8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 7, 2008

i2 Technologies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-28030	75-2294945
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One i2 Place 11701 Luna Road Dallas, Texas	75234
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (469) 357-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 and Item 7.01. Results of Operations and Financial Condition, and Regulation FD Disclosure.

On February 7, 2008, i2 Technologies, Inc. (the “Company”) announced by press release (the “Earnings Press Release”) the Company’s fourth quarter and fiscal year 2007 financial results. The information contained in the Earnings Press Release, which is attached to this Current Report on Form 8-K as Exhibit 99.1, is incorporated by reference herein and is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and Item 7.01, “Regulation FD Disclosure.”

The Company will conduct its earnings conference call on February 7, 2008, at 10:00 a.m. ET. A webcast of the conference call will be open to the public and can be accessed via the company’s Web site at http://www.i2.com/investor.

Included in the Earnings Press Release is the disclosure of non-GAAP diluted earnings per share and non-GAAP operating revenue. Management believes that the presentation of non-GAAP diluted earnings per share and non-GAAP operating revenue and their related reconciliation to GAAP diluted earnings per share and GAAP operating revenue, respectively, is useful to investors as it reflects financial measures that management utilizes for budgeting purposes, as well as analyzing the underlying performance of the Company. Management believes that these non-GAAP measures provide investors additional important information to enable them to assess, in the way that management assesses, the operations of the Company. This non-GAAP financial information should not be considered as a substitute for, or superior to, and should only be read in conjunction with, measures of financial performance prepared in accordance with generally accepted accounting principles.

The information contained in this Current Report and the accompanying exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, or incorporated by reference in any filing by the Company under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.

Item 8.01. Other Events.

On February 7, 2008, the Company also issued a press release (the “Strategic Review Press Release”) addressing the status of the strategic review committee’s evaluation of strategic options available to the Company to enhance shareholder value. The committee, consisting of independent board directors Richard L. Clemmer, Lloyd G. Waterhouse and Jackson L. Wilson, Jr., was formed in November 2007.

The Company also announced in the Strategic Review Press Release that the Board of Directors is continuing its evaluation of several chief executive officer candidates. A copy of the Strategic Review Press Release is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated February 7, 2008 announcing the Company’s fourth quarter and fiscal year 2007 financial results
99.2	Press release dated February 7, 2008 updating the progress of the strategic review committee

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 7, 2008	i2 TECHNOLOGIES, INC.
	By:	/s/ Michael J. Berry
		Michael J. Berry
		Executive Vice President, Finance and Accounting and Chief Financial Officer

EX-99.1

Exhibit 99.1

i2 Reports Fourth Quarter and Fiscal Year 2007 Results

Company results in-line with preliminary expectations

DALLAS – February 7, 2008 – i2 Technologies, Inc. (NASDAQ: ITWO) today announced results for the fourth quarter and fiscal year 2007.

A summary of fourth quarter results:

• Total revenue was $63.3 million

• Total costs and expenses were $54.5 million

• Net income applicable to common stockholders was $5.0 million

• Diluted earnings per share (GAAP) were $0.19

• Non-GAAP diluted earnings per share were $0.26 (excluding stock option expense and contract revenue)

• Cash flow from operations was $8.4 million

• Total bookings of $81.8 million, including $21.9 million in software solutions bookings

A summary of fiscal year 2007 results:

• Total revenue was $260.3 million

• Total costs and expenses were $235.2 million

• Net income applicable to common stockholders was $14.7 million

• Diluted earnings per share (GAAP) were $0.55

• Non-GAAP diluted earnings per share were $0.82 (excluding stock option expense and contract revenue)

• Cash flow from operations was $16.4 million

• Total bookings of $264.7 million, including $54.6 million in software solutions bookings

“We ended 2007 with strong bookings performance, recording the highest level of quarterly bookings in the last three years,” stated i2 Interim Chief Executive Officer Pallab Chatterjee. “The fourth quarter was highlighted by more than $81 million in total bookings, which included approximately $22 million in software solutions bookings. We are pleased to continue our relationships with many current customers who renewed agreements during the quarter and we look forward to growing our relationships with the new customers we signed during the quarter.”

