H-E-B Grocery Company Selects Manugistics' Collaborative Forecasting and Replenishment Solutions

Leading Grocery Chain Rolls-out Strategic Initiative using Manugistics

ROCKVILLE, MD. -- November 11, 2002 -- Manugistics Group, Inc. (Nasdaq: MANU), the leading global provider of supply chain management and pricing optimization solutions, today announced that H-E-B Grocery Company - one of the nation's largest privately owned retail food chains – will improve customer service, reduce inventory costs and improve product availability using the Manugistics Collaborative Planning, Forecasting and Replenishment (CPFR) Solutions.

H-E-B has undertaken an innovative customer service initiative to help the retailer deliver even better customer service. The Company plans to use the Manugistics Collaborative Planning, Forecasting and Replenishment Solution, in multiple supply chain deployments, to better manage the 50,000 to 60,000 products available at more than 280 H-E-B Stores.

"Through the controlled exchange of real-time data, H-E-B and its suppliers can more effectively anticipate demand, update inventory, identify market changes and respond accordingly," said Don Beaver, CIO of H-E-B Grocery Companies. "We believe in the strategic importance of this initiative, and I am confident that we have selected the right partner in Manugistics to assist us in achieving our objectives."

"Manugistics is proud to partner with an industry leader like H-E-B Grocery Company to help drive tremendous return on investment in a very short time," said Sean Gibson, vice president of grocery/retail with Manugistics. "We look forward to working with H-E-B to ensure the delivery of better customer service, enhanced profitability and shareholder value."

In 1905, on a $60 investment, H-E-B began as a small family grocery store in Kerrville, Texas. Today, H-E-B has grown into one of the nation's largest independently owned food retailers with over 280 stores throughout Texas, Louisiana and Mexico and more than 50,000 partners (employees). Described by industry experts as a daring innovator and smart competitor, H-E-B has led the way with creative new concepts, such as the popular Central Market stores located in Austin and San Antonio. But one thing at H-E-B that has not changed is the company's commitment to being the customer's champion when it comes to excellent quality, low prices and superior service.

In many respects, H-E-B is an old-fashioned American success story involving hard work, perseverance and dedication to the highest standards. It can be described as a company firmly rooted in the past with an eye toward the future. True to the vision of the company's founder, Howard E. Butt, Sr., the spirit of giving is still very much a part of everyday business at H-E-B. The company donates 5 percent of its pre-tax earnings each year to charitable organizations in the communities it serves.

Manugistics leads the industry in delivering innovative pricing and supply chain software solutions. Today, more than 1200 clients trust Manugistics to help them reduce costs, increase revenues and enhance margins. The company provides comprehensive solutions for supply chain management, service and parts management, pricing and revenue optimization, and supplier relationship management. Its clients include industry leaders such as 3Com, AT&T, Amazon.com, Boeing, Caterpillar, Cisco Systems, Circuit City, Coca-Cola Bottling, Compaq, Continental Airlines, Diageo, DuPont, Fairchild Semiconductor, General Electric, Kraft, Nestle, RadioShack and Unilever. 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, continuing economic and political uncertainty, the timing and degree of business recovery, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, unexpected 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 and their impact on the company’s ability to operate its business. A decreased demand for enterprise application 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 and Quarterly Report on Form 10-Q for the quarter ended August 31, 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