Investor Relations Contacts:
•		Lawrence Delaney, Jr., The Berlin Group
•		Tel: 714-734-5000; larry@berlingroup.com
•
•		Kris Magnuson, Exec. VP/CFO
•	JDA Software Group, Inc.	JDA Software Group, Inc
•	NEWS RELEASE	Tel: 480-308-3000

JDA Reports 77% Increase in Third Quarter Software Licenses
GAAP EPS of $0.11, Non-GAAP EPS of $0.14

Scottsdale, Ariz. – October 20, 2003 – JDA® Software Group, Inc. (Nasdaq: JDAS) today announced financial results for the third quarter and nine months ended September 30, 2003. JDA reported $58 million in total revenues for third quarter 2003, representing a 17% increase over the prior year’s quarter. Product revenues for third quarter 2003 were $37.8 million, including software licenses of $19.1 million and maintenance revenues of $18.6 million, increases of 77% and 25% respectively over third quarter 2002.

          JDA reported a 345% increase in GAAP net income of $3.4 million, or $0.11 per share in third quarter 2003 compared with GAAP net income of $758,000, or $0.03 per share in third quarter 2002.

          “This quarter was characterized by a number of significant competitive wins,” commented CEO Hamish Brewer. “In particular, our Americas region achieved a year over year increase of 104% as we closed four substantial deals in the U.S. Our competitive strength in the market is attributable to both our solution strength and our on-going market leadership delivering solutions.”

          “We remain cautiously optimistic with a strong pipeline and we anticipate growth in license and maintenance revenues as we look forward. Consulting revenues and profits continue to be impacted by the reduction in large projects as optimization and analytic solutions continue to dominate our results. We have started to execute plans to address this issue, however, we do not expect any improvement until the first quarter of 2004.”

THIRD QUARTER 2003 HIGHLIGHTS

• Increased Demand for Strategic Merchandising, Optimization and Analytics: JDA’s Arthur and E3 brands benefited from significant revenue increases in third quarter 2003 over the prior year. This is the most active segment of the market and our solutions are competing very effectively. Although sales of Portfolio Merchandising software also showed a steep incline, JDA believes that demand for large host systems will remain erratic in this economic environment.

• Major Tier One Successes: JDA won two major competitive selections at tier one retailers in the U.S., one of which wishes to remain confidential, the other was the Kroger Company, which with total revenues of $53 billion, selected an integrated merchandising, planning and replenishment solution to support the general merchandise and apparel division of its Fred Meyer chain. These competitive wins further reinforce JDA’s growing reputation as a company that can actually deliver results with these demanding customers.

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JDA Reports 3Q Earnings

• First signs of Improvement for Merchandising Systems: Although JDA does not expect to return to historic levels of sales in this product area any time soon, JDA signed five new merchandising system deals resulting in real growth for the past 12 months over the previous 12 months.

• Java-based Store Systems Business Underway: JDA signed Family Christian Stores this quarter as its early adopter of Portfolio POS™, JDA’s new Java-based store system. The specialty retailer is a current JDA client that will migrate its 325 plus stores from an older version of JDA’s in-store system. With the success of this implementation, JDA will capitalize on the emerging Java opportunities in the store systems market, widely cited as a top priority for CIO’s in 2004.

• Continuing to Raise the Bar: JDA invested $16.1 million to enhance and expand JDA Portfolio with its ongoing .Net development and to acquire Engage, Inc. to build upon its Portfolio Revenue Management suite.

          JDA ended the quarter with $115 million in cash and marketable securities compared to $114.3 million at the end of last quarter and $101.9 million at December 31, 2002. Total deferred revenues increased to $28.4 million from $27.3 million last quarter. Net DSOs for third quarter 2003 were 62 days compared to 56 days last quarter, and 95 days in third quarter 2002. JDA had $1.8 million positive cash flow from operations during the third quarter compared to $12.9 million in the second quarter. The difference results from a $6.7 million increase in receivables in Q3’03 compared to a $4.5 million decrease in Q2’03, and a $4.1 million reduction in our deferred tax liability primarily as a result of our amendment to our 2002 tax return to partially capitalize R&D.

NINE MONTH RESULTS FOR 2003

          For the nine months ended September 30, 2003, total revenues were $152.2 million as compared to $166.1 million recorded in the nine-month period of 2002. While product revenues increased by five percent to $94.7 million from the $90.5 million reported in the same period last year, service revenues decreased 24% to $57.5 million. This decrease is due to a shift from JDA products that have higher implementation requirements and longer payback periods to JDA’s Strategic Merchandise Management products, which offer quicker implementations and ROI. Non-GAAP earnings per share decreased to $0.20 from $0.44 last year. GAAP earnings per share decreased to $0.08 from $0.27 last year due to the decline in revenues.