“We are pleased to have recorded significant bookings during the fourth quarter which resulted in growth in total bookings for full year 2007 compared to the prior year period,” stated i2 Executive Vice President and Chief Financial Officer Mike Berry. “While our revenue and earnings results were below our expectations in the fourth quarter, we exceeded our cash flow expectations and are pleased with the continued improvement in our liquidity,” concluded Berry.

Fourth Quarter Results

Revenue Detail

Total revenue for the fourth quarter was $63.3 million as compared to $79.6 million in the fourth quarter of 2006, a decrease of $16.3 million or 21 percent. Total revenue in the fourth quarter of 2006 included contract revenue of $4.0 million.

i2 had total fourth quarter software solutions revenue, which includes core license revenue, recurring license revenue as well as fees received to develop the licensed functionality, of $12.4

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i2 Reports Fourth Quarter and Fiscal Year 2007 Results

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million. This compares to $23.4 million of software solutions revenue in the fourth quarter of 2006, a decline of 47 percent year-over-year. Note: the fourth quarter 2006 software solutions revenue amount includes $5.2 million in recurring license revenue related to platform technology bookings recorded in 2006.

Services revenue in the fourth quarter was $29.1 million, a decrease of 1 percent from the $29.5 million of services revenue in the fourth quarter of 2006. Services revenue includes fees received from consulting and training services as well as arrangements to customize or enhance previously purchased licensed software. Services revenue also includes reimbursable expenses.

Fourth quarter maintenance revenue was $21.9 million, a decrease of 4 percent from $22.7 million in the comparable prior year quarter.

Costs and Expenses

Total costs and expenses for the fourth quarter of 2007 were $54.5 million, a decrease of 16 percent compared to $65.1 million in the fourth quarter of 2006. Total costs and expenses in the fourth quarter of 2007 included $2.7 million in stock-based compensation expense, which includes $1.9 million in expense related to stock options and $800,000 in expense related to restricted stock units.

Net Income

The company reported fourth quarter 2007 net income applicable to common stockholders of $5.0 million, or $0.19 per diluted share. This compares to $14.3 million, or $0.54 per diluted share, in net income applicable to common stockholders in the fourth quarter of 2006.

Fiscal Year 2007 Results

Total revenues for 2007 were $260.3 million, a decrease of 7 percent as compared to $279.7 million for the same period in 2006. Total revenue included contract revenue of $2.5 million and $4.1 million in 2007 and 2006, respectively.

Software solutions revenue decreased 37 percent to $47.7 million in 2007 compared to $76.2 million in 2006. Services revenue was $122.7 million compared to $106.5 million in 2006, an increase of 15 percent. Maintenance revenue decreased 6 percent to $87.5 million in 2007 compared to $92.8 million in 2006.

Total costs and expenses for 2007 declined 6 percent to $235.2 million as compared to $250.3 million in 2006. Total costs and expenses in 2007 included $12.4 million in stock-based compensation expense, which includes $9.8 million in expense related to stock options and $2.6 million in expense related to restricted stock units.

The company reported net income applicable to common stockholders of $14.7 million or $0.55 per diluted share for 2007. This compares to $21.3 million or $0.82 per diluted share in net income applicable to common stockholders in 2006.

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i2 Reports Fourth Quarter and Fiscal Year 2007 Results

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Non-GAAP Diluted Earnings Per Share

The company provides non-GAAP financial measures to assist stockholders with the analysis of financial and business trends related to the company’s operations. These calculations are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures presented by other companies.

Non-GAAP diluted earnings per share applicable to common stockholders in the fourth quarter of 2007 were $0.26, compared to $0.52 per diluted share in the comparable period last year on a non-GAAP basis. Non-GAAP diluted earnings per share applicable to common stockholders for 2007 were $0.82, compared to $1.27 per diluted share in 2006 on a non-GAAP basis. Non-GAAP diluted earnings per share excludes stock option expense and the net effect of contract revenue and contract expense. Contract revenue is the result of the recognition of certain revenue that was carried on i2’s balance sheet as a portion of deferred revenue and was a result of the company’s 2003 financial restatement. As of March 31, 2007, the deferred contract revenue balance was zero.

