Manhattan Associates Reports Record 3rd Quarter Revenue and Earnings

Company Raises Full Year EPS Guidance


ATLANTA, Oct. 23, 2007 (PRIME NEWSWIRE) -- Leading supply chain solutions provider Manhattan Associates, Inc. (Nasdaq:MANH), today reported record third quarter 2007 revenue and earnings and raised its Earnings Per Share (EPS) guidance for the year. Manhattan Associates' third quarter GAAP diluted earnings per share were $0.29, a 53% increase over the third quarter of 2006 on revenue of $84.6 million, a 17% increase. On a non-GAAP basis, adjusted diluted earnings per share were $0.34, a 26% increase over the third quarter of 2006.

Third Quarter Financial Highlights

Summarized highlights of the 2007 third quarter results, as compared to the 2006 third quarter, follow.



    * Consolidated revenue increased 17% to $84.6 million. Excluding
      the impact of currency changes, revenue increased 16%.
         -- License revenue totaled $17.3 million, an increase
            of 14%.
         -- Services revenue totaled $58.4 million, increasing 14%.

    * GAAP Operating income increased 25% to $10.6 million. Excluding
      the impact of currency changes, GAAP operating income increased
      32%;

    * Operating income, on a non-GAAP basis, increased 10% to $12.7
      million. Excluding the impact of currency changes, operating
      income on a non-GAAP basis increased 15%.

    * GAAP diluted earnings per share increased 53% to $0.29.

    * Adjusted diluted earnings per share increased 26% to $0.34 per
      share.

    * Appreciation of the Rupee (the company has a major research
      and development center in India) and other currency changes
      negatively impacted GAAP and adjusted operating income by
      $0.6 million or $0.01 per share. The negative $0.01 impact
      of currency changes on operating results was offset by $0.02
      of foreign exchange gains in Other Income.  The combined net
      impact of currency appreciation and foreign exchange gains in
      the quarter for GAAP and Adjusted EPS results was an increase
      of $0.01 per diluted share.

    * Cash Flow from Operations was $6.4 million, with Days Sales
      Outstanding of 80 days.

    * Cash and Investments on Hand at September 30, 2007 was $82.0
      million.

    * The Company repurchased 809,680 common shares totaling $22.2
      million at an average share price of $27.37 in the quarter.

    * The Board of Directors approved the repurchase of up to $50.0
      million of Manhattan Associates' outstanding common stock.
      The Board of Directors also appointed two additional members:
      Pete Kight, Chairman and CEO of CheckFree Corporation, a
      leading provider of financial e-commerce solutions; and Dan
      Lautenbach, a 30-year veteran of technology solution
      companies, primarily IBM, where he ran global software sales.

Year-To-Date Financial Highlights

Summarized highlights of the first nine months of 2007, as compared to the first nine months of 2006, follow.



    * Consolidated revenue increased 19% to $252.4 million.
      Excluding the impact of currency changes, revenue increased 17%.
         -- License revenue was $54.5 million, increasing 15%.
         -- Services revenue totaled $169.1 million, a 17% increase.

    * GAAP operating income increased 41% to $31.5 million.
      Excluding the impact of currency changes, GAAP operating
      income increased 45%.

    * On a non-GAAP basis, operating income increased 16% to $37.3
      million. Excluding the impact of currency changes operating
      income on a non-GAAP basis increased 19%.

    * GAAP diluted earnings per share increased 54% to $0.80.

    * Adjusted diluted earnings per share, on a non-GAAP basis,
      increased 21% to $0.94.

    * Appreciation of the Rupee and other currency changes
      negatively impacted GAAP and adjusted operating income by
      $1.0 million, or $0.02 per share.  The negative $1.0 million
      impact of currency changes on operating results was partially
      offset by $0.3 million of foreign exchange gains in Other
      Income.  The combined net impact of currency appreciation
      and foreign exchange gains on year-to-date GAAP and Adjusted
      EPS results was a reduction of $0.02 per diluted share.

