BI-LO Chooses DemandTec Price™, DemandTec Promotion™ and DemandTec TradePoint™

Southern Grocery Chain Supports Commitment to Customer Service with New Three-Year Agreement with DemandTec

NEW YORK, NY. – January 15, 2007 – DemandTec, Inc., the leading provider of Consumer-Centric Merchandising, Sales and Marketing software for retailers and consumer products firms, today announced that its DemandTec Price, DemandTec Promotion and DemandTec TradePoint solutions have been selected by BI-LO, LLC, a leading southern U.S. grocery retailer, as part of a new 36-month agreement. The announcement was made at the National Retail Federation conference held in New York, January 14-17.

BI-LO operates more than 300 supermarkets in South Carolina, North Carolina, Georgia, Tennessee, Alabama and Florida, and employs approximately 23,500 people. BI-LO's sales exceeded $3.6 billion in 2005.

"BI-LO is known throughout the South for offering an exceptional selection of products as well as affordable prices to our shoppers," said Dean Cohagan, BI-LO's president and CEO. "We believe our choice of DemandTec Price, DemandTec Promotion and DemandTec TradePoint will enable us to further enhance our customer-service levels. Thus, this new agreement with DemandTec represents a big win, both for BI-LO and for our valued customers."

"BI-LO is an outstanding grocery retailer that combines the strengths of a large retail operation with the leanness, agility and focus of a regional company," said Dan Fishback, CEO of DemandTec. "We're delighted that BI-LO's commitment to providing superior customer service will now be supported via DemandTec's best-in-class pricing, promotion and deal management software."

About BI-LO
Headquartered in Mauldin, SC, BI-LO operates over 300 supermarkets in the Southeast under the BI-LO, Bruno's and Food World banners. The company employs 23,500 people. For more information, please visit www.bi-lo.com.

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 and Safeway. More than 2,000 consumer products manufacturers use DemandTec. For more information, please visit www.demandtec.com.

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