1 SUPPLEMENT NO. 3 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 third 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) -------------- ------------------ ----------------- Ariston Internet Convertible Fund................ $25,000 567 ------- --- Total.................................. $25,000 567 ======= === --------------- (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. 3 is April 10, 2001