"The third quarter of 2007 marks our 12th consecutive quarter of double digit revenue growth," said Pete Sinisgalli, President and CEO. "Each of our three regions contributed to our solid license revenue growth and was profitable in the quarter. Importantly, more than half of our third quarter license revenue came from new customers as we continue to capture market share from competitors. Moreover, our forecast for the fourth quarter is strong. Therefore, we are increasing our adjusted EPS guidance range by 2 cents on the low end and by 3 cents on the high end to a revised range of $1.29 to $1.34," he added.

Significant sales-related achievements during the quarter follow.



    * New customers such as: 3 Suisses; ASICS America Corporation;
      Barnes Distribution; Bed, Bath & Beyond; Blackhawk Products
      Group; Citi Trends, Inc.; Domaxel; Dalepak Limited; Elecon;
      Electronics for Imaging, Inc.; ElektroKomplektServis;
      Fitness Quest, Inc.; Gloria Jeans; H E Butt Grocery (HEB);
      Jefferson Smurfit Corporation; Lamps Plus, Inc.; National
      Freight, Inc.; Nelson Education Limited; Nestle Nespresso SA;
      Nor-Cal Beverage Co., Inc.; Northern Safety Co., Inc.;
      Orchard Brands, Inc. (aka Blair Corp); Performance
      Warehouse; Reckitt Benckiser, Inc; Restoration Hardware;
      Safeway, Inc.; Target Corporation; The Apparel Group; and The
      Tire Rack, Inc.

    * Expanding partnerships with existing customers such as:
      Always; Argos Limited; Fruit of the Loom Limited; Tesco
      Stores Limited; and US Foodservice.

    * Closing four large contracts, each of which generated $1
      million or more in recognized license revenue.

2007 Guidance

Manhattan Associates provided the following diluted earnings per share guidance for the fourth quarter and full year 2007. The GAAP diluted earnings per share includes the impact of stock options expense under SFAS 123(R). A full reconciliation of GAAP to non-GAAP diluted earnings per share is included in the supplemental attachments to this release.



                                            Fully Diluted EPS
                                      --------------------------------
                                      Per Share range  % Growth range
                                      --------------   --------------
 GAAP Earnings Per Share
 -----------------------
 Q4 2007 - diluted earnings per share   $0.30  $0.35      76%  106%
 Full year 2007 - diluted earnings 
  per share                             $1.09  $1.14      58%   65%


 Adjusted Earnings Per Share
 ---------------------------
 Q4 2007 - diluted earnings per share   $0.35  $0.40      13%   29%
 Full year 2007 - diluted earnings 
  per share                             $1.29  $1.34      19%   24%
  

Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. These statements are forward-looking. Actual results may differ materially, especially in the current uncertain economic environment. These statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of this release.

Manhattan Associates will make its earnings release and published expectations available on its Web site (www.manh.com). Beginning December 15, 2007, Manhattan Associates will observe a "Quiet Period" during which Manhattan Associates and its representatives will not comment concerning previously published financial expectations. Prior to the start of the Quiet Period, the public can continue to rely on the expectations published in this 2007 Guidance section as still being Manhattan Associates' current expectation on matters covered, unless Manhattan Associates publishes a notice stating otherwise. During the Quiet Period, previously published expectations should be considered historical only, speaking only as of or prior to the Quiet Period, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until the date when Manhattan Associates' next quarterly earnings release is published, currently scheduled for the first week of February 2008.

Conference Call

The Company's conference call regarding its third quarter financial results will be held at 4:30 p.m. Eastern time on Tuesday, October 23, 2007 after the market closes. Investors are invited to listen to a live Web cast of the conference call through the investor relations section of Manhattan Associates' Web site. To listen to the live Web cast, please go to the Web site at least 15 minutes before the call to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call by dialing +1.800.642.1687 in the U.S. or Canada and +1.706.645.9291 outside the U.S., and entering the conference identification number 16923337, or via the Web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet broadcast will be archived at Manhattan Associates' Web site.

