JDA Reports Significant Earnings and Software License Growth in Third Quarter Software Revenues Up 70% Over Prior Year and 14% Sequentially

JDA Reports Significant Earnings and Software License Growth in Third Quarter
Software Revenues Up 70% Over Prior Year and 14% Sequentially

     Scottsdale, Ariz. – October 24, 2005 – JDA® Software Group, Inc. (Nasdaq: JDAS) today announced final financial results for the quarter ended September 30, 2005. JDA reported total revenues of $55.6 million and software revenues of $17.4 million, compared to total revenues of $50.3 million and software revenues of $10.2 million in third quarter of 2004.

     JDA reported GAAP net income for the third quarter 2005 of $3.7 million, or $0.13 per share, as compared to GAAP net income of $1.6 million, or $0.06 per share in third quarter 2004. JDA reported adjusted non-GAAP earnings for third quarter 2005 of $0.17 per share, versus adjusted non-GAAP earnings per share of $0.04 for third quarter 2004. The non-GAAP earnings results exclude amortization of acquired software technology and intangibles, stock-based compensation expense on restricted stock units, a net gain on acquisition break-up fee, a gain on sale of securities, and certain non-recurring tax benefits and refunds, all of which are itemized in the attached schedule of non-GAAP measures of performance.

     “The third quarter delivered an excellent software result for what is traditionally the weakest quarter of the year with a 70% increase in software licenses over the prior year quarter,” said Hamish Brewer, JDA Chief Executive Officer. “We closed 76 deals in a highly competitive environment, including 12 multi-product transactions and three large software contracts with combined software revenues surpassing $10 million, not all of which was recognized in third quarter 2005.”

     “JDA’s distinct competitive advantage is becoming very clear in an industry of consolidating software vendors. Our value proposition of delivering high value add solutions through a low cost delivery model is clearly understood and being well received by both retailers and suppliers. I feel very positive about our competitive positioning,” said Brewer.

Third Quarter 2005 Highlights

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JDA Reports Third Quarter Earnings

Nine Month Results for 2005

     For the nine months ended September 30, 2005, total revenues increased to $160.7 million compared to total revenues of $159.6 million for the same period in 2004. Software license revenues increased to $42.9 million for the first nine months of 2005, versus $38.9 million for the same period in 2004.

     JDA reported GAAP net income was $8.0 million or $0.28 per share for the nine months ended September 30, 2005, compared to a GAAP net income of $1.8 million or $0.06 per share in the same period in 2004. Adjusted non-GAAP earnings for the first nine months of 2005 were $0.42 per share compared to adjusted non-GAAP earnings of $0.16 per share in the same period of 2004 The non-GAAP earnings results exclude amortization of intangibles and acquired software technology, stock-based compensation expense on restricted stock units, restructuring charges and adjustments to acquisition-related reserves, a net

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gain on acquisition break-up fee, a gain on sale of securities, and certain non-recurring tax benefits and refunds, all of which are itemized in the attached schedule of non-GAAP measures of performance.

     Cash flow from operations was $10.3 million for the first nine months of 2005 as compared to $22.3 million during the same period in 2004.

Conference Call Information

     JDA will host a conference call today at approximately 4:45 pm EDT. 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 Third Quarter 2005 Earnings.” A replay of the conference call will begin October 24, 2005 at 6:45 pm EDT and will end on November 24, 2005 at 12:00 am EDT. Callers can hear the replay by dialing
1-877-519-4471 (United States) or 1-973-341-3080 (International) using access code 6485208.

     To participate in a Web cast of the call, visit the following web page at the time of the conference call:
http://viavid.net/dce.aspx?sid=0000290C

About JDA Software Group

     With more than 4,800 retail, manufacturing and wholesale customers 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 approximately 1,100 associates operating from 26 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more information, visit www.jda.com, email info@jda.com or call 1-800-479-7382.

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“JDA,””JDA Portfolio,” “PortfolioEnabled,” ”Portfolio Category Management,” “Portfolio Strategic Merchandise Management,” “Portfolio Workforce Management” and “Portfolio Replenishment Optimization by E3” 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’.

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995

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. Forward-looking statements are generally accompanied by words such as “will,” and “expect” and other words with forward-looking connotations. In this press release, such forward-looking statements include, without limitation: (i) Mr. Brewer’s statement regarding our competitive position in the market; and (ii) any implications regarding future sales of our new .Net products that can be drawn from early indications of market acceptance of such products. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (a) the possibility that our competitive position could weaken in the future, particularly given that the competitive landscape in our market continually changes, and our market is highly competitive; (b) we may encounter difficultly developing, marketing and implementing our new .Net products since

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neither the products, nor the technical platform are fully mature or established in the marketplace; and (c) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. Additional information relating to the uncertainty affecting our business is contained in our filings with the SEC. As a result of these and other risks, actual results may differ materially from those predicted. JDA is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

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

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