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Press Releases Friday, June 21, 2002   
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i2 and IBM Demonstrate Scalability of Retail Industry Solutions in IBM Laboratories

i2 Replenishment Planner Running on IBM eServer Platform Processes 93 million location/SKU/day Replenishments in a Controlled Environment

DALLAS and WHITE PLAINS, N.Y. -- June 20, 2002 - i2 Technologies (Nasdaq: ITWO) and IBM (NYSE: IBM) today reported benchmarking results demonstrating the linear scalability of i2 Replenishment Planner. These tests were performed on the IBM DB2 Universal Database (UDB) version 7.2 Enterprise-Extended Edition (EEE) on eServer pSeries 680 at IBM facilities in Poughkeepsie, N.Y., and completed within a typical daily batch processing window.

The ability to manage a growing number of SKU/locations in a scalable manner is a critical requirement for any retail forecasting and replenishment solution. i2 Replenishment Planner`s distributed parallel architecture combined with IBM servers and databases is designed to scale linearly by adding incremental system resources as volumes grow.

In IBM`s benchmarking environment, i2 Replenishment Planner generated a time-phased replenishment plan equivalent to an INFOREM plan for 93 million location/SKU/day. A total of 15 million SKU/locations were planned, of which six million SKU/locations were planned for 14 days, and nine million SKU/locations for one day.

i2 Replenishment Planning solution is designed to support time-phased planning, which gives retailers the visibility to see and respond to future constraints in their supply chain, instead of reacting to these constraints as they occur. Many replenishment planning solutions do not have the capability to plan over multiple time periods. i2 Replenishment Planner is designed to be a scalable, multi-tier, multiple time period, constraint based replenishment solution that incorporates the best features of i2 INFOREM. i2 purchased INFOREM from IBM in 2000.

"Traditionally, enterprises have licensed solutions with little visibility into the solution`s ability to scale beyond a basic pilot or point implementation." said Karen Peterson, vice president and research director, Gartner. "Benchmarking exercises are a critical requirement in order to determine a solution`s ability to meet complex business needs in a time-effective manner. Benchmarking in the retail industry is especially important because retailers process an enormous amount of data that is highly variable and sometimes volatile."

"The i2 and IBM solution is designed to improve the retailer`s ability to manage their businesses to forecast and meet customer needs," said Paul Govoni, IBM Retail & CPG Solutions Business Executive. "In tests at IBM`s facility in which i2 Replenishment Planner`s scalability was demonstrated, results also highlighted the capabilities of IBM DB2 7.2 EEE database and eServer pSeries 680 platform in supporting a scalable replenishment planning solution for volume retailers."

In addition to linear scalability, i2 Replenishment Planner is designed to offer rich functionality for retailers. i2 Replenishment Planner is a next generation retail solution incorporating the best practices of retail replenishment from INFOREM combined with advanced constraint-based multi-tier planning and optimization techniques. Replenishment Planner is designed to analyze sales data, calculate time-phased forecasts and create SKU level demand plans. It can calculate safety stock levels for stores and associated distribution centers while balancing required service levels with inventory investments. It can also help companies evaluate inventory levels, lead times, ordering policies and storage and handling constraints in the supply chain, to determine optimal replenishment plans and suggested orders.

"Through benchmarking exercises such as this, i2 is able to evaluate and improve software quality with the ultimate goal of continually delivering solutions that bring value to our retail customers," said Dr. Pallab Chatterjee, i2 president, Solutions Operations. "The tests with IBM illustrate how i2 applications are designed to increase in performance as computing resources are increased. i2 maintains strong relationships with industry leaders including IBM in order to ensure we`re consistently delivering the most capable value chain solutions available."

About i2
i2 is the leading provider of value chain management solutions. i2`s value chain management solutions help companies plan and execute all of the activities involved in managing supply and demand. These solutions span the entire scope of value chain interactions, including supplier relationship management, demand chain management, supply chain management and demand chain management. Established in 1988, i2 is the only software solutions provider that measures, audits and reports total value provided to its customers, with a mission to deliver $75 billion in value by 2005. Learn more at www.i2.com.

About IBM
IBM is the world`s largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit www.ibm.com.

i2 Cautionary Language
This press release may contain forward-looking statements that involve risks and uncertainties including forward-looking statements regarding the scalability of i2 solutions on IBM`s servers, the customer`s ability to implement or integrate i2 solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors, which could impact i2`s financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2`s recent filings with the SEC, particularly the Form 10-K filed April 1, 2002 and Form 10-Q filed April 29, 2002. i2 assumes no obligation to update the forward-looking information contained in this news release.

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