Press Releases

Manugistics Acquires Business of Western Data Systems, Creating one of the Industry’s Largest Aerospace and Defense Customer Bases

SAN DIEGO, Calif. -- May 6, 2002 -- Today at enVISION2002, Manugistics Group, Inc. (Nasdaq: MANU), the leading global provider of Enterprise Profit Optimization[TM] (EPO) solutions that help companies enhance margins by lowering costs and improving revenues across their supply-demand networks, announced that it has acquired the assets and business of privately-held Western Data Systems (WDS), headquarted in Calabasas, California. The acquisition creates one of the largest Aerospace and Defense (A&D) installed client bases in the industry, and enhances a uniquely robust solution set for optimizing the complex Service and Parts Management (S&PM) processes of these asset-intensive organizations.

WDS, with revenues last year of $28 million, is a leading provider of application software and services to A&D organizations - with more than 135 organizations and 33,000 concurrent users worldwide. Manugistics purchased the assets and business of WDS for a combination of cash and Manugistics stock. The acquisition is expected to be accretive to earnings on an adjusted basis.

With this acquisition, Manugistics strengthens its offering of S&PM solutions that address the complex business operations inherent to asset intensive industries. Clients will have increased capability to plan, price, synchronize and execute with a comprehensive array of functionality. The robust solution set features capabilities that range from predictive system failure forecasting and parts optimization, to finite capacity and labor resource scheduling, to Maintenance, Repair and Overhaul (MRO) shop planning and execution, and direct materials purchase management. Benefits of these solutions allow customers to optimize asset availability, ensure an extended life for assets, and achieve inventory and physical capacity cost reduction.

"The acquisition of WDS brings Manugistics important clients, deep expertise and proven technology to help us maintain our strong momentum in asset-intensive industries such as the aerospace and defense and government sectors. This will also help to drive our Service and Parts Management suite across automotive, aviation, communications, high technology, transportation and other asset-intensive sectors," said Greg Owens, chairman and CEO of Manugistics. "We look forward to applying nearly a half-century of combined Manugistics and WDS experience in supply-demand chain technology to help our clients maximize the profitability of capital assets over the entire lifecycle."

WDS clients include BAE Systems, Boeing, GKN Aerospace, Lockheed Martin, Norshipco, Northrop Grumman, Sikorsky and Smiths Aerospace. In addition, the United States Department of Defense (DoD) has implemented WDS solutions at the U.S. Navy, the U.S. Marine Corps, and the U.S. Air Force. Manugistics A&D clients include Kaman Aerospace, Rocketdyne Propulsion and Power, Mars Electronics International, Department of State, as well as the Defense Logistics Agency, the U.S. Air Force, and Naval Supply Systems Command (NAVSUP). Numerous depot-level MRO sites within the DoD will rely on Manugistics' integrated planning and execution capabilities.

"I am excited to be part of the Manugistics team and believe that WDS clients can now derive benefit from Manugistics' approach to optimizing profitability through intelligent, strategic deployment of powerful enterprise solutions," said Tony Rodde, former President and CEO of WDS. "In addition, Manugistics will be able to enable companies in other capital and asset intensive industries to more easily access and benefit from the procurement, MRO and supply chain capabilities of our combined solutions."

Powerful Solutions for Enterprise Profit Optimization

By following its strategy of investing in new, best of breed, differentiating products and solutions, Manugistics has assembled a powerful solution suite that now include WDS offerings such as:

Compass ENTERPRISE® for Original Equipment Manufacturers (OEMs)
This solution delivers comprehensive project or contract-oriented capabilities to discrete manufacturing clients who need to improve operating performance with commercial best practices while maintaining mandatory regulatory compliance, control, and reporting.

CompassENTERPRISE® for MRO
This comprehensive repair and overhaul operations management and accounting system for commercial and military MRO facilities is a Web-based, workflow-enabled solution that enables optimized operational management based on existing business portfolios, and helps position organizations for future competitive operations.

Buying Advantage™
This procurement system is designed expressly for direct material acquisition – which makes up the bulk of all procurement in complex manufacturing industries. The solution is workflow-driven, and has sophisticated tools for managing contractual and regulatory obligations that impact manufacturing operations.

Addressing Unique Requirements of the Public Sector

In addition to an industry-leading A&D client base, Manugistics is the only leading supply chain technology provider to be listed on both the U.S. General Services Administration's Federal Supply Schedule for Management, Organizational and Business Improvement Services (GSA MOBIS) and the GSA's Information Technology Schedule. Manugistics has also been awarded a Basic Order Agreement (BOA) by the NATO Consultation, Command and Control Agency (NC3A). The agreement gives NATO’s 19 member nations, 27 partner countries, and numerous governmental agencies direct access to Manugistics’ solutions.

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. Its clients include industry leaders such as 3Com, Amazon.com, 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 http://www.manugistics.com/.

The enVISION conference series, hosted by Manugistics, is an award-winning conference series which gathers industry leading customers and partners to explore the future of Enterprise Profit Optimization.

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

Contacts:

Laura Janes
Manugistics Group, Inc.
ljanes@manu.com
301-255-5330

John Conley
Ogilvy PR (For Manugistics)
john.conley@ogilvypr.com
202-452-9524