DemandTec receives funding, December 31, 1999

Leading provider of demand optimization services backed by Altos Ventures, Athena Technology Ventures, and NONSTOP Solutions

San Francisco, CA, December 31, 1999 – DemandTec Inc., the leading provider of Demand Based Management (DBM) software, has raised $2.1 million in a first round of venture financing. Altos Ventures and Athena Technology Ventures, two leading Silicon Valley venture capital firms, provided the funding, along with a strategic investment from NONSTOP Solutions.

The new capital will accelerate the development of DemandTec's demand optimization service, which allows retailers access to the most sophisticated pricing analytics available. Retailers receive the advantages of this service without lengthy installations or proprietary software development because it is offered in an ASP model.

"We give retailers the most scientifically-rigorous pricing analysis methods available. The result is a dramatic impact on their bottom line," stated Michael Neal, DemandTec's CEO.

Co–founder Dr. Hau Lee is the man behind the science that drives DemandTec's service. Dr. Lee is currently a professor of Operations, Information, and Technology at the Stanford Graduate School of Business as well as the Kleiner, Perkins, Mayfield, Sequoia Capital Professor of Engineering at the Stanford School of Engineering. His knowledge of the complexity of real–time data analysis and logistics is unmatched in both the academic and business worlds.

Dr. Lee is distinguished for his role in the design and implementation of IBM's Optimizer System, a logistics control system for the National Service Division. In addition, his research on logistics and inventory control won an award in the Institute of Management Science's 1989 Edelman Prize competition for the best implementation of management science. Dr. Lee holds a Ph.D. in Decision Sciences (Operations Research) from The Wharton School and an MS, Operations Research, from the London School of Economics.

About DemandTec
DemandTec’s Consumer Demand Management software helps retailers and consumer products manufacturers strategically plan, optimize, and execute demand–driven 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, H–E–B Grocery Co., Longs Drugs, Monoprix, RadioShack, and Safeway. DemandTec software is provided via the IBM On Demand program. For more information, please visit www.demandtec.com.

All trademarks or registered trademarks are property of their respective owners.