USA Today, September 8, 2003

DemandTec, Inc., the leading provider of Demand Based Management (DBM) software for retail merchandising, announced today that Duane Reade (DRD), the most recognized drugstore chain in metropolitan New York, has selected the DemandTec 3™ software platform. Duane Reade is using DemandTec 3 to manage and optimize pricing strategies for all of its 237 stores in both commercial and residential neighborhoods.

Duane Reade's conveniently located stores carry an extensive assortment of items, including those from the pharmacy, as well as vitamins, nutritional products, cosmetics, greeting cards and photo processing. The company has ranked as one of the fastest­growing drugstore chains in the industry, and is number one in sales per square foot. Duane Reade is the latest customer to add to the growing momentum of new business accounts for DemandTec.

"The predictive capability of DemandTec 3 helps Duane Reade to select the best pricing strategies to meet our corporate objectives," said Gary Charbonneau, SVP of Merchandising. "We are able to use DemandTec to be more competitive and achieve the desired results."

The multi year agreement calls for Duane Reade to roll­out DemandTec 3 across all of its store locations. The company selected DemandTec after an extensive pilot because of the software's ability to easily define rules and strategies, and then optimize to obtain the best set of prices. "DemandTec is very pleased to be working with Duane Reade, a company that has always been known for applying technology to serve its customer's better," said Dan Fishback, president and CEO of DemandTec.

"DemandTec's software will help Duane Reade obtain the optimal set of prices to meet corporate objectives, while at the same time enhancing a strong price image that their loyal customers have come to expect."

DemandTec 3 is a suite of merchandising applications that leverage the DBM architecture and platform. The enterprise class software provides retailers with a clear understanding of consumer demand based on rigorous analysis of consumer buying preferences and pricing history contained within Point-of-Sale (POS) data. DemandTec Price™ and DemandTec Promotion™ analyze and forecast the impact of price and promotion changes on stores items, including competitive, substitutive and complementary items, and determine the best balance of merchandising decisions to maximize sales, profits and price image. DemandTec Analytics™ helps to effectively manage brands, categories and product assortment. DemandTec Platform Services & DemandTec OpenLink support the required integration and data cleansing activities necessary to ensure quality results. DemandTec 3 allows retailers to effectively manage all aspects of their overall business performance.