DemandTec Announces Accelerated Industry Adoption of Consumer–Centric Merchandising Software

Twelve Leading Retailers Adopt DemandTec's Solutions in 2005 to Better Understand Consumers and Make Better Pricing and Promotion Decisions

SAN CARLOS, Calif. – November 22, 2005 – DemandTec, Inc., the leading provider of Consumer–Centric Merchandising, Sales, and Marketing software for retailers and consumer products firms, today announced that it has signed agreements with twelve major retailers year to date in 2005 to provide DemandTec's Consumer–Centric Merchandising software applications. The twelve customer wins comprise nine new DemandTec customers and three software license renewals from existing customers.

Companies that have recently signed agreements with DemandTec as new customers include:

• Giant–Carlisle (NYSE:AHO)—Giant Food Stores headquartered in Carlisle, PA is one of four retail­operating companies under Ahold USA, one of the leading supermarket operations in the US. Giant currently operates 103 stores as Giant Food Stores, 134 stores as Tops Markets and 23 stores as Martin's Food Markets.
• Giant Eagle — One of the most successful private companies in America, Giant Eagle has annual sales of $5.2 billion and operates approximately 220 supermarkets and 80 fuel stations and convenience stores in Pennsylvania, Ohio, West Virginia, and Maryland.
• Monoprix (Paris:03857.PA) — France's leading downtown retail chain (and a subsidiary of the Casino Group and Galeries Lafayette Group), Monoprix has approximately 300 locations plus a presence in each arrondissement in Paris and in 85% of French cities with more than 100,000 people.
• The Penn Traffic Company (PTFC.PK) — A leading food retailer in the eastern U.S., Penn Traffic operates 109 supermarkets in Pennsylvania, upstate New York, Vermont, and New Hampshire under the Bi­Lo Foods, Quality Markets, Riverside Markets, and P&C Foods names.
• Piggly Wiggly Carolina Company — A major grocery retailer serving South Carolina and Georgia for nearly 60 years, Piggly Wiggly Carolina has more than 110 company­owned and franchised stores, and is headquartered in Charleston, South Carolina.
• Safeway Inc. (NYSE:SWY) — A Fortune 50 company and one of the largest food and drug retailers in North America based on sales, Safeway operates 1,801 stores in the U.S. and Canada and had annual sales of $35.8 billion in 2004.
• A Major Hardgoods Retailer — Among the top five in its retail market segment, this leading company serves both do­it­yourselfers and industry professionals, with well over a thousand stores located across the United States.
• A Large Convenience Store Chain — One of the top convenience­store chains in the United States, this well­known retailer boasts many hundreds of company­owned and franchise locations from coast to coast.
• A Leading Office Products Chain — One of the world's largest sellers of office products and an industry leader in every distribution channel.

"Retailers are rapidly adopting a more strategic approach to their merchandising and marketing, leveraging superior insight into customer behavior, and we see signs that manufacturers will follow their lead," said Dan Fishback, president and CEO, DemandTec. "As the pace of change and competitive pressures increase in both retailing and manufacturing, the ability to make merchandising, trade, and marketing decisions based on a comprehensive, quantified understanding of consumer demand has become a must­have capability."

Taking advantage of the company's innovative Software as a Service (SaaS) delivery model, DemandTec's customers reduce risk and total cost of ownership by purchasing rights to access DemandTec software applications on demand and for a fixed term. In this model, customer renewals are an objective measure of the commensurate value provided to their businesses. Three companies that have recently renewed their existing DemandTec agreements based on demonstrated return on investment are:

• Brookshire Grocery Company — With 154 stores under the banners of Brookshire's, Super 1 Foods, and Olé Foods, this company operates in an expansive market area covering Texas, Arkansas, Louisiana, and Mississippi.
• The H. E. Butt Grocery Company (H­E­B) — Based in San Antonio and known for fresh food, quality products, and convenient services, H­E­B strives to provide the best customer experience at the lowest prices in more than 150 communities throughout Texas and Mexico.
• A Leading Drugstore Chain — One of the best­known drugstore chains in the U.S., this drugstore chain has more than 400 locations in the U.S.

DemandTec Consumer–Centric Merchandising for Retail is an integrated software suite that enables retailers to strategically plan and execute optimal pricing strategies throughout the product lifecycle–for new items, everyday priced items, promoted items, and markdowns–based on a holistic and actionable understanding of consumer demand.

The entire DemandTec application suite is built on the DemandTec CDM Platform, a scalable, enterprise software–class foundation that includes comprehensive demand modeling, optimization services, and advanced analytics. The DemandTec CDM Platform provides retailers with a holistic, common understanding of consumers, demand and markets, and enables them to leverage that context directly within the software applications they use for daily decision­making.

About DemandTec
DemandTec's Consumer–Centric Merchandising software helps retailers and consumer products manufacturers strategically plan, optimize, and execute consumer–centric merchandising, sales 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, Giant­Carlisle, 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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