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DirectGroup China Adopts Manhattan Associates' Warehouse Management Solution


Supply Chain Provider to Power Leading Media Company's New Third Party Logistics Business

SHANGHAI and ATLANTA - November 1, 2005 - Leading supply chain solutions provider, Manhattan Associates, Inc.(NASDAQ: MANH), announced today that DirectGroup China, a division of the multi-national Bertelsmann media group, has successfully implemented Manhattan Associates' Warehouse Management solution to power the establishment of its new third party logistics business in China. By utilizing the solution's inventory and productivity management capabilities, DirectGroup China has improved the accuracy and efficiency of its warehouse inventory and operation, lowered cost by reducing on-site operation staff and achieved automatic data transmission through direct connection with its clients' ERP systems.

"DirectGroup entered the Chinese book distribution market and expanded its business vigorously over the past decade. In order to further grow our business in China, we decided to tap the third party logistics market by leveraging our existing warehouse facilities to provide value add services to our clients," said Michiel Hijma from DirectGroup China. "We approached several international and local logistics solutions providers to identify the right solution, which can provide connection with our clients' ERP systems and is flexible and scalable to support our business development in the third party logistics market. We chose Manhattan Associates not only because it is a renowned global leader that provides proven supply chain solutions, but also because it has a strong and experienced local team to provide implementation support. With quick and quality implementation of the third party logistics system by Manhattan Associates, we've successfully created a platform that enables us to expand our third party logistics in the Chinese market."

"We are honored to be selected by DirectGroup China to support the establishment of its new third party logistics business in China," said Jeff Baum, senior vice president, International Operations, Manhattan Associates. "Through the powerful capabilities of our Warehouse Management solution, we were able to meet the business requirements of DirectGroup's warehouse operation in China. Our solution's ease of installation also enabled quick implementation of DirectGroup China's warehouse management solution within three months -- from project study to full operation. Furthermore, our solution is flexible and scalable and can help meet DirectGroup China's changing requirements in the future. In addition to providing software solutions to DirectGroup China, we also provided consultancy on how to design its business process as well as training its staff to meet the need of future growth."

Since the launch of its China operation in 2004, Manhattan Associates has successfully provided supply chain solutions to customers in industries such as pharmaceuticals and logistics. Baum added, "In the wave of globalization, China is playing a critical role in the global supply chain. Many multinational companies have set up their procurement and distribution operations there. More and more Chinese companies have also looked for ways to more efficiently manage their supply chain in order to increase their competitiveness. We've seen fast emergence of the third party logistics industry in China. As a global leader in providing supply chain solutions, Manhattan Associates is well positioned to meet the growing market demand in China with our considerable experience and expertise in the logistics industry with clients around the globe as well as a strong local team in China and throughout the Asia Pacific region."

Manhattan Associates' Warehouse Management solutions enable faster and more efficient flow of goods through the distribution center, optimization of facility layout and increased productivity of workforce. For more information about Manhattan Associates' Warehouse Management solutions or other components of its Integrated Logistics Solutions™, please visit

DirectGroup Bertelsmann and Its Business in China
Direct-to-customer businesses, the third pillar of the Bertelsmann AG alongside Content and Media Services, are pooled in DirectGroup Bertelsmann. DirectGroup Bertelsmann operates book clubs, music clubs and e-commerce businesses in 22 countries on four continents. 55 million customer relationships make the company a global provider in the media business. Club members can access the Clubs' range via catalog, personal sales consultants, on the Internet or in roughly 600 stores.

At present, DirectGroup represents major business of Bertelsmann AG in China. The mission of DirectGroup in China is to be the PRIMARY CHOICE for discovering and buying books and other media products nationwide. We offer most APPEALING TITLES and ATTRACTIVE PRICE ADVANTAGES to the members of our clubs. Our EMPLOYEES are dedicated to leadership in editorial excellence, direct marketing and multi-channel distribution to serve our customers' individual interests.

Bertelsmann Book Club and BOL, the subsidiaries of DirectGroup, are playing active roles in both offline and online retailing market of books and audio/video products. The Club is the largest JV book club in China, servicing 1.5 million members nationwide. BOL, which was integrated with the Club online, has become one of the most renowned e-commerce for media product distribution. Its joint venture, Beijing 21st Century Book Chain Co., is promoting a new life-style concept to expand small-size membership chain stores. Bertelsmann Consulting (Shanghai) is committed to enhance competitiveness of the Club and BOL via offering exclusive titles. Following the "localization strategy", DirectGroup Bertelsmann establishes strategic alliance partnership with local counterparts, eg. Rongshu, aimed at providing more products and premium services.

DirectGroup Bertelsmann China is expanding its Third Party business with main focus on nationwide distribution of parcels, cash-on-delivery services, warehousing, lettershop, order fulfillment, payment processing and direct mailing (DM) activities. For more information please contact

About Manhattan Associates
Manhattan Associates®, Inc. is a leading supply chain solutions provider. The company's demand intelligence, advanced planning, supply chain planning, supply chain execution and business process platform capabilities enable its more than 1200 customers worldwide to enhance profitability, performance and competitive advantage.

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