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

NEW YORK, Jan. 15 /PRNewswire/ — 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 http://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 http://www.demandtec.com/ .

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

DemandTec, Inc.

CONTACT: Media: Cassandra Moren of DemandTec, Inc., +1-650-226-4690,cassandra.moren@demandtec.com

Web site: http://www.bi-lo.com/http://www.demandtec.com/