Penn Traffic Renews Agreement for DemandTec Price™, Adds DemandTec Promotion™ and DemandTec TradePoint™

Company Expects to Add 1% - 2% to Margins as Part of its New Strategic Focus

San Carlos, CA – December 18, 2006 – Penn Traffic Company, one of the top food marketers in the northeastern U.S., today announced it has renewed its license for DemandTec Price™ and is adding DemandTec Promotion™ and DemandTec TradePoint™. DemandTec is the leading provider of Consumer-Centric Merchandising, Sales and Marketing software for retailers and consumer products firms.

The Penn Traffic Company continues to develop and implement new strategies designed to generate sales and grow operating income in an increasingly competitive environment. These strategies include enhanced merchandising programs, improved store operations, and reduced/contained costs. DemandTec's software is expected to help the grocery retailer and wholesaler grow margins within selected store product categories when fully implemented next year. Penn Traffic plans to reap further benefits with the addition of the Promotion and TradePoint products.

"Our results from DemandTec Price in the implemented categories were very positive. Based on these results, we plan a full-scale rollout of DemandTec Price across additional store product categories," said Greg Young, Penn Traffic's co-Chief Operating Officer. "Furthermore, with the addition of DemandTec Promotion and DemandTec TradePoint, we expect to develop new, successful, and highly strategic promotional strategies that will satisfy our customers and enhance our competitive position."

Penn Traffic added DemandTec TradePoint and DemandTec Promotion in order to more efficiently manage promotions with its vendor partners and to improve the effectiveness of every promotion executed.

"Penn Traffic's decision to add DemandTec Promotion and DemandTec TradePoint while renewing its license for DemandTec Price is yet another confirmation of the value of our industry-leading software," said Dan Fishback, President and CEO of DemandTec. "We're delighted to be supporting Penn Traffic's strategic goals of improving its competitive position, enhancing sales and increasing earnings, and we look forward to a continued strong partnership that assists Penn Traffic in the years to come."

In related news, last week DemandTec announced the acquisition of TradePoint Solutions, Inc., Pleasanton, CA, the industry's leading provider of online deal management software linking manufacturers, sales agencies and retailers on one platform.

About Penn Traffic
The Penn Traffic Company operates 111 supermarkets in Pennsylvania, upstate New York, Vermont, and New Hampshire under the BiLo Foods, P&C Foods, Riverside Markets, and Quality Markets trade names. Penn Traffic also operates wholesale food distribution businesses serving an additional 119 stores.

About DemandTec
DemandTec's Consumer-Centric Merchandising, Sales and Marketing software helps retailers and consumer products manufacturers strategically plan, optimize and execute pricing, promotion and markdown programs based on a quantified understanding of consumer demand. DemandTec customers include leading retailers such as Advance Auto Parts, Best Buy, Circle K Stores, Delhaize America, Giant-Carlisle, H-E-B Grocery Co., Monoprix, Safeway and over 100 consumer products manufacturers. For more information, please visit www.demandtec.com.

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