Ahold USA Chooses DemandTec Price™ and DemandTec Promotion™ Software for Consumer–Centric Merchandising

Leading Grocery Chain — a Division of Ahold USA and a Subsidiary of the World's Fourth–Largest Food Retailer — Selects DemandTec

SAN CARLOS, Calif. – November 7, 2005 – DemandTec, Inc., the leading provider of Consumer–Centric Merchandising software for retailers and consumer products firms, today announced that Giant–Carlisle, a leading grocery retailer and a division of Ahold USA, has entered into a long–term agreement with DemandTec to purchase DemandTec Price™ and DemandTec Promotion™.

Giant–Carlisle operates approximately 250 customer–driven supermarkets under the Giant Food Stores, Top Markets, and Martin's Food Market names in Pennsylvania, Maryland, Virginia, and West Virginia. The company is a division of Ahold USA, a leading food retailer whose six regional companies include superstores, conventional supermarkets, convenience stores, and an online grocery. Ahold USA's parent company, Royal Ahold, had consolidated net sales in 2004 of more than $62 billion and is the world's fourth–largest food retailer.

"We have exhaustively analyzed the merchandising and supply chain marketplace as part of our plan to develop a next–generation platform for innovation," stated Glynn Evans, Ahold USA's chief systems architect and development officer. "DemandTec provides early business benefits and enables us to keep our choices open for infrastructure systems replacement. It is a practical example of business tactical decision-making within a strategic context. DemandTec gives us valuable functionality around pricing and promotion management, which supports our customer–centric merchandising strategy. DemandTec's hosted, scalable platform allows us to get up and running quickly and minimizes deployment challenges. In the past, we've built many of our own systems because product offerings did not match the needs of our large–scale grocery operation. But frankly, DemandTec's rate of progress has outstripped our in–house development capabilities. We look forward to working with a supported product that will continue to evolve. Our company's mission is to meet the dynamic needs of the value–driven consumer, and the DemandTec Price and Promotion applications will help us achieve this."

"We're very proud to be selected by Giant–Carlisle, a grocery chain known for its outstanding network of customer–focused stores, and a subsidiary of one of the world's leading retailers," said Dan Fishback, CEO of DemandTec. "By delivering a better understanding of consumer demand, DemandTec's Consumer–Centric Merchandising software will help Giant–Carlisle maintain its reputation for outstanding value and customer service."

About DemandTec
DemandTec's Consumer–Centric Merchandising software helps retailers and consumer products manufacturers strategically plan, optimize, and execute consumer–centric 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, Giant–Carlisle, Giant Eagle, H–E–B Grocery Co., Longs Drugs, Monoprix, Piggly Wiggly Carolina Company, RadioShack, and Safeway. For more information, please visit www.demandtec.com

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