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Press Releases Thursday, March 3, 2005   
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ATG ANNOUNCES ATG ON-DEMAND - APPLICATION HOSTING AND MANAGED SERVICES COMBINE ADVANTAGES OF LICENSED SOFTWARE AND SAAS MODEL

Flexible Delivery Options Include Full Range of Application Hosting and Managed Services as a Sole Source Provider, Accelerating the Time-to-Benefit; ATG Positioned to Capture Share of Growing Hosted Software as a Service (SAAS) Market

CAMBRIDGE, Mass., March, 1, 2005 – ATG (Art Technology Group, Inc., NASDAQ: ARTG), the software provider behind the most consistent and relevant marketing, commerce, and customer service experiences today announced ATG On-Demand, a suite of application hosting services that provide ATG customers with unprecedented flexibility, convenience, and performance. ATG On-Demand delivers ATG’s award-winning e-marketing, e-commerce, and e-service solutions via application hosting and managed services, enabling customers to reap the benefits of an application service provider (ASP) model without traditional limitations on customization, integration, and security.

“The application hosting model offers significant benefits for companies looking to reduce overhead, increase competitiveness, and focus on core competencies,” said Bob Burke, president and chief executive officer, ATG. “There are a number of critical advantages to Application Hosting including accelerated implementation timelines and faster time-to-benefit, lower up-front cost, predictable ongoing expense, reduced IT overhead, and ease of installation, updates, and maintenance. With ATG On-Demand, ATG is positioned to capture a share of this global market that has a projected continued growth rate that exceeds 26 percent annually, from, 2.1 billion in 2002 to $8.1 billion by 2007 (source: IDC).”

“Prior to the ATG acquisition, Primus had been a sole source provider with dedicated hosting staff from an e-service standpoint, and we’ve seen the many benefits that come from this offering,” said John Overton, director of hosting, ATG. “We look forward to leveraging our extensive experience as we extend this strategy to our ATG e-marketing and e-commerce offerings.”

Historically, hosted applications have been perceived as difficult to integrate with other enterprise applications. Limited customization options and security risks have also been concerns. ATG On-Demand addresses these concerns with a collection of dedicated service options for accelerated performance and secure integration with local enterprise applications. Complete customization and tuning services are provided by our staff of ATG application experts. Additional offerings include uptime guarantees of up to 99.9 percent, and optional dedicated servers / databases – to ensure security, integrity, and data privacy.

ATG is a sole source provider with a dedicated hosting staff and co-location nodes in the Eastern U.S., the Western U.S. and the United Kingdom; providing global reach, global site failover, and 24x7 monitoring. ATG employees provide systems management, maintenance and support, customization, and optimization services.

ATG offers the entire range of licensed and hosted delivery models, giving buyers the flexibility to select the approach that best meets their needs, with the security of knowing they may switch models if their business requirements change. ATG’s solutions for e-marketing, e-commerce, contact centers, help desks, Web self-service, and electronic communication channels will be available via the following software delivery models:
• ATG Hosted – for customers who want the convenience and rapid deployment of software-as-a-service
• Licensed – for customers who prefer to install and run the software in their own data center
• ATG Hosted-to-On Premise – for customers who want an accelerated deployment with low initial capital outlay, then transition to an on-premise installation on their own timetable
• Licensed-to-ATG Hosted – for customers who need to re-deploy from on-premise to a hosted model

Both subscription services (pay-as-you-go) and perpetual licenses are available.

Companies such as AT&T Wireless, Washington Mutual, Symantec, and Airbus have deployed their solutions using ATG On-Demand hosting and managed services. ATG hosting services accelerates the deployment of any ATG software solution, with implementation in as little as two weeks. ATG Application Hosting services uses a tailored and highly customized approach to provide every customer with an uncompromising solution to meet the myriad of business needs in today’s enterprise environments, and an ultimate reduction of overall operating costs.

For more information on ATG application hosting services, go to: http://www.atg.com/en/support_services/hosting.jhtml

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 throughout the lifecycle of marketing, commerce, and customer service, and across the Web, e-mail and call centers. ATG has delivered category-leading e-business solutions to many of the world`s best known brands including A&E Networks, American Airlines, AT&T Wireless, Best Buy, France Telecom, Friends Provident, Hewlett-Packard, InterContinental Hotels Group, Kingfisher, Merrill Lynch, Neiman Marcus, Philips, Procter & Gamble, Target, US Army, US Federal Aviation Administration, Warner Music, 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 www.atg.com.

 2005 Art Technology Group, Inc. ATG and Art Technology Group are registered trademarks of Art Technology Group, Inc., and ATG Adaptive Customer Outreach ATG Adaptive Customer Assistance are its service marks. 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 handle user volumes; 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; that the hosting market will not grow or grow at the projected rates; 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.

CONTACT:
Tucker Walsh
617/386-1159
twalsh@atg.com

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