A full reconciliation of GAAP to non-GAAP financial measures can be found in Schedule A included with this release.

Other Financial Information

On December 31, 2007, i2’s total cash was $129.4 million (including restricted cash of $8.5 million). Total debt at the end of 2007 was $86.3 million, which represents the face value of the company’s 5% senior convertible notes.

The company generated cash flow from operations of $8.4 million in the fourth quarter of 2007. For 2007, cash flow from operations was $16.4 million versus $14.8 million in 2006.

First Quarter 2008 Outlook

In conjunction with the continuing efforts of the strategic review committee, the company is providing outlook for only the first quarter of 2008 at this time. The company currently expects financial performance in the first quarter of 2008 to be reasonably comparable to the first quarter of 2007, excluding the effect of contract revenue recorded in the prior year period. However, cash flow from operations in the first quarter of 2008 is expected to be positive compared to the negative $6.6 million of cash flow from operations in the prior year period. This outlook assumes no significant changes to the company’s management or operations during the first quarter of 2008.

The company’s statements regarding future financial performance are based on current expectations for bookings, cash collections, revenue, expense and diluted shares outstanding. Such statements are forward-looking, and the company expressly disclaims any current intention to update forward-looking statements. Actual results may differ materially. See “i2 Cautionary Language” below.

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i2 Reports Fourth Quarter and Fiscal Year 2007 Results

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Earnings Conference Call and Webcast Information

The i2 management team will host a live conference call with investors today, February 7 at 10:00 a.m. ET to discuss the fourth quarter and fiscal year 2007 financial results. Investors and other interested parties may access the call via webcast through the company’s Web site at http://www.i2.com/investor.

An audio replay of the conference call will be available for approximately 24 hours following the call. To access the replay, dial (800) 475-6701 (USA) or (320) 365-3844 (International) and enter access code 906526. The webcast will also be archived via the company’s Web site at http://www.i2.com/investor.

About i2

Throughout its 20-year history of innovation and value delivery, i2 has dedicated itself to building successful customer partnerships. As a full-service supply chain company, i2 is uniquely positioned to help its clients achieve world-class business results through a combination of consulting, technology, and managed services. i2 solutions are pervasive in a wide cross section of industries; 20 of the AMR Research Top 25 Global Supply Chains belong to i2 customers. Learn more at www.i2.com.

i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc.

i2 Cautionary Language

This press release contains forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding i2’s outlook for first quarter 2008 revenue, diluted earnings per share, operating cash flow and total bookings. These forward-looking statements are based on current expectations for bookings, cash collections, revenue, expense and diluted shares outstanding, and involve risks and uncertainties that may cause actual results to differ from those projected, including, without limitation, the risk that (i) we will be unable to develop and generate additional demand for our products, (ii) we will be unable to remain competitive, (iii) our strategy to sell new-generation solutions may not be successful, (iv) product quality, performance claims and other litigation may have a material adverse effect on our relationships with customers and our business, (v) key personnel leave the company or the company is unable to attract, train and retain additional personnel. 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 Quarterly Report on Form 10-Q filed November 6, 2007 and the Annual Report on Form 10-K filed March 30, 2007. i2 expressly disclaims any current intention to update the forward-looking information contained in this news release.

