6/01/06

WebSideStory Launches Active Marketing Suite in Europe to Help Enterprises Capitalise on Growth in Online Marketing

Paul Demery , Managing Editor, B2B E-commerce

On-Demand Suite Best Suited to Help European Marketers Profit From Surging Growth in E-Commerce, Search Engine Marketing, Broadband Usage

LONDON, June 1 -- WebSideStory (NASDAQ: WSSI), a leading provider of on-demand digital marketing and real-time enterprise analytics solutions, today announced the launch of its Active Marketing Suite in Europe to help enterprises capitalise on the surging growth in online marketing. The Active Marketing Suite is the industry`s first suite of integrated, on-demand digital marketing applications, including web analytics, site search, keyword bid management and web content management.

The suite enables marketers to optimise a broader range of online initiatives than any stand-alone web analytics product, as well as unlock the powerful synergies that exist between applications such as web analytics and site search. For example, in April, Brooks Brothers, America`s oldest clothing retailer, reported a 25 percent up tick in online sales via site search by using web site behavioural data to automatically drive site search relevancy.

"With the tremendous growth in online marketing, stand-alone web analytics products are no longer sufficient to gain a competitive advantage," said Phil Wainewright, a prominent ZDNet columnist and one of the leading authorities on the software-as-a-service, or on-demand, business model. "Today`s marketers are being challenged to optimise a much broader range of initiatives than ever before. The Active Marketing Suite fills that need by providing an integrated suite of applications, including web analytics, site search, keyword bid management and web content management. I am constantly amazed at the remarkable business results WebSideStory`s customers achieve and their enthusiasm for WebSideStory`s products."

There are currently more than 1,300 enterprise customers worldwide using one or more components of the Active Marketing Suite. Guardian Newspapers Ltd. has been using WebSideStory`s award-winning web analytics solution, HBX Analytics, for more than a year to drive the success of its website, Guardian Unlimited (www.guardian.co.uk). Guardian chose HBX after an extensive review of several major web analytics vendors.

"WebSideStory gives us the ability to track activity on our website in real time, as well as deliver comprehensive analysis and reporting," said Nik Silver, Development Manager at Guardian Unlimited. "This helps us to keep learning about our target audience and improve their experience. It is important for us to keep looking at the new applications that WebSideStory produces because there are always areas we can innovate, both for us and for our community."

Launched in the U.S. last year, the Active Marketing Suite contains a number of industry first and patent-pending capabilities, from integrating site search and web analytics, to providing streaming media and mobile content tracking as standard offerings. This innovation is crucial as the online marketing industry in Europe continues to grow at a rapid pace. According to JupiterResearch, online retail spending in Europe is expected to more than double in the next five years, from euro 57.9 billion in 2006 to euro 117.1 billion in 2010 (JupiterResearch, European Online Retail Forecast, 2005-2010, December 9th, 2005). Online advertising, search engine marketing, and mobile and broadband usage are also expected to soar.

Notes to Editors

The Active Marketing Suite is built upon WebSideStory`s Stream Integration Platform, which includes the industry`s most comprehensive suite of documented APIs (application programming interfaces). The integration platform enables strategic partners and customers to leverage the company`s massive data collection platform, creating a powerful marketing eco-system. The components of the Active Marketing Suite include:

- HBX Analytics - An award-winning, on-demand web analytics solution that provides real-time insight into online vvisitor and customer behavior Major enterprise customers worldwide use HBX Analytics to improve campaign performance, increase conversions, monetize content and reduce customer support costs

- WebSideStory Search - The leading on-demand site search solution, WebSideStory Search quickly and easily guides online visitors to the information, products and services they seek. WebSideStory Search is tightly integrated with HBX Analytics and transforms the search box on a web site into a highly strategic business application

- WebSideStory Bid - A powerful keyword bid management solution that enables search engine marketers to measure and manage thousands of keywords per account. WebSideStory Bid is tightly integrated with HBX Analytics to provide unparalleled conversion and ROI tracking across pay-per-click outlets

- WebSideStory Publish - An on-demand web content management solution that enables marketers and other content owners to update web site content themselves without having to burden valuable IT resources

For more information, please visit www.websidestory.com

About WebSideStory, Inc.

Founded in 1996, WebSideStory, Inc. is a leading provider of on-demand digital marketing and real-time enterprise analytics solutions that improve online marketing, sales and business operations. Its Active Marketing Suite(TM) consists of web analytics, site search, web content management, and keyword bid management. WebSideStory also provides enterprise analytics solutions through its wholly owned subsidiary, Visual Sciences, LLC, a leading provider of streaming data analysis and visualization software. WebSideStory is headquartered in San Diego, California, and has European headquarters in Amsterdam, The Netherlands. To contact WebSideStory in Amsterdam: Voice:+31-0-23-554-10-10. Fax: +31-0-23-554-10-11. Address: Neptunusstraat 23, 2132 JA Hoofddorp, Netherlands. To contact WebSideStory in the U.K.:Voice: +44-0-207-917-6280. Fax: +44-0-207-917-6281. Address: 212 Piccadilly, London, W1J9HG. Web site: www.WebSideStory.com. HBX and Active Marketing Suite are trademarks and WebSideStory is a registered trademark of WebSideStory. Visual Sciences is a registered trademark of Visual Sciences,LLC. Other trademarks belong to their respective owners.

Forward-Looking Statements

Statements in this press release that are not a description of historical facts are forward-looking statements. You should not regard any forward-looking statement as a representation by WebSideStory that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in WebSideStory`s business, including, without limitation: WebSideStory`s reliance on its web analytics services for the majority of its revenue; blocking or erasing of cookies or limitations on our ability to use cookies; WebSideStory`s limited experience with digital marketing applications beyond web analytics; the risks associated with integrating the operations and products of Avivo Corporation and Visual Sciences, LLC with those of WebSideStory; privacy concerns and laws or other domestic or foreign regulations that may subject WebSideStory to litigation or limit our ability to collect and use Internet user information; WebSideStory`s ability to defend itself against claims of patent infringement alleged by NetRatings, Inc.; WebSideStory`s ongoing ability to protect its own intellectual property rights and to avoid violating the intellectual property rights of third parties; the highly competitive markets in which we operate that could make it difficult for WebSideStory to acquire and retain customers; the risk that WebSideStory`s customers fail to renew their agreements; WebSideStory`s recent achievement of profitability and the risk that it may not maintain its profitability; the risks associated with the company`s indebtedness; the risk that WebSideStory`s services may become obsolete in a market with rapidly changing technology and industry standards; and other risks described in WebSideStory`s Securities and Exchange Commission filings, including WebSideStory`s annual report on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q. Do not place undue reliance on these forward-looking statements which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by this cautionary statement, and WebSideStory undertakes no obligation to revise or update this news release to reflect events or circumstances after the date of this news release.

Topics:

Analytics, business, Data analysis, HBX, WebSideStory

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