WATERLOO, Ontario — July 11, 2006 — Electronic customs compliance technology acquired recently by logistics software and services specialist The Descartes Systems Group Inc. will help DHL Express Canada expedite cross-border shipments and meet the terms of Canada Border Services Agency's new Advance Commercial Information, or ACI, program and similar legislation pending in other parts of the world.

Descartes acquired ViaSafe Inc. and Flagship Customs Services Inc. (FCS) recently to add regulatory compliance as a service of its on-demand electronic logistics network, called the Global Logistics Network or GLN. Descartes said now its GLN can expedite cross-border shipments and help transportation providers, logistics intermediaries and government agencies comply with and enforce regulations impacting cross-border shipments.

Descartes said DHL Express Canada recently became the first air parcel carrier to use ViaTrade, compliance technology developed by ViaSafe which has been traditionally reserved for trucking companies. DHL Express Canada is using its ViaTrade Web interface to the GLN to transmit cargo manifest information at least four hours before aircraft arrival or at time of push-back for flights shorter than four hours as is required by the ACI program.

DHL Logistics has been using Descartes' GLN for about 10 years to exchange airway bills and status messages with air cargo carriers. DHL Logistics also has been using Descartes' visibility system built on top of the GLN for the past four years. DHL Express Canada became a ViaSafe customer last December, about six months before Descartes acquired the company and added ViaTrade as a value-added service of its GLN.

ViaTrade is designed to connect trucking companies to the pre-arrival processing systems of customs brokers in the U.S. and Canada and manage cross-border documentation processing requirements including customs filing. Descartes said airlines and air parcel carriers can use this same technology to reduce the time and effort it takes to clear customs in Canada and potentially in other countries with legislation similar to ACI pending.

"We believe electronic filing of shipment information in advance of the shipment's arrival will be mandated by governments around the world," said Oryst Dydynsky, vice president of cross-border and regulatory affairs at Descartes. "We've demonstrated through the use of ViaTrade by DHL Express Canada that the technology is multi-modal and that our GLN can help all types of customers comply with regulations that affect the tracking of shipment chain-of-custody and overall border security."

"Our ViaTrade Web interface to Descartes' GLN gave us the capability to be compliant for a regulatory change in Canada that went in effect June 26," said Chris Sheedy, director of international operations at DHL Express Canada. "We expect that by having Descartes integrate electronic filing technology and add a direct connection with Canadian customs we will be well positioned when the rest of the world begins to roll out similar legislation."

Descartes (Nasdaq: DSGX) (TSX: DSG) is a logistics software-as-a-service company that has been dedicated since its founding in 1981 to forming the world's largest electronic logistics network, called the Global Logistics Network or GLN. Descartes' on-demand GLN processes more than a million documents every day for companies with transport operations. Those documents are shared by more than 3,000 Descartes clients and their customers in 60 countries. Descartes also offers software applications that operate independently of the network. 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 derived therefrom including the ability to expedite shipments and help comply with and enforce regulations; DHL's use and continued use of Descartes' ViaTrade service; Descartes' competitive position; Descartes' expectation that there will be additional regulations requiring advance filing of electronic shipment information; 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, changes in applicable electronic filing regulations; changes in Descartes' status as an approved electronic filer with applicable government agencies; changes in DHL's use of the ViaTrade service; 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.