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. The 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 this presentation of adjusted operating income, adjusted net income and adjusted earnings per share facilitates investors' understanding of our historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of our business, as distinct from results that include items that are not indicative of ongoing operating results, and thus provide investors with useful insight into our profitability exclusive of unusual adjustments. This release should be read in conjunction with our Form 8-K earnings release filing for the quarter ended September 30, 2007.

The non-GAAP adjusted operating income, adjusted net income and adjusted earnings per share exclude the impact of acquisition related costs and the amortization thereof, the recapture of previously recognized sales tax expense and stock option expense under SFAS 123(R). A reconciliation of our GAAP financial measures to non-GAAP adjustments is included in the supplemental attachment to this release.

The Company also provides revenue, GAAP and adjusted operating income, and GAAP and adjusted diluted earnings per share excluding the impact of foreign currency exchange. This information is not in accordance with -- or an alternative for -- GAAP, and may be different from measures used by other companies. The Company believes that this information allows a more meaningful comparison of the Company's performance from period to period.

About Manhattan Associates, Inc.

Manhattan Associates(r) provides global supply chain solutions to organizations that consider supply chain software, processes and technology strategic to market leadership. The company's software portfolio includes five key Supply Chain Solution Suites: Planning and Forecasting, Inventory Optimization, Order Lifecycle Management, Transportation Lifecycle Management and Distribution Management. These solution suites are enhanced by Platform Applications -- including Supply Chain Intelligence, Supply Chain Visibility and Supply Chain Event Management -- that organize and deliver the information and processes needed to optimize supply chains across functions and locations within and outside an enterprise.. A Supply Chain Process Platform provides a unifying architecture that fosters agility and scalability while minimizing solution implementation, evolution and support costs. More than 1,200 customers worldwide use Manhattan Associates' global supply chain solutions to enhance profitability and build sustainable competitive advantage. For more information, please visit www.manh.com.

This press release may contain "forward-looking statements" relating to Manhattan Associates, Inc. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, undetected software errors, competitive pressures, technical difficulties, market acceptance, availability of technical personnel, changes in customer requirements, risks of international operations and general economic conditions. Additional risk factors are set forth in Item 1A. of the Company's Annual Report on Form 10-K for the year ended December 31, 2006. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.



                MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
        (unaudited and in thousands, except per share amounts)



                              Three Months Ended    Nine Months Ended
                                September 30          September 30
                               2007       2006       2007       2006
                             --------   --------   --------   --------
 Revenue:
  License                    $ 17,303   $ 15,217   $ 54,454   $ 47,540
  Services                     58,437     51,049    169,100    144,642
  Hardware and other            8,849      6,046     28,854     20,816
                             --------   --------   --------   --------
       Total Revenue           84,589     72,312    252,408    212,998

 Costs and Expenses:
  Cost of license               1,599      1,400      4,045      4,410
  Cost of services             28,348     24,231     81,631     69,908
  Cost of hardware and
   other                        7,286      5,356     24,511     18,328
  Research and development     11,887      9,765     35,316     30,398
  Sales and marketing          13,079     11,407     40,177     34,018
  General and
   administrative               8,397      7,896     24,926     21,863
  Depreciation and
   amortization                 3,406      3,377     10,261      9,914
  Asset impairment charge          --        270         --        270
  Acquisition-related
   charges                         --        174         --      1,503
                             --------   --------   --------   --------
    Total costs and
     expenses                  74,002     63,876    220,867    190,612
                             --------   --------   --------   --------

 Operating income              10,587      8,436     31,541     22,386

 Other income, net              1,619        630      3,009      2,727
                             --------   --------   --------   --------
 Income before income
  taxes                        12,206      9,066     34,550     25,113
 Income tax provision           4,321      3,822     12,253     10,596
                             --------   --------   --------   --------
 Net income                  $  7,885   $  5,244   $ 22,297   $ 14,517
                             ========   ========   ========   ========

 Basic earnings per share    $   0.31   $   0.19   $   0.84   $   0.53
 Diluted earnings per
  share                      $   0.29   $   0.19   $   0.80   $   0.52

