2005 MARKS THIRD STRAIGHT YEAR OF DOUBLE-DIGIT REVENUE GROWTH AT PLAN4DEMAND

Annual average increase of 33% reflects global trend to reduce supply chain costs; new S&OP practice, deep process expertise, best-practice seminars, and custom training lead growth

PITTSBURGH, PA, March 14, 2006—Plan4Demand Solutions, Inc., a consulting services firm specializing in supply chain management business processes and technologies, today announced financial results for 2005, highlighted by a double-digit increase in revenue for the third consecutive year. Company executives also projected a 35% revenue increase in 2006, based on new service offerings that have already driven strong results in the first two months of Q1.

"Our projects are getting bigger in terms of revenue, we're encountering broader opportunities, we're strengthening our brand within our marketplace, and we achieved 100% referenceability on all our engagements in 2005, including 47 projects for new clients alone," said Plan4Demand CEO Lisa M. Kustra, speaking to employees and investors during the company's annual meeting.

"Business leaders realize that their supply chains present a wealth of opportunities to improve performance, efficiency, and profits," said Ms. Kustra. "In light of global competition, rising customer service demands, and government mandates impacting everything from accounting to transportation, supply chains are fertile grounds for executives with the vision to gain competitive advantage by improving planning and operational agility."

According to Tom Jones, a managing director of Draper Triangle Ventures, the Midwestern-based venture capital fund of Draper Fisher Jurvetson, Plan4Demand ranks among one of the top performers in its portfolio of high-tech companies in terms of revenue, profits, and quarter-by-quarter growth.

"Plan4Demand has navigated through turbulent waters during a nasty recession that hit its target markets hardest of all," said Mr. Jones. "The company is clearly poised to build significant enterprise value as it continues its strong growth in today's improving economy."

In addition to recapping Plan4Demand's 2005 financial performance, Ms. Kustra detailed the year's strategic and operational highlights, among which was the signing of alliance agreements with leading software companies including Oracle, RedPrairie, Interlace, JRG, and Manhattan Associates.

According to Ms. Kustra, close affiliation with companies like these is particularly valuable because it affords exposure to their emerging supply chain technologies, enabling Plan4Demand's industry-veteran consultants not only to maintain excellence in established applications but also to cross-train in multiple technologies as well.

"We've found that our competitors are pure-play companies that focus either in technology or in business processes but not both," said Ms. Kustra. "Plan4Demand is a boutique service provider that offers deep expertise in both disciplines—across the supply chain."

While alliances helped bolster brand recognition in 2005, through expanded speaking and presentation opportunities, Ms. Kustra said the agreements also reinforce Plan4Demand's hallmark dedication to client advocacy.

"Our goal is to solidify long-term relationships with clients, and that sometimes means telling them what we can't or shouldn't do, based on our experience and insight, because it isn't in their best interest. We'll forego immediate opportunities to further that bond over the long haul," she said.

"From our perspective, the challenge of building client relationships isn't a short sprint, it's a long journey, and we've learned that's a valuable message that resonates with our experienced client managers."

Plan4Demand also found a rich market for its process-centric expertise in 2005 via thought leadership, publishing nearly a dozen white papers on specialized supply chain topics and leveraging the company's years of experience developing and delivering highly customized training programs.

"We launched our new Sales and Operations Planning practice in Q4 and immediately realized tremendous results from the strength of our Food4Thought S&OP Best Practices seminar," said Ms. Kustra. "We landed two projects from our first workshop, both with Global 500 corporations."

The S&OP seminar is part of a series that includes workshops entitled Maximizing Transportation Dollars and an in-depth immersion into best practices called Supply Chain QUEST. Additional workshops on other topics are currently in development.

Learn more about Plan4Demand global supply chain planning specialists.