1 SUPPLEMENT NO. 2 TO PROSPECTUS DATED MARCH 12, 2001 [MANUGISTICS LOGO] $250,000,000 5% CONVERTIBLE SUBORDINATED NOTES DUE 2007 AND COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTES ------------------------ This is a second supplement to the Prospectus dated March 12, 2001 (the "Prospectus") relating to $250,000,000 principal amount of our 5% Convertible Subordinated Notes due 2007 (the "Notes") and the shares of our common stock issuable upon conversion of the Notes. The table in the "Selling Holders" section on pages 19-21 of the Prospectus is hereby supplemented by the addition of the following: SHARES OF PRINCIPAL AMOUNT COMMON STOCK OF NOTES ISSUABLE UPON BENEFICIALLY OWNED CONVERSION OF SELLING HOLDER AND OFFERED NOTES (1) -------------- ------------------ ----------------- Arbitex Master Fund, L.P. ....................... $ 7,500,000 170,212 New York Life Insurance and Annuity Corporation.................................... 1,200,000 27,234 New York Life Insurance Company.................. 7,400,000 167,943 UBS Warburg LLC.................................. 350,000 7,943 ----------- ------- Total.................................. $16,450,000 373,332 =========== ======= --------------- (1) Based upon an initial conversion rate of approximately 22.695 shares of common stock per $1,000 principal amount of Notes and a cash payment in lieu of any fractional interest. All of the other portions of the Prospectus, as previously supplemented, remain unchanged. The date of this Supplement No. 2 is April 5, 2001