 Weighted average number
  of shares:
  Basic                        25,739     26,969     26,536     27,151
  Diluted                      26,879     27,462     27,723     27,688



                     MANHATTAN ASSOCIATES, INC.
                     SUPPLEMENTAL INFORMATION

 1. GAAP and Adjusted Earnings per share by quarter are as follows:

                        2006                           2007        
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------
 GAAP
  Diluted
  EPS    $  0.08  $  0.25  $  0.19  $  0.17  $  0.19  $  0.32  $  0.29
 Adjust-
  ments
  to GAAP:
 Stock
  option
  ex-
  pense  $  0.04  $  0.06  $  0.05  $  0.03  $  0.03  $  0.03  $  0.03
 Purchase
  amorti-
  zation $  0.03  $  0.03  $  0.03  $  0.03  $  0.03  $  0.03  $  0.03
 Acq-
  uisition
  related
  charg-
  es     $  0.02  $  0.01  $  --    $  --    $  --    $  --    $  --
 Write
  off
  of
  receiv-
  able
  and
  settle-
  ment
  charg-
  es     $  --    $  --    $  --    $  0.09  $  --    $  --    $  --
 Asset
  impair-
  ment
  charge $  --    $  --    $  0.01  $  --    $  --    $  --    $  --
 Sales
  tax
  recover-
  ies    $ (0.01) $ (0.01) $ (0.01) $ (0.01) $ (0.01) $ (0.02) $ (0.01)
         -------  -------  -------  -------  -------  -------  -------
  Adjusted
   Diluted
   EPS   $  0.16  $  0.34  $  0.27  $  0.31  $  0.23  $  0.36  $  0.34
         =======  =======  =======  =======  =======  =======  =======

                                                        2006     2007
                                                      -------  -------
                                                        YTD      YTD
                                                      -------  -------
 GAAP
  Diluted
  EPS                                                $  0.52  $  0.80
 Adjustments
  to GAAP:
 Stock
  option
  expense                                            $  0.15  $  0.08
 Purchase
  amortization                                       $  0.08  $  0.08
 Acquisition
  related
  charges                                            $  0.03  $  --
 Write off
  of
  receivable
  and
  settlement
  charges                                            $  --    $  --
 Asset
  impairment
  charge                                             $  0.01  $  --
 Sales tax
  recoveries                                         $ (0.02) $ (0.03)
                                                     -------  -------

 Adjusted
  Diluted
  EPS                                                $  0.78  $  0.94
                                                     =======  =======


 2. Revenues and operating income (loss) by reportable segment are as 
    follows (in thousands):

                        2006                           2007        
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------
 Revenue:
 Amer-
 icas    $51,143  $65,695  $60,799  $64,683  $68,446  $75,599  $69,850
 EMEA      6,952    6,850    6,478    7,071    5,844    9,809   10,463
 Asia
  Pacific  4,690    5,356    5,035    4,116    3,900    4,221    4,276
         -------  -------  -------  -------  -------  -------  -------
         $62,785  $77,901  $72,312  $75,870  $78,190  $89,629  $84,589
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 Revenue:
 Americas                                           $177,637 $213,895
 EMEA                                                 20,280   26,116
 Asia
  Pacific                                             15,081   12,397
                                                     -------  -------
                                                    $212,998 $252,408
                                                     =======  =======
 GAAP
  Operat-
  ing
  Income
  (Loss):
 Amer-
  icas   $ 2,467  $10,095  $ 9,131  $11,054  $ 8,734  $12,338  $ 8,894
 EMEA        245        3     (839)  (2,226)  (1,321)   1,145    1,432
 Asia
  Pacific    401      739      144     (459)    (131)     189      261
         -------  -------  -------  -------  -------  -------  -------
         $ 3,113  $10,837  $ 8,436  $ 8,369  $ 7,282  $13,672  $10,587
         =======  =======  =======  =======  =======  =======  =======
 
