The Descartes Systems Group Inc.
TSX : DSG
NASDAQ : DSGX

The Descartes Systems Group Inc.

April 04, 2007 10:27 ET

Descartes Announces Bought Deal Public Share Offering To Raise CAD$25,000,000

WATERLOO, ONTARIO--(CCNMatthews - April 4, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE U.S.

The Descartes Systems Group Inc. (TSX:DSG)(NASDAQ:DSGX), a global on-demand software-as-a-service (SaaS) logistics solutions provider, announced today that it has entered into a binding bought deal agreement with a syndicate of underwriters led by GMP Securities L.P. and including CIBC World Markets Inc. and Genuity Capital Markets (collectively the "Underwriters"), to raise gross proceeds of CAD$25,000,000 from a sale of 5,000,000 common shares at a price of CAD$5.00 per share. The Company and Arthur Mesher, its Chief Executive Officer, and Edward Ryan, General Manager of its Global Logistics Network, have agreed to grant the Underwriters an over-allotment option to purchase up to an additional 200,000, 400,000 and 150,000 common shares respectively (representing in aggregate up to 15% of the offering) at CAD$5.00 per share. The offering is scheduled to close on April 24, 2007. The net proceeds of the offering are anticipated to be used by the company for general corporate purposes and for potential acquisitions.

The securities being offered have not, nor will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United Sates or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Descartes

Descartes (TSX:DSG)(NASDAQ:DSGX), a leading provider of software-as-a-service (SaaS) logistics solutions, is delivering results across the globe today for organizations that operate logistics-intensive businesses. Descartes' logistics management solutions combine a multi-modal network, the Descartes Global Logistics Network, with component-based 'nano' sized applications to provide messaging services between logistics trading partners, "book-to-bill" services for contract carriers and private fleet management services for organizations of all sizes. These solutions and services help Descartes' customers reduce administrative costs, billing cycles, fleet size, contract carrier costs, and mileage driven and improve pick up and delivery reliability. Our hosted, transactional and packaged solutions deliver repeatable, measurable results and fast time-to-value. Descartes customers include an estimated 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies. The company has over 300 employees and is based in Waterloo, Ontario, with operations in Atlanta, Pittsburgh, Ottawa, Washington DC, Derby, Stockholm, Shanghai, Singapore and Melbourne. For more information, visit www.descartes.com.

Safe Harbour Statement

This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes' business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Descartes cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, an offering of common shares by Descartes, and the use of the net proceeds of such offering. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements which include, but are not limited to, a material adverse change in the affairs of Descartes or a development materially adversely affecting the financial markets, and the factors and assumptions discussed in the section entitled, "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, including Descartes' Annual Report on Form 40-F for the fiscal year ended January 31, 2007. 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 or circumstances on which any such statement is based.

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