DemandTec Signs Multi-Year Contract with Longs Drug Stores

SAN CARLOS, CA – June10, 2003 – DemandTec Inc., the leading provider of Demand Based Management (DBM) software today announced that Longs Drug Stores of California Inc., (NYSE:LDG) has signed a new multi–year contract to license the DemandTec 3» software platform. Longs will continue to use the advanced application DemandTec Price» for rules based price management and to support the analysis and execution of Longs merchandizing strategies to optimize sales, profit, and price image.

"DemandTec has provided Longs with a proven enterprise software solution for price management and optimization. This solution helps us to refine and apply our merchandizing strategies for each product category and to predict the outcome of our strategies and business rules prior to implementation in stores," said Todd Vasos, Senior Vice President of Marketing.

Longs is one of the leading drug store chains in the United States, with more than 460 stores and annual sales in excess of $4 billion. The company has built its business in part by generating strong customer loyalty.

"Longs was DemandTec's first customer and we have an excellent working relationship. We look forward to a continued strong partnership in the years to come," said Dan Fishback, President and CEO of DemandTec.

DemandTec 3, the leading DBM software solution for price and promotion, provides retailers and manufacturers 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. The web-based dashboard provides at–a–glance displays that show the status of business metrics with easy to understand interfaces, allowing retailers to effectively manage their overall business performance.

About Longs Drug Stores
Longs Drug Stores Corporation (NYSE:LDG) is one of the leading drug store chains in North America with annual sales per store of approximately $10 million. Founded in 1938, Longs operates 461 stores in California, Hawaii, Washington, Nevada, Colorado and Oregon. Longs focuses on meeting the specific health and well being needs of the communities it serves with customer-oriented pharmacy service and convenient product offerings that include over-the-counter medications, photo and cosmetics. Internet prescription services, merchandise and health information are available at www.longs.com. Longs' RxAmerica subsidiary provides pharmacy benefit management services for a growing list of clients.

About DemandTec
DemandTec's Consumer Demand Management software helps retailers and consumer products manufacturers strategically plan, optimize, and execute demand–driven merchandising and marketing programs based on a quantified understanding of consumer demand.  Retailers have ranked DemandTec #1 in Strategic Value, Customer Satisfaction, and Quality of Service among the top 50 retail software vendors in the 2004 RIS Leaderboard survey.  DemandTec customers include B&Q, Best Buy, Brookshire Grocery Company, Duane Reade, H–E–B Grocery Co., Longs Drugs, Monoprix, RadioShack, and Safeway.  DemandTec software is provided via the IBM On Demand program. For more information, please visit www.demandtec.com.

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