SAN CARLOS, Calif., Feb. 5, 2008 -- DemandTec, Inc. (Nasdaq: DMAN), a leading provider of on-demand optimization solutions for retailers and consumer products companies, announced that Best Buy (NYSE: BBY), the largest consumer electronics retailer in North America, has purchased DemandTec Markdown.

DemandTec Markdown enables Best Buy to effectively manage price, profit, and inventory levels for items such as seasonal merchandise and discontinued product lines. Best Buy will use the technology as it works to optimize both the timing and depth of markdown pricing in order to meet its merchandising objectives while providing improved shopping experiences for its customers.

"This agreement demonstrates the commitment Best Buy and DemandTec share to drive superior value for the consumer as well as positive business results," said Dan Fishback, CEO of DemandTec.

DemandTec Markdown is one component of DemandTec's integrated suite of software-as-a-service applications that enable retailers to optimize price, promotion, markdown and other merchandising and marketing decisions based on advanced consumer, demand, and market insights.

About DemandTec

DemandTec's suite of on-demand applications empowers retailers and consumer products companies to optimize strategic decisions and collaborate in order to achieve their revenue, profitability and sales volume objectives. DemandTec (Nasdaq: DMAN) 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. DemandTec has managed more than one million trade promotion deals between retailers and their manufacturer partners. For more information, please visit http://www.demandtec.com.

DemandTec Safe Harbor

This press release contains forward-looking statements regarding DemandTec's expectations, hopes, plans, intentions or strategies, including statements about the effectiveness of DemandTec's solutions. 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 those described in DemandTec's 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 DemandTec as of the date hereof, and DemandTec assumes no obligation to update these forward-looking statements.

DemandTec and the DemandTec logo are registered trademarks of DemandTec, Inc. DemandTec Markdown and DemandTec Price are trademarks of DemandTec, Inc. All other trademarks are the property of their respective owners.