WATERLOO, Ontario — July 26, 2006 — Logistics software and services specialist The Descartes Systems Group Inc. has added freight forwarder and logistics services provider Allstates WorldCargo Inc. to its multimodal electronic messaging network, called the Global Logistics Network or GLN.

Allstates said this is the first time the company has used an electronic network to share information and collaborate with its trading partners. Allstates transports freight for thousands of companies using domestic and global partnerships with air, ocean and over-the-road carriers.

Descartes' GLN electronically processes shipment information received from Allstates' carriers and routes it to the company's tracking system. Descartes said its GLN offers customers like Allstates a single network interface that helps streamline operations by improving coordination and reducing the time employees spend gathering shipment status information from multiple transportation carriers.

"We're exchanging information electronically for customers that they've traditionally gathered and shared by using inefficient and very expensive methods like phone, fax and e-mail," said Edward Ryan, general manager of Descartes' GLN. "Not only is our network easier to use, it can be more cost effective."

"Our goal is to increase staff productivity and improve customer service by taking the first step of using Descartes' GLN to provide electronic shipment status information to our customers and employees," said John Eastland, director of transportation at Allstates. "Now that we have the technical foundation in place, we can start to use a number of other value-added GLN services as we continue to grow our business and enhance our services to customers."

Descartes (Nasdaq: DSGX) (TSX: DSG) is a software-as-a-service company that has been dedicated since its founding in 1981 to developing the world's largest multimodal electronic messaging network, called the Global Logistics Network or GLN. Descartes' on-demand GLN processes more than a million messages every day for companies with transport operations. Descartes also offers software layered on top of the GLN for areas including truck scheduling and route optimization that allows carriers, shippers and intermediaries to translate these messages into actionable information. This information is shared by more than 3,000 Descartes clients and their customers in 60 countries. Descartes' customers include about 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies. The company has about 295 employees and is based in Waterloo, Ontario, with operations in Ottawa, Atlanta, Pittsburgh, Washington, D.C. and Stockholm.

On the Net: www.descartes.com

Descartes Contact:
Ashley Lohman
Business Juice
ashley@businessjuice.com
mobile: (804) 240-7719
office: (804) 673-5008

This release contains statements that are considered forward-looking information by applicable securities laws ("forward-looking statements"), including statements that relate to Descartes' product and service functionality and performance; potential benefits and cost savings derived therefrom; Descartes' competitive position; and other matters that may constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Descartes to differ materially from the anticipated results, performance or achievements implied by such forward-looking statements. Such factors include, but are not limited to, usage patterns of particular customers before and after deploying Descartes' solutions; Descartes' continuing relationship with particular customers,; and the factors discussed in the sections entitled "Risk Factors" and "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada. If any of such risks or factors actually occurs, they could materially adversely affect our business, financial condition and results of operations.