DemandTec Welcomes SignalDemand into Global Partner Program

Partnership Will Deliver Comprehensive Solution for Consumer Demand Management and the Demand–Driven Supply Network

San Francisco, CA. – July 22, 2004 – DemandTec Inc., the leading provider of Consumer Demand Management (CDM) enterprise software solutions, today announced SignalDemand, a new provider of Demand-Driven Supply Network software (DDSN), has joined the DemandTec Global Partner Program. The companies will provide retailers and manufacturers the capability to optimize their replenishment and supply chain processes based on an unparalleled understanding of and ability to forecast consumer demand.

DemandTec's Global Partner Program includes industry leaders such as IBM, Accenture, Deloitte Consulting, SAP, and Siebel, and specialist software and services firms such as Kurt Salmon Associates, Galleria, Connect 3, and QRS. DemandTec has architected its DT Openlink platform in order to facilitate the integration of best–in–class solutions such as SignalDemand with DemandTec's industry–leading CDM technology.

"DemandTec's relationship with SignalDemand will help retailers and manufacturers in the Consumer Goods industry use Consumer Demand Management technology to drive decisions into manufacturing and distribution and thereby truly integrate their supply chains," said Dan Fishback, President and CEO of DemandTec, Inc. "The combined solution is built on a robust technical platform and will extend the benefits of our CDM technology further upstream into the supply chain."

One of the limitations of Supply Chain Management solutions has been their inability to accurately forecast consumer demand and use that information to optimize the supply network. In a recent survey of the concerns of supply chain managers by AMR Research, 94% of respondents said demand visibility is extremely relevant or very relevant.   This compares to 33% for the business case for RFID or 44% for Six Sigma initiatives (for details refer to "Demand Visibility is Supply Chain Manager's Top Problem", AMR Research, July 9, 2004).

SignalDemand was founded in 2004 by Mike Neal and Dr. Hau Lee of Stanford University, the same team that founded DemandTec in 1999. "SignalDemand is building enterprise–class, scalable technology which will help manufacturers of consumer goods and their suppliers to accurately quantify customer preferences and use that information to drive strategic and tactical supply chain decisions" said Mike Neal, President and CEO of SignalDemand Inc. "DemandTec and SignalDemand are working together to deliver best–in–class DDSN solutions, the next logical evolutionary step in Supply and Demand optimization and one which is highly anticipated by the Consumer Goods and Retail industries," said Neal.

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

About SignalDemand
SignalDemand helps manufacturers rapidly deliver increased profit growth by connecting and managing the interaction between demand and supply more directly than has ever been possible before. SignalDemand provides Demand–Driven Supply Network (DDSN) enterprise software and consulting services, enabling manufacturers to optimize business performance through influencing demand for a portfolio of their products and services, and connecting this process explicitly to supply chain and production decisions.

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