Intershop Communications AG | Ad Hoc Announcement |
Intershop Settles Long Lasting Rent Disputes Successfully
Intershop will pay a lump sum in the amount of Euro 5.5 million
- Pending Law Suits Settled
- New Rental Agreement Regarding Reduced Premises
- No Negative Impact of Settlement Payments for Future Quarters
Jena, August 27, 2007 – Intershop Communications AG (Prime Standard: ISH2) has today settled