Neiman Marcus Direct Extends Its Relationship with ATG to Expand and Grow e-Commerce Operations; Renowned Retailer to Upgrade ATG Commerce and Implement Several New Wisdom-enabled ATG Solutions.

CAMBRIDGE, Mass. -- ATG (Art Technology Group, Inc., NASDAQ: ARTG), whose technology powers outstanding e-commerce sites and corresponding e-marketing and customer service solutions, today announced that Neiman Marcus Direct, the direct-to-consumer division of the premier luxury retailer, Neiman Marcus Group, will significantly expand upon its relationship with ATG to deliver a more powerful, efficient and personalized e-commerce offering for its customers and personnel.

Neiman Marcus Direct, which conducts print, catalog and online operations under the Neiman Marcus, Horchow and Bergdorf Goodman brand names, will upgrade its ATG Commerce platform, while implementing several new ATG e-marketing and e-commerce products, including ATG Campaign Optimizer, ATG Content Administration, ATG Outreach (ATG's outbound email and proactive service product), ATG Response Management (ATG's email response product) and ATG Merchandising. These ATG Wisdom(TM)-enabled products will enable Neiman Marcus Direct to offer a more feature-rich, relevant and rewarding online experience for its customers, while streamlining its existing business processes to meet the rapid pace of today's dynamic e-commerce environment.

In 2001, Neiman Marcus implemented ATG Commerce, the company's comprehensive online selling solution, with the expectation that it would reach its projected online growth goal after five years of using the product. Instead, the company achieved their goals in just the second year following implementation. By expanding its Wisdom-enabled ATG product set, Neiman Marcus will take advantage of, among other capabilities, ATG's powerful, scalable personalization functionality to achieve unmatched awareness and control of their customers' experiences online. In addition, by implementing ATG Campaign Optimizer, a split market testing solution that lets business users assess Web site effectiveness in order to ensure that the site's browsers convert to buyers, the company will access a direct and flexible pipeline to its customers' preferences.

"Whether they're online shoppers or visitors to our stores, Neiman Marcus prides itself on understanding the characteristics and preferences of our unique and distinguished customers," said Jimmy Hale, vice president, Neiman Marcus Direct & Online Systems. "By expanding our use of ATG's products across a greater portion of the customer lifecycle, we will strengthen our relationships with our customers by creating a more compelling and rich experience for them online, complete with personalized content and shopping/purchasing recommendations. Further, the power of ATG technology will be placed in the business user's hands to make fast and informed changes, updates, and additions to the content and layout of the site. Neiman Marcus merchandisers will be able to continually improve and update the site based on information provided through the ATG solutions."

Traditionally, Neiman Marcus merchandisers wishing to make updates to the company's e-commerce site would work with internal IT teams, with requests taking weeks to complete. ATG Merchandising will give the company's merchandising professionals power and control over the merchandising process by enabling them to easily update and launch new catalog information and up-sell/cross-sell promotions - using a customized, dynamic workflow that ensures a smooth, efficient deployment process and maximizes online sales results.

"ATG's solutions will enable us to put the power of critical merchandising processes into the hands of our professional merchandising team," said Lindy Rawlinson, general manager, Web Stores for Neiman Marcus. "ATG technology will enable us to eliminate many of the redundant manual processes that tie up our company's resources and keep us from fully concentrating on our most important goal: providing our customers with superior merchandise and the hottest fashion trends available today."

"There are very few retail brands that are as synonymous with sophistication and style as Neiman Marcus and we are extremely proud to deliver the technology that reflects those characteristics to the online community," said Cliff Conneighton, senior vice president of marketing, ATG. "By expanding its use of ATG Wisdom-enabled products, Neiman Marcus is making a commitment to its customer base that it will offer the same personal service and customer knowledge in its online e-commerce that it offers in its stores. The power of ATG's technology will significantly enhance the speed and scope of Neiman Marcus' e-commerce capabilities, while providing greater visibility and control to more of the company's professionals."

ATG Wisdom is the alternative to the traditional silo-based approach to commerce, marketing and service/support offered by many vendors. Whether it's a request for information, service, or support, an online transaction or an outbound campaign, Wisdom's holistic, enterprise-wide approach to guiding customer interactions enables organizations to deliver the right mix of information, at the right time, using the preferred communications channel.

About The Neiman Marcus Group

For nearly a century, The Neiman Marcus Group has stayed focused on serving the unique needs of the luxury market. Today, that commitment is stronger than ever. We have stayed true to the principles of our founders - to be recognized as the premier luxury retailer dedicated to providing our customers with distinctive merchandise and superior service. The Neiman Marcus Group is comprised of the Specialty Retail stores division - which includes Neiman Marcus Stores and Bergdorf Goodman - and the Direct Marketing division, Neiman Marcus Direct. These renowned retailers offer upscale assortments of apparel, accessories, jewelry, beauty and decorative home products to the affluent consumer. The Company operates 35 Neiman Marcus Stores across the United States and two Bergdorf Goodman stores in Manhattan. The Company also operates seventeen Last Call clearance centers. These store operations total more than 5 million gross square feet. Neiman Marcus Direct, our direct-to-consumer business, conducts both print catalog and online operations under the Neiman Marcus, Horchow and Bergdorf Goodman brand names. Under the Neiman Marcus brand, Neiman Marcus Direct primarily offers women's apparel, accessories and home furnishings. Horchow offers quality home furnishings, linens, decorative accessories and tabletop items. The Company also owns majority interests in two designer resources: Kate Spade, a manufacturer of accessories, and Gurwitch Products, which manufactures Laura Mercier cosmetics.

About ATG

ATG (Art Technology Group, Inc., NASDAQ: ARTG) delivers innovative software to help high-end consumer-facing companies create a richer, more adaptive interactive experience for their customers and partners online and via other channels. ATG has delivered category-leading e-business solutions to many of the world's best-known brands including Best Buy, Kingfisher, Neiman Marcus, Target, Friends Provident, Merrill Lynch, Wells Fargo, A&E Networks, Warner Music, AT&T Wireless, France Telecom, Philips, Procter & Gamble, Hewlett-Packard, American Airlines, InterContinental Hotels Group, US Army, and US Federal Aviation Administration. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America, Europe, and Asia. For more information about ATG, please visit www.atg.com.

(c) 2006 Art Technology Group, Inc. ATG and Art Technology Group 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 their periodic reports and registration statements filed with the Securities and Exchange Commission at www.sec.gov . Risk factors related to the subject matter of this press release include the possibility that the ATG product deployment will not be successful, on time or significantly enhance the user's Internet experience or will not increase customer revenue across brands; that those customers leveraging ATG won't have the opportunity to increase revenue and decrease future costs; the need to adapt to rapid changes so products do not become obsolete; the possibility of errors in ATG's software products; the possibility that the solution will not make customer implementations faster or more flexible or permit the customer to meet its customer-facing or infrastructure requirements; that the ATG product will not continue to be integrated with third party applications servers or will not support all Web services enabled systems; that ATG's product strategy may change in the future; and the risks and costs of intellectual property litigation. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.