HAMBURG, GERMANY and MONTREAL -- (MARKET WIRE) -- 02/17/05 -- SAND Technology Inc. (NASDAQ: SNDT), an innovator in analytic application infrastructure, today announced that Deutsche Post Direkt GmbH, a company specializing in providing customized addresses and document management services, will employ the SAND Analytic Server to build a centralized database that will enable high performance analysis of customer potential. When the project is completed, Deutsche Post Direkt customers and prospects will be able to use this technology to focus their marketing programs by conducting immediate interactive analysis on the addresses of all households that are of interest to them, prior to actually purchasing the lists.

The company's decision was based on the superior query performance provided by SAND Analytic Server. Even with a high degree of indexing, conventional relational database systems would be unable to handle the large volume of data managed in the Deutsche Post Direkt database -- some 37 million addresses containing approximately 80 attributes each. Because SAND Analytic Server does not require any external indexing or special data design schema, the footprint of the resulting SAND Analytic Server is much smaller than that of an equivalent relational database, and all detailed data is available to business users immediately after it has been loaded, allowing them to perform complex queries on any of the addresses contained in the database.

Terms of the contract were not announced.

About Deutsche Post Direkt

Deutsche Post Direkt GmbH is a subsidiary of Deutsche Post AG and ranks as one of the leading providers of addresses and document management solutions. The company employs a staff of approximately 330 at its five locations (Bonn, Mannheim, Leipzig, Cologne and Unna). More information is available under www.postdirekt.de.

About SAND

SAND Technology provides organisations worldwide with a unique vantage point from which to survey the competitive landscape. SAND's advanced analytic data management products empower users with a better understanding of their business environment through better access to their business data. SAND Technology-based solutions include CRM analytics, web analytics, financial analysis and specialised business intelligence applications for government and security, healthcare, telecommunications, financial services, retail and other business sectors. SAND Technology has offices in the United States, Canada, the United Kingdom and Central Europe, and is traded on NASDAQ under the symbol SNDT.

All Rights Reserved. SAND Technology and Nucleus are registered trademarks, and SAND Analytic Server, analytics @ the speed of business, and all related SAND- and Nucleus-based marks and designs, are trademarks of SAND Technology Inc. Other trademarks are the property of their respective owners.

Certain statements contained in this press release are "forward-looking statements" within the meaning of the United States Private Securities Reform Act of 1995 and are intended to be subject to the safe harbour protection provided by this Act. Such forward-looking statements are based on reasonable assumptions and current expectations, but involve known and unknown risks and uncertainties. Some assumptions may not materialize and unanticipated events may occur which could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Competitive pressures, availability and cost competitiveness of competing products, timing of significant orders, management of potential growth, risks of new business areas including our new business model, international expansion, decreased demand for computer software and services due to weakening economic conditions and market acceptance of SAND products are important factors which could cause actual results to differ materially from those projected. More information about factors that potentially could affect SAND's financial results is included in SAND's current Annual Report and in SAND's reports to the Securities and Exchange Commission.

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