ATG Enhances Top Rated e-Commerce Platform to Advance ''Searchandising,'' Analytics, and Live Chat; New Features to Grow Average Order Size and Conversion Rates, Put More Information and Control in Hands of Online Merchandisers.

CAMBRIDGE, Mass. -- Art Technology Group, Inc. (NASDAQ: ARTG) whose licensed and on demand technology powers e-commerce sites and supporting e-marketing and customer care solutions for the world's most customer-centric enterprises, today announced the availability of a compelling set of new capabilities within the ATG Commerce platform, further strengthening and solidifying its position as the industry standard for serious e-commerce solutions. The new commerce capabilities are designed to further empower consumers, merchandisers, and marketers, and provide a more relevant and personal multi-channel, multi-touch, guided experience throughout the entire marketing, sales, and customer care lifecycle.

"Searchandising" Capabilities

ATG has introduced advanced dynamic navigation capabilities that give online merchants the ability to define, manage and update catalog navigation "facets," or attributes, to be displayed across home, category and product pages on the commerce website. Facets can be based on any available catalog attribute including size, brand, and style, and can be consistent or varied across pages and templates. This enhancement makes the online product search and discovery process more relevant, faster and more successful for consumers, thus increasing basket size and conversion rates.

Representing a vast improvement over other so-called "searchandising" capabilities, ATG now offers the only solution that integrates catalog search and Web store merchandising functionality, to ensure that online shoppers more easily find merchandise, in a way that fits the merchandisers' strategy. Typically, efforts in this area have concentrated primarily on search functionality, with merchandising capabilities added as an afterthought. ATG's enhanced searchandising module integrates customized, dynamic search functionality directly into the ATG merchandising application, helping customers find what they need no matter how they are navigating a Web store, even when not using the search bar.

Finally, with a single, intuitive interface designed specifically for business users, merchandisers can make their own changes on the fly and continually modify the online store to provide the best, most enticing experience possible for customers.

"These latest enhancements to ATG Commerce further extend our functional leadership in e-commerce platforms," said Cliff Conneighton, senior vice president of marketing, ATG. "We have raised the bar again by putting the power and control of sophisticated merchandising processes directly in the merchants' hands. With ATG's searchandising capability, consumers find what they want more quickly and discover new choices that fit characteristics they're looking for. And online merchants can now move inventory faster and with higher margins by quickly connecting online shoppers with products they might want, but may not have been overtly seeking when they began their shopping experience. That is a powerful and unique proposition."

Improving Conversions with Proactive, Personalized Live Chat

ATG has introduced ATG Live Chat, a personalized, proactive chat capability. Using ATG Live Chat, e-tailers can reach out to visitors who exhibit abandonment behavior, and guide them through their purchase, thereby improving conversion rates. ATG Live Chat also increases basket size, improves customer loyalty and reduces product returns by offering a live customer care pre-sales experience that meets a consumer where and when they most need help, without forcing the consumer to leave the current site page.

ATG takes live chat a step further than other industry solutions by leveraging its unique Wisdom platform to turn interactions into revenue enhancing opportunities. ATG Wisdom helps agents make cross-sell and up-sell offers personally geared for the customer being served. Retailers can move contact center interactions beyond draining profits to driving new revenue.

"ATG is breaking new ground with Live Chat," Conneighton added. "By building chat on our Wisdom platform, we enable e-tailers to leverage our knowledgebase and a customer's profile, purchase history and even customer care history to provide more compelling offers and better answers to their questions. No other vendor can do this, because nobody else has chat as an integrated part of a comprehensive e-marketing, e-commerce and customer care platform."

Enabling Customer Intelligence

Retailers and other enterprises selling to consumers are striving to correlate many streams of data from their Web stores and other sources: Web traffic statistics, behavioral data, demographic information, survey data, customer satisfaction data, and purchase data. They need a centralized, accessible collection of activity, trend, usability and other key data from all customer touchpoints. Based on this need, ATG has delivered ATG Customer Intelligence - a completely integrated set of datamart and reporting capabilities that gives ATG customers the insights they need to fully understand their customers.

ATG Customer Intelligence speeds time to decisions and actions by offering deep insight into customer activities across applications, channels and business functions, consolidating activity across ATG applications and external sources into one view, and allowing any business user to extract standard reports and perform ad hoc queries without putting demands on IT or specialized resources. ATG Customer Intelligence is compatible with popular Business Intelligence tools, enabling data from all ATG applications to be brought into existing enterprise datamarts.

"ATG Customer Intelligence is an elegant and powerful approach that all consumer-focused companies can take to understand their customer's experience across the lifecycle of marketing, commerce and service, and across the multiple interaction channels," continued Conneighton. "With this release, we are proud to have addressed a critical need for our customers and prospects by providing a single environment that can help drive decisions, actions, and the resulting revenue."

About ATG

ATG (Art Technology Group, Inc., NASDAQ: ARTG) makes the software and delivers the OnDemand solutions that the world's most customer-conscious companies use to create a more relevant and consistent customer experience, throughout the marketing, commerce, and customer care lifecycle, and across the Web, e-mail, chat, call center, and mobile channels. Offering an alternative to the traditional silo-based approach to customer-facing applications, the ATG Wisdom(TM) platform integrates ATG's best of breed products into a seamless, more compelling experience made relevant to each customer and segment through unique content targeting technology. ATG solutions are available through traditional licensing or delivered as a service, on-demand. ATG's solutions power over 600 major brands, including Adobe, A&E Networks, American Eagle Outfitters, B&Q, Best Buy, Cingular Wireless, Coca Cola, Dell, DirecTV, France Telecom, Hewlett-Packard, Intuit, Johnson & Johnson, Louis Vuitton, Mercedes-Benz, Neiman Marcus, New York & Company, Nike, Nokia, OfficeMax, PayPal, Philips, Procter & Gamble, Rubbermaid, Smith & Hawken, Symantec, T-Mobile, Target, Urban Outfitters, Verisign, and Walgreens. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America and Europe. For more information about ATG, please visit www.atg.com.

(C) 2006 Art Technology Group, Inc. ATG and Art Technology Group are registered trademarks and ATG Wisdom is a trademark of Art Technology Group, Inc. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

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 its periodic reports and registration statements filed with the Securities and Exchange Commission at www.sec.gov. Risk factors related to the subject matter of this press release include the possibility that the ATG product deployment will not be successful, on time or significantly enhance the user's Internet experience or handle user volumes; that those customers leveraging ATG won't have the opportunity to increase revenue and decrease future costs; the need to adapt to rapid changes so products do not become obsolete; the possibility of errors in ATG's software products; the possibility that the solution will not make customer implementations faster or more flexible or permit the customer to meet its customer-facing or infrastructure requirements; that the ATG product will not continue to be integrated with third party applications servers or will not support all Web services enabled systems; that ATG's product strategy may change in the future; that the hosting market will not grow or grow at the projected rates; and the risks and costs of intellectual property litigation . ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.