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JDA Software Announces Fourth Quarter 2003 Results
JDA Increases 4Q’03 Total Revenues and Product Revenues over 4Q’02

Scottsdale, Ariz. – January 20, 2004 – JDA® Software Group, Inc. (Nasdaq: JDAS) today announced financial results for the quarter and fiscal year ended December 31, 2003. JDA reported fourth quarter 2003 revenues of $55.2 million and software revenues of $16.9 million, compared to total revenues of $53.3 million and software revenues of $18.0 million in fourth quarter 2002. The company also reported GAAP net income of $223,000, or $0.01 per share in fourth quarter 2003, as compared to net income of $950,000 or $0.03 per share in fourth quarter 2002. These results are consistent with the preliminary fourth quarter 2003 results announced on January 6, 2004.

The adjusted non-GAAP income for fourth quarter 2003 was $0.05 per share, which excludes amortization of intangibles and acquired software technology, and relocation costs to consolidate development and support activities, compared to adjusted non-GAAP income of $0.11 per share in fourth quarter 2002, which excludes amortization of intangibles and acquired software technology, restructuring charges, relocation related costs, and a non-recurring tax benefit ($2.5 million).

“Our Americas region continued its trend of improvement, achieving sequential growth with fourth quarter 2003 software license revenues coming in slightly higher than third quarter 2003. However, sequential software license revenues in Europe and Asia Pacific were down compared to third quarter 2003,” commented CEO Hamish Brewer. “Our European region was set back by a number of deals slipping out of the fourth quarter, however, no deals were lost to competitors.”

“Maintenance revenues for fourth quarter 2003 grew 20% over fourth quarter 2002. In addition, our customer base of more than 4,600 companies delivered 70% of our software revenues in fourth quarter 2003. We remain committed to our large investment in product development which will culminate with the release of our first .Net based Portfolio solutions starting later this year. We will begin delivering finished product to our beta customers under this multi-year project during first quarter 2004,” added Brewer.

JDA reported annual revenues of $207.4 million for 2003, a 5% decrease from $219.5 million in 2002. With $59.3 million in software licenses and $71.1 million in maintenance revenues, product revenues for 2003 were $130.4 million, a 5% increase over $124.2 million in 2002. Service revenues were $77.0 million in 2003 versus $95.3 million in 2002. GAAP net income for 2003 was $2.6 million, or $0.09 per share, compared to GAAP net income of $8.9 million, or $0.31 per share in 2002.

The adjusted non-GAAP income for 2003 was $0.25 per share, which excludes amortization of intangibles and acquired software technology, relocation related costs, a gain on sale of office facility, and a non-recurring tax benefit from R&D capitalization ($938,000), compared to adjusted non-GAAP income of $0.55 per share in 2002, which excludes amortization of intangibles and acquired software technology, relocation related costs, purchased in-process research and development, restructuring, asset disposition and other charges, and a non-recurring tax benefit ($2.5million).

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Fast, Early Success with Java-based Store Systems: JDA completed the first implementation of its Java-based Portfolio POS™ point of sale system at Family Christian Stores. The retailer licensed Portfolio POS in third quarter 2003 and by the week of November 10, 2003 all nine of its Chicago stores were installed as planned and scheduled. Placing JDA in an excellent position to aggressively pursue the growing market for store systems, this first implementation confirmed that JDA’s new PPOS could deliver strong functional performance, scalability and stability during a retailer’s busiest selling period.

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Strong Demand for Strategic Merchandise Management: JDA leveraged its unique strength in delivering the leading analytic and optimization solutions, including freshly enhanced products from its E3®, Arthur™, Intactix™, Engage™ and Vista™ lines, with most of software license revenues in fourth quarter 2003 coming from its Strategic Merchandise Management suites. The Portfolio Advanced Replenishment by E3 and the JDA Intellect™ suite of advanced mathematical modeling products showed the biggest gains.

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Collaborative Solutions Show Solid Gains: JDA continued to prove its leadership position with its Portfolio Collaborative Solutions as software licenses and total revenues in fourth quarter 2003 increased by 55% and 27%, respectively, over fourth quarter 2002. Today, more than 200 trading partners rely on JDA solutions to support over $3.6 billion in trade volume, up from 136 trading pairs in fourth quarter 2002.

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Host Merchandising Systems business continues to Progress: With three new deals signed in fourth quarter 2003, JDA’s merchandising systems business continues the early signs of improvement highlighted in third quarter 2003. “While we still have a long way to go before we can declare significant

growth, we believe these new customers for JDA’s heritage product lines are encouraging indicators of a turning market,” added Brewer.

