Hooked On Phonics Increases Online Revenue by 38% With ATG Consumer Commerce Suite; Personalization Capabilities Help Quadruple Number of Lead Captures Since Launch of New Site.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 12, 2002

ATG (Art Technology Group, Inc., Nasdaq: ARTG), the leading developer of online CRM applications for e-commerce, portals, and relationship management, today announced that Hooked on Phonics has successfully re-launched www.HOP.com using the ATG Consumer Commerce Suite. Since the re-launch last fall, Hooked on Phonics has seen dramatic results across the business, including a 38 percent increase in online revenue and a 70 percent increase in the closure rate of online sales.

Prior to using the ATG Consumer Commerce Suite, the Hooked on Phonics Web site was unable to effectively support growing rates of customer traffic. One of the reasons Hooked on Phonics executives chose the ATG Consumer Commerce Suite is its scalability. Since launch, the site has been able to support significantly higher rates of traffic, they have realized a 225 percent increase in memberships, and recognized increased revenue opportunities for the company.

"ATG provides the Hooked on Phonics site the performance, scalability, and reliability that the previous site was not delivering," said Avery Oldt, director of application development at Hooked on Phonics. "ATG enables Hooked on Phonics to deliver dynamic, personalized content that facilitates decision making and drives sales."

Using ATG's flexible architecture and built in features, Oldt's team completed a comprehensive re-launch of the site in just six weeks, providing Hooked on Phonics with the performance capabilities needed to realize success for this phase of their e-business strategy. The scalability and flexibility of the ATG framework provides Hooked on Phonics with the foundation necessary to continue to develop the site for an incremental realization of return on investment.

The personalization capabilities of the Commerce Suite allow Hooked on Phonics to manage customer relationships through various touch points. Personalization also allows Oldt's team to track and closely manage customer relationships through multiple phases of the customer lifecycle and to personalize marketing campaigns. As a result, Hooked on Phonics has quadrupled its number of lead captures since the new site launch.

"Hooked on Phonics was able to leverage their existing systems to lower their total cost of ownership while also adding new functionality," said Victor Cheng, senior director of the ATG's commerce product line. "Hooked on Phonics clearly demonstrates how the ATG Consumer Commerce Suite is ideally suited for increasing consumer sales."

About Hooked on Phonics and Gateway Learning Corporation

Gateway Learning Corporation is a creator, marketer, and distributor of children's educational products and programs for home and classroom use. Their flagship Hooked on Phonics(R) - a leading brand of reading programs - has been purchased by more than 2 million families and thousands of schools. According to a recent survey, Hooked on Phonics is the most recognized brand among companies that make educational products. Parents also recognize Hooked on Phonics as the #1 trusted name in teaching kids to read.

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, Best Buy, BMG Direct, Eastman Kodak, Ford Motor Credit, Hooked on Phonics, 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.

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 their 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 Hooked on Phonics 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; that customers will have unrealistic expectations about potential returns on their investments in ATG software; that personalization and commerce features will not be satisfactory to Hooked on Phonics; 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.