I talked to our engineers about this and this is as designed.
We had numerous people request that discounts display on the catalog pages, the feeling being that it would make shoppers more likely to purchase if they saw the discount off the bat rather than waiting to see it displayed on the cart page.
At the end of the Day, the 25% discount will still get applied to cart total but it will also show on items that have a price within the minimum price range.
you can post to our suggestion page is you feel this should be changed:
http://www.webassist.com/community/feedback/dashboard.php