald's Europe team already. We believe that by implementing Manugistics' solutions, McDonald's Europe has moved one step closer to optimizing its supply chain which will allow it to serve customers even better."

About McDonald's

McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. McDonald's is also one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which we do business.

About Manugistics Group, Inc.

Manugistics powers the demand-driven supply chain. 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, continuing economic and political uncertainty, the ability of the Company to effectively align its cost structure with revenues, and the timing and degree of business recovery. 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 August 31, 2004. Manugistics assumes no obligation to update the forward-looking information contained on this announcement.

Manugistics Group, Inc. 
Sheila Blackwell, 301-255-5486 
sblackwell@manugistics.com 
or
Mulberry Marketing Communications
Chris Klopper, +44 (0) 207 928 7676
cklopper@mulberrymc.com