EXHIBIT 99.1

i2 Reports Fourth Quarter and Fiscal Year 2003 Results

DALLAS – January 27, 2004 – i2 Technologies, Inc. (OTC: ITWO), a leading provider of end-to-end supply chain management solutions, today announced results for the fourth quarter and fiscal year 2003.

i2’s license revenue rose four percent sequentially in the fourth quarter to $14.8 million. This compares to $14.2 million of license revenues in the third quarter of 2003 and $21.8 million in the fourth quarter of 2002.

Development services revenue, included in the contract revenue line of the income statement, grew 29 percent sequentially, reaching $6.7 million in the fourth quarter. This compares to $5.2 million in the prior quarter and $4.8 million in the fourth quarter of 2002.

“We are seeing signs that sales pipelines are beginning to rebuild, but have also felt the lingering effects of the re-audits,” said Sanjiv Sidhu, i2 chairman and CEO. “With sales cycles averaging nine to 12 months, I believe these effects are likely to remain for the next few quarters as we work to convert sales pipelines into bookings, and then bookings into revenue.”

Total fourth quarter revenues were $98 million, as compared to $117.3 million in the third quarter of 2003 and $168.9 million in the fourth quarter of 2002. The majority of the decrease in total revenues from those reported in the third quarter is due to a $17.1 million decrease in the amount of deferred contract revenue recognized in the quarter.

Total costs and operating expenses for the fourth quarter of 2003 were $99.6 million, including approximately $2.5 million for legal fees related to the SEC investigation and the class action lawsuit and approximately $0.8 million of expenses related to the deferred contract revenue recognized as part of the contract revenue line of the income statement. This compares to $103.3 million in total costs and operating expenses in the third quarter of 2003 and $148.8 million in the fourth quarter of 2002. Operating loss for the fourth quarter of 2003 totaled $1.9 million.

The company reported a net loss of $7.0 million or $0.02 loss per share for the fourth quarter. This compares to net income of $7.1 million, or $0.02 earnings per share in the third quarter of 2003 and net income of $15.8 million, or $0.03 earnings per share, for the fourth quarter of 2002.

Fiscal Year 2003 Results

License revenues for the fiscal year 2003 were $65.4 million, down 26 percent from the prior year. Development services revenues for 2003, included in the contract revenue line of the income statement, totaled $26.8 million as compared to $13.2 million for 2002.

Total revenues for 2003 were $494.9 million, as compared to $908.4 million for 2002.

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i2 Reports Fourth Quarter and Fiscal Year 2003 Results

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For the full year 2003, the company reported net income of $42.5 million, or diluted earnings per share of $0.09 as compared to a net loss of $898.9 million, or $2.10 loss per basic and diluted share, for 2002.

Cash use in the fourth quarter totaled $27.6 million. The Company ended the year with $309.4 million in total cash and investments.

Highlights for the Fourth Quarter and Fiscal Year 2003:

New customers during the year came from all regions and a variety of verticals, including The Brick Warehouse Corporation, Canada’s largest retailer of furniture, mattresses, appliances and home electronics and Hitachi Global Storage Technologies, a global provider of storage products for desktop computers, high-performance servers and mobile devices.

Current customers turning to i2 to drive additional value from their closed-loop supply chain initiatives included Airbus and Rockwell Collins in Aerospace and Defense; Woolworths Ltd., Del Monte Foods, Dole Food Company, and PSS World Medical in Consumer Goods and Retail; Mitsubishi, Hitachi, and NEC in High Tech. Additionally, Industrial companies Cummins, Inc. and Krones, and Metals leaders JFE Steel and International Steel also chose i2 during the year.

Approximately 40 customers went live with i2 Solutions during the fourth quarter, totaling 178 companies in 2003. Companies included Del Monte Foods; Meidi-Ya Co, Ltd., Toshiba, Krones AG, EWK, LSG Sky Chefs and Heinz Wattie’s Limited.

About i2

A leading provider of end-to-end supply chain management solutions, i2 designs and delivers software that helps customers optimize and synchronize activities involved in successfully managing supply and demand. i2 has more than 1,000 customers worldwide—many of which are market leaders—including seven of the Fortune global top 10. Founded in 1988 with a commitment to customer success, i2 remains focused on delivering value by implementing solutions designed to provide a rapid return on investment. Learn more at www.i2.com.

i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

i2 Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties including forward-looking statements regarding the customer’s ability to implement or integrate i2 solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors which could impact i2’s financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2’s recent filings with the SEC, particularly the Annual Report on Form 10-K filed on July 21, 2003 and the Quarterly Report on Form 10-Q filed on November 14, 2003. i2 assumes no obligation to update the forward-looking information contained in this news release.

