Intershop Communications AG | Ad Hoc Announcement |

Intershop Communications AG Reports Fourth Quarter and Full Year 2006 Financial Results

Jena, Germany, February 15, 2007 - Intershop Communications AG (Prime Standard: ISH2) today announced financial results for the fourth quarter 2006 and full financial year 2006, ended December 31, 2006.

Fourth quarter 2006 revenue rose as against the previous quarter from Euro 4.9 million to Euro 5.5 million, compared with Euro 5.3 million in the fourth quarter of 2005. License revenue rose by Euro 1.0 million in the fourth quarter of 2006 as against the third quarter of 2006 to Euro 0.6 million, compared with Euro 1.6 million in the fourth quarter of 2006. Intershop’s total revenues increased from Euro 17.8 million in fiscal year 2005 to Euro 19.8 million in fiscal year 2006. Total operating costs (cost of revenues plus operating expenses) amounted to Euro 7.9 million in the fourth quarter of 2006, compared with Euro 6.4 million in the previous quarter and Euro 4.6 million in the fourth quarter of 2005. The total operating costs for the fiscal year amounted to Euro 26.1 million in 2006, as compared with Euro 20.0 million in 2005.

Intershop reported Euro 2.4 million in net loss in the fourth quarter of 2006 or Euro 0.11 per share, compared to a net loss of Euro 1.6 million or a net loss of Euro 0.09 per share in the third quarter of 2006. In comparison, Intershop’s net income in the fourth quarter of 2005 was Euro 0.2 million or Euro 0.01 per share. For the full year of 2006, Intershop’s net loss totaled Euro 6.8 million or a net loss of Euro 0.36 per share, compared to a net loss of Euro 3.4 million or a net loss of Euro 0.18 per share for the full year of 2005. Total cash, including cash and cash equivalents, marketable securities, and restricted cash fell from Euro 13.5 million as of December 31, 2005 to Euro 11.2 million as of December 31, 2006. The amount of unrestricted cash included in this total amounting to Euro 3.6 million as of December 31, 2006, compared to Euro 7.3 million as of December 31, 2005.

Given the positive market forecasts for the development of e-commerce, Intershop anticipates a significant increase in revenues year on year. Intershop expects to generate a positive net result and cash flow in fiscal year 2007.
The full press release relating to this adhoc disclosure is available at www.intershop.com.

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About Intershop

Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at www.intershop.com.

This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop's limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.

Intershop Investor Relations

Heide Rausch

Head of Corporate Communication

Phone: +49 3641 50-1000
Fax: +49 3641 50-1309