For More Information Contact:
Tom Ward	Beth Elkin
i2 Investor Relations	i2 Corporate Communications
469-357-3854	469-357-4225
tom_ward@i2.com	beth_elkin@i2.com

i2 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	December 31, 2007			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	120,978		$	109,419
Restricted cash		8,456			4,626
Accounts receivable, net		25,108			25,677
Other current assets		7,746			9,231
Total current assets		162,288			148,953
Premises and equipment, net		7,559			10,691
Goodwill		16,684			14,760
Non-current deferred tax asset		8,454			8,060
Other non-current assets		7,168			7,605
Total assets	$	202,153		$	190,069
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	4,741		$	11,283
Accrued liabilities		14,631			22,245
Accrued compensation and related expenses		17,636			24,010
Deferred revenue		61,715			74,047
Total current liabilities		98,723			131,585
Total long-term debt, net		84,453			83,822
Taxes payable		4,484			—
Total liabilities		187,660			215,407
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred Stock, $0.001 par value, 5,000 shares authorized, none issued and outstanding		—			—
Series A junior participating preferred stock, $0.001 par value, 2,000 shares authorized, none issued and outstanding		—			—
Series B 2.5% convertible preferred stock, $1,000 par value, 150 shares authorized, 107 and 105 issued and outstanding at December 31, 2007 and December 31, 2006, respectively		103,450			101,686
Common stock, $0.00025 par value, 2,000,000 shares authorized, 21,448 and 21,005 shares issued and outstanding at December 31, 2007 and December 31, 2006, respectively		5			5
Additional paid-in capital		10,458,101			10,442,261
Accumulated other comprehensive income		9,963			2,398
Accumulated deficit		(10,557,026	)		(10,571,688	)
Net stockholders’ equity (deficit)		14,493			(25,338	)
Total liabilities and stockholders’ equity (deficit)	$	202,153		$	190,069

i2 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Revenues:
Software solutions	$	12,354		$	23,364		$	47,721		$	76,243
Services		29,068			29,470			122,682			106,493
Maintenance		21,859			22,748			87,457			92,828
Contract		—			4,014			2,450			4,113
Total revenues		63,281			79,596			260,310			279,677
Costs and expenses:
Cost of revenues:
Software solutions		1,852			3,741			8,567			12,862
Services and maintenance		27,004			24,958			108,471			97,960
Contract		—			311			—			311
Amortization of acquired technology		6			—			25			21
Sales and marketing		9,290			12,209			41,872			48,185
Research and development		7,734			8,502			33,513			35,200
General and administrative		8,499			15,533			38,691			56,129
Amortization of intangibles		25			(156	)		78			17
Restructuring charges and adjustments		108			—			3,955			(403	)
Total costs and expenses		54,518			65,098			235,172			250,282
Operating income		8,763			14,498			25,138			29,395
Non-operating (expense) income, net:
Interest income		1,427			1,553			5,488			5,305
Interest expense		(1,236	)		(1,523	)		(4,948	)		(6,069	)
Realized gains on investments, net		—			—			—			475
Foreign currency hedge and transaction losses, net		(380	)		(207	)		(678	)		(219	)
Other expense, net		(281	)		(329	)		(1,134	)		(850	)
Total non-operating expense, net		(470	)		(506	)		(1,272	)		(1,358	)
Income before income taxes		8,293			13,992			23,866			28,037
Income tax expense (benefit		2,478			(1,085	)		6,133			3,821
Net income	$	5,815		$	15,077		$	17,733		$	24,216
Preferred stock dividend and accretion of discount		774			770			3,071			2,940
Net income applicable to common stockholders	$	5,041		$	14,307		$	14,662		$	21,276
Net income per common share applicable to common stockholders:
Basic	$	0.19		$	0.56		$	0.57		$	0.84
Diluted	$	0.19		$	0.54		$	0.55		$	0.82
Weighted-average common shares outstanding:
Basic		25,985			25,500			25,816			25,328
Diluted		26,587			26,355			26,748			25,883

