WebSideStory Reports Option Grants Under Nasdaq Marketplace Rule 4350

SAN DIEGO, Jan. 4  /PRNewswire-FirstCall/ -- WebSideStory, Inc. (NASDAQ:WSSI), a leading provider of customer intelligence solutions, today announced that in accordance with NASDAQ Marketplace Rule 4350, it has issued new inducement stock options to 5 non-executive employees.

The inducement stock options cover an aggregate of 19,000 shares of common stock and are classified as non-qualified stock options with an exercise price equal to the fair market value of WebSideStory's common stock at the close of the trading day immediately preceding the grant date.  The options have a seven-year term and, subject to the terms and conditions of the WebSideStory, Inc. 2006 Employment Commencement Equity Incentive Award Plan, vest over four years as follows: 25% of the shares subject to each option will vest on the one year anniversary of the grant date of each option; and the remaining 75% of the shares subject to each option will vest in 36 equal monthly increments during each of the second, third and fourth years thereafter.

Pursuant to Nasdaq Marketplace Rule 4350 (i)(1)(A)(iv), the options were granted on December 22, 2006 under WebSideStory's 2006 Employment Commencement Equity Incentive Award Plan, which WebSideStory's board of directors adopted to facilitate the granting of stock options as an inducement to new employees to join WebSideStory.  In accordance with NASDAQ rules, these grants of stock options were made under a stock option plan without stockholder approval. NASDAQ rules require public announcement of option grants made under this type of plan.

About WebSideStory, Inc.

Founded in 1996, WebSideStory, Inc. (NASDAQ:WSSI) is a leading provider of customer intelligence solutions that improve marketing, sales and operational performance.  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: [phone]. Address: 10182 Telesis Court, 6th Floor, San Diego, CA 92121. Web site: http://www.websidestory.com/.  WebSideStory is a registered trademark of 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. 

DATASOURCE: WebSideStory, Inc.



CONTACT:  Claire Long of WebSideStory, Inc., [phone], ext. 387,





Web site:  http://www.websidestory.com/ 

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