ATG Acquires InstantService, Strengthening Leadership in Growing Live Help Market

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CAMBRIDGE, Mass. - January 12, 2010-ATG(Art Technology Group Inc., NASDAQ: ARTG), the premierprovider ofcommerce solutions, todayannounced that it has acquired Seattle-based InstantService, a leading provider of

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, for $17.0 million in cash. The acquisition is not expected to have a materialimpact on ATG's non-GAAP earnings* in 2010.

The acquisition strengthens ATG's leadership in the live help market by addingInstantService's 300 customers to ATG's existing base of 900 commerce platform and optimizationservices customers. It also creates immediate business opportunities for ATG's growing line ofoptimization services and market-leadingATG CommerceSuite.

"InstantService has earned a stellar reputation for enabling its clients to proactivelyengage 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," saidBob Burke, ATG's president and CEO. "We are committed to continuing the excellent serviceInstantService's customers have come to expect, and to delivering additional value to bothInstantService's and ATG's customer bases as we integrate our solutions and operations."

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

By joining ATG, InstantService gains access to ATG's extensivee-commerceexpertise, a renowned product and technology organization, and worldwide sales, marketing, andservices teams to accelerate innovation and adoption of InstantService's live chat and emailresponse management solutions. This allows InstantService to enhance and extend the excellentservice 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 andsatisfying online customer experiences. We're proud that InstantService's chat and othercustomer service solutions have long excelled in helping businesses maximize the value of eachand every online interaction," said Mike Lande, InstantService CEO. "Now we're thrilled to bejoining ATG, with its global commerce expertise, market leadership, and breadth of resources toaccelerate our continued growth and vision."

The Continued Growth of Live Chat

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

About InstantService

InstantService is a leading SaaS provider of customer communication technologies for onlinebusinesses and contact centers. InstantService offers an integrated suite of live chat, e-mailmanagement, knowledge base, Web site analytics and lead capture solutions to increase sales andenhance customer service. InstantService hosted software application easily integrates withexisting ecommerce and CRM systems, facilitating valuable relationships between companies andtheir customers - the first step of customer relationship management. Over 300 companies trustInstantService's scalability, security, and performance including Charter Communications,VeriSign, H&R Block, Spiegel, Intuit, McAfee, US Airways and DISH Network. For moreinformation, visitwww.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 maximizethe success of their online businesses. ATG Commerce is the commerce platform and business userapplication solution top-rated by industry analysts for powering highly personalized, efficientand effectivee-commercesites. ATG's platform-neutral optimization services canbe easily added to any Web site to increase conversions and reduce abandonment. These servicesinclude ATG

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and ATG's live help services, including ATG eStara Click to Call, and Click to Chat. Thecompany is headquartered in Cambridge, Massachusetts, with additional locations throughoutNorth America and Europe. For more information, please visithttp://www.atg.com.

2010 Art Technology Group, Inc. ATG and Art Technology Group are registered trademarks. Allother product names, service marks, and trademarks mentioned herein are trademarks of theirrespective owners.

This press release contains forward-looking statements for purposes of the safe harborprovisions under The Private Securities Litigation Reform Act of 1995. These statements involveknown and unknown risks and uncertainties that may cause ATG's actual results, levels ofactivity, performance or achievements to be materially different from any future results,levels of activity, performance or achievements expressed or implied by such forward-lookingstatements. Important risk factors affecting ATG's business generally may be found in itsperiodic reports and registration statements filed with the Securities and Exchange Commissionatwww.sec.gov.

* In addition to providing financial measurements based on generally accepted accountingprinciples in the United States of America (GAAP), ATG has historically provided additionalfinancial metrics that are not prepared in accordance with GAAP (non-GAAP). Recent legislativeand regulatory changes discourage the use of and emphasis on non-GAAP financial metrics andrequire companies to explain why non-GAAP financial metrics are relevant to management andinvestors. We believe that the non-GAAP financial metric we mentioned is useful to managementand investors because it provides additional insight into our operations as well as helps usassess and monitor developments in our business. Set forth below is the definition of thenon-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/creditsand release of the deferred tax asset valuation allowance. ATG considers non-GAAP earnings tobe another important indicator of the overall performance of the Company because it eliminatesthe effects of events that are either not part of the Company's core operations or arenon-cash.

News Source : ATG Acquires InstantService, Strengthening Leadership in Growing Live Help Market