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Shanghai Pharmaceutical Successfully Implements Manhattan Associates' Warehouse Management Solution


Supply Chain Provider to Power Leading Medicine Distributor in China

SHANGHAI and ATLANTA - May 16, 2006 - Leading supply chain solutions provider, Manhattan Associates, Inc. (NASDAQ: MANH), announced Shanghai Pharmaceuticals Co., Ltd. (SHSE: 600849), the leading medicine distributor in China, has successfully implemented its Warehouse Management solution.

Shanghai Pharmaceutical Co., Ltd., headquartered in Shanghai, has an established and comprehensive medicine distribution network in the eastern region of China, which services the entire country of China. Mainly targeting the high-end distribution market (including tier-1 and tier-2 hospitals, and tier-2 distributors), it is the main Chinese distributor for 35 multi-national pharmaceutical companies and the only member from China that belongs to the International Pharmaceutical Wholesaler Association (IPWA). To strategically position itself in the evolving pharmaceutical distribution market, Shanghai Pharmaceutical Co., Ltd. has embarked on a major project to build a first class pharmaceutical logistics distribution center in both China and all of Asia. With the support from both the Shanghai Municipal Government and the Shanghai Pharmaceutical Group, the initiative is listed as a crucial technology project in Shanghai. The Manhattan Associates Warehouse Management solution implemented in the facility is fully integrated with the ERP host system and a number of Material Handling Equipments such as Automated Storage and Retrieval System (AS/RS), Pick to Light, Pallet and Case Conveying System and Sorter. The project has since gained high regard from the Shanghai Municipal Government and the pharmaceutical industry within China and internationally. Additionally, it will become a role model for the entire pharmaceutical logistics industry in China.

Shanghai Pharmaceutical selected Manhattan Associates due to Manhattan Associates' reputation in the global market for supply chain solutions, proven track record in implementing large and complex solutions and ability to provide a complete suite of solutions which allows Shanghai Pharmaceutical to expand its logistics services according to its long- term plan.

Manhattan Associates has strong expertise in the pharmaceutical and life sciences industry with clients around the globe. The cooperation between Shanghai Pharmaceutical Co., Ltd., and Manhattan Associates has already drawn the attention of many organizations in China, Asia Pacific and in the pharmaceutical industry as a whole.

"The pharmaceutical industry has the most complicated logistics requirements including a legion of medicine names and categories, strict Lot control, GSP's regulatory mandates, requirements on storage temperature and humidity and frequent turnover of inventory. As a result, the industry is particularly demanding when it comes to warehouse management solutions. The Warehouse Management solution from Manhattan Associates is able to help us optimize inventory positions and allocate the best points of storage for goods that have different turnover rates. This results in more efficient sorting, greater inventory accuracy and lower labor costs. As turnover rates change with market swings, the solution is flexible enough to automatically recalculate the optimal placement of goods. This is exactly what we were aiming to accomplish and has given us a solid foundation for our supply chain consolidation plan," commented Dennis Deng, project director of the logistics project at Shanghai Pharmaceutical Co., Ltd.

"Medicine dealers in China have been facing unprecedented competition. In addition to cost cutting, there has been strong emphasis to enhance the supply chain management capability to gain competitive edge," commented Jeff Baum, Manhattan Associates' senior vice president, International. "There is considerable cost in the supply chain that can be further reduced through more effective supply chain management." The full implementation of Manhattan Associates' solution for Shanghai Pharmaceutical's network will effectively connect, consolidate and control its logistics facilities and optimize the use of resources. Manhattan Associates' solution integrates with Shanghai Pharmaceutical's ERP system to create a modern supply chain information and execution platform that links suppliers, distributors and customers. This results in improved marketing, better logistics execution and lower supply chain costs.

About Shanghai Pharmaceutical Co., Ltd.
Shanghai Pharmaceutical Co., Ltd., the leading pharmaceutical distributor in China, is the most extensive in geographic coverage and strongest in composite competitiveness. It mainly deals in the distribution of western medicines, medical equipment and health products. For many years in a row, it has been elected to the top 50 listed companies in China and the top 15 profitable companies in Shanghai. The Shanghai Pharmaceutical Logistics Center and the new information system it implemented will lower its operating costs, accelerate inventory turnover and make central procurement possible for the company. More importantly, it allows Shanghai Pharmaceutical Group Co., Ltd., to lead its peers by introducing a third-party logistics platform with added value in addition to fast and easy logistics and information services to suppliers, distributors, pharmacies and end-users.

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

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