CONFERENCE CALL INFORMATION

          JDA will hold a conference call to discuss third quarter results on October 20, 2003 at 4:45 pm (Eastern time). To participate in the call, dial 1.800.921.9431 (United States) or 1.973.935.8505 (International)

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JDA Reports 3Q Earnings

and ask the operator for the “JDA Software Group, Inc. Third Quarter 2003 Earnings.” A replay of the conference call will begin Monday, October 20, 2003 at 9:00 pm (Eastern) and will end on Monday, November 2, 2003 at 12:00 am (Eastern). You can hear the replay by dialing 1.877.519.4471 (United States) or 1.973.341.3080 (International) using access 4180045.

          To participate in a Web cast of the call visit the following web page at the time of the conference call: http://viavid.net/dce.aspx?sid=000016F8.

ABOUT JDA SOFTWARE

          With nearly 4,600 retail, manufacturing and wholesale clients in 60 countries, JDA Software Group, Inc. (Nasdaq:JDAS) is a global leader in delivering integrated software and professional services for the retail demand chain. By capitalizing on its market position and financial strength, JDA commits significant resources to advancing JDA Portfolio, its suite of merchandising, POS, analytic and collaborative solutions that improve revenues, efficiency and customer focus. Founded in 1985, JDA is headquartered in Scottsdale, Arizona and employs more than 1,300 associates operating from 33 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more details, visit www.jda.com, call 1-800-479-RETAIL (7382) or email info@jda.com.

This press release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation: (i) our anticipation of continued growth in license and maintenance revenues in the future; (ii) our expectation that consulting revenues and profits will begin improving in the first quarter of 2004; (iii) the possibility that we may be seeing the first signs of improvement in the demand for merchandising systems; and (iv) our expectation that we will successfully implement Portfolio POS at our first site for this product, Family Christian Stores. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (a) we may not be able to predict and achieve continued growth in product revenues in future quarters, particularly given the uncertainty of future economic conditions; (b) we may experience difficulty managing fluctuations in the demand for our services and therefore may be unable to improve services revenue and profits; (c) our forecast that we may experience improved demand for merchandising systems may not be accurate, particularly since our current cautious optimism is only based upon one quarter’s data point; (d) we may experience difficulty successfully implementing for the first time the initial version of a large complex system such as Portfolio POS; and (e) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. As a result of these and other risks, actual results may differ materially from those predicted. We undertake no obligation to update information in this release.

“JDA” and “JDA Portfolio” are trademarks or registered trademarks of JDA Software Group. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders’.

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JDA Reports 3Q Earnings

JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

				September 30,			December 31,
				2003			2002
				(Unaudited)
ASSETS
Current Assets:
	Cash and cash equivalents			$	77,590		$	71,065
	Marketable securities				37,416			30,790
		Total cash, cash equivalents and marketable securities			115,006			101,855
	Accounts receivable, net				39,685			47,077
	Income tax receivable				2,231			7,479
	Deferred tax asset				4,721			5,564
	Prepaid expenses and other current assets				13,398			12,289
		Total current assets			175,041			174,264
Property and Equipment, net					20,839			21,337
Goodwill					62,397			59,801
Other Intangibles, net					57,651			56,635
Promissory Note Receivable					2,929			3,017
Deferred Tax Asset					1,770			—
			Total assets	$	320,627		$	315,054
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
	Accounts payable			$	2,982		$	3,020
	Accrued expenses and other liabilities				22,888			26,957
	Deferred revenue				28,416			23,331
			Total current liabilities		54,286			53,308
Deferred Tax Liability					—			4,980
Stockholders’ Equity:
	Preferred stock, $.01 par value; authorized 2,000,000 shares; none issued or outstanding				—			—
	Common stock, $.01 par value; authorized, 50,000,000 shares; issued 29,235,769 and 28,696,688 shares, respectively				292			287
	Additional paid-in capital				242,904			237,120
	Retained earnings				29,780			27,353
	Accumulated other comprehensive loss				(2,083	)		(4,199	)
					270,893			260,561
	Less treasury stock, at cost, 414,702 and 339,702 shares, respectively				(4,552	)		(3,795	)
		Total stockholders’ equity			266,341			256,766
			Total liabilities and stockholders’ equity	$	320,627		$	315,054

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JDA Reports 3Q Earnings

JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except earnings per share data, unaudited)

