"We are delighted that the industry is moving in a direction that is core to our vision of integration and automation," said EmailLabs CEO Dave Sousa. "In partnering with an industry-leading company like WebSideStory, we're utilizing our open API technology platform to drive our value proposition and offer next-generation marketing integration."

WebSideStory's HBX is an on-demand analysis and reporting service that delivers real-time information about online visitor and customer behavior. Under the partnership, EmailLabs will join WebSideStory's STREAM API (application programming interface) program, which enables strategic partners to integrate their products, services and data with WebSideStory's award-winning analytics reporting. By coupling EmailLabs' email marketing metrics with WebSideStory's visitor behavioral information, the partnership takes email marketing to the next level by enabling companies to gain invaluable insight into the overall effectiveness of their efforts.

Marketers are able to target email campaigns on an individual level more easily -- through segmentation and personalization -- based on an email subscriber's/site visitor's past behavior. For example, if one consumer typically ends up purchasing an item as a result of specific promotions, while another only tends to browse, but not buy; they can be sent different emails. Or if a customer abandons a shopping cart that action can trigger an email a few days later to the subscriber offering free shipping or a discount on the product or similar product that was not purchased.

"While email marketing is arguably the most measurable of all marketing vehicles, tying email and Web behavior data together enables marketers to greatly increase email personalization and segmentation and improve the ROI of their marketing efforts," said Jay McCarthy, VP of Business Development of WebSideStory. "Our alliance with EmailLabs allows our mutual clients to more easily leverage the combined behavior data from both email and Web site activity."

EmailLabs API Platform: The Key to Future Automation and Integration

EmailLabs provides its API as a Web service enabling both partner companies and clients to take advantage of automated programming tools to develop and deploy new applications. The API layer is an application that enables each task within the EmailLabs system to be automated, without human intervention. By leveraging its API technology platform to integrate and automate marketing-oriented applications including Web analytics, call center and customer relationship management (CRM) systems, client databases and sales force automation (SFA), EmailLabs is positioned to become the email marketing technology standard.

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 our customers on demand. WebSideStory's customers can make more effective marketing decisions and improve the merchandising, sales, support and design of their Web 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. 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 limited experience in an emerging market with unproven business and technology models; WebSideStory's reliance on its Web analytics services for the majority of its revenue; 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; 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 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.