ATG Announces Dynamo 5 e-Business Platform.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--July 25, 2000

Raises Bar for Customer Management with Introduction of Scenario-based

Personalization, Customized E-Commerce and Full Java(TM) 2 Platform

Enterprise Edition (J2EE(TM)) Support

Art Technology Group (ATG) (NASDAQ:ARTG) today advanced online business relationship management capabilities with the announcement of the ATG Dynamo(R) 5 e-Business Platform. ATG Dynamo 5 features three major new applications, including the industry's first customer management solution featuring scenario-based personalization, a deployment-ready and customizable B-to-B and B-to-C commerce solution, as well as a highly scalable, fully supported Java(TM) 2 Platform Enterprise Edition (J2EE(TM)) application server.

ATG Dynamo 5 significantly advances the delivery of a complete customer management solution for businesses that want to improve their e-business efforts. ATG Dynamo 5 personalization moves beyond single instances of interaction to scenarios, which engage customers in a persistent and responsive manner, across multiple interactions defined by business managers. Companies can develop and execute e-business scenarios to create more effective online relationships with customers, capture data for analytic processing and manage relationships across channels including wireless devices. (For more information on ATG Dynamo 5 e-business scenarios, see separate press release issued today "ATG Introduces Online Customer Lifecycle Management Application.")

"Procter & Gamble's decision to use Dynamo was driven by the open architecture and scale it offered for meeting demanding business needs globally," said Doug Bethea, associate director of P&G eBusiness. "To be successful in this industry, you have to be nimble on the Web, regardless of the size of your organization. Dynamo's flexibility has been extremely important to P&G as we've expanded our e-business efforts across many brands and business situations worldwide. Dynamo 5 offers even more enhancements that keep Dynamo at the forefront of open, standards-based e-business platforms."

"ATG, with its Dynamo software platform, is quickly becoming a leader in e-commerce and online customer management. ATG solutions, combined with our systems and software technologies, are powering the online efforts of many of our biggest e-business customers," said Doug Kaewert, vice president, Market Development at Sun Microsystems, Inc. "We're also very pleased to have ATG announce Dynamo 5.0 as a fully supported J2EE platform. The combination of ATG's e-commerce, personalization and customer management features, with Sun's reliable, scalable and open platforms, are resetting the bar for advanced enterprise e-business."

ATG Dynamo 5 Scenario-based Personalization

ATG is the first company to introduce real-time scenario-driven personalization of the online customer experience - from customer acquisition and behavior to retention and loyalty - to increase lifetime customer value. Dynamo 5's scenario-driven approach to rules-based personalization uses real-time profiling and user segmentation to create targeted interactions.

Companies now have a significant new advantage when responding to business pressures, as Dynamo 5 provides new levels of operational control to business managers, rather than programmers, to rapidly and simply modify online initiatives. Built on its foundation of targeting rules, Dynamo 5 scenario-based personalization enables business managers to develop and execute pre-built or customized scenarios that support key business initiatives. In addition, managers can more effectively control online campaigns and initiatives through easy-to-use analytic tools that enable real-time refinement of campaigns.

"ATG has been a pioneer in enabling Web site personalization and commerce since 1996. Today, we've extended that leadership with Dynamo 5," said Joseph Chung, ATG co-founder and chief technology officer. "As the investments in this arena increase, businesses today are growing intolerant of solutions that fail to recognize their critical business needs. Dynamo 5 delivers what is critical to succeed online: effective management of online business relationships to yield greater value and customer loyalty. ATG Dynamo 5 will help set new standards for online efficiency, business relationship management and competitive differentiation."

Customized E-Commerce

Dynamo 5 delivers extensive off-the-shelf applications in personalization, commerce, and customer management, as well as a highly customizable Java-based platform. The ATG Dynamo 5 Commerce Suite provides significant new commerce features and powerful capabilities that give businesses more control over every aspect of e-commerce. ATG Dynamo 5 delivers the out-of-box capabilities that accelerate time to launch, as well as the ability to rapidly re-launch that is critical for effective B-to-B and B-to-C commerce.

Dynamo 5's comprehensive feature-set meets critical e-commerce needs, including a dynamic pricing engine, order engine, catalog management, merchandising capabilities, as well as B-to-C and B-to-B capabilities, including coupons, gift registry, wish lists, recurring purchase orders and multiple ship-to capability. With this level of functionality, companies can create "instant" storefronts without being constrained by pre-set parameters. Dynamo 5's scenario-driven commerce allows business managers to make informed business decisions about promotions, product cycles, up-sells and cross-sells, and determine why certain products or services are successful.

Scenario-driven commerce also provides a solution for test marketers to discover what price, product configuration or promotion generates the most business. Furthermore, Dynamo 5 easily integrates with third-party software packages for more sophisticated analysis of e-commerce initiatives or broader Web site analysis.

Full J2EE Platform Support

ATG's increasing support of industry standards provides businesses using Dynamo 5 with an open and highly flexible architecture that can keep pace with their business needs. Dynamo 5 will allow businesses to rapidly develop and deploy online initiatives as a result of its full J2EE platform compliance and mobile device compatibility through WAP and WML standards.

ATG is committed to the Dynamo legacy of providing a 100% pure Java(TM), proven solution, as well as providing XML support for commerce transactions. ATG's fully integrated platform offers flexibility required for continuous innovation and rapid time-to-market. With Dynamo's open architecture, companies can easily integrate customer-critical systems such as fulfillment, customer care and inventory. Dynamo 5 has the ability to support high-volume sites in the range of over 700 million hits per week and can scale easily to handle the rapid growth inherent to the Internet economy.

"ATG Dynamo enabled target.com to create a more scalable e-commerce platform that would not only provide greater speed and dependability, but also deliver the same great user experience that our guests find in our retail stores," said Jerry Storch, president, Target Corporation Financial Services and New Businesses. "The extensive solution both grants us the ability to handle high traffic volume and allows us the flexibility to expand our e-business features as our needs evolve."

Availability

The ATG Dynamo 5 e-business platform will be available later this quarter. For more information go to www.atg.com

About ATG

Art Technology Group, Inc. (ATG) is a leading provider of Internet customer relationship management and electronic commerce products and services. ATG offers an integrated suite of Java(a) application server-based products and services, as well as related application development, integration and support services. The ATG Dynamo e-Business Platform enables Global 1000 enterprises, as well as new businesses using the Internet as their primary business channel, to understand, manage and build their online customer relationships and to more effectively market, sell and support their products and services over the Internet.

The Dynamo solution is designed to provide businesses with the core platform and software tools required to develop and deploy personalized, scalable and reliable e-commerce Web sites. Dynamo is licensed to over 400 customers including 3M, American Airlines, BabyCenter, BMG Direct, Eastman Kodak, Informix, J. Crew, Network Solutions, Sun Microsystems, Target Corporation and TheStreet.com. The company is headquartered in Cambridge, Mass, with additional locations throughout North America, Europe and Asia Pacific.

Dynamo is a registered trademark of Art Technology Group. Sun, Sun Microsystems, the Sun Logo, J2EE, 100% Pure and Java are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause ATG's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important risk factors affecting ATG's business generally may be found in most recent 10-K and in periodic reports and registration statements filed with the Securities and Exchange Commission. Risk factors related to the subject matter of this press release include the possibility that Dynamo5 will not function properly, either now or in the future; that customers will require increased integration work to implement Dynamo 5; the need to adapt to rapid changes so products do not become obsolete; the possibility of errors in ATG's software; and risks associated with intellectual property infringement and litigation. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.