Procter & Gamble Signs Global License for Terra Technology’s Real-Time Forecasting

Solution enables industry leader to lower inventory and improve customer service levels

Norwalk, CT, October 24, 2006 – Terra Technology (www.terratechnology.com), the leading provider of Real-Time Forecasting and Inventory solutions, today announced that The Procter & Gamble Company (NYSE: PG), manufacturer of one of the strongest portfolios of consumer products in the world, has selected Terra’s Real-Time Forecasting (RTF) solution to improve customer value, increase supply chain stability and improve inventory management. Procter & Gamble is live on RTF in Europe and plans to roll the software out globally over the next two years. P&G has been able to reduce short-term forecast error by over 30 percent and anticipates more than a 10 percent reduction in inventory.

Dick Clark, associate director, demand planning for Procter & Gamble, said, “Procter & Gamble selected Terra Technology’s Real-Time Forecasting as part of our Supply Visibility Program to improve short-term forecast accuracy, cutting inventory and increasing cash flow. RTF adds a new level of demand visibility in the near term, helping us predict changes in demand efficiently and cost-effectively. This will enable cutting inventory by more than 10 percent and significantly reducing costs in a number of areas.”

Real-Time Forecasting monitors daily demand signals and uses pattern recognition to generate a significantly more accurate forecast. Because the forecast responds to what is happening right now rather than just historical trends, forecast error is typically reduced by 50 percent. This decreases inventory by as much as 20 percent without compromising service levels.

Robert F. Byrne, president and CEO of Terra Technology, said, “Procter & Gamble is a global supply chain leader who is adept at leveraging technological advances to its benefit. By implementing Real-Time Forecasting, P&G is not only improving its customers’ experience but also significantly increasing the company’s cash flow at the same time.”