Demandware Expands European eCommerce Operations.

Leading on-demand eCommerce platform provider responds to growing demand from U.S. and European retailers with new data center, delivery partners and sales offices

WOBURN, Mass. -- Demandware (www.demandware.com), developer of the breakthrough On-Demand eCommerce Platform, announced today that it has expanded its European operations to meet demand from European retailers and U.S. retailers who are planning international growth. Demandware has established a new European data center, opened new offices in the UK and Germany, and formed new partnerships across Europe to facilitate retailers' international expansion. Demandware serves dozens of international brands, including $2 billion toy manufacturer Playmobil (running in 11 countries), House of Fraser (one of the UK's largest department stores), and U.S.-based Timberland (which recently expanded internationally).

According to a recent Forrester Research report, European online retail continues to grow, with a 58 percent increase in year-on-year sales in 2007 and is anticipated to reach EU51 billion between October and the year's end. ("Europe's 2007 Christmas: An Online Retail Wonderland" Forrester, October 23, 2007).

"Ecommerce in Europe is exploding," said Stephan Schambach, chairman and founder of Demandware. "European retailers are coming online in a big way and established U.S. online retailers are expanding overseas to meet the customer demand. Demandware has invested heavily in its product, its data centers and its delivery capabilities to ensure our clients are able to capitalize on these opportunities."

Demandware and International Solution Partners Team for Successful Site Launches

Throughout 2006 and 2007, Demandware significantly expanded its European partner network to include some of the leading European organizations for the design, delivery and ongoing support of enterprise-class eCommerce sites. These partners deliver the following services and benefits to Demandware customers:

* Advisory, support and software services to help retailers develop and operate world-class eCommerce businesses in multi-site, multi-brand environments.

* eCommerce strategy and implementation consulting.

* Online branding and user experience design.

* Back-office operations, including fulfillment and contact center management.

* Implementation and integration of transactional web sites with backend operations, point-of-sale systems and contact centers.

* Ongoing business support, including e-marketing and revenue optimization.

"Demandware's on-demand model provides an ideal platform for international expansion," said Hendrik Hoppe, eBusiness excellence team leader at T-Systems' Multi Media Solutions GmbH (MMS). "With Demandware, T-Systems can help U.S. and European retailers accelerate their presence in European markets." T-Systems and Demandware partner to provide hosting, implementation, consulting and design services to U.S.-based and international retailers.

Ecommerce Platform Optimized for Multiple Languages, Currencies and Brands

Demandware eCommerce is architected to support the requirements of operating multiples sites in multiple currencies and languages from a common platform. Using Demandware, retailers can expand existing eCommerce sites into new geographies, leveraging the design, content, and infrastructure of one site to accelerate delivery of transactional businesses in new markets. Specific capabilities include:

* Localization of language and currency for country-specific sites, including accommodations for value added tax (VAT) and other country-specific tax codes, and laws governing distribution of goods.

* Merchandising and marketing management: Demandware eCommerce accommodates business models that require centralized merchandising management of eCommerce sites, distributed in-county merchandising management, or both.

* Simplified expansion: Using Demandware eCommerce, retailers and branded manufacturers can launch new sites without additional software licenses and without additional investments in network and hardware infrastructure.

"Demandware fills a large void in the current European eCommerce market," said Simon Evetts, Chief Technology Officer of Javelin Group, a Demandware partner and advisor on eCommerce strategy and implementation for Europe's leading retailers and distributors. "By delivering enterprise-class eCommerce functionality, in an on-demand model, Demandware has provided us with the ideal platform on which to deliver eCommerce innovation without burdening our customers with the costs of maintaining commodity infrastructure."

European Data Center Delivers Best-in-Class User Experiences and Site Security

In the same data center that houses some of Europe's leading financial institutions, Demandware has expanded its patent pending Grid Computing Platform, a dynamic computing architecture that responds to surges in site traffic and flexibly allocates additional computing capacity to meet demand. The Demandware Grid provides retailers with industry-leading attributes including:

* Performance: Demandware has embedded the static content delivery capabilities of Akamai's vast network to ensure fast page response during periods of peak demand and an excellent shopping experience to global consumers.

* Security: Demandware has been certified to Payment Card Industry (PCI) Compliance level 1.1., the highest standard for hosted eCommerce providers.

* Reliability: Demandware has historically delivered higher than 99.9 percent uptime and is backed by a performance service level agreement to ensure retail customers high site availability.

About Demandware, Inc.

Demandware drives the success of high-growth brands with its breakthrough On-Demand eCommerce Platform that empowers merchandising and marketing talent with total control over the shopping experience and continuous competitive differentiation. Leading brands such as Bare Escentuals, Playmobil, Playboy, Sally Beauty Supply and Timberland leverage Demandware's best-in-class eCommerce functionality and automatic upgrades to help achieve higher conversion rates, increase average order size, and improve customer retention. Demandware is the only on-demand eCommerce solution that enables the rapid rollout of new sites, provides ubiquitous access to business and technical users, and is backed by a patented grid computing architecture that delivers capacity as needed for performance and reliability that exceeds industry standards. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or email [e-mail].