ROCKVILLE, Md., Oct. 18, 2004 -- Manugistics Group, Inc. a leading global provider of revenue management solutions, today announced its Rail Revenue Management solution is enabling UK client, Great North Eastern Railway (GNER), to reap greater returns from passenger ticket revenue.

GNER has used the Manugistics passenger rail revenue management solutions at its London Kings Cross and York offices since January 2004. By using Manugistics' solutions, GNER is able to forecast passenger demand for GNER services and optimize both seat availability, as well as fare allocation across the GNER train network.

"The transportation industry is under growing pressure to increase asset utilization, improve financial performance and enhance customer satisfaction," said Adrian Gonzalez, Director, Logistics Executive Council at ARC Advisory Group. "Therefore, transportation companies including the railroads are focusing on Operational Excellence initiatives and investing in technology such as Manugistics' Rail Revenue Management solution to enable smarter and more efficient business processes and decisions."

GNER operates Britain's fastest domestic railway, linking England and Scotland, using one of the UK's most heavily traveled passenger rail networks, which carried more than 15 million passengers in 2003. With increasing competition for passengers, forecasting the accurate number of passengers and planning the correct fare for each seat on each train run are business imperatives for GNER, both to help ensure high levels of customer satisfaction and achieve revenue targets.

"We recognized that we would benefit from a solution that could help us capture the greatest revenue yield from every train," said GNER Commercial Manager Andrew Markham. "With Manugistics' solutions, we can now minimize the number of unsold seats that should have produced revenue, as well as control and prevent the overbooking of trains by passengers with discounted tickets to help ensure that full fare demand is never refused. In retrospect, Manugistics' rail revenue management solutions have also helped us to measure our success and highlight when strategies need to be reviewed and revised."

Markham added, "We selected Manugistics based on their proven solutions and wide-ranging knowledge of the travel, tourism and hospitality sector, as well as the company's understanding of the unique business issues facing GNER."

"We are delighted to be working with GNER, and to strengthen and grow our existing relationship," said Manugistics Revenue Management Vice President Andy Archer. "Manugistics has deep domain experience in offering differentiated revenue management solutions across multiple industries, along with a proven track record of delivering a quick return on investment."

GNER's Markham will be a featured speaker at Manugistics' Second Annual Demand and Revenue Management Summit, November 9-11, 2004 in Rockville, Maryland. The Summit will bring together top revenue management practitioners from the travel, transportation and hospitality industries discussing and sharing the latest innovation in revenue management solutions.

To register for this event and to access the latest Summit information, visit: http://www.manu.com/summit/default.asp.

About GNER

GNER operates fast and frequent services on the East Coast Main Line between London Kings Cross, the East Midlands, Yorkshire, the North East of England and Scotland - a route network of 920 miles. Employing 3,100 staff, the company has an award-winning reputation for customer service and has consistently scored the highest passenger satisfaction ratings of any UK long-distance train operator, according to independent surveys.

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@manu.com