ATG Appoints Paul Shorthose as Chief Executive Officer; Jeet Singh Elected Co-chairman; Bernard Bailey Named COO.

Business/Technology Editors

CAMBRIDGE, Mass. --(BUSINESS WIRE)--Oct. 25, 2001

ATG (Art Technology Group, Inc., Nasdaq: ARTG), a leading provider of e-business software for e-commerce and customer management, today announced the appointment of Paul Shorthose as the company's Chief Executive Officer. Shorthose succeeds Jeet Singh, who has been elected Co-chairman of the Board and will assume the newly created role of Chief Strategy Officer (CSO), effective immediately.

Shorthose, who will maintain his current position as President, has also been unanimously elected to ATG's Board of Directors. Since joining ATG in 1997, Shorthose has played a critical role in driving the company's growth and, in recent quarters, managing the company's operations through a dynamic and evolving market environment. Initially serving as the company's Vice President of Worldwide Services, Shorthose was named ATG's Chief Operating Officer in June 1999 and President in February 2000.

"I am extremely pleased to see Paul step into the position of CEO," stated Singh. "Paul has played a critically important role in managing the rapid growth and expansion of the company since he joined ATG in 1997. He has proven to be an energetic and pragmatic leader with a deep understanding of our value proposition and the markets we serve. Paul's leadership over the past few quarters has been instrumental to our restructuring process, and his knowledge of ATG's customers and operations will be integral to our success going forward. Joe and I look forward to working with Paul, Bernard and our recently hired CFO, Ed Terino, to return ATG to profitable growth."

Jeet Singh, ATG co-founder and CEO since its inception, will co-chair ATG's Board of Directors with Chief Technology Officer Joseph Chung. In his new role as CSO, Singh will focus on ATG's strategic industry and product direction, positioning, and marketing.

Shorthose stated, "I am excited about this opportunity, and I see great potential for ATG and its products and services. My top priorities will be to return the company to profitability and to maximize our market position. We already have an extraordinary customer list and we continue to add blue-chip clients every quarter. These customers are not just running their web sites on ATG technology - they are fundamentally changing the way they do business using Dynamo. In order to drive our growth, we will continue to roll out great products based on ATG's superior technology. We will continue to listen to what our customers need, and work even closer with our top partners to deliver the return on investment that our products can provide our customers."

ATG also announced that Bernard Bailey, Senior Vice President of Global Field Operations, has been promoted to succeed Shorthose as Chief Operating Officer. Bailey will report to Shorthose and oversee marketing, sales and services, driving much of the company's day-to-day operations.

"Bernard's 30 years of overall leadership and his experience as COO of an IBM business unit have proven to be invaluable assets at ATG," stated Shorthose. "His track record here is impeccable and the energy and enthusiasm he brings to the company are remarkable. He took aggressive action to substantially improve the structure of ATG's services organization, which resulted in significant gross margin improvement. He also successfully aligned our sales and service organizations to improve the quality of customers' experiences with ATG. I am confident that Bernard's success will continue in his expanded role as COO."

"ATG has always been recognized as an industry pioneer," continued Shorthose. "Management is committed to maintaining this technology leadership and is equally devoted to returning the company to profitable growth. With the focus of our new management team, continued support from our partners, an aggressive R&D effort and blue-chip customers, I am confident that we are well positioned to achieve these objectives."

Prior to joining ATG, Shorthose worked at Sybase/Powersoft, where he was Vice President and General Manager of the Northeast U.S. and Canada services unit that included the company's first Internet Services group. Shorthose also ran Powersoft Consulting worldwide, Sybase Education, Sybase Services Marketing and the Strategic Services unit. Previously, he held various sales and services management and technology positions at AGS Management Systems and Rolls-Royce.

Bailey served in a variety of executive-level positions in finance, sales and operations during 16 years at IBM, prior to joining ATG as Senior Vice President of Global Services in January 2001. While at IBM, Bailey was responsible for selling more than $500 million in services with associated revenue of more than $1 billion in software and hardware, and consistently led the 700-person organization to top-performing rankings within IBM. As the Chief Operating Officer for a unit of IBM Global Services, Bailey led IBM's transition into a vertical sales organization, focused on solution sales in the Manufacturing and Process industries. A graduate of the United States Naval Academy, Bailey also holds a graduate degree in engineering from the University of California, Berkeley, a Master's degree in systems management from the University of Southern California, and an MBA from George Washington University.

ATG issued a separate news release in conjunction with this announcement announcing the company's third-quarter 2001 financial results.

About ATG

ATG(R) (Art Technology Group, Inc.) provides an e-business software platform and applications for e-commerce, relationship management, and portals. Customers around the globe rely on ATG for the frontline applications that help build and manage mutually beneficial relationships with customers, partners, and employees. Deployed on the industry's most popular application servers, including the ATG Dynamo Application Server, ATG's integrated suite of Java(TM) applications is ideal for large-scale, rapidly evolving, and customized Web interactions. Together, ATG and its global alliance network provide the e-commerce and relationship management capabilities that generate loyalty, drive sales, and empower the world's most recognized companies to realize the full potential of their online initiatives.

Today, ATG has delivered e-business solutions to 800 companies worldwide including 3M, Abbott Laboratories, Aetna Services, Inc., Alcatel, American Airlines, AT&T, Barclays Global Investors, BMG Direct, Eastman Kodak, Ford Motor Credit, HSBC, J. Crew, Sun Microsystems, Walgreen Company, and WellsFargo. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America, Europe, and Asia. For more information about ATG, please visit our Web site at www.atg.com

2001 Art Technology Group, Inc. ATG, Art Technology Group, the Techmark, the ATG Logo, and Dynamo are registered trademarks, and Personalization Server and Scenario Server are trademarks, of Art Technology Group, Inc. All other trademarks are the property of their respective holders. NASDAQ:ARTG

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 factors 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. The statements in paragraphs 3, 5, and 8 of this press release include forward-looking statements. 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 ATG's prospectus 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 effect of weakened or weakening economic conditions or perceived conditions on the level of spending by customers and prospective customers for ATG's software and services; financial and other effects of cost control measures; quarterly fluctuations in ATG's revenues or other operating results; customization and deployment delays or errors associated with ATG's products; the result of longer sales cycles for ATG's products; satisfaction levels of customers regarding the implementation and performance of ATG's products; ATG's need to maintain and enhance business relationships with systems integrators and other parties who may be affected by changes in the economic climate; ATG's abilities to attract and maintain qualified executives and other personnel and to motivate employees; activities by ATG and others related to protection of intellectual property, and release of competitive products and other activities by competitors. Further details on these risks are set forth in ATG's filings with the Securities and Exchange Commission, which are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov.