ROCKVILLE, Md.--Manugistics Group, Inc. MANU, the leading provider of Enterprise Profit Optimization (EPO) solutions that help companies enhance margins by lowering costs and improving revenues across their supply-demand networks, today announced that Thomson Holidays, a division of TUI UK, has selected a suite of Manugistics Pricing and Revenue Optimization (PRO) solutions to increase its ability to maximize capacity and revenue across its product range.

Thomson Holidays, part of the newly created tour operating and distribution business TUI UK, is the UK's largest air-inclusive tour operator. Central to their future business success is the requirement to accurately forecast demand for flights, accommodation, packaged holidays and ancillary products, such as car rentals or excursions. Manugistics PRO solutions are designed to produce rapid, measurable contributions in this area, enhancing the bottom-line profitability for Thomson.

The Manugistics solution is a multi-dimensional yield system that utilizes statistical inference and complex algorithms to compare, trade-off and then optimize the expected contribution resulting from various components of individual holiday packages offered by Thomson. For example, where capacity is limited on Thomson's aircraft, the Manugistics PRO solution conducts advanced analysis of both pricing structures and seat availability to prioritize the sale of the accommodation that makes the highest revenue contribution.

"Extensive research and evaluation of alternative pricing and revenue optimization products resulted in our selection of a Manugistics PRO solution," said TUI UK managing director Chris Mottershead. "Manugistics' deep understanding of the evolving dynamics of our market and their proven experience in implementing optimization solutions for different sectors of the travel industry were key factors in our decision. In addition, what really clinched the deal for Manugistics was the rapid roll-out and return on investment that they have been able to deliver with their PRO solutions."

"I am delighted that we can now include the UK's largest tour operator amongst our customers," commented Terry Austin, Manugistics president of European operations. He added: "In the fiercely competitive Travel, Transport and Hospitality sector, to grow revenues and expand margins a company needs to proactively and strategically manage pricing to make the most of every transaction, every time. Thomson Holidays is the latest forward-thinking company to acknowledge that Manugistics PRO solutions allow them to realize these benefits."

TUI UK is the corporate name of the newly merged businesses of Thomson Holidays and UK Distribution, (including Lunn Poly) and incorporating some of the functions of the former Thomson Travel Group. TUI UK is the leading holiday company in the UK and includes the tour operating brands Thomson, Portland Direct, Skytours, Just and Club Freestyle as well as travel retailers Lunn Poly, Skydeals, Travel House Group and Team Lincoln.

TUI UK forms part of TUI Northern Europe, which also includes the Specialist Holidays Group, TUI Ireland and TUI Nordic. TUI Northern Europe is, in turn, part of Preussag, the world's leading holiday company, whose head office is in Hanover, Germany. Also part of Preussag is Britannia Airways, part of TUI Airlines, the world's leading holiday airline group, which includes Britannia Nordic and Hapag Lloyd as well as interests in the airlines White Eagle, Corsair and Neos.

TUI UK PR - Sonia Davies T: 0207 383 1169 [email protected]

About Manugistics Group, Inc.

Manugistics helps companies lower operating costs, improve customer service, enhance profitability, and accelerate growth by optimizing the supply-demand network from design and procurement through pricing and delivery. The company provides comprehensive solutions - for pricing and revenue optimization, service and parts management, supplier relationship management, and supply chain management. Manugistics has offices in Australia, Belgium, Brazil, Canada, France, Germany, Italy, Japan, Mexico, The Netherlands, Singapore, Spain, Sweden, Taiwan, the United Kingdom and United States. Its clients include industry leaders such as 3Com, , Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Fairchild Semiconductor, Ford Motor Company, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Staples, Texas Instruments, Unilever, and United Airlines. For more information, go to www.manugistics.com

FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-255-5330.

FORWARD LOOKING STATEMENT

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, increased economic uncertainty following the tragedy of September 11, 2001, the timing and degree of any business recovery in light of the continuing economic downturn, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, competition, risks related to quarterly performance, risks of new business areas, international expansion, business combinations and strategic alliances, lengthening of sales cycles for software products and services, and the effectiveness of the cost reduction efforts undertaken by Manugistics. A decreased demand for computer software due to weakened economic conditions could result in decreased revenues or lower revenue growth rates. 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 28, 2002. Manugistics assumes no obligation to update the forward-looking information contained in this announcement.

Manugistics is a registered trademark, and the Manugistics logo, the phrase "Leveraged Intelligence," Enterprise Profit Optimization and Manugistics NetWORKS are trademarks of Manugistics, Inc. All other product or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Laura Janes
301/255-5330
JDA Software Group, Inc.