ROCKVILLE, Md., Oct. 19, 2004 -- Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of demand-driven supply chain management solutions, today unveiled its newest airline price optimization tool at the 2004 International Air Transport Association (IATA) Airline Revenue Management & Pricing Conference in Budapest. As part of its portfolio of airline solutions, the Airline Price Optimizer analyzes passenger response to airline service offerings, fares and fare sales, competitive factors to produce price-sensitive demand forecasts, the best possible fare plans and optimal price-induced inventory controls.

"Today's consumers are more price-sensitive than ever, so traditional revenue management approaches do not produce the most favorable results for airlines," said Ed Daihl, Manugistics' Group Vice President of Revenue Management. "Airlines need to understand a consumer's willingness to pay specific prices and attracting the right mix of passengers rather than just filling up the plane. The Airline Price Optimizer solution can help airlines ensure that fares and inventory controls are optimally aligned to meet strategic business objectives."

To determine consumer price sensitivity, the Airline Price Optimizer solution takes into account historical booking patterns and fares by applying a market response model. These price sensitivity factors are used to produce demand forecasts as a function of price. Price sensitive demand forecasts are then input into a price optimization module to produce optimal fare options. They are then translated into inventory control recommendations that work within existing reservation and booking management systems.

"Our solution provides a rigorous means of analyzing and understanding the key drivers behind passenger behavior," said Daihl. "Understanding passenger preferences and booking patterns helps airlines enhance revenue by making informed decisions about pricing, promotions and inventory. All these combined allow airlines to sell the right product, to the right customer, at the right time, for the right price."

This fully integrated Airline Revenue Management solution, combined with the latest technology from the Company's Price Optimization solutions suite are used in such industries as telecommunications, retail and consumer goods.

"Our solution is designed and engineered for quick implementation and a rapid return on investment," said Daihl. "The product can enhance any airline's existing revenue management solution and is particularly suitable for low-cost, regional carriers where price sensitivity drives business."

The IATA Airline Revenue Management & Pricing Conference is the leading neutral forum for revenue management professionals worldwide in the aviation industry. The conference runs from October 19-21, 2004 at the Hilton Hotel in Budapest where Manugistics will be exhibiting at Booth Four.

Manugistics will be hosting its 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 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