ATG Acquires InstantService, Strengthening Leadership in Growing Live Help Market

CAMBRIDGE, Mass. - January 12, 2010 - ATG (Art Technology Group Inc., NASDAQ: ARTG), the premier provider of commerce solutions, today announced that it has acquired Seattle-based InstantService, a leading provider of live chat services, for $17.0 million in cash. The acquisition is not expected to have a material impact on ATG's non-GAAP earnings* in 2010.

The acquisition strengthens ATG's leadership in the live help market by adding InstantService's 300 customers to ATG's existing base of 900 commerce platform and optimization services customers. It also creates immediate business opportunities for ATG's growing line of optimization services and market-leading ATG Commerce Suite.

"InstantService has earned a stellar reputation for enabling its clients to proactively engage their online customers to increase sales, reduce costs, and improve customer service, making its solutions an excellent fit for ATG's expanding line of optimization services," said Bob Burke, ATG's president and CEO. "We are committed to continuing the excellent service InstantService's customers have come to expect, and to delivering additional value to both InstantService's and ATG's customer bases as we integrate our solutions and operations."

InstantService contributes innovative technology to ATG, including a rich chat agent console with a unique tabbed interface; integrated email response management and FAQ capabilities; open, flexible APIs for integrating with existing systems including pre-built data integration with Salesforce.com and IEX; and a new, mobile chat solution to help capture the emerging market for live help on mobile devices. ATG will also benefit from the addition of an expert development and delivery team with more than 10 years of experience in live help and business optimization.

By joining ATG, InstantService gains access to ATG's extensive e-commerce expertise, a renowned product and technology organization, and worldwide sales, marketing, and services teams to accelerate innovation and adoption of InstantService's live chat and email response management solutions. This allows InstantService to enhance and extend the excellent service and technology leadership that it has provided for more than a decade.

"Live help technology has become a must-have for companies that create engaging and satisfying online customer experiences. We're proud that InstantService's chat and other customer service solutions have long excelled in helping businesses maximize the value of each and every online interaction," said Mike Lande, InstantService CEO. "Now we're thrilled to be joining ATG, with its global commerce expertise, market leadership, and breadth of resources to accelerate our continued growth and vision."

The Continued Growth of Live Chat

The timing of ATG's acquisition of InstantService reflects the increased market adoption of chat and other interactive functions to better engage customers and increase sales. In a March, 2009 report entitled "Best Practices: Implementing Online Chat," Forrester Research vice president and principal analyst Chip Gliedman noted, "Text-based chat can bridge the gap between pure Web self-service and telephone-based interactions. As such, it provides a way to engage a customer or prospect before they abandon a purchase or when they have problems solving their own customer service issue. Customers who engage with a customer service agent through interactive chat while on a company's Web site have longer than average sessions, higher conversion rates, and increased customer satisfaction."

About InstantService

InstantService is a leading SaaS provider of customer communication technologies for online businesses and contact centers. InstantService offers an integrated suite of live chat, e-mail management, knowledge base, Web site analytics and lead capture solutions to increase sales and enhance customer service. InstantService hosted software application easily integrates with existing ecommerce and CRM systems, facilitating valuable relationships between companies and their customers - the first step of customer relationship management. Over 300 companies trust InstantService's scalability, security, and performance including Charter Communications, VeriSign, H&R Block, Spiegel, Intuit, McAfee, US Airways and DISH Network. For more information, visit www.instantservice.com.

About ATG

A trusted, global specialist in e-commerce, ATG (Art Technology Group, Inc., NASDAQ: ARTG) has spent the last decade focused on helping the world's premier brands maximize the success of their online businesses. ATG Commerce is the commerce platform and business user application solution top-rated by industry analysts for powering highly personalized, efficient and effective e-commerce sites. ATG's platform-neutral optimization services can be easily added to any Web site to increase conversions and reduce abandonment. These services include ATG Recommendations and ATG's live help services, including ATG eStara Click to Call, and Click to Chat. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America and Europe. For more information, please visit http://www.atg.com.

2010 Art Technology Group, Inc. ATG and Art Technology Group are registered trademarks. 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 its periodic reports and registration statements filed with the Securities and Exchange Commission at www.sec.gov.

* In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), ATG has historically provided additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). Recent legislative and regulatory changes discourage the use of and emphasis on non-GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. We believe that the non-GAAP financial metric we mentioned is useful to management and investors because it provides additional insight into our operations as well as helps us assess and monitor developments in our business. Set forth below is the definition of the non-GAAP term we used and explanation of some of the benefits provided by this metric.

ATG defines non-GAAP earnings as net income before amortization of intangible assets, equity-related compensation, restructuring charges/benefits, utilization of tax NOLs/credits and release of the deferred tax asset valuation allowance. ATG considers non-GAAP earnings to be another important indicator of the overall performance of the Company because it eliminates the effects of events that are either not part of the Company's core operations or are non-cash.

Tucker Walsh
ATG
+1.617.386.1159
twalsh@atg.com