H­E­B Renews License for DemandTec Price™ Software

DemandTec Price Delivers Competitive Advantage to Central and South Texas Retailer

SAN CARLOS, Calif. – November 8, 2005 – DemandTec, Inc., the leading provider of Consumer–Centric Merchandising, Sales and Marketing software for retailers and consumer products companies, announced today that competitive advantage and overall business improvements have led the number–one retailer in south and central Texas, the H. E. Butt Grocery Company (H­E­B), to renew its license for DemandTec Price™.

H­E­B has a history of providing exceptional customer service, low prices, and a friendly shopping environment, all of which have helped it grow into one of the largest independently owned retailers in North America. Intent on continuing its tradition of strong customer service and low prices throughout over 300 retail stores, H­E­B partnered with DemandTec several years ago to provide its merchandising team with DemandTec's powerful pricing software, DemandTec Price. Keeping in mind its goal of aligning prices with its competitive strategy, H­E­B has successfully used DemandTec Price to analyze sales data and create forecasts showing the impact of pricing decisions on consumer demand and financial performance for a significant number of retail items.

"DemandTec Price has enabled us to improve our business results," said Harvey McCoy, Senior VP Procurement ⁄ Merchandising Strategy, H­E­B. "With the capabilities of DemandTec Price software, we've been able to simulate various pricing strategies to more effectively balance our competitive position with our business objectives. We've partnered with DemandTec for several years now, and based on the quality of the results along with the quality of technical support, we're pleased to continue this partnership."

"DemandTec is proud of the competitive advantage that H­E­B has achieved with our DemandTec Price software," said Dan Fishback, president and CEO of DemandTec. "H­E­B has an image as a retailer that offers low prices and high customer–service levels, and DemandTec is delighted to help H­E­B maintain its fine reputation. As Consumer–Centric Merchandising software becomes more widely used in diverse retail segments, those companies that utilize this technology most effectively can expect to maintain a powerful competitive advantage in the retail marketplace."

About H­E­B
For 100 years, H­E­B has been an innovative retailer. Known for its fresh food, quality products, and convenient services, H­E­B strives to provide the best customer experience at the lowest prices. Based in San Antonio, H­E­B proudly employs more than 56,000 partners and serves millions of customers in more than 150 communities throughout Texas and Mexico. For more information, please visit www.heb.com.

About DemandTec
DemandTec's Consumer–Centric Merchandising, Sales and Marketing 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, H­E­B Grocery Co., Longs Drugs, Monoprix, Piggly Wiggly Carolina Company, RadioShack, and Safeway. For more information, please visit www.demandtec.com

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