i2 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Twelve Months Ended December 31,
	2007			2006
Cash flows from operating activities:
Net income	$	17,733		$	24,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,399			7,720
Stock based compensation		12,388			16,293
Gain on sale of securities		—			(501	)
Loss (gain) on disposal of equipment		256			(170	)
Expense (credit) for bad debts charged to costs and expenses		6			(479	)
Deferred income taxes		816			(1,736	)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable		910			746
Other assets		8,123			7,665
Deferred contract costs		—			311
Accounts payable		(2,852	)		(691	)
Accrued liabilities		(7,979	)		(12,437	)
Accrued compensation and related expenses		(6,842	)		(364	)
Deferred revenue		(12,549	)		(25,807	)
Net cash provided by operating activities		16,409			14,766
Cash flows used in investing activities:
Restrictions (placed) released on cash		(3,830	)		147
Purchases of premises and equipment		(1,341	)		(2,386	)
Proceeds from sale of premises and equipment		24			232
Proceeds from sale of securities		—			501
Business acquisition		(2,124	)		(569	)
Net cash used in investing activities		(7,271	)		(2,075	)
Cash flows provided by (used in) financing activities:
Repurchase of debt		—			(24,997	)
Proceeds from sale of convertible debt		—			7,500
Cash dividends paid - preferred stock		(1,307	)		(1,327	)
Payment of debt issuance costs		—			(484	)
Net proceeds from common stock issuance from options and employee stock purchase plans		3,430			2,584
Net cash provided by (used in) financing activities		2,123			(16,724	)
Effect of exchange rates on cash		298			570
Net change in cash and cash equivalents		11,559			(3,463	)
Cash and cash equivalents at beginning of period		109,419		$	112,882
Cash and cash equivalents at end of period	$	120,978		$	109,419
Supplemental cash flow information
Interest paid	$	4,312		$	5,417
Income taxes paid (net of refunds received)	$	5,093		$	4,780
Schedule of non-cash financing activities
Preferred stock dividend and accretion of discount	$	1,762		$	1,613

SCHEDULE A TO PRESS RELEASE

February 7, 2008

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

($ in thousands, except per share data)

(Unaudited)

Revenue
	4Q 2007		4Q 2006		FY 2007		FY 2006
GAAP revenue	$	63,281	$	79,596	$	260,310	$	279,677
Less: contract revenue		—		4,014		2,450		4,113
Operating Revenue	$	63,281	$	75,582	$	257,860	$	275,564
Diluted earnings per share applicable to common stockholders *
	4Q 2007		4Q 2006		FY 2007		FY 2006
GAAP diluted earnings per share applicable to common stockholders	$	0.19	$	0.54	$	0.55	$	0.82
Add: stock option expense	$	0.07	$	0.12	$	0.37	$	0.59
Add: contract expense		—	$	0.01		—	$	0.01
Less: contract revenue		—	$	0.15	$	0.09	$	0.16
Non-GAAP diluted earnings per share applicable to common stockholders	$	0.26	$	0.52	$	0.82	$	1.27

* Non-GAAP EPS amounts may vary from GAAP EPS amounts and adjustments due to rounding

SCHEDULE B TO PRESS RELEASE

February 7, 2008

KEY PERFORMANCE INDICATORS

(Unaudited)

	4Q 06			1Q 07			2Q 07			3Q 07			4Q 07
Software solutions bookings ($ in millions) (1)	$	17.4		$	7.7		$	18.0		$	7.0		$	21.9
Platform technology bookings ($ in millions)	$	—		$	—		$	0.5		$	—		$	—
Services and maintenance bookings ($ in millions)	$	46.5		$	53.9		$	56.4		$	39.5		$	59.9
Total bookings ($ in millions) (2)	$	63.9		$	61.5		$	75.0		$	46.5		$	81.8
Number of software solutions transactions booked > $500K		5			6			5			4			6
Average amount booked ($ in thousands) (3)	$	496		$	192		$	618		$	302		$	561
Software solutions revenue
Revenue from current quarter bookings ($ in millions)	$	4.0		$	1.8		$	2.4		$	1.3		$	1.0
Revenue from prior period bookings ($ in millions)	$	7.4		$	5.7		$	3.4		$	3.8		$	5.9
Subscription/recurring revenue ($ in millions)	$	12.0		$	5.9		$	5.7		$	5.4		$	5.4
Total software solutions revenue ($ in millions)	$	23.4		$	13.4		$	11.4		$	10.5		$	12.4
Total revenue recognized by region
Greater APAC		21	%		15	%		20	%		22	%		19	%
EMEA		19	%		25	%		20	%		22	%		17	%
Americas		60	%		60	%		60	%		56	%		64	%
Total revenue		100	%		100	%		100	%		100	%		100	%
Quarter end balances:
Deferred revenue—contract ($ in millions)	$	3.2		$	—		$	—		$	—		$	—
Deferred revenue—other ($ in millions)	$	70.8		$	70.5		$	72.3		$	65.4		$	61.7
Total deferred revenue ($ in millions)	$	74.0		$	70.5		$	72.3		$	65.4		$	61.7
Days sales outstanding		31			38			37			39			36
Total headcount		1,343			1,351			1,371			1,308			1,286
Direct sales representatives					35			33			28			27
Sales management (with individual quota responsibility)					15			16			11			11
Quota-carrying sales associates		49			50			49			39			38
Quota-carrying services associates					33			34			36			33

