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

The Descartes Systems Group Inc.

October 04, 2005 07:00 ET

Descartes Named a Top Provider of Transportation Management Solutions

WATERLOO, ONTARIO--(CCNMatthews - Oct. 4, 2005) -

On-demand solutions help identify Descartes as a market leader in leading analyst firm's comprehensive transportation technology study

The Descartes Systems Group Inc. (NASDAQ:DSGX)(TSX:DSG), a leading provider of on-demand delivery management solutions and services for transportation, logistics, manufacturing, retail and distribution enterprises, today announced that ARC Advisory Group, in its recent publication Transportation Management Systems Worldwide Outlook, cited Descartes as being the largest supplier of Transportation Management Systems (TMS) by Recurring Fees and as a leader in five other transportation-related categories.

"I would like to thank our customers for helping us achieve these significant results," said Arthur Mesher, CEO of Descartes. "Customers in today's transportation marketplace demand immediate value. We are one of the only solution providers who can quickly show real business benefits and provide flexible deployment options for dedicated fleets and contracted carriers."

"On-Demand TMS providers are certainly influencing the mindset and expectations of customers with regards to pricing and time-to-value," said Adrian Gonzalez, Director, Logistics Executive Council, ARC Advisory Group. "Many companies are no longer willing to make large, upfront investments in software without knowing if or when they'll achieve benefits. Instead, they prefer to minimize their investment risk by deploying functionality aligned with specific pain points and milestones and paying as the value is realized. Descartes was among the first solution providers to recognize this shift in customer expectations and adopt a 'software-as-a-service' business model."

The ARC report evaluated many aspects of the transportation technology market including private fleet and contract carrier management, all modes of transportation procurement, trading partner integration, geographic and industry coverage, and technology solution deployment options. The study also includes market shares by solution type, geographic region, customer tier and vertical industry plus forecasts and supplier profiles. Additional information can be obtained at http://www.arcweb.com/research/ent/tms.asp

Descartes emerged as a leading provider in a number of categories:

- #1 in Leading Suppliers of TMS by recurring revenue

- #1 in Leading Suppliers of Other TMS (Including Connectivity/Carrier Solutions)

- #1 in Leading Suppliers of Procurement Solutions

- #2 in Leading Suppliers of Fleet Management Solutions

- #2 in Leading Suppliers of TMS in Europe, Middle East and Africa

- #2 in Leading Suppliers of TMS to LSP (Logistics Service Providers) Sector

"ARC clearly recognizes the importance of the convergence of communications and connectivity with transportation management solutions," said Ed Ryan, Descartes' General Manager, Global Logistics Network. "With the world's leading logistics-focused network and our on-demand transportation management services, we are in a unique position to quickly deliver business value to logistics service providers and their customers."

About ARC Advisory Group

ARC Advisory Group provides strategic consulting, market research and technology assessment services to leading manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers worldwide. From Global 1000 companies to small start-up firms, ARC has been providing strategic advice since 1986. Further information can be obtained from ARC Advisory Group, Three Allied Drive, Dedham, MA 02026, 781-471-1000, Fax 781-471-1100, E-mail info@arcweb.com, Web ARCweb.com.

About Descartes

The Descartes Systems Group Inc. is a leading provider of on-demand delivery management solutions for transportation, logistics, manufacturing, retail and distribution enterprises. Descartes delivers trading partner connectivity and document exchange, route planning, wireless dispatch, rate management, inventory and asset visibility, transportation management and warehouse optimization solutions for industries such as retail, consumer goods, manufacturing, transportation, distribution and third-party logistics. Descartes offers solutions that can be deployed as traditional applications or as a service to help customers optimize and gain real-time control of their inventory, logistics assets and mobile workforce. Descartes solutions are used by more than 2,500 customers in over 60 countries. For more information, visit www.descartes.com.

Safe Harbor

This release contains forward-looking statements that relate to Descartes' product and service functionality and performance, potential benefits derived therefrom, speed of deployment, the competitive, market and industry position of Descartes and its products and services, and other matters that may constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes to differ materially from the anticipated results, performance 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.

All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

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