WebSideStory Positioned in Challengers Quadrant in 2006 Magic Quadrant for Information Access Technology

October 16, 2006; 07:44 AM

WebSideStory, Inc., a leading provider of digital marketing and analytics solutions, today announced that it has been positioned in the challengers quadrant of Gartner Research's Magic Quadrant for Information Access Technology, 2006(1), which was released on Oct. 6, 2006. With more than 350 enterprise customers for its site search application, WebSideStory is the largest on-demand site search vendor in the industry, and one of the largest site search vendors overall.

"We are proud to be positioned by Gartner given our strong focus on providing world-class on-demand site search technology," said Steve Kusmer, senior vice president and general manager of WebSideStory's Search and Content Solutions unit. "While other vendors are diverting their focus to markets other than site search, we continue to provide pioneering innovation that moves this market forward for the benefit of our customers."

In a related announcement today, WebSideStory announced that it has filed a U.S. patent application for its Active Browsing technology. Active Browsing, an extended service of WebSideStory Search, is the industry's first Ajax-enabled site search solution. It allows any e-commerce site to integrate one of Web 2.0's enabling technologies, Ajax (Asynchronous JavaScript and XML), into their product search results. The result is greatly enhanced speed and interactivity, and an improved customer shopping experience in which shoppers are able to engage in "clickless browsing" -- the ability to preview additional product facets and "more like this" categories just by rolling their mouse over specific search results. Earlier this year, WebSideStory filed a U.S. patent application covering its Active Ranking technology, which enables companies to automatically drive their site search results based on the full spectrum of web analytics data, such as conversion rates, site entry pages or most popular pages.

WebSideStory Search is part of the industry's first suite of integrated, on-demand digital marketing applications, including web analytics, site search, web content management and keyword bid management.

Please visit www.websidestory.com for more information.

(1) Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted Oct. 6, 2006, by Gartner, Inc., and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About WebSideStory, Inc.

Founded in 1996, WebSideStory, Inc. is a leading provider of digital marketing and analytics solutions that improve online marketing, sales and business operations. Its WebSideStory suite of digital marketing applications consists of web analytics, site search, web content management, and keyword bid management. WebSideStory also provides enterprise analytics solutions through its wholly owned subsidiary, Visual Sciences, LLC, a leading provider of streaming data analysis and visualization software. WebSideStory is headquartered in San Diego, California, and has European headquarters in Amsterdam, The Netherlands. For more information, contact WebSideStory. Voice: 858.546.0040. Fax: 858.546.0480. Address: 10182 Telesis Court, 6th Floor, San Diego, CA 92121. Web site: www.websidestory.com. WebSideStory and HBX are among the trademarks or registered trademarks owned by WebSideStory, Inc. Visual Sciences is a registered trademark of Visual Sciences, LLC. 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 reliance on its web analytics services for the majority of its revenue; blocking or erasing of cookies or limitations on our ability to use cookies; WebSideStory's limited experience with digital marketing applications beyond web analytics; the risks associated with integrating the operations and products of Avivo Corporation and Visual Sciences, LLC with those of WebSideStory; privacy concerns and laws or other domestic or foreign regulations that may subject WebSideStory to litigation or limit our ability to collect and use Internet user information; WebSideStory's ability to defend itself against claims of patent infringement alleged by NetRatings, Inc.; WebSideStory's ongoing ability to protect its own intellectual property rights and to avoid violating the intellectual property rights of third parties; the highly competitive markets in which we operate that could make it difficult for WebSideStory to acquire and retain customers; the risk that WebSideStory's customers fail to renew their agreements; the risks associated with the company's indebtedness; 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 annual report on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q. 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.