1. Software solutions bookings includes bookings for recurring transactions.

2. Total bookings represents potential future revenue that was sold each quarter, including platform technology bookings

3. Average amount excludes recurring bookings less than $10K

EX-99.2

Exhibit 99.2

i2 Updates Progress of Strategic Review Committee

DALLAS – February 7, 2008 – i2 Technologies, Inc. (NASDAQ:ITWO), the supply chain results company, today provided an update on the progress made by the strategic review committee of the board of directors.

The committee, consisting of independent board directors Richard L. Clemmer, Lloyd G. Waterhouse and Jackson L. Wilson, Jr., was formed in November 2007 to consider and evaluate various strategic options available to the Company to enhance stockholder value. These strategic options may include changes to the Company’s operations, actions or transactions intended to enhance the value or utilization of the Company’s existing assets (including the Company’s intellectual property and net operating loss carryforwards), joint ventures or strategic partnerships, selective acquisitions, dispositions or other capital transactions, and a merger, sale or other extraordinary business transaction involving the Company.

The strategic review committee engaged outside advisors and has evaluated many facets of the company. Among those items evaluated were i2’s intellectual property portfolio, the net operating loss carryforwards, the company’s operational plans, and alternative business models.

The review process has generated credible interest in a variety of strategic options. As a result, the strategic review committee has recommended and the board has agreed that the review process be extended to ensure thorough consideration of all strategic options. The strategic review committee intends to work as expeditiously as possible to conclude its process and provide final recommendations to the board. The board will communicate its conclusions at the appropriate time.

“We are gratified by the value identified throughout the strategic review process,” said Wilson, strategic review committee chairman. “We are pleased with the progress to date, affirming our belief in the strategic review process as a means of maximizing value for our stockholders, customers and i2 employees.”

In addition, the board of directors announced that it is continuing its evaluation of several outstanding chief executive officer (CEO) candidates, including Pallab Chatterjee, who will continue as the company’s interim CEO.

About i2

Throughout its 20-year history of innovation and value delivery, i2 has dedicated itself to building successful customer partnerships. As a full-service supply chain company, i2 is uniquely positioned to help its clients achieve world-class business results through a combination of consulting, technology, and managed services. i2 solutions are pervasive in a wide cross section of industries; 20 of the AMR Research Top 25 Global Supply Chains belong to i2 customers. Learn more at www.i2.com.

i2 Cautionary Language

This press release contains forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding the objectives and timing of the strategic review committee’s actions and the Company’s ability to enhance shareholder value. For a discussion of certain factors which could impact the Company’s ability to enhance stockholder value, please

refer to i2’s recent filings with the SEC, particularly the Quarterly Report on Form 10-Q filed November 6, 2007 and the Annual Report on Form 10-K filed March 30, 2007.

For more information please contact:

Beth Elkin

i2 Corporate Communications

469-357-4225

beth_elkin@i2.com

Tom Ward

i2 Investor Relations

469-357-3854

tom_ward@i2.com