ATG Settles $38.2 Million in Excess Lease Obligations for $9.7 Million.

Business Editors/High-Tech Writers

CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 8, 2003

ATG (Art Technology Group, Inc., NASDAQ: ARTG) today announced that it has successfully settled three of its excess real estate obligations. The three facilities are located in San Francisco, CA; Cambridge, MA; and Toronto, Canada, and represent the majority of ATG's worldwide excess lease obligations.

Pursuant to the agreements, the company will make one-time cash payments totaling $9.7 million to fully settle $38.2 million of future lease obligations. All of these cash payments will occur during the second quarter of 2003. Additionally, the company anticipates that, during the second quarter of 2003, it will record a restructuring benefit to its operating results in the range of $7.0 to $9.0 million.

"Resolving these excess lease obligations has been one of our primary financial objectives," said Ed Terino, senior vice president and CFO. "Our efforts have resulted in a significant reduction of ATG's future cash commitments and a much improved financial position."

"The successful resolution of these leases is a significant accomplishment for ATG as we continue to work toward sustainable cash flow positive operations and profitability," said Bob Burke, ATG president and CEO. "These transactions greatly improve our long-term financial outlook as we continue to execute our business strategy and invest in new products."

ABOUT ATG

ATG (Art Technology Group, Inc.) is a leading provider of innovative software applications for commerce and customer self-service. 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.

ATG has delivered e-business solutions to blue-chip companies worldwide including Aetna Services, Inc., Alcatel, American Airlines, Barclays Global Investors, Best Buy, 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) 2003 Art Technology Group, Inc.

ATG and Art Technology Group are registered trademarks of Art Technology Group, Inc. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

The statements in the second and the fourth paragraph of this press release include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, those regarding cash payouts, restructuring accruals related to the company's lease settlements and the company's long-term financial outlook. Such statements involve known and unknown risks and uncertainties that may cause ATG's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A detailed listing of risk factors affecting ATG are set forth in ATG's filings with the Securities and Exchange Commission, which are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov.