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KNGT Logistics Selects Descartes' DeliveryNet

Stating, "We've seen the future of the 3PL industry and it is not built on traditional technology," KNGT Selects DeliveryNet.com for its capability to optimize trading partner networks via an open e-business framework

WATERLOO, Ontario, August 19, 1999 – The Descartes Systems Group, Inc., (NASDAQ:DSGX), (TSE:DSG), a leading provider of e-business solutions, today announced that KNGT Logistics has selected DeliveryNet.com™ to be the technology solution for its third party logistics (3PL) operations. Descartes will provide a complete collaborative logistics system that will allow KNGT to create custom trading partner networks, offer true supply chain visibility for customers and efficiently execute logistics operations. This agreement includes a license for DeliveryNet.com and subsequent transaction fees based on usage.

KNGT's solution will utilize Descartes' DeliveryNet.com e-business framework and newly integrated optimization and logistics execution modules, which will be unveiled at Descartes' annual user conference being held October 3-6 in Atlanta, Georgia. This will create a real-time command and control system that enables collaborative capacity planning and execution, dispatching, load and route optimization, and real-time global shipment visibility.

Unlike traditional 3PL companies that typically own transportation equipment and/or warehouses, KNGT has built a company that is entirely non-asset based and is focused on customers, not physical asset ownership and utilization. The company plans to deploy Descartes' DeliveryNet.com solution as the e-business backbone that will connect KNGT with its customers, their carriers and vendors, logistics service providers and other trading partners. KNGT selected Descartes after determining that DeliveryNet.com's inter-enterprise architecture is the only technology that could meet its requirements for competing in both business-to-business and business-to-consumer e-commerce arenas.

"The logistics challenge in e-commerce is more than delivering small packages to households," said John Patterson, president and CEO of KNGT Logistics. "There is enormous value in unlocking the billions of dollars of potential inventory savings for corporations with more traditional supply chains by providing real-time, line-item detail visibility via the Internet, from receipt of an order to final delivery." Patterson commented, "The DeliveryNet solution offers the best of both worlds for KNGT. It gives us the flexibility to tackle a multitude of supply chain problems, from inbound and outbound distribution for large, multi-national shippers, to complete order fulfillment and home delivery for new web-based e-businesses."

"We were looking for technology that we could bet our business on. DeliveryNet was the only solution that was proven to be real, referenceable and scalable," added Patterson. "DeliveryNet.com represents the kind of technology the logistics industry has been promising for the last five years, but to date no one has delivered."

"We selected the DeliveryNet solution because it offered comprehensive supply chain business management tools on a message-based Internet architecture," said Greg Morello, vice president, marketing and technology strategy for KNGT Logistics. "DeliveryNet.com will position KNGT to quickly create adaptive and flexible trading partner communities and effectively manage those communities to serve our customers in the most efficient manner possible."

Descartes will provide KNGT with its newly enhanced portfolio of products for the logistics provider marketplace. KNGT will implement Descartes' web-based collaborative logistics management and optimization components that enable Internet-based load tendering and carrier availability notifications, carrier selection, and shipment optimization across common carriers and private fleets, considering both cost and revenue objectives. DeliveryNet's architecture will provide KNGT with a real-time command and control system that will manage the dynamic information exchange between customers, carriers of all modes, vendors, and other trading partners via the Internet.

"The key to competitive advantage for next generation 3PLs like KNGT is their ability to rapidly assemble and reconfigure their service portfolios and trading partner networks," said Art Mesher, executive vice president for Descartes, "KNGT has put together one of the most experienced management teams in the 3PL industry and is now clearly positioned to take advantage of the enormous market opportunities for a pure, asset-less provider."

About KNGT Logistics

KNGT Logistics is a non-asset based supply chain management company that offers customers a full range of logistics services encompassing all aspects of the order fulfillment chain. KNGT develops logistics solutions using the best available asset-based providers most capable of meeting its customers’ needs. With a focus on e-commerce logistics solutions to meet the challenges of the new Internet economy, KNGT provides people, processes and technology that enable companies worldwide to achieve complete supply chain visibility and develop highly efficient distribution networks.

For more information, contact KNGT Logistics at (616) 394-4158.

About DeliveryNet.com

Descartes' DeliveryNet.com is an Internet-based technology architecture that enables the creation and operation of e-business communities. Its shared object repositories facilitate trading partners in the community to share information on the planning and execution of their respective supply chains. To enable this, DeliveryNet.com supports a variety of underlying messaging and dialog techniques such as CGI web forms, XML, HTML, proprietary legacy interfaces and traditional EDI. Over the Internet, users across trading partner organizations can collaboratively share Java applications and web servers. DeliveryNet.com's operational features include data integration tools to configure document exchange and business processes, 24-hour message network-flow management consoles, as well as the ability to operate a virtual Internet communications network.

About Descartes Systems Group

Descartes Systems, a leading provider of e-business solutions, offers a product portfolio of intelligent, inter-enterprise execution solutions for delivery sensitive supply chains. These trading partner community-centric solutions let organizations manage and optimize their order-to-delivery cycle, and can be integrated with a wide range of business enterprise systems. These solutions help companies deliver reliable, responsive customer service while exceeding their financial objectives. Descartes solutions are used today by more than 850 companies in 35 vertical industries and 50 countries worldwide. For more information about Descartes, visit http://www.descartes.com

All product names used are registered trademarks of the respective owners.

Contact:

     Descartes Systems Group
     Sandra Walsh, 800/419-8495 ext. 2209
     swalsh@descartes.com
     Paul Laufert, 800/419-8495 ext. 2265
     investor@descartes.com
     info@descartes.com

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