DemandTec Releases Latest Version of Optimization Suite

Software-as-a-Service update delivers enhanced user experience and advanced analytics for retailers and consumer products manufacturers

SAN CARLOS, Calif. – September 12, 2007 – DemandTec, Inc. (NASDAQ: DMAN), a leading provider of consumer demand management solutions that enable retailers and consumer products companies to optimize prices, promotions, and other strategic decisions, today announced the latest update to its application suite. The new version was deployed during the past weekend and was immediately available to DemandTec customers.

Key capabilities delivered in this and recent releases include a number of new and enhanced features to enrich the user experience and improve productivity:

• Enhanced User Interface Design - Revisions to the navigation and other information architecture elements create more streamlined and intuitive actions within pricing, promotion, and markdown processes enabling greater productivity from both new and experienced users.
• Configurable Workflow - DemandTec applications now include more configurable workflow capabilities to support unique process requirements of individual customers within a single-instance Software-as-a-Service environment.
• Analytics Visualization - Powerful, graphical visualization of demand insights so users can see how the underlying modeling and optimization science is delivering revenue, profitability, and sales volume benefits.
• AJAX and other Advanced Web 2.0 Elements - the DemandTec suite includes numerous features to offer the performance and rich, interactive, user experience expected by business users today, in an on-demand web-based application suite.

"We've been delighted with the business benefits that we've experienced using DemandTec," said Myke Thomas, Director of Pricing, Piggly Wiggly Carolina Company. "The latest release is even easier to use and has been very well received by our team." The Piggly Wiggly Carolina Company is headquartered in Charleston, South Carolina and has more than 110 company-owned and franchised stores servicing South Carolina and Georgia.

The DemandTec suite of applications is supported by the DemandTec Platform™, a highly scalable and extensible foundation for managing complex modeling and optimization science components, analyzing multiple high volume data sources, and deploying integrated Software-as-a-Service applications. DemandTec applications interoperate with legacy and third-party applications via a Services-Oriented Architecture (SOA) that utilizes web-services technology for application integration.

"This release, our 28th in the last 40 months, highlights the value of the on-demand model compared to traditional behind-the-firewall software implementations," said Marc Dietz, Vice President of Product Marketing at DemandTec. "We are committed to delivering functionality that meets our customers' changing business needs. Because our business model gives us the ability to rapidly innovate and keep all customers current on the latest release, none of our customers are forced to forego new capabilities or invest in costly and time-consuming software upgrades."

About DemandTec
DemandTec's suite of on-demand applications empowers retailers and consumer products companies to optimize pricing, promotion, and other strategic decisions in order to achieve their revenue, profitability and sales volume objectives. 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, as well as more than 100 consumer products companies. For more information, please visit www.demandtec.com.

Forward-Looking Statements
This press release contains forward-looking statements regarding DemandTec's expectations, hopes, plans, intentions or strategies, including statements about the anticipated benefits of the above-mentioned new release of our suite of applications. We may, in some cases, use words such as "believes," "expects," "anticipates," "plans," "estimates," and similar expressions to identify these forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties include unforeseen difficulties associated with the new release, changes in our pricing policies or those of our competitors, fluctuations in demand for our software, our ability to develop and implement in a timely manner new software and enhancements that meet customer requirements, any significant changes in the competitive dynamics of our market, including new entrants or substantial discounting of products, general economic conditions in the retail and consumer products markets, and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

Media Contact:
Cassandra Moren
DemandTec, Inc.
+1 (650) 226-4690
cassandra.moren@demandtec.com