i2 Announces $100 Million Equity Investment by Q Investments; Investment Expands Q Investments Current Position in i2; Strengthens i2 Balance Sheet and Cash Position
Business Wire
April 27, 2004

San Diego - i2 Technologies, Inc. (OTC:ITWO), a leading provider of closed-loop supply chain management solutions, today announced that Q Investments, a private investment firm and one of i2's significant investors, has agreed to make a $100 million equity investment in i2. Q Investments currently holds approximately 32 million shares of common stock and $9 million of the convertible debt of i2. This investment will expand Q Investment's equity holdings in i2 to approximately 140 million shares, representing a 26 percent ownership of the company on an as converted basis.

The $100 million investment will increase i2's cash position to approximately $390 million based on the ending cash position of $290 million as of March 31, 2004. As a part of the investment agreement, i2 has agreed to expand its current board of directors to seven members, of which two of the board members will represent Q Investments.

Equity Investment

The investment of $100 million by Q Investments will be in the form of a mandatorily convertible preferred stock, which is convertible into common stock of i2 at $.926 per share, representing 105 percent of the volume weighted average price of the common stock for the two trading days of April 23 and April 26, 2004. The preferred stock is mandatorily convertible into common stock after ten years, and, during the term, bears an annual 2 1/2 percent dividend which is payable semi-annually, in cash or in kind, at the company's discretion. Terms also stipulate that if i2 common stock is trading at the equivalent of more than $2.50 per share any time after twenty-four months from the date of investment, i2 can require that Q's preferred stock be converted to common stock. In addition, after four years, the company can force redemption by buying out the preferred stock for cash at 104% of the liquidation value of the security. The closing is expected to occur in the second quarter subject to satisfying the conditions to closing, including HSR approval.

i2 designs and delivers an extensive breadth of industry-leading supply chain software to help companies integrate between planning and execution by constantly adapting their planning models for changing business conditions. i2's global customer base consists of some of the world's market leaders - including seven of the Fortune global top 10 -- and spans a variety of industries including automotive, high technology, retail and consumer product goods with additional resources put towards metals, aerospace and defense, and transportation companies.

About i2

A leading provider of closed-loop supply chain management solutions, i2 designs and delivers software that helps customers optimize and synchronize activities involved in successfully managing supply and demand. i2's global customer base consists of some of the world's 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.