                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 GAAP
  Operating
  Income
  (Loss):
 Americas                                            $21,693  $29,966
 EMEA                                                   (591)   1,256
 Asia
  Pacific                                              1,284      319
                                                     -------  -------
                                                     $22,386  $31,541
                                                     =======  =======
 Adjust-
  ments
  (pre-tax):
 Americas:
 Stock
  option
  ex-
  pense  $ 1,558  $ 1,819  $ 1,700  $ 1,177  $ 1,082  $ 1,090  $ 1,184
 Purchase
  amorti-
  zation   1,217    1,217    1,217    1,217    1,195    1,195    1,180
 Acq-
  uisition
  related
  charges    722      607      174     --       --       --       --
 Settle-
  ment
  charges   --       --       --        810     --       --       --
 Asset
  impair-
  ment
  charge    --       --        270     --       --       --       --
 Sales tax
  recov-
  eries     (267)    (465)    (324)    (514)    (373)    (650)    (269)
         -------  -------  -------  -------  -------  -------  -------
         $ 3,230  $ 3,178  $ 3,037  $ 2,690  $ 1,904  $ 1,635  $ 2,095
         -------  -------  -------  -------  -------  -------  -------
 EMEA:
 Stock
  option
  ex-
  pense  $   118  $   125  $   131  $    15  $    39  $    40  $    40
 Write 
  off
  of
  receiv-
  able
  and
  settle-
  ment
  char-
   ges      --       --       --      2,046     --       --       --
         -------  -------  -------  -------  -------  -------  -------
         $   118  $   125  $   131  $ 2,061  $    39  $    40  $    40
         -------  -------  -------  -------  -------  -------  -------
 Total
  Adjust-
  ments  $ 3,348  $ 3,303  $ 3,168  $ 4,751  $ 1,943  $ 1,675  $ 2,135
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 Adjustments
  (pre-tax):
 Americas:
 Stock
  option
  expense                                            $ 5,077  $ 3,356
 Purchase
  amortization                                         3,651    3,570
 Acquisition
  related
  charges                                              1,503      --
 Settlement
  charges                                                --       --
 Asset
  impairment
  charge                                                 270      --
 Sales tax
  recoveries                                          (1,056)  (1,292)
                                                     -------  -------
                                                     $ 9,445  $ 5,634
                                                     -------  -------
 EMEA:
 Stock
  option
  expense                                            $   374  $   119
 Write off
  of
  receivable
  and
  settlement
  charges                                               --
                                                     -------  -------
                                                     $   374  $   119
                                                     -------  -------
 Total
  Adjustments                                        $ 9,819  $ 5,753
                                                     =======  =======

 Adjusted
  non-GAAP
  Operat-
  ing
  Income
  (Loss):
 Amer-
  icas   $ 5,697  $13,273  $12,168  $13,744  $10,638  $13,973  $10,989
 EMEA        363      128     (708)    (165)  (1,282)   1,185    1,472
 Asia
  Pacific    401      739      144     (459)    (131)     189      261
         -------  -------  -------  -------  -------  -------  -------
         $ 6,461  $14,140  $11,604  $13,120  $ 9,225  $15,347  $12,722
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 Adjusted
  non-GAAP
  Operating
  Income
  (Loss):
 Americas                                            $31,138  $35,600
 EMEA                                                   (217)   1,375
 Asia
  Pacific                                              1,284      319
                                                     -------  -------
                                                     $32,205  $37,294
                                                     =======  =======

 3. Our services revenue consists of fees generated from professional 
    services and customer support and software enhancements related
    to our software products as follows (in thousands):

                         2006                           2007        
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------

 Profess-
  ional
  serv-
  ices   $31,801  $34,376  $36,105  $34,105  $38,831  $39,865  $41,488
 Customer
  support
  and
  software
  enhance-
   ments  13,361   14,055   14,944   15,774   15,969   15,998   16,949
         -------  -------  -------  -------  -------  -------  -------
 Total
  services
  rev-
   enue  $45,162  $48,431  $51,049  $49,879  $54,800  $55,863  $58,437
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 Professional
  services
 Customer
  support
  and
  software
  enhancements
                                                    $102,282 $120,184
 Total
  services
  revenue
                                                      42,360   48,916
                                                     -------  -------
                                                    $144,642 $169,100
                                                     =======  =======

