Tuesday September 19, 4:30 am Eastern Time

Demantra Attracts $19.5 Million In Venture Funding

Collaborative demand management expert Demantra (www.demantra.com) announced today that it has raised $19.5 million in its second round of venture capital funding. Investors, led by Formula Ventures include: The Challenge Fund (www.challenge.co.il), The Intel 64 Fund, Shamrock Holdings (www.shamrockinc.com), UBS Capital, and Vanenburg Group (www.vanenburg.com). This round of financing will help enable Demantra to continue to expand its sales and marketing capacity and accelerate new B2B initiatives providing customers with collaborative planning solutions for managing demand and replenishment in today's e-markets.

According to Yoni Cheifetz, CEO of Demantra, "Demantra has established itself as a global expert in collaborative demand management Solutions for the Demand-Driven Interprise^TM. Successful companies have always understood the importance of using the best tools available to help them anticipate, plan and respond to customer demands within their marketplace. This is our core business. Aided by this new capital, we will provide our customers with collaborative B2B planning solutions and services, allowing them to capitalize on the opportunities offered by the new world of e-business."

"Demantra has one of the most sophisticated collaborative demand management solutions on the marketplace today," said Nir Linchevski, Principle at Formula Ventures. "In the new world of Collaborative Commerce, we believe that those companies providing value-added solutions and services around the B2B markets will reap the highest rewards; and Demantra is extremely well positioned to capitalize on this opportunity. Their combination of collaborative technology, flexible market-driven solutions, high-caliber management team, and a solid business model make them an exceptional investment opportunity for us."

In addition, The Intel 64 Fund and Demantra have signed a collaboration agreement to port Demantra's Solutions for the Demand Driven Interprise^TM to the Itanium 64-bit platform. As a result, Demantra expects to be well positioned to deliver enhanced performance, scalability and robustness to support customers' B2B initiatives with collaborative forecasting and demand planning solutions for large-scale e-marketplaces.

"In today's highly competitive e-business marketplace, technology often drives what is possible as well as what is desirable," said Bart Feldman, President & CTO of Demantra. "Our clients want solutions that leverage these high-end NT platforms, offer state-of-the-art security, speed, parallel execution capabilities, and are scaleable to their every requirement. The Itanium architecture gives large tier-one companies requiring massive enterprise computing capabilities a real alternative to Unix and mainframe systems. By porting our collaborative demand management solutions to Intel's Itanium platform, we provide an analytical and data processing powerhouse to accelerate our clients' businesses."

About the Investors:

Formula Ventures, www.formulaventures.com, is a $90 Million IT venture fund in Israel. Formula Ventures was established in 1998 by its sponsor Formula Systems (1985) Ltd., Israel's number one software and IT group (NASDAQ: FORTY - news). Strategic limited partners include Formula Systems, Vantage Point Venture Partners - one of Silicon Valley's top funds, UBS Capital and more than 15 high tech and investment banking executives. The fund's limited partners include Shamrock Holdings, the Ofer Brothers, Poalim Capital Markets and the Yozma II and Challenge funds. Formula Ventures, managed by Shai Beilis, Ariel Sella and Moshe Shahaf, invests in e-business, Internet applications, software and communications.

The Intel 64 Fund, www.intel64fund.com, is a quarter billion dollar equity fund that invests in emerging technologies for next-generation servers and workstations utilizing Intel's IA-64 architecture. The Fund is coordinated by Intel with Compaq, Dell, HP, Intel, NEC, and SGI as co-investors. The Fund's other investors, managed by Morgan Stanley Dean Witter, include Bank of America, The Boeing Company, Circuit City, Enron, Ford Motor Company, General Electric, McKessonHBOC, Morgan Stanley Dean Witter, Reuters, Sabre, SmithKline Beecham, Sumitomo, Sun America and Telmex.

UBS Capital , www.ubscapital.com, UBS Capital is the private equity business area of UBS AG investing both balance sheet and third party funds. With a total of EUR7bn funds available for investment and more than EUR3.4bn currently invested, UBS Capital ranks as one of the world's fastest growing private equity firms. UBS Capital has 120 professionals world-wide and more than 200 active investments. The firm has businesses in the UK, France, Germany, Switzerland, Italy, the Benelux, Scandinavia, Hong Kong, Korea, Australia, Singapore, the US, Argentina and Brazil*. (*UBS Capital Americas is an affiliate of UBS AG and the employees of UBS Capital Americas are not employed by UBS AG).

About Demantra:
Demantra's Solutions for the Demand-Driven Interprise^TM are currently helping to increase revenue and market share at over 60 innovative Fortune 1000 companies, including Xerox, Unilever, Coca Cola FEMSA, Bestfoods, McCain, TEVA Pharmaceuticals, Framatome, and Reckitt Benckiser. Founded in 1996, Demantra's revenues have increased more than 100% each year. Demantra sells its Demantra Suite^TM directly to top-tier companies, as well as providing its collaborative demand management products through OEM, reseller, and partner relationships to J.D. Edwards, Baan, QAD and others. The company's corporate headquarters are in Cambridge, Mass., USA; European headquarters are in Reading, UK; and R&D headquarters are in Ramat-Gan, Israel. For more information, see www.demantra.com or contact pr@demantra.com.

Demantra^TM and The Demantra Suite are trademarks of Demantra, Inc. All other trademarks are the property of their respective owners.

Contact:
Constance Mazelsky
978-682-5586
pr@demantra.com

Wendy Wolfson
617-628-9310
pr@demantra.com

Matthew Bantock
pr@demantra.com

Leslie Ament- Ruder
DEMANTRA
617-876-2500
pr@demantra.com