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WebSideStory Recognized As Market Leader in On-Demand Web Analytics

SAN DIEGO, CA (Mar. 11, 2005) — WebSideStory (www.websidestory.com) (Nasdaq: WSSI), today announced that IDC, the premier global market intelligence and advisory firm in the information technology and telecommunications industries, has recognized WebSideStory as the leading on-demand web analytics vendor based on revenue. In its latest market analysis, IDC said the web analytics market grew a healthy 13 percent in 2004 and is expected to grow to nearly $400 million by the end of 2008. Much of this growth, according to the report, is being fueled by the popularity of the on-demand delivery model, which WebSideStory helped pioneer in 1996. Earlier this month, WebSideStory announced record revenue of $22.6 million in 2004, a 38 percent increase over the previous year and tops among on-demand web analytics vendors according to the report.

In the report, entitled “Worldwide Web Analytics Software Applications 2005-2008 Forecast and Analysis: 2004 Shares and Current Outlook,” IDC notes that some web analytics companies are expanding their offerings and cited WebSideStory’s recent agreement to acquire Atomz, a leading provider of site search and web content management. WebSideStory announced the planned expansion of its offerings through the launch of the Active Marketing Suite, the industry’s first line of integrated, on-demand digital marketing applications. The suite will encompass web analytics, keyword bid management, site search and web content management.

About WebSideStory

WebSideStory is a leading provider of on-demand Web analytics services. WebSideStory's services collect data from Web browsers, process that data and deliver reports of online behavior to its customers on demand. More than 700 enterprise customers worldwide use WebSideStory's services to understand how Internet users respond to Web site design and content changes, online marketing campaigns and e-commerce offerings. With this information, they can make more effective marketing decisions and easily improve the merchandising, sales, support and design of their sites. For more information, contact WebSideStory, Inc. Voice: 858 546-0040. Fax: 858.546.0480. Address: 10182 Telesis Court , 6th Floor, San Diego , CA 92121. E-mail: wsspress@websidestory.com. web site: http://www.websidestory.com/. HBX is a trademark, and WebSideStory is a registered trademark of WebSideStory. 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. For example, statements about the anticipated synergies of WebSideStory's and Atomz's business, the projected future financial performance of Atomz's and WebSideStory's business, and plans and objectives of management are all 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. Such risks include, without limitation, WebSideStory's limited experience in an emerging market with unproven business and technology models, the risk of incurring higher than expected costs associated with integrating the operations of Atomz with those of WebSideStory, WebSideStory's reliance on its web analytics services for the majority of its revenue, the risk that the acquisition of Atomz may not occur or that sales of Atomz's services will not be as high as anticipated, WebSideStory's recent achievement of profitability and the risk that it may not maintain its profitability, the highly competitive markets in which WebSideStory operates that may make it difficult for the company to retain customers, the risk that WebSideStory's customers fail to renew their agreements or that Atomz's customers fail to renew their agreements following the acquisition, the risk that WebSideStory's services may become obsolete in a market with rapidly changing technology and industry standards, and the risk that WebSideStory may incur unanticipated or unknown losses or liabilities if we complete the acquisition of Atomz, as well as the other risks described in WebSideStory's filings with the Securities and Exchange Commission, including WebSideStory's prospectus dated September 27, 2004 and its form 10-Q for the quarter ended September 30, 2004. 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.

Published on: 12:00AM on 11th March 2005