ATG Strengthens Government Solutions Group; Company Adds New Customers, Partners; Appoints Bill Stephens as Vice President and General Manager.

Business Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 23, 2002

Reaffirming its commitment to furthering IT initiatives in the federal government, ATG (Art Technology Group, Inc., Nasdaq: ARTG), a leading developer of online CRM applications for commerce, portals, and relationship management, announced the appointment of Bill Stephens as the company's vice president and general manager of government solutions. The move is part of ATG's overall strengthening of its government solutions group.

Stephens brings more than 30 years of industry experience to ATG including over 14 years in senior management positions at IBM, where at one time he held the position of President, IBM Korea. Most recently, Stephens served as Chief Development Officer (Sales and Marketing) for Iconixx Corporation, an Internet services and integration firm for Fortune 1000 enterprises.

Stephens' appointment represents the latest milestone in ATG's growing involvement in e-government initiatives, which has been marked by successful deployments with partners such as the U.S. Army, which built its enormously successful Army Knowledge Online portal using ATG's personalization software and hosts more than one million users. ATG also played an integral role in helping the USDA build a Web-based commodity ordering system that is currently being piloted in four states. ATG worked with partner EDS to develop the award-winning USDA site and is now working with key government partners such as RTGX and GTSI to deliver industry leading online CRM solutions to government agencies.

"The system we have built proves that with the right blend of products and partners, e-government can be a winner for everyone," said Les Johnson, Director of Food Distribution Division at USDA, whose system uses ATG software.

ATG's successes come amid a growing sentiment that a majority of e-government initiatives have difficulty succeeding due to issues such as the structure of traditional government, constraints on funding and a lack of adequately skilled personnel.

A recent Gartner report stated that more than 60 percent of e-government initiatives are destined to fail. The report outlined five requirements necessary for successful e-government initiatives, focusing on areas such as government structure and personnel. In terms of technology requirements, the report suggests that investments in "building block" tools that can provide a solid, flexible platform provide the greatest chance for success.

At ATG, Stephens will be responsible for furthering ATG's presence in the government sector. In addition to his experience at IBM, Stephens held general management positions at PRC, Oracle Corp. and Martin Marietta.

"Bill's diverse background in solution sales and delivery makes him the ideal choice to lead our government initiatives," said Bernard Bailey, Chief Operating Officer at ATG. "We are diligently pursuing ongoing opportunities in the government sector, knowing that our products can provide the scalability and flexibility to succeed in e-government initiatives."

About ATG

ATG(R) (Art Technology Group, Inc.) is a 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 Mr. Stephens will not remain with the company; that ATG will not actively pursue government business; that the government business unit will not be successful; the ATG product deployments 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.