BlueLight.com Personalized E-commerce Driven by ATG Dynamo; BlueLight.com E-Commerce Site Goes Live on Dynamo Less than Six Months from Inception.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--July 11, 2000

Art Technology Group, Inc. ("ATG") (Nasdaq: ARTG) today announced that the recently launched BlueLight.com(TM) (www.bluelight.com) phase-one "preview" online shopping destination is driven by its Dynamo(R) Product Suite. Launched within six months of original inception, BlueLight.com, which was formed by Kmart Corporation, SOFTBANK Venture Capital and other investors, selected Dynamo for its ability to handle large traffic volume; consumer shopping functionality; personalized marketing and selling capabilities; and the demands of a multi-channel platform.

BlueLight.com's implementation of Dynamo's flexible Java-based architecture is central to the Company's "Sticky Bricks" multi-channel e-commerce model. BlueLight's commerce model goes a giant step beyond today's clicks and mortar model and is based on full integration of offline and online assets. ATG Dynamo offers Bluelight.com a multi-channel e-commerce architecture that combines the necessary flexibility and scalability of a 100% Java-based application server with integrated personalization and e-commerce capabilities. Bluelight.com with ATG Dynamo's multi-channel solution aims to build customer loyalty and satisfaction, increase yield from its customers, and decrease the cost of customer service through real-world and online retail programs.

"The selection of Dynamo for BlueLight.com was clear cut. When it comes to building a scalable Web site that needs to sell a large amount of merchandise, Dynamo is the only real choice," said Brian Sugar, chief web officer at BlueLight.com. "This is the second Web site I've built on Dynamo. When my team was tasked with creating BlueLight.com from scratch, Dynamo was the proven solution I knew we could confidently trust for all of our performance, e-commerce and personalization efforts."

"BlueLight.com is a shining example of how a successful bricks-and-mortar retailer can use its offline presence to become a major online player," said Jeet Singh, CEO of ATG. "The `Sticky Bricks' model is an ideal business approach for the multi-channel capabilities offered by Dynamo."

Based in San Francisco, BlueLight.com is a new kind of e-commerce company. By leveraging the strengths of Kmart, the nation's second largest mass merchant retailer, the promotional power of its investment partners, and advanced Internet technologies, BlueLight.com has created a superior online shopping experience. Consumers who visit the BlueLight.com online shopping destination will experience a site featuring a full range of goods designed to make shopping on the Internet as easy as a walk to your neighborhood Kmart store. Consumers are able to shop for items such as home electronics, housewares, toys, sporting goods and Kmart's popular Martha Stewart Everyday(R) line of home and garden products. When the full BlueLight.com shopping site is up this fall, consumers will be able to browse through hundreds of thousands of products.

BlueLight.com is also currently the fastest growing Internet service provider (ISP) in the country with nearly three million subscribers to its Totally Free Internet Service. At its current growth rate, BlueLight.com is poised to be the second largest branded ISP in North America by year's end.

About Art Technology Group

Art Technology Group, Inc. ("ATG") (Nasdaq: ARTG) is a leading provider of Internet customer relationship management and electronic commerce products and services. ATG offers an integrated suite of Java application server-based products and services, as well as related application development, integration and support services. ATG's Dynamo(R) Product Suite enables Global 1000 enterprises, as well as new businesses using the Internet as their primary business channel, to understand, manage and build their online customer relationships and to more effectively market, sell and support their products and services over the Internet.

The Dynamo solution is designed to provide businesses with the core platform and software tools required to develop and deploy personalized, scalable and reliable e-commerce Web sites. Dynamo is licensed to over 300 customers including: 3M, BabyCenter, BMG Direct, Eastman Kodak, Informix, John Hancock Funds, Inc., Network Solutions, Scudder Kemper Investments, Sun Microsystems and TheStreet.com. The Company is headquartered in Cambridge, MA with additional locations throughout the U.S. and in Europe.

Dynamo is a registered trademark of Art Technology Group.

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 prospectus and in 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 Bluelight.com web site will not function properly, either now or in the future; that end user customers will encounter difficulties in using or accessing the web site; unrealistic customer expectations; and the costs and risks associated with intellectual property infringement and litigation. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.