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FOR IMMEDIATE RELEASE
INVESTOR CONTACTS: Nate Wallace Raj Rajaji
DIRECTOR, INVESTOR RELATIONS CHIEF FINANCIAL OFFICER
Manugistics Group, Inc. Manugistics Group, Inc.
301-984-5059 301-984-5087
PRESS CONTACTS: Didi Blackwood
VICE PRESIDENT, CORPORATE COMMUNICATIONS
Manugistics Group, Inc.
301-255-3143
MANUGISTICS ANNOUNCES LAWSUIT
AND REITERATES PERFORMANCE GUIDANCE
FOR ITS THIRD QUARTER
ROCKVILLE, MD. -- DECEMBER 7, 2000 -- Manugistics Group, Inc. (Nasdaq: MANU)
today announced that, on November 29, 2000, it filed a lawsuit against
VirtualFund.com, Inc. in the U.S. District Court, District of Maryland, alleging
that VirtualFund.com is in anticipatory breach of its obligations under a
software license agreement among Manugistics and VirtualFund, Inc. and
VirtualFund, Inc.'s affiliates in November 2000. Manugistics seeks at least $4.5
million in damages. Manugistics commenced the lawsuit after being informed by
VirtualFund.com that its chief executive officer was not authorized to enter
into the software license agreement or to advance funds to Manugistics.
VirtualFund.com alleges that representatives of Manugistics were aware, at
relevant times, that such actions by its chief executive officer were in
conflict with directives of the board of directors of VirtualFund.com.
VirtualFund.com has demanded that Manugistics return $2.5 million which it had
paid to Manugistics.
Manugistics will report its performance for its fiscal third quarter ended
November 30, 2000 after the close of the markets on December 19, 2000. The
company will report revenue and earnings before non-cash stock compensation
expense consistent with or exceeding consensus estimates - as reported by First
Call - as well as consistent with or exceeding the company's prior guidance,
which it gave during its earnings call on September 21, 2000 and has repeated
since.
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ABOUT MANUGISTICS, INC.
Headquartered in Rockville, Md., Manugistics Group, Inc. is a leading global
provider of intelligent supply chain and eBusiness solutions for enterprises and
marketplaces. With more than 900 clients, Manugistics helps power intelligent
decisions for profitable growth in leading companies such as 3Com, Amazon.com,
BP, Coca-Cola Bottling, Cisco Systems, Compaq, DuPont, eConnections,
FreightWise, General Electric, Harley-Davidson, Hormel, Nestle, Texas
Instruments, Timberland and Unilever.
For additional information regarding this announcement, contact the Manugistics
Investor Relations Department at 301-984-5409.
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This announcement contains forward-looking statements that involve risks and
uncertainties that include, among others, anticipated losses, unpredictability
of future revenues, potential fluctuations in quarterly operating results,
competition, risks related to quarterly performance, risks of system
interruption, anticipated client benefits, delivery of software functionality,
management of potential growth, and risks of new business areas, international
expansion, business combinations and strategic alliances. 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, 2000
and its current report on Form 8-K filed on October 10, 2000.
Manugistics is a registered trademark, and the Manugistics logo, the phrase
"Leveraged Intelligence," and 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. Additional information
about Manugistics can be found at the company's site on the World Wide Web, at
http://www.manugistics.com.
