2/18/03

ATG AMPLIFIES ONLINE SALES FOR FYE.COM

Kurt Peters , Executive Editor

McFadyen Consulting implements ATG Commerce to help FYE Target Customer Purchasing Behavior and Tailor Promotions to Online and Retail Store Customers

CAMBRIDGE, Mass., February 18, 2003 - ATG (Art Technology Group, Inc., Nasdaq: ARTG), a leading developer of online marketing, sales, and service applications, and McFadyen Consulting today announced that Trans World Entertainment Company the parent company of FYE (for your entertainment), has successfully re-launched fye.com on ATG Commerce.

FYE is the mall brand of Trans World Entertainment Corporation . The fye.com site sells music, movies and games, and has 660 stores in malls across the country. fye.com was launched in October 2001 to provide FYE brand customers a cross-channel shopping experience.

With ATG Commerce, fye.com has enhanced site functionality especially in capturing customer data, a function fye.com`s previous application did not provide. In addition, with ATG`s Scenario PersonalizationSM functionality, FYE has been able to target consumers with promotions and special offers based on previous purchasing and online shopping behaviors and preferences. Other aspects of the new site have helped drive customers into physical store locations, and boost customer conversion acquisition rates. Since the re-launch of the site on ATG, fye.com sales have increased considerably.

"The ability to truly identify our customers and their buying patterns is critical to the success of fye.com," said Mark Hogan, vice president of marketing for Trans World Entertainment Corporation. "ATG has helped us increase our customer conversion rates. We feel that the strong personalization capabilities behind ATG`s software have contributed significantly to this achievement."

ATG has also enabled fye.com to dramatically increase its online product catalog. Currently, the site handles more than 600,000 skus with an anticipated 100,000 - 200,000 skus added to the product catalog over the course of the next year. Further, because of ATG`s unique ability to scale, fye.com is able to handle the 20,000 - 120,000 daily visitors to its site .

"The multi-channel commerce solution McFadyen Consulting built with fye.com has had a positive impact on the organization`s business model and provides a potential for revenue growth for FYE," explained Tom McFadyen, president, McFadyen Consulting. "Our business is all about creating this kind of success for our customers and we look forward to working with fye.com to continue to expand revenue-generating opportunities and generate real business benefits from ATG-based solutions."

"The FYE.com project is a perfect example of the successes ATG has allowed online retailers to achieve because of its flexibility, out of the box," said Victor Cheng, senior director of product marketing, ATG. "It was critical for fye.com to be able to scale its site to accommodate its vast product catalog, and they were able to do it seamlessly with ATG. Our Scenario Personalization will also provide fye.com the competitive edge it needs in the marketplace by allowing it to target its customers with offers that align with their personal entertainment preferences to drive sales in both the online and offline channels."

About TWEC

FYE - for your entertainment - the mall brand of Trans World Entertainment (Nasdaq: TWMC), is a leading specialty retailer of music, movies, games and more. Trans World operates 886 retail stores, including 650 mall-based FYE locations, in 46 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and an online store at www.fye.com .

About McFadyen Consulting

McFadyen Consulting (www.mcfadyen.com) has completed more than 100 large-scale IT implementations over the past 15 years for a prestigious client list, including several dozen of the Fortune 500. The organization combines industry best practice experience, strong project management, technology expertise, and visionary strategy to create market leadership and solve critical business needs for clients. Expertise includes eLearning, eCommerce, portals, web content management, online relationship management (B2C, B2B, B2E), and ERP integration. McFadyen Consulting is one of ATG`s earliest partners, has the largest number of certified consultants of any partner, and has successfully completed more than 40 ATG implementations. McFadyen founded and manages the ATG Users Group (ATG-UG) which has over 3000 members worldwide. ATG-UG`s web presence www.AtgUsersGroup.org , showcases ATG technology and offers case studies, news, events, resources and 6 message forums containing over 14,000 posts related specifically to ATG-centric topics.

About ATG

ATG (Art Technology Group, Inc.) is a leading developer of online marketing, sales, and service 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, Barclays Global Investors, Best Buy, 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 .

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* 2003. ATG and Art Technology Group are registered trademarks of Art Technology Group, Inc and Scenario Personalization is a service mark. 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 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 business generally may be found in 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 be successful, significantly enhance the user`s Internet experience or handle user volume; that Trans World Entertainment Corporation will not continue to use the products; that it will not maintain or enhance the customer`s brand; the need to adapt to rapid changes so products do not become obsolete; the possibility of errors in ATG`s software products; the risks and costs associated with intellectual property and other litigation; and the possibility that the solution will not make customer implementations faster and more flexible; handle or continue to handle current user volumes or scale to handle increased user volumes in the. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.

Topics:

ATG Stores, Electronic commerce, Information technology management, personalization, Trans World Entertainment

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