ATG Furnishes Restoration Hardware With Highly Scalable New Commerce Site; ATG Consumer Commerce Suite Provides Extensive New Functionality in only 12 Weeks.

Business/Technology Editors

CAMBRIDGE, Mass. & SAN FRANCISCO--(BUSINESS WIRE)--May 6, 2002

ATG (Art Technology Group, Inc., Nasdaq: ARTG) and Restoration Hardware, Inc. (Nasdaq:RSTO) today announced that Restoration Hardware has successfully re-launched its restorationhardware.com retail Web site using the ATG Consumer Commerce Suite. ATG is a leading developer of online CRM applications for commerce, portals, and relationship management. On the strength of the new features and functionality, Restoration Hardware hopes to grow its online business to $300 million, accounting for 10 percent of its overall business.

The re-design, which was accomplished in just 12 weeks, is part of a larger company-wide initiative that is intended to bring Restoration Hardware's overall product strategy into greater alignment across all sales channels and maximize the unique, retro-style brand the company has built in the home furnishings industry. The new site, which went live in early April, is markedly improved from Restoration Hardware's previous site, both in terms of user experience and scalability.

Designed to match the look and feel of the Restoration Hardware catalogs, the new site includes features such as a customer "wish list" and more logical arrangement of product offerings, all built with the help of the ATG Scenario Server. The capacity of the new site far outstrips its predecessor, which suffered from a lack of redundancy, or failover. Where the original site could support only 150 concurrent sessions and had a loyalty index of just 38 percent, restorationhardware.com can now support up to 12,000 concurrent sessions and puts considerably less strain on the overall system capacity.

"The successful relaunch of restorationhardware.com is an essential component of our overall business strategy moving forward, as we are setting aggressive short and long term e-business goals," said Tom Bazzone, chief operating officer for Restoration Hardware. "We chose ATG because of its reputation in the industry as a company that delivers unparalleled technology. We expect ATG to help us drive a significant amount of new business - directly impacting our bottom line."

Having accomplished the initial rollout, Restoration Hardware will continue improving the site throughout the summer in advance of the 2002 holiday season, further leveraging the Scenario Server to deliver specific types of content throughout the site and enhance the user profile and catalogs. Among the features that will be developed for the holiday season is a gift registry.

Restoration Hardware has also purchased the ATG Portal Suite and plans to launch a corporate intranet as part of the next phase of the rollout. By early next year, the company also plans to build features of the portal suite into the "My Account" portion of the restorationhardware.com site.

"Restoration Hardware is a glowing example of a traditional company that has realized that creating a rich online experience at the frontline of their business can be the key to managing the customer relationship," said Ken Volpe, Vice President of Product Planning and Strategy for ATG. "Restoration Hardware now has the foundation in place and the tools at its disposal to continually create a unique, personalized user experience for its customers that truly captures its unique place in the market."

About Restoration Hardware

Restoration Hardware, Inc. is a specialty retailer of home furnishings, functional and decorative hardware and related merchandise that reflects the Company's classic and authentic American point of view. Restoration Hardware sells its merchandise offering through its retail stores, catalog (800-762-1005) and on-line at www.restorationhardware.com.

About ATG

ATG(R) (Art Technology Group, Inc.) is the leading developer of online CRM applications that deliver an integrated, personalized experience for customers, partners and employees: the frontline of every business. Customers around the globe rely on ATG for the frontline applications that help build and manage mutually beneficial relationships. Deployed on the industry's most popular application servers, ATG's application suites for e-commerce, portals, and relationship management are ideal for integrated e-business initiatives across the enterprise.

Today, ATG has delivered e-business solutions to blue-chip companies worldwide including Aetna Services, Inc., Alcatel, American Airlines, AT&T, Barclays Global Investors, Best Buy, 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.

(c) 2002 ATG, Art Technology Group, Scenario Personalization, and Data Anywhere Architecture are registered trademarks 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 ATG's 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 be successful or significantly enhance the user's Internet experience or handle user volume; the need to adapt to rapid changes so products do not become obsolete; the possibility of errors in ATG's software products; and the possibility that the solution will not make customer implementations faster and more flexible. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.