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2003		2002		2003			2002
REVENUES:
	Software licenses		$	19,121	$	10,801	$	42,353		$	48,620
	Maintenance services			18,630		14,851		52,332			41,875
		Product revenues		37,751		25,652		94,685			90,495
	Consulting services			18,451		21,825		52,409			69,568
	Reimbursed expenses			1,749		1,935		5,077			6,083
		Service revenues		20,200		23,760		57,486			75,651
		Total revenues		57,951		49,412		152,171			166,146
COST OF REVENUES:
	Cost of software licenses			429		140		852			1,264
	Amortization of acquired software technology			1,162		1,069		3,332			3,178
	Cost of maintenance services			4,466		3,605		12,754			10,453
		Cost of product revenues		6,057		4,814		16,938			14,895
	Cost of consulting services			14,605		15,158		42,784			47,757
	Reimbursed expenses			1,749		1,935		5,077			6,083
		Cost of service revenues		16,354		17,093		47,861			53,840
		Total cost of revenues		22,411		21,907		64,799			68,735
GROSS PROFIT				35,540		27,505		87,372			97,411
OPERATING EXPENSES:
	Product development			12,711		10,370		35,499			31,175
	Sales and marketing			11,960		9,196		29,744			29,851
	General and administrative			6,082		6,395		17,658			21,130
	Amortization of intangibles			798		711		2,242			2,137
	Relocation costs to consolidate development and client support activities			458		—		1,718			—
	Purchased in-process research and development			—		—		—			800
	Restructuring, asset disposition and other charges			—		—		—			1,295
		Total operating expenses		32,009		26,672		86,861			86,388
OPERATING INCOME				3,531		833		511			11,023
	Gain on sale of office facility			—		—		639			—
	Other income, net			217		342		1,141			1,344
		Total other income		217		342		1,780			1,344
INCOME BEFORE INCOME TAXES				3,748		1,175		2,291			12,367
	Income tax provision (benefit)			374		417		(136	)		4,387
NET INCOME			$	3,374	$	758	$	2,427		$	7,980
BASIC EARNINGS PER SHARE			$	.12	$	.03	$	.09		$	.29
DILUTED EARNINGS PER SHARE			$	.11	$	.03	$	.08		$	.27
SHARES USED TO COMPUTE:
	Basic earnings per share			28,659		28,316		28,540			27,927
	Diluted earnings per share			29,368		28,677		28,899			29,273

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JDA Reports 3Q Earnings

JDA SOFTWARE GROUP, INC.
NON-GAAP MEASURES OF PERFORMANCE
(in thousands, except share data, unaudited)

		Three Months						Nine Months
		Ended September 30,						Ended September 30,
		2003			2002			2003			2002
NON-GAAP OPERATING INCOME
Operating income (GAAP BASIS)		$	3,531		$	833		$	511		$	11,023
Adjustments for non-GAAP measures of performance:
	Add back amortization of acquired software technology		1,162			1,069			3,332			3,178
	Add back amortization of intangibles		798			711			2,242			2,137
	Add back relocation costs to consolidate development and client support activities		458			—			1,718			—
	Add back in-process research and development costs		—			—			—			800
	Add back restructuring, asset disposition and other charges		—			—			—			1,295
Adjusted non-GAAP operating income (loss)		$	5,949		$	2,613		$	7,803		$	18,433
NON-GAAP OPERATING INCOME, as a percentage of revenue
Operating income (loss) (GAAP BASIS)			6	%		2	%		—			7	%
Adjustments for non-GAAP measures of performance:
	Amortization of acquired software technology		2	%		2	%		2	%		2	%
	Amortization of intangibles		1	%		1	%		1	%		1	%
	Relocation costs to consolidate development and client support activities		1	%		—			1	%		—
	In-process research and development costs		—			—			—			—
	Restructuring, asset disposition and other charges		—			—			—			1	%
Adjusted non-GAAP operating income (loss)			10	%		5	%		5	%		11	%
NON-GAAP EARNINGS PER SHARE
Diluted earnings per share (GAAP BASIS)		$	.11		$	.03		$	.08		$	.27
Adjustments for non-GAAP measures of performance, net of tax:
	Add back amortization of acquired software technology	$	.03		$	.02		$	.07		$	.07
	Add back amortization of intangibles	$	.02		$	.02		$	.05		$	.05
	Add back relocation costs to consolidate development and client support activities	$	.01			—		$	.04			—
	Add back in-process research and development costs		—		$	—			—		$	.02
	Add back restructuring, asset disposition and other charges		—		$	—			—		$	.03
	Add back gain on sale of office facility		—		$	—		$	(.01	)	$	—
	Add back tax benefit from R&D capitalization	$	(.03	)		—		$	(.03	)		—
Adjusted non-GAAP earnings per share		$	.14		$	.07		$	.20		$	.44
CASH FLOW INFORMATION
	Net cash provided by operating activities	$	1,812		$	10,317		$	19,807		$	27,747
	Net cash provided by (used in) investing activities		(13,577	)		(5,890	)		(19,850	)		(31,084	)
	Net cash provided by financing activities		3,001			2,100			4,619			16,164

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