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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;i&gt;Merger Agreement with Oracle (Non-recognized subsequent event)&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On November&amp;#160;2, 2010, ATG, Oracle Corporation, a Delaware corporation (&amp;#8220;Oracle&amp;#8221;), and Amsterdam
   Acquisition Sub Corporation, a Delaware corporation and wholly-owned subsidiary of Oracle (&amp;#8220;Merger
   Sub&amp;#8221;), entered into an Agreement and Plan of Merger (the &amp;#8220;Merger Agreement&amp;#8221;), pursuant to which,
   subject to satisfaction or waiver of the conditions therein, Merger
   Sub will merge with and into ATG (the &amp;#8220;Merger&amp;#8221;) with ATG surviving as a wholly-owned
   subsidiary of Oracle. A description of the Merger Agreement is contained in the Company&amp;#8217;s Current
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   attached thereto as Exhibit&amp;#160;2.1.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On November&amp;#160;4, 2010, a putative shareholder class action lawsuit was filed in the Court of
   Chancery in the State of Delaware in and for New Castle County (Cronenwett v. Art Technology Group,
   Inc. et al) naming the Company and its directors, as well as Oracle Corporation and its
   wholly-owned subsidiary Amsterdam Acquisition Sub Corporation, as defendants. The complaint seeks
   to enjoin the proposed acquisition of the Company by Oracle Corporation and alleges claims for
   breach of fiduciary duty against the Company&amp;#8217;s directors and for aiding and abetting a breach of
   fiduciary duty against Oracle Corporation and Amsterdam Acquisition Sub Corporation. The complaint
   generally alleges that the consideration offered in the proposed transaction is unfair and
   inadequate. The Company intends to defend this case vigorously. There can be no assurance,
   however, that the Company will be successful in its defense of this action. It is not known when or
   on what basis the action will be resolved.
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