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ATG And IBM Sign Marketing and Technology Agreement.

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CAMBRIDGE, Mass., & SOMERS, N.Y.--(BUSINESS WIRE)--July 14, 2003

ATG and IBM Team to Pre-Integrate ATG Commerce and Self-Service Applications With IBM's WebSphere Platform

ATG (Art Technology Group, Nasdaq: ARTG), a leading provider of innovative software applications for commerce and customer self-service, and IBM (NYSE: IBM) today announced a relationship that enables ATG to OEM IBM's WebSphere Internet infrastructure software as part of its packaged solution offerings.

Under the agreement, ATG's products will be enhanced to pre-integrate with WebSphere Application Server (WAS), WebSphere Studio development tools and WebSphere MQ application integration software. While ATG will offer an OEM bundle exclusively based on WebSphere, the company plans to continue to support application servers made by other vendors, including its own ATG Dynamo Application Server (DAS).

The ATG-IBM relationship consists of three components that benefit customers:

-- ATG will OEM, optimize for and pre-integrate with the

WebSphere Application Server with ATG's consumer-facing

applications. Over the next 12 to 18 months, ATG plans to

broaden the optimization and integration efforts to include

ATG integration with WebSphere Studio developer tools and the

MQ family of enterprise application integration products.

-- ATG will be able to provide customers with the option for a

single point of purchase, implementation, support and

accountability for the OEM solution.

-- For ATG Dynamo Application Server customers electing to

transition to the OEM solution, ATG will provide an attractive

license exchange program.

The combined ATG and IBM offering leverages IBM's industry-leading Internet infrastructure software, while allowing ATG to deliver robust consumer facing applications that improve the overall online consumer experience.

"This new relationship with IBM enables us to better serve our customer's needs going forward," said Bob Burke, president and CEO of ATG. "In teaming with IBM, we are able to provide our customers with world class commerce and self-service applications deployed on a widely adopted, world class infrastructure and development environment."

Dynamo Application Server customers now have enhanced choice when it comes to selecting an IT infrastructure. DAS customers may choose to continue using DAS, or alternatively, these customers may wish to consider moving to the IBM WebSphere Application Server-based OEM product. Over time, the advantage of doing so will increase significantly as ATG tightly pre-integrates its applications with the broader WebSphere platform.

The IBM/ATG relationship provides unique value for both business and IT groups in leading customer facing organizations:

Value to Business Management

With this solution, customers will be able to deploy even faster and more flexible Web-based commerce and self-service applications aimed at increasing revenue and decreasing costs.

By integrating with IBM's powerful tools and server infrastructure, ATG's products will become less expensive to develop, deploy, and operate. ATG customers will be able to create more complete solutions by integrating ATG products with the wide range of applications already available on the WebSphere platform, saving the expense and avoiding the potential complexity of making multiple platforms work together.

"Working with companies like ATG to provide applications built on IBM WebSphere software is a key part of our commitment to deliver leading-edge e-business solutions," said John Swainson, general manager, IBM Application and Integration Middleware. "We're delighted by our new relationship with ATG and how it will help customers achieve technical advantage with low cost of ownership."

Many blue-chip ATG customers plan to run ATG applications based on the WebSphere platform, including Conseco Insurance, Kaiser, and DZ Bank.

As a customer of both ATG and IBM, Conseco praised the alliance that brings the strengths of these organizations together to help Conseco meet its business objectives.

"At Conseco, we are deploying ATG software to help strengthen our technology support for our distribution partners, our customers and our internal associates," said Gary Brown, chief information officer, Conseco. "Running ATG applications that are integrated with IBM's WebSphere infrastructure is a natural fit for us; a combination where we can leverage the strengths of both and reduce our total cost of ownership. This marketing and technology agreement will help us to streamline and simplify our infrastructure and use the integrated technology of both organizations to meet the growth objectives of Conseco."

Value to Information Technology Management

The ATG-IBM relationship enhances support for current ATG installations far into the future. For current customers who are interested in migrating to the OEM product, ATG will offer a cost effective transition program.

As ATG develops new commerce, self-service, and portal applications, each new version can benefit from enhancements to IBM's WebSphere Application Server and related technologies, including support for new server hardware and operating system upgrades that offer better performance and scalability. All of this can mean faster deployment of new applications and lower total cost of ownership.

Value to Developers

Developers can build Web-based commerce and self-service applications that are more closely suited to user requirements in less time, with less effort, and with greatly improved user interface consistency. They will be able to seamlessly customize ATG's out-of-box functionality using IBM's outstanding WebSphere Studio development tools. IBM and ATG will continue to embrace standards to provide maximum compatibility among products.

"We are working with IBM because they are the clear market leader in open, J2EE-based infrastructure technology and they offer unequaled market presence," said Burke. "ATG will continue its focus on its core mission: to create the most compelling, productive, and profitable online customer experience possible."

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit

About ATG

ATG (Art Technology Group, Inc.) is a leading provider of innovative software applications for commerce and customer self-service. 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.

ATG has delivered e-business solutions to blue-chip companies worldwide including Aetna Services, Inc., Alcatel, American Airlines, Barclays Global Investors, Best Buy, BMG Direct, Eastman Kodak, Ford Motor Credit, HSBC, J. Crew, Sun Microsystems, Walgreen Company, and Wells Fargo. 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

(C) 2003 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 Risk factors related to the subject matter of this press release include the possibility that the OEM product deployment will not be successful, on time or significantly enhance the user's Internet experience or handle user volumes; that those customers leveraging the OEM product 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; the possibility that the relationship with IBM will not continue; the possibility that ATG will not continue to support or market certain ATG or third party products; that the relationship will not bring added value to developers; that ATG may alter its product pricing; 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.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 14, 2003
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