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i2 Reports Fourth Quarter and Fiscal Year 2003 Results

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For More Information Contact:

Melanie Ofenloch

i2 Corporate Communications

469-357-3027

melanie_ofenloch@i2.com

Barry Sievert

i2 Investor Relations

469-357-1000

barry_sievert@i2.com

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i2 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2003			2002			2003			2002
Revenues:
Software licenses	$	14,811		$	21,807		$	65,430		$	88,629
Contract		20,679			74,301			153,270			527,755
Services		30,134			37,193			140,132			147,274
Maintenance		32,043			35,588			136,097			144,718
Total revenues		97,667			168,889			494,929			908,376
Costs and expenses:
Cost of revenues:
Software licenses		4,496			1,787			6,656			2,976
Contract		6,467			24,629			35,105			157,820
Amortization of acquired technology		145			144			580			15,156
Services and maintenance		35,324			32,884			149,418			131,884
Sales and marketing		22,739			31,842			90,781			198,825
Research and development		18,112			23,315			80,788			173,064
General and administrative		13,006			10,681			63,710			65,446
Amortization of intangibles		39			422			540			11,223
Impairment		—			—			—			37,660
Restructuring charges and adjustments		(756	)		23,085			4,822			111,928
Total costs and expenses		99,572			148,789			432,400			905,982
Operating income (loss)		(1,905	)		20,100			62,529			2,394
Other income (expense), net:
Interest income		887			2,218			4,942			13,926
Interest expense		(4,686	)		(6,451	)		(20,641	)		(23,839	)
Realized gains (losses) on investments, net		371			118			370			1,895
Foreign currency hedge and transaction gains (losses), net		(11	)		312			(424	)		(2,203	)
Gain on early repayment of debt obligation		—			—			3,435			—
Other		(463	)		(390	)		(2,234	)		(1,809	)
Total other income (expense), net		(3,902	)		(4,193	)		(14,552	)		(12,030	)
Income (loss) before income taxes		(5,807	)		15,907			47,977			(9,636	)
Income tax expense (benefit)		1,161			87			5,462			889,296
Net income (loss)	$	(6,968	)	$	15,820		$	42,515		$	(898,932	)
Net income (loss) per common share:
Basic	$	(0.02	)	$	0.04		$	0.10		$	(2.10	)
Diluted	$	(0.02	)	$	0.03		$	0.09		$	(2.10	)
Weighted-average common shares outstanding:
Basic		434,203			432,374			433,392			428,746
Diluted		434,203			472,843			457,538			428,746

Note: We have been in negotiations to settle or otherwise resolve certain contingencies the company faces, including the class action litigation. Any settlement or resolution of these matters, if achieved, prior to the time we file our Form 10-K for 2003 will likely be required to be reflected in the 2003 financial statements that we file with that report.

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i2 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	December 31, 2003			December 31, 2002
ASSETS
Current assets:
Cash and cash equivalents	$	288,822		$	402,177
Restricted cash		15,532			12,052
Short-term investments, at fair value		5,000			10,000
Accounts receivable, net of allowance for doubtful accounts of $3,098 and $10,368		36,746			45,764
Deferred contract costs		6,995			14,332
Other current assets		27,529			32,721
Total current assets		380,624			517,046
Long-term investments, at fair value		—			33,016
Premises and equipment, net		28,483			59,814
Intangible assets, net		4,647			7,223
Goodwill		16,620			15,854
Other assets		—			270
Total assets	$	430,374		$	633,223
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	20,853		$	24,176
Accrued liabilities		67,499			137,931
Accrued compensation and related expenses		27,380			40,663
Deferred tax liabilities		9			2,246
Current portion of long-term debt		—			60,930
Deferred revenue		212,753			319,292
Total current liabilities		328,494			585,238
Non-current deferred tax liabilities		18			10
Long-term debt		356,800			350,000
Total liabilities		685,312			935,248
Commitments and contingencies
Preferred stock, $0.001 par value, 5,000 shares authorized, none issued		—			—
Series A junior participating preferred stock, $0.001 par value, 2,000 shares authorized, none issued		—			—
Common stock, $0.00025 par value, 2,000,000 shares authorized, 434,133 and 432,853 shares issued and outstanding		109			108
Additional paid-in capital		10,378,534			10,378,747
Deferred compensation		(1,597	)		(3,563	)
Accumulated other comprehensive income (loss)		217			(2,601	)
Accumulated deficit		(10,632,201	)		(10,674,716	)
Net stockholders’ deficit		(254,938	)		(302,025	)
Total liabilities and stockholders’ deficit	$	430,374		$	633,223

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