Bookspan Taps ATG Consumer Commerce Suite to Increase Value to 10 Million Club Customers and Expand Member Base.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 25, 2002

Leading Book Club Vendor Uses ATG Software to Create Common Infrastructure Needed to Unite 26 Unique Web Sites, Enhance Customer Offerings

ATG (Art Technology Group, Inc., Nasdaq: ARTG), the leading developer of online CRM applications for e-commerce, portals, and relationship management, today announced that Bookspan, a partnership between AOL Time Warner Inc.'s Book-of-the-Month-Club(R) and Bertelsmann AG's Doubleday Direct(R), selected the ATG Consumer Commerce Suite to unite its 26 book club Web sites and enhance the experience and value found among its substantial online customer base. By more effectively integrating these sites and, ultimately, running ATG e-business scenarios that mimic the promotional marketing campaigns offered to its offline subscriber base, Bookspan will provide its growing online customer base with greater value than ever before through wider product selection, community and competitive pricing.

Bookspan provides its 10 million members with online access to 26 separate book clubs, including the popular Book-of-the-Month Club, Literary Guild and Doubleday Book Club. Prior to working with ATG, each of these clubs had its own Web site running on one of four different IT platforms, with limited capacity to interact with sister clubs. Bookspan wanted to integrate the disparate club Web sites onto one standard technology platform that would reduce maintenance costs and increase integration across its online clubs. Additionally, the company wanted easy integration into Bookspan's legacy backend finance, distribution and customer care solutions - and found the flexibility of ATG's offering ideally suited for this task.

After a broad review of competing technology vendors, Bookspan said it selected the ATG Consumer Commerce Suite for its family of Web sites because of its rich capabilities, reliability and Scenario Personalization(TM), as well as ATG's commitment to the implementation process. "The power of ATG's scenarios and ATG Control Center struck us as the way to go for the future," said Bryan Ellis, vice president of platform and business development at Bookspan. "ATG's technology gives us a compelling way to empower marketers and editors to run their brands with a common technology core."

Bookspan also chose ATG for its ability to keep pace with a highly aggressive rollout schedule. Having integrated 10 sites in Q4 2001, Bookspan expects to integrate all of the clubs by April 2002. "We consider this to be an incredibly aggressive, complex roll-out and it's gone very well," Mr. Ellis said. "ATG's efforts to help us meet our objective - 26 sites integrating into two mainframe back-end systems, while supporting a business with several hundred thousand customers relying on the Internet to do business - have been impressive."

e-Business Scenarios Replicate Offline Marketing Successes

Bookspan's decision to implement ATG Scenario Personalization(TM) across its clubs will help the company to replicate online the core marketing components it has offered its offline customers for decades. "Given that our customers respond well to discounts and promotions on books and other publications, we anticipate that ATG Scenario Personalization(TM) will allow certain members to receive certain discounts, allow us to test groups to determine their interest in various promotion concepts, and will generally allow us to take advantage of this highly powerful marketing engine," said Mr. Ellis. "Furthermore, we can create and distribute these templates to the site marketers at each of our clubs so they can implement them independently in a way that works most appropriately for their customer base."

For more than 50 years, the book clubs have been known for effective offline marketing and promotional campaigns. These campaigns are driven by powerful back-end distribution and fulfillment systems that handle all offline customer orders and requests, by phone or mail. Now, with the ATG Consumer Commerce Suite providing a frontline, customer-facing system integrated with Bookspan's robust, back-end systems, customers will immediately know if their requests are in stock, and they will have a smoother purchasing experience, since backend updates to inventory will be more timely and accurate.

"Bookspan recognized a need to deliver an enhanced customer experience online, acknowledging it was critical to bring together the complete power of their distributed book vendor network in order to stay competitive," said Paul Shorthose, CEO and president of ATG. "In addition to replicating many of its highly successful offline marketing initiatives, ATG's Scenario Personalization(TM) will provide greater insight into customer purchasing history and content preferences to create a more relevant experience and build stronger customer relationships."

About Bookspan

BOOKSPAN(R) is the premier direct marketer of general interest and specialty book clubs. With more than 10 million members, its book clubs include Library of Computer & Information Sciences(R), Computer Books Direct(TM), Book-of-the-Month Club(R), Computer Graphics and Animation Book Club(TM), The Literary Guild(R), Quality Paperback Book Club(R), Doubleday Book Club(R), and more than 30 others. Created in March 2000, BOOKSPAN is a partnership between Doubleday Direct, Inc. (owned by Bertelsmann AG) and Book-of-the-Month Club Holdings LLC (owned by AOL Time Warner).

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, 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 Art Technology Group, Inc. ATG, Art Technology Group, the Techmark, the ATG Logo, and Dynamo are registered trademarks, and Personalization Server and Scenario Server are trademarks, of Art Technology Group, Inc. All other trademarks are the property of their respective holders. NASDAQ:ARTG

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 its 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 significantly enhance the user's Internet experience or be able to accommodate increased user volume; that customers will not be able to increase the speed of their deployment; that the customer will not implement the features identified in this article; that these features will not be supported in the future; and the costs and risks associated with intellectual property claims by third parties. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.