 4. Hardware and other revenue includes the following items 
    (in thousands):

                         2006                           2007        
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------
 Hardware
  revenue  4,471    5,424    3,326    4,967    6,666    7,270    5,614
 Billed
  Travel   2,076    2,799    2,720    2,021    2,971    3,098    3,235
         -------  -------  -------  -------  -------  -------  -------
 Total
  Hardware
  and
  other
  rev-
   enue  $ 6,547  $ 8,223  $ 6,046  $ 6,988  $ 9,637  $10,368  $ 8,849
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------

 Hardware
  revenue                                            $13,221  $19,550
 Billed
  Travel                                               7,595    9,304
                                                     -------  -------
 Total
  Hardware
  and
  other
  revenue                                            $20,816  $28,854
                                                     =======  =======

 5. Impact of Currency Fluctuation
     The following table reflects the increases (decreases) in the 
     results of operations for each period attributable to the change 
     in foreign currency exchange rates from the prior period as well 
     as foreign currency gains (losses) included in other income, 
     net for each period (in thousands):

                        2006                           2007        
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------
 Revenue $  (853) $  (158) $   251  $   779  $   748  $   992  $ 1,049
 Costs
  and
  Expenses  (823)    (324)      53    1,030      858    1,306    1,629
 Operating
  Income     (30)     166      198     (251)    (110)    (314)    (580)
 Foreign
  currency
  gains
  (losses)
  in other
  income      98      275      (34)     (91)     (22)    (602)     897
         -------  -------  -------  -------  -------  -------  -------
         $    68  $   441  $   164  $  (342) $  (132) $  (916) $   317
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 Revenue                                             $  (760) $ 2,789
 Costs and
  Expenses                                            (1,094)   3,793
 Operating
  Income                                                 334   (1,004)
 Foreign
  currency
  gains
  (losses)
  in other
  income                                                 339      273
                                                     -------  -------
                                                    $   673  $  (731)
                                                     =======  =======

  Manhattan Associates has a large research and development center in 
  Bangalore, India.  The following table reflects the increases 
  (decreases) in the financial results for each period attributable 
  to changes in the Indian Rupee exchange rate (in thousands):

                        2006                           2007
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------
 Operating
  Income      53      145      235      (32)     (14)    (443)    (693)
 Foreign
  currency
  gains
  (losses)
  in other
  income     (30)      25       87     (136)     (82)    (536)    (312)
         -------  -------  -------  -------  -------  -------  -------
 Total
  impact
  of
  changes
  in the
  Indian
  Rupee  $   23   $  170   $  322   $ (168)  $  (96)  $ (979)  $(1,005)
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                       YTD      YTD
                                                     -------  -------
 Operating
  Income                                              $   433  $(1,150)
 Foreign
  currency
  gains
  (losses)
  in other
  income                                                  82     (930)
                                                     -------  -------
 Total
  impact
  of
  changes
  in the
  Indian
  Rupee                                               $   515  $(2,080)
                                                      =======  =======


 6. Capital expenditures are as follows (in thousands):

                         2006                          2007
         ----------------------------------  -------------------------
         1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
         -------  -------  -------  -------  -------  -------  -------
 Capital
  expen-
  di-
  tures  $ 2,195  $ 2,603  $ 2,731  $ 2,112  $ 2,956  $ 3,511  $ 1,467
         =======  =======  =======  =======  =======  =======  =======

                                                       2006     2007
                                                     -------  -------
                                                        YTD      YTD
                                                     -------  -------
 Capital
  expenditures                                       $ 7,529  $ 7,934
                                                     =======  =======

 7. Stock Repurchase Activity

    During the first nine months of 2007, we repurchased 2.7 million 
    shares of common stock totaling $75 million at an average price 
    of $28.10.  In 2006 for the full year, we repurchased 0.8 million 
    shares of common stock totaling $16.0 million at an average cost
    of $20.73.  


            

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