The Descartes Systems Group Inc.

The Descartes Systems Group Inc.

May 24, 2006 07:00 ET

Descartes Wins International Stevie Award for Turnaround

WATERLOO, ONTARIO--(CCNMatthews - May 24, 2006) - Logistics network and software applications specialist The Descartes Systems Group Inc. won this year for "Best Business Turnaround" in The International Business Awards.

The International Business Awards are considered the business world's version of the Oscars and nicknamed similarly after the trophy as "the Stevies." The Stevies are recognized as the only all-encompassing business awards honoring great performances in the workplace.

Today Canada-based Descartes (NASDAQ:DSGX), (TSX:DSG), won an International Stevie Award for its marked improvement in operating performance over the past year and will join winners in other categories at a gala dinner in New York on June 26. International Stevie Award winners were selected from more than 700 entries received from companies and individuals across more than 30 countries.

Descartes' award entry identified a series of changes that turned the company into one of the financial performance leaders in its market in 2005. The company achieved four consecutive quarters of profit and operational cash generation during its fiscal year ended January 31, 2006, contrasted with its losses and cash use in previous years.

"The real story here is found in the results our customers have achieved through our new business model," said Descartes chief executive officer Arthur Mesher. "We've transformed into a preeminent software-as-a-service company by changing our mentality along with our pricing structure. Our win in the turnaround category reflects the success of our shared-risk philosophy, where Descartes gets paid when the customer receives value."

The company credits its turnaround in part to a new "leading with our intellectual property forward" strategy which more closely aligns its logistics and technology expertise with customer needs. Mesher said select leaders in their respective industries, including Eastman Kodak, Schenker, Kintetsu, Samsung and CVS Pharmacy, are benefiting from this strategy as they attack some of their trickiest logistics challenges.

He said Descartes has concentrated on forming one of the largest global logistics networks in the world, marketed as the "Global Logistics Network," that integrates different modes of transportation and means of communication between trading partners. The company also has unbundled its network-based software into "nano-apps," or diverse small supply chain management applications which can operate independently of the Global Logistics Network or link Descartes' customers to it. Additionally, now Descartes is championing vertical market sales by resellers and distributors worldwide -- all changes that the company credits for the turnaround.

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This release contains forward-looking statements that relate to Descartes' product and service functionality and performance, potential benefits derived therefrom and results achieved in general and by specific customers, Descartes' competitive position and financial performance in its market, Descartes' strategy with resellers and distributors, and other matters that may constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance, assumptions or achievements of Descartes to differ materially from the anticipated results, performance, assumptions or achievements implied by such forward-looking statements. Such factors include, but are not limited to, the factors discussed in the sections entitled, "Risk Factors" and "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada. If any of such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, assumptions or circumstances on which any such statement is based.

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