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Aggressive New Product Development Spending: JDA invested $13.0 million in fourth quarter 2003, an increase of 22% over fourth quarter 2002, to enhance and expand the JDA Portfolio while progressing its next generation applications within the Microsoft .Net framework.

JDA ended the year 2003 with $114.7 million in cash and marketable securities compared to $101.9 million at December 31, 2002. For the year ended December 31, 2003, the Company generated $19.8 million in cash flow from operations compared to $41.5 million in 2002. Cash flow from operations was neutral in fourth quarter 2003 primarily due to a $2.1 million decrease in our deferred tax liability as well as seasonal reductions in deferred maintenance revenues. DSOs dropped to 65 days in fourth quarter 2003 compared to 79 days in fourth quarter 2002.

JDA will hold its regularly scheduled conference call at approximately 4:45 pm ET. To participate in the call, dial 1-800-921-9431 (United States) or 1-973-935-8505 (International) and ask the operator for the “JDA Fourth Quarter 2003 Earnings.” A replay of the conference call will begin January 20, 2004 at 9:00 pm ET and will end on February 3, 2004 at 12:00 am ET. Callers can hear the replay by dialing 1-877-519-4471 (United States) or 1-973-341-3080 (International) using access code 4359768.

To participate in a Web cast of the call visit the following web page at the time of the conference call: http://www.viavid.net/detailpage.aspx?sid=000018AA.

With more than 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 1,200 associates operating from 31 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 discussion of our investment in our new products and the anticipated beta release of our first. Net products during the first quarter 2004; (ii) any forward-looking implication that deals that did not close in the fourth quarter will close in future quarters; (iii) our statement that the market for store systems is growing; and (iv) our statement of belief that the market for our host merchandising systems is showing signs of improving and that we are observing indicators of a “turning market” for those products. 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 close deals that slipped from fourth quarter 2003, particularly large, complex deals of $1 million or greater; (b) technological and market risks associated with our new products, including the risks that early versions of these products may experience technical difficulties or may not achieve market acceptance; (c) the risk that we may not complete development of our new products on a timely basis, and therefore may not realize revenue from these new products as soon as we currently anticipate; (d) the risk that the market for store systems does not grow; (e) the risk that we are incorrect in our belief that the market for host-based merchandising systems is beginning to improve, and that therefore we will continue to experience reduced demand for these products and reduced demand for the consulting services that generally accompany sales of these products; and (f) 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’.

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


					December 31,			December 31,
					2003			2002

ASSETS					(Unaudited)
Current Assets:
	Cash and cash equivalents				$	77,464		$	71,065
	Marketable securities					37,266			30,790

		Total cash, cash equivalents and marketable securities				114,730			101,855
	Accounts receivable, net					40,162			47,077
	Income tax receivable					2,447			7,479
	Deferred tax asset					4,863			5,564
	Prepaid expenses and other current assets					11,768			12,289
	Promissory Note Receivable					2,911			—

		Total current assets				176,881			174,264
Property and Equipment, net						21,944			21,337
Goodwill						62,397			59,801
Other Intangibles, net						55,640			56,635
Promissory Note Receivable						—			3,017
Deferred Tax Asset						3,763			—

			Total assets		$	320,625		$	315,054

				LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
	Accounts payable				$	2,568		$	3,020
	Accrued expenses and other liabilities					23,034			26,957
	Deferred revenue					25,234			23,331

			Total current liabilities			50,836			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 29,429,747 and 28,696,688 shares, respectively					294			287
	Additional paid-in capital					245,692			237,120
	Retained earnings					30,003			27,353
	Accumulated other comprehensive loss					(1,648	)		(4,199	)

						274,341			260,561
	Less treasury stock, at cost, 414,702 and 339,702 shares, respectively					(4,552	)		(3,795	)

		Total stockholders’ equity				269,789			256,766

			Total liabilities and stockholders’ equity		$	320,625		$	315,054

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


			Three Months Ended					Year Ended
			December 31,					December 31,

			2003		2002			2003			2002

REVENUES:
	Software licenses		$	16,930	$	18,005		$	59,283		$	66,625
	Maintenance services			18,779		15,695			71,111			57,570

		Product revenues		35,709		33,700			130,394			124,195
	Consulting services			17,758		18,040			70,167			87,608
	Reimbursed expenses			1,781		1,569			6,858			7,652

