Released in 2001, IE 6 Gained Majority Browser Share in Just over a Year; IE 7 Already Picking up Steam

SAN DIEGO, CA (Oct. 25, 2006) ¾ WebSideStory (Nasdaq: WSSI), a leading provider of digital marketing and analytics solutions, today released exclusive data showing that Microsoft’s long-awaited browser, Internet Explorer 7, will likely gain rapid adoption on the web if past history is any indication. Based on the growth of its predecessor, IE 7 should become the dominant browser version within a year, perhaps even faster as Microsoft bundles the new browser and its enhanced security measures into an automatic security update. Launched in Aug. 2001, IE 6 grew to more than 45 percent usage share within one year on Windows operating systems, and then surpassed IE 5 for good one month later, according to the WebSideStory Index, a compilation of global Internet user trends and e-commerce statistics. Index data is collected from the millions of daily Internet users who visit web sites using WebSideStory’s on-demand web analytics technology, HBX Analytics. IE 6 achieved 80 percent market share in early 2004, before hitting a high of 89 percent on March 8, 2006. Launched last week, IE 7 is already gaining steam, picking up more than 1.5 percentage points to rise to 4.07 percent usage share as of yesterday – a 65 percent jump. Despite containing features first popularized in Firefox, such as tabbed browsing, IE 7 is not expected to have much of an impact on the growth of Firefox, which released its latest version (v2) earlier this week. Firefox had a U.S. usage share of 9.88 percent on Windows as of last Friday, compared with 86.18 percent for all versions of Internet Explorer, according to WebSideStory.

“We expect IE 7 to have little short-term impact on Firefox because once a favorite browser gets installed, it’s difficult to replace. For now, Firefox appears to have become the browser of choice for about 10 percent of Americans,” said Rand Schulman, Chief Marketing Officer at WebSideStory. “IE 7 will grow quickly, but directly at the expense of IE 6.”

In addition to enhanced security measures, such as a phishing filter and new parental controls, IE 7 also contains new user interface improvements and Web 2.0 capabilities, including an RSS feed aggregator and improved Ajax support. Other browsers such as Firefox and Flock are also beginning to offer new Web 2.0 capabilities, such as support for rich web applications and the ability to share photos and other content with people online.

“It’s clear to WebSideStory and our customers that these new browser capabilities will continue to drive the adoption of Web 2.0 applications and fuel innovations across the web,” Schulman said.

For more information, please visit www.websidestory.co.uk

Notes:

· Sample Size: More than 35 million daily Internet users visiting web sites using WebSideStory’s award-winning on-demand web analytics technology, HBX Analytics. WebSideStory provides browser usage data by country, category and by operating system. For this study, WebSideStory analyzed the U.S. Internet population on Windows only to provide the most accurate sample possible. Also for accuracy, WebSideStory only compares weekdays, in this case Fridays.

· Browser Usage Share: Usage share is the percentage of browsers being used online. It is a much different measure than downloads, which only measures how many times a browser was downloaded, but not necessarily used online.

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.

Published on: 12:00AM on 27th October 2006