ATG Dynamo Selected by Martha Stewart Living Omnimedia, Inc. as Recipe for Online Success; e-Business Software To Help Company Marry Content and Commerce.

Business Editors/High Tech Writers

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 28, 2002

ATG (Art Technology Group, Inc., Nasdaq: ARTG), provider of e-business software and applications for e-commerce, relationship management, and portals, today announced that the ATG Dynamo(R) Commerce Suite is the selected foundation for Martha Stewart Living Omnimedia, Inc.'s (NYSE: MSO) recently relaunched website, www.marthastewart.com.

The technology enables the site to fuse media content and catalog commerce to deepen customer relationships and drive revenue.

With its www.marthastewart.com site, implemented by Fort Point Partners, MSO combines content and commerce on one platform to maximize revenues and enhance the customer experience. The personalization and e-business scenarios of ATG Dynamo allow MSO to cross-pollinate audiences by leveraging its customer intelligence across the enterprise including marthastewart.com, Martha Stewart Living magazine, and Martha by Mail catalog. The site enables MSO to serve deep, customized content and products, merchandise more effectively and maximize revenues.

Using ATG Dynamo e-Business Scenarios, MSO can create personalized interactions with customers. Scenarios offer targeted promotions, merchandise and information based on customer segmentation. By systematically supplying targeted and fresh content to the site, MSO can grow customer relationships, generate higher conversion rates, and execute traditional promotional campaigns.

"Scenarios allow MSO to target its wealth of content, promotions and products to increase revenues and extend customer lifespan," said Rob Schmults, executive vice president of global markets of Fort Point Partners. "We have integrated ATG Dynamo to support strategic selling and customer management through e-business scenarios."

The dynamic management of content and merchandise is a key factor in MSO's ability to leverage cross-selling opportunities. For example, a user may visit this week for information such as a Valentine's Day recipe for chocolate heart cakes and at the same time will be offered cooking supplies and products.

"We needed to tightly integrate our content and merchandise to attract more customers and drive e-commerce revenues," said Sheila Beauchesne, CIO of Martha Stewart Living Omnimedia, Inc. "We chose the ATG Dynamo Commerce Suite because it offers the scalability we needed to create a cross-enterprise site and the best framework to support the sophisticated merchandising for which Martha Stewart is best known."

"ATG Dynamo e-Business Scenarios allow MSO to create the perfect, personalized how-to experience for its audience," said Paul Shorthose, president and CEO of ATG. "High-quality content cross referenced with commerce enhances the brand and drives revenue."

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 blue-chip 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 Wells Fargo. 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.

(c)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 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 their 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 the ATG product deployment will not significantly enhance the user's Internet experience or be able to accommodate increased user volume; that Scenarios will accomplish its intended purpose; that information will be able to be shared across all media; that customers will not be able to increase the speed of their deployment; and the costs and risks associated with intellectual property claims by third parties. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.