Atomz Reports Continued Growth, With Third Quarter Revenues Up 72%; Strong Demand for Company's Web-Native Application Suite Leads to Record Revenues for Second Straight Quarter.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 24, 2002

Atomz, the leading provider of enterprise Web site management software delivered as an online service, reported its second consecutive quarter of record revenues for the quarter ending September 30, 2002.

Atomz continues to experience significant revenue growth as Fortune 1000 companies increasingly select the company's Web-native applications. Revenues for Atomz's third quarter were up 72% when compared to the same quarter in 2001, and up 33% quarter-over-quarter. Atomz's third consecutive record quarter helped push revenues up 65% for the first three quarters of 2002 when compared to the same period last year.

All of the company's product lines continue to experience impressive growth with content management products accounting for 47% of new sales, enterprise search contributing 45% and implementation and integration services contributing 8%. Customers are frequently utilizing multiple applications from Atomz's suite of Web-native applications.

A key factor for customers considering the adoption of Web-native software is the simplicity, low risk, low cost and flexibility it offers, according to Laurie McCabe, analyst at Summit Strategies. Last month Summit Strategies released its latest report, entitled `Out of the Box: Top Nine Net-native Software-as-Services Design Differentiators,' in which McCabe concludes that, "Although packaged software won't disappear anytime soon, Net-native vendors are poised to experience significant growth - much of it at the expense of packaged alternatives."

When compared to traditional content management and search engine software providers, Atomz's continued growth runs counter to a pattern developing among many industry leaders. Steve Kusmer, CEO and co-founder of Atomz, notes, "While our Web-native solutions continue to gain momentum every quarter, many vendors of traditional, server-based solutions have been experiencing continually declining revenues."

In September, Atomz celebrated its fourth year in business. While the company continues to expand its Web-native suite of applications, it remains dedicated to the principles upon which it was founded. A relentless commitment to customer satisfaction has always been a core value at Atomz. "It is this commitment to customer satisfaction that has earned us the loyalty of customers, many of whom have been with us since our first product was launched," said Kusmer. "As our business has matured, we've tightened the customer feedback process, speeding the delivery of changes, updates and innovation to our entire customer base and creating a suite of applications that are extremely reliable, affordable and compelling -- especially when compared to traditional, server-based solutions or home-grown systems."

"When we saw what Atomz Publish could do, we abandoned the idea of building our own CMS solution," said Nevin Shalit, Senior Vice President of New Media Projects at New Line Cinema. "The system is so dependable and easy to use, our Movie Publicity site editors can update content on their own with no prior HTML expertise."

Atomz Third Quarter Highlights

-- More than forty new customers purchased Atomz products, including Fluor, Groove Networks, Kulicke and Soffa, Playground (a subsidiary of Intrawest) and dozens of other customers in the Communications, Financial Services, Government, News/Media and Manufacturing industries.

-- Atomz Promote, the newest application in the company's suite of solutions, was deployed by several customers. Launched in June, it enables customers to create and target specific content (ads, promotions, etc.) to their site search results based on keywords.

-- Atomz launched the Site Search Buyer's Kit, a free online resource, to help individuals involved in the task of selecting an appropriate site search solution to differentiate between competitive offerings, and select the best solution to meet their needs.

-- Atomz delivered the Atomz VPN Solution to provide customers with the highest level of protection possible for their hosted data and applications. It combines a dedicated network and application server with powerful encryption and user authentication software.

-- Dozens of enhancements were made to Atomz Publish and Atomz Search during the third quarter, including support for Macromedia Flash content and applications; advanced phrase, acronym and synonym support; related content display; forms-based and cookie-based authentication; advanced template management; and support for WebDAV.

About Atomz

Atomz provides enterprise Web site management software delivered as an online service. Its suite of Web-native applications provides customers significant advantages over traditional, server-based software in reliability, support, ease-of-use, scalability, rapid product innovation and predictable cost structures. The company's unparalleled technical excellence and dedication to customer satisfaction have led products from Atomz to be adopted by thousands of leading Web sites. Select customers include: AOL Time-Warner, CBS, Palm, Gannett Corporation, Macromedia, Olympus, Varian Medical Systems, Maxtor, New Line Cinema and Sharp Electronics. Products from Atomz have won numerous industry awards, including ASPnews' List of Top 20 Providers, Internet World's "Best of Show" and New Architect Magazine's Editors' Choice Award. For more information about Atomz' products visit the company's Web site at http://www.atomz.com/.

Atomz is a trademark of Avivo Corporation. Any other marks used in this document are trademarks or registered trademarks of the manufacturers or marketers of the products with which the marks are associated.