Atlanta, GA. (August 18, 2004) — Logility, Inc. (NASDAQ: LGTY), a leading supplier of collaborative solutions to optimize the supply chain, today announced financial results for the first quarter of fiscal year 2005.

The first quarter total revenues were $5.4 million, including software license fees of $1.4 million, compared to total revenues of $5.4 million and $1.1 million of software license fees in the same period last year. Services and other revenues were $1.3 million, compared to $1.5 million in the same period last year. Maintenance revenues were $2.8 million for both periods. For the first quarter, the Company reported operating income of $266,000 compared to operating income of $324,000 for the same quarter last year and net income of $377,000 or earnings per share (diluted) of $0.03, compared to a net income of $370,000 or earnings per share (diluted) of $0.03 for the same quarter in the prior year.

The overall financial condition of the Company remains strong with cash and investments of approximately $31.5 million. The Company’s cash and investment position increased approximately $4.9 million compared to July 31, 2003.

“We are pleased with our ability to grow license revenues by 27% during the quarter when compared to the same period last year,” said J. Michael Edenfield, Logility president and Chief Executive Officer. “Logility’s strong balance sheet, which included cash and investments of approximately $31.5 million at the close of the quarter, reinforces our ability to provide long-term support and innovation for our customers.”

“Logility offers a wide range of supply chain applications targeted at the specific needs of distribution-intensive manufacturing, wholesale and retail organizations seeking to drive out costs and boost revenues. Our goal is to provide our customers faster access to better information about supply chain performance, future plans and corrective measures to increase their customer service while reducing inventory investments,” continued Edenfield. materials and information through distribution centers, and helps to cut operating costs while improving productivity, order fill rates, space utilization and customer service. Used collectively, these Logility products make it possible for companies to increase control of the complete order fulfillment cycle as they move goods from production to distribution and on to their final destination.

Highlights for the first quarter and fiscal year 2005 include:

Customers

• Notable new and existing customers placing orders with Logility during the quarter include: Broyhill Furniture Industries, Cytec Industries, Dow Chemical, Rheem Air Conditioning, Robert Horne Paper, Trelleborg Wheel Systems and Tyco Adhesives.
• Komatsu Europe International (KEISA), a worldwide leader in the field of construction and mining equipment, announced its implementation of Logility Voyager Solutions™ to improve forecasting accuracy, centralize supply chain planning and maintain consistent customer service levels across its distribution network. Logility is a key component in KEISA’s efforts to continuously improve supply chain efficiencies, and has contributed to an inventory reduction of four million euros (5.8 million $US).
• ProcureNet, a provider of mission critical purchasing, distribution, and materials management services to government and commercial customers, announced its selection of Logility Voyager Solutions to improve customer service through better forecast accuracy, reduced inventory levels and increase inventory turns.
• A. O. Smith Water Products Company extended its deployment of Logility Voyager Solutions to include collaboration for better internal and external communications and planning for optimizing inventory based on accurate forecasts and lead times.
• Logility announced that Intertape Polymer Group Inc., a recognized leader in the development and manufacture of specialized polyolefin plastic and paper packaging products, selected Logility Voyager Solutions to enable collaborative planning and forecasting for improved supply chain performance.
• Rheem Manufacturing’s Air Conditioning Division, one of North America’s leading producers of premium heating and cooling equipment, selected Logility Voyager Solutions to gain improved visibility of demand and inventory, reduce costs and increase customer service levels for service parts and finished goods. Rheem has used Logility Voyager WarehousePRO® in its parts operation to optimize receiving, picking, shipping and cross-docking functions since 2001.

Products and Technology

• Inbound Logistics magazine selected Logility as a 2004 Top 100 Logistics IT Provider for the seventh time, and Supply & Demand Chain Executive magazine named Logility to its third-annual listing of the “Supply & Demand Chain Executive 100.
• Logility announced the enhancement of Logility Voyager Solutions to further address the special requirements of the service parts industry, including gaining visibility of future customer demand; dynamically managing time-phased inventory and replenishment requirements; and optimizing distribution and inventory deployment to cost-effectively service customers. The company estimates that manufacturers, distributors and utility companies worldwide are using Logility supply chain planning, warehouse and transportation management solutions to impact $53 billion in service parts revenue and optimize inventory investments valued at $8 billion.
• Logility demonstrated its integrated transportation and warehouse management at the 2004 DC Expo conference, May 18-20, in Chicago, IL. Logility introduced the availability of the integration in 2002, and was one of the first supply chain solution companies to market a fully integrated transportation and warehouse management solution. Logility Voyager Transportation Planning & Management™ can help companies save time and labor costs by automating shipment planning, shipment execution and freight accounting. Logility Voyager WarehousePRO® helps increase shipping and inventory accuracy by optimizing the flow of materials and information through distribution centers, and helps to cut operating costs while improving productivity, order fill rates, space utilization and customer service. Used collectively, these Logility products make it possible for companies to increase control of the complete order fulfillment cycle as they move goods from production to distribution and on to their final destination.