- Demandware, Inc., a leader in on-demand ecommerce solutions, today announced that The Vermont Teddy Bear Company (NASDAQ: BEAR) has selected Demandware's on-demand ecommerce platform to help lift conversion rates and increase sales while managing increased demand during seasonal spikes such as Valentine's Day.

As a BizRate.com Circle of Excellence Platinum Award-Winner, Vermont Teddy Bear has been continually recognized by online shoppers as one of the "best of the best" online stores. With more than 50 percent of its annual revenue derived online, the company is adding new revenue-generating features to enhance the consumer experience and decrease shopping cart abandonment. Some of the planned features and functionality include advanced analytics to create targeted promotions, address validation to decrease operational expenses, and customer-facing features such as an arrival date calendar to ensure that the merchandise arrives on the specific requested dates. Vermont Teddy Bear plans to leverage Demandware eCommerce to create a bilingual site to market to Spanish-speaking audiences.

"We selected Demandware eCommerce because it is the only on-demand ecommerce platform that has all the advanced features that we require - without the hefty upfront costs typically associated with ecommerce software," said Tom Funk, Web Manager at Vermont Teddy Bear. "Further, Demandware eCommerce is architected and priced in a way that's attractive to holiday merchandisers like us, who experience substantial seasonal spikes in traffic. During our peak seasons - such as Valentine's Day - we process well over a thousand new orders per hour, and Demandware's infrastructure has the capacity to handle these seasonal peaks while providing a variable billing model that aligns with our business performance."

Vermont Teddy Bear evaluated packaged applications and other on-demand solutions and found that Demandware was the best total value package. Demandware delivers all of the advanced, revenue-generating features Vermont Teddy Bear needs to enhance its site - in one platform. Leveraging Demandware's unique partner model, Vermont Teddy Bear will work with Demandware certified partner PixelMEDIA to integrate its back-end systems.

"It's an honor to have an award-winning ecommerce company such as Vermont Teddy Bear choose to partner with us to extend its competitive advantage," said Thomas Obrey, co-founder of PixelMEDIA. "The opportunity to help Vermont Teddy Bear improve upon its early success by leveraging best practices and the vast feature set of Demandware's on-demand ecommerce platform is exciting. The three organizations have already formed a highly collaborative relationship and we look forward to helping the company reach its business goals and maximize its online sales."

"Our on-demand model complements Vermont Teddy Bear's seasonal sales cycle, providing the company with both the capacity and the full customization they require," said Stephan Schambach, president and CEO of Demandware. "Demandware guarantees that VermontTeddyBear.com will be able to handle orders during the crucial holiday months, while providing the company with visual programming tools to customize the site's features themselves - putting the control back in the hands of the merchandiser."

About Vermont Teddy Bear
The Vermont Teddy Bear Company is the largest hand-crafter of teddy bears in North America. A creative alternative to sending flowers, each Bear-Gram gift includes a customized hand crafted teddy bear with a personal greeting card and candy treat, all packaged in a colorful gift box. Orders are placed by calling 1-800-829-BEAR or by shopping at www.VermontTeddyBear.com.

About Demandware, Inc.
Demandware provides a complete on-demand ecommerce platform that combines the flexibility, functionality and interoperability of a full ecommerce application suite with the operating efficiency of a hosted on-demand service. With Demandware, retailers and manufacturers can deliver custom ecommerce solutions without buying software or operating expensive datacenters. Demandware was founded by a team with proven expertise from leading ecommerce infrastructure companies including ATG, Macromedia, Intershop and NaviSite. The company has strong backing from major IT investors North Bridge Venture Partners and General Catalyst Partners. For more information about Demandware, visit http://www.demandware.com.