ATLANTA – July 21, 2010

Leading supply chain optimisation provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported second quarter 2010 non-GAAP adjusted diluted earnings per share of $0.38 compared to $0.14 in the second quarter of 2009, on license revenue of $15.5 million and total revenue of $77.6 million. GAAP diluted earnings per share was $0.36 compared to a GAAP loss per share of $0.02 in the prior year second quarter.

Manhattan Associates President and CEO Pete Sinisgalli commented, “We are pleased with our second quarter and first half 2010 financial results and our strengthening competitive position in the supply chain optimisation market. Our continued investment in platform-based solution efficiencies and innovation is paying dividends both in terms of sales momentum and customer satisfaction.”

SECOND QUARTER 2010 FINANCIAL SUMMARY:


• Adjusted diluted earnings per share, a non-GAAP measure, was $0.38 in the second quarter of 2010, compared to $0.14 in the second quarter of 2009.
• The Company reported GAAP diluted earnings per share of $0.36, compared to a GAAP loss per share of $0.02 in the second quarter of 2009.
• Consolidated revenue for the second quarter of 2010 was $77.6 million, compared to $58.4 million in the second quarter of 2009. License revenue was $15.5 million in the second quarter of 2010, compared to $4.1 million in the second quarter of 2009.
• Adjusted operating income, a non-GAAP measure, was $12.8 million in the second quarter of 2010, compared to $5.2 million in the second quarter of 2009.
• GAAP operating income for the second quarter of 2010 was $12.0 million, compared to an operating loss of $0.4 million in the second quarter of 2009. Operating income for the second quarter of 2010 includes $0.8 million of recoveries of previously recorded state sales tax associated with expiring sales tax audit statutes, while the operating loss for the second quarter of 2009 includes a pre-tax restructuring charge of $3.8 million.
• Cash flow from operations was $10.0 million in the second quarter of 2010, compared to $10.8 million in the second quarter of 2009. Days Sales Outstanding were 55 days at June 30, 2010, compared to 53 days at March 31, 2010.
• Cash and investments on-hand at June 30, 2010 was $120.2 million, compared to $123.1 million at March 31, 2010.
• The Company repurchased approximately 869,000 common shares totaling $25.0 million at an average share price of $28.77 in the second quarter of 2010, completing its $25.0 million stock repurchase program approved in April 2010. In July 2010, Manhattan’s Board of Directors approved the repurchase of up to an additional $25.0 million of Manhattan Associates outstanding common stock.

SIX MONTH 2010 FINANCIAL SUMMARY:
• Adjusted diluted earnings per share, a non-GAAP measure, was $0.74 for the six months ended June 30, 2010, compared to $0.22 for the six months ended June 30, 2009.
• GAAP diluted earnings per share for the six months ended June 30, 2010 was $0.68, compared to a GAAP loss per share of $0.01 for the six months ended June 30, 2009.
• Consolidated revenue for the six months ended June 30, 2010 was $151.6 million, compared to $119.2 million for the six months ended June 30, 2009. License revenue was $29.7 million for the six months ended June 30, 2010, compared to $9.0 million in the six months ended June 30, 2009.
• Adjusted operating income, a non-GAAP measure, was $25.6 million for the six months ended June 30, 2010, compared to $8.0 million for the six months ended June 30, 2009.
• GAAP operating income was $23.5 million for the six months ended June 30, 2010, compared to $0.2 million for the six months ended June 30, 2009, which included a restructuring charge of $3.9 million. The first half of 2010 operating income includes $1.2 million of recoveries of previously expensed sales tax associated with expiring sales tax audit statutes.
• For the six months ended June 30, 2010, the Company repurchased approximately 1.5 million common shares under the share repurchase program authorised by the Board of Directors at an average share price of $27.33, for a total investment of $40.0 million.

SALES ACHIEVEMENTS:
• Recognised two contracts of $1.0 million or more in license revenue during the quarter.
• Completed software license wins with new customers such as Aluminium Specialties Group, Associated Hygienic Products LLC, Cotton on Group Services, Guangdong Xin Yang Logistics Equipment, Guangzhou Fengshen Logistics Co., HVHC, Inc., Osotspa Co., Pickwick SAS, Qingdao Haier Logistics Co., The C.D. Hartnett Company and The Chamberlain Group, Inc.
• Expanded partnerships with existing customers such as 3 Suisses International, A.N. Deringer, Inc., Avon Products, Inc., Benjamin Moore & Co., Challenger Motor Freight, Inc., Chanel (Australia) Pty Ltd, Converse, Inc., Devil-Dog Mfg. Co., Dick's Sporting Goods, Inc., EXE c&t Co., Exel, Inc., McKesson Corporation, MTD Products, Inc., Panalpina Management AG, Phillips-Van Heusen Corporation, Southern Wine & Spirits of America, Speed Transportation, The Harvard Drug Group LLC.

GAAP VERSUS NON-GAAP PRESENTATION
The Company provides adjusted operating income, adjusted net income and adjusted earnings per share in this press release as additional information regarding the Company’s operating results. These measures are not in accordance with – or an alternative for – GAAP, and may be different from non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share measures used by other companies. The Company believes that the presentation of these non-GAAP financial measures facilitates investors’ understanding of its historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of its business, as distinct from results that include items that are not indicative of ongoing operating results. The Company consequently believes that the presentation of these non-GAAP financial measures provides investors with useful insight into its profitability. This release should be read in conjunction with its Form 8-K earnings release filing for the quarter ended June 30, 2010.

The non-GAAP adjusted operating income, adjusted net income and adjusted earnings per share measures exclude the impact of acquisition-related costs and the amortisation thereof, the recapture of previously recognised sales tax expense, stock option expense, and restructuring charges - all net of income tax effects and unusual tax adjustments. A reconciliation of the Company’s GAAP financial measures to non-GAAP adjustments is included in the supplemental information attached to this release.