- RedPrairie Achieves Continued Growth and Profitability with Record EBITDA of 22 Percent of Sales

Leading Supply Chain Execution Provider Reports Strong Third Quarter and YTD Results

Waukesha, WI - RedPrairie Corporation, a leader in global supply chain technology solutions, today announced results for its third fiscal quarter, ended September 30, that included a record level of earnings before interest, taxes, depreciation and amortization (EBITDA) of 22 percent. This record profitability was achieved despite the recognition of approximately $1.2 million in expenses related to acquisitions in progress. Operating income was up 9.3 percent over the prior year quarter, continuing a pattern of improved profitability based on increased license revenue, which is up 49.3 percent year-to-date, and included a record number of new customer additions during the quarter.

John Jazwiec, RedPrairie Company Leader comments, "We continue to transform RedPrairie into a more profitable license and services revenue-based company. This positions us for even stronger growth in 2004 and beyond, and proves that our dedication to helping customers achieve measurable results with our logistics solutions is the right approach to strengthen both their businesses and ours."

RedPrairie added a record number of new customers for the quarter, including leading firms such as Alcon Laboratories, American Musical Supply, Bio-Rad, Kohl`s Department Stores, Helen of Troy and Sargento, to name just a few.

RedPrairie also continues to expand the products and services it can offer its customers through strategic reseller partnerships. In August, RedPrairie announced an agreement with Kurt Salmon Associates (KSA), the premier global management consulting firm to the retail and consumer products industries, under which KSA will incorporate RedPrairie`s labor productivity software into its renowned Base Plusâ performance improvement program.

Subsequent to the close of the quarter RedPrairie also announced it had finalized valued-added reseller (VAR) agreements with Voxware and Vocollect to integrate and sell their respective voice technology solutions with RedPrairie`s supply chain execution suite. These strategic partnerships demonstrate RedPrairie`s continued leadership in bringing ever-greater value to its customers.

Third quarter financial highlights include:

· Increased services revenue 2.7 percent over the prior year quarter and 7.8 percent over the prior sequential quarter

· Increased gross profit by 3.9 percentage points over the prior year quarter and 1.5 percentage points over the prior sequential quarter

· Operating income of $3.6 million, up 9.3 percent over the prior year quarter

· Earnings before interest, taxes, depreciation and amortization (EBITDA) of 22 percent of sales, 8.5 percent ahead of the prior year quarter and a record for the company

· Recognized a substantial portion of $1.2 million in expenses related to acquisitions in progress

Other highlights for the third quarter include:

· Introduced RFID Accelerator(tm), an RFID compliance application that can be seamlessly integrated with virtually any existing ERP, WMS or legacy host system to meet the RFID information-sharing requirements of Wal-Mart, the Department of Defense and other leading retailers.

· Announced plans for a fully RFID-enabled version of their industry-leading supply chain execution suite to be delivered next year.

· Held heavily attended educational workshops on RFID in Atlanta, Chicago and northern New Jersey featuring industry experts on RFID standards and implementation. There is also strong registration for additional workshops in Dallas and Los Angeles scheduled for November.

· Released RPwriter, an easy-to-use, flexible report generation tool with embedded graphics capabilities now used with all of the company`s DigitaLogistix® applications.

RedPrairie`s continued strong performance has resulted in achievement of its seventh consecutive profitable quarter and recognition as a market leader on many analyst and media top performer lists.

About RedPrairie Corporation

RedPrairie delivers superior logistics results by driving out more logistics costs than anyone in the industry, enabling customers to consistently achieve their supply chain objectives. This is accomplished through an integrated suite of supply chain execution solutions (DigitaLogistix®) that provide the industry`s leading transportation, productivity, and distribution management capabilities, enhanced with action-oriented components for real-time visibility, control and performance measurement. These solutions are deployed through an end-to-end results delivery system (the RedPrairie Approach) that ensures results achievement. RedPrairie delivers measurable results for customers in many markets, including high tech and electronics, consumer goods, food and beverage, third party logistics, retail and wholesale, service parts, and make-to-order manufacturing. Customers include Hewlett-Packard, Procter & Gamble, Nestle, Panasonic, Georgia-Pacific, Eveready, Unilever, Exel, General Electric, Amazon.com, and many others.

For additional information, call 1.888.624-8448, or access www.RedPrairie.com.

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RedPrairie Contact:
J.J. Berrall
RedPrairie Corporation
262-317-2410
jj.berrall@redprairie.com