		Service revenues		19,539		19,609			77,025			95,260
		Total revenues		55,248		53,309			207,419			219,455

COST OF REVENUES:
	Cost of software licenses			463		771			1,315			2,035
	Amortization of acquired software technology			1,186		1,069			4,518			4,247
	Cost of maintenance services			4,619		3,840			17,373			14,292

		Cost of product revenues		6,268		5,680			23,206			20,574
	Cost of consulting services			15,449		16,080			58,233			63,837
	Reimbursed expenses			1,781		1,569			6,858			7,652

		Cost of service revenues		17,230		17,649			65,091			71,489
		Total cost of revenues		23,498		23,329			88,297			92,063

GROSS PROFIT				31,750		29,980			119,122			127,392
OPERATING EXPENSES:
	Product development			13,030		10,643			48,529			41,819
	Sales and marketing			11,868		10,090			41,612			39,941
	General and administrative			5,815		5,848			23,473			26,978
	Amortization of intangibles			825		712			3,067			2,849
	Relocation costs to consolidate development and client support activities			76		452			1,794			452
	Purchased in-process research and development			—		—			—			800
	Restructuring, asset disposition and other charges			—		4,992			—			6,287
	Gain on sale of office facility			—		—			(639	)		—

		Total operating expenses		31,614		32,737			117,836			119,126

OPERATING INCOME (LOSS)				136		(2,757	)		1,286			8,266
	Other income, net			206		356			1,347			1,700

INCOME (LOSS) BEFORE INCOME TAXES				342		(2,401	)		2,633			9,966
	Income tax provision (benefit)			119		(3,351	)		(17	)		1,036

NET INCOME			$	223	$	950		$	2,650		$	8,930

BASIC EARNINGS PER SHARE			$	.01	$	.03		$	.09		$	.32

DILUTED EARNINGS PER SHARE			$	.01	$	.03		$	.09		$	.31

SHARES USED TO COMPUTE:
	Basic earnings per share			28,959		28,406			28,645			28,047

	Diluted earnings per share			29,715		28,473			29,104			29,074

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


			Three Months						Year Ended
			Ended December 31,						December 31,

			2003			2002			2003			2002

NON-GAAP OPERATING INCOME
Operating income (loss) (GAAP BASIS)			$	136		$	(2,757	)	$	1,286		$	8,266
Adjustments for non-GAAP measures of performance:
		Add back amortization of acquired software technology		1,186			1,069			4,518			4,247
		Add back amortization of intangibles		825			712			3,067			2,849
		Add back relocation costs to consolidate development and client support activities		76			452			1,794			452
		Add back in-process research and development costs		—			—			—			800
		Add back restructuring, asset disposition and other charges		—			4,992			—			6,287
		Add back gain on sale of office facility		—			—			(639	)		—

Adjusted non-GAAP operating income (loss)			$	2,223		$	4,468		$	10,026		$	22,901

NON-GAAP OPERATING INCOME, as a percentage of revenue
Operating income (loss) (GAAP BASIS)				1	%		(5	%)		1	%		4	%
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		—			9	%		—			3	%
	Gain on sale of office facility			—			—			—			—
Adjusted non-GAAP operating income (loss)				4	%		8	%		5	%		10	%
NON-GAAP EARNINGS PER SHARE
Diluted earnings per share (GAAP BASIS)			$	.01		$	.03		$	.09		$	.31
Adjustments for non-GAAP measures of performance, net of tax:
		Add back amortization of acquired software technology	$	.02		$	.02		$	.10		$	.09
		Add back amortization of intangibles	$	.02		$	.02		$	.07		$	.07
		Add back relocation costs to consolidate development and client support activities		—		$	.01		$	.04		$	.01
		Add back in-process research and development costs		—			—			—		$	.02
		Add back restructuring, asset disposition and other charges		—		$	.12			—		$	.14
		Add back gain on sale of office facility		—			—		$	(.02	)		—
		Add back tax benefit from R&D capitalization		—			—		$	(.03	)		—
		Add back tax benefit from resolution of tax audits		—		$	(.09	)		—		$	(.09	)

Adjusted non-GAAP earnings per share			$	.05		$	.11		$	.25		$	.55

CASH FLOW INFORMATION
		Net cash provided by operating activities	$	12		$	13,770		$	19,819		$	41,517
		Net cash provided by (used in) investing activities		(2,959	)		(7,769	)		(22,809	)		(38,853	)
		Net cash provided by (used in) financing activities		2,171			(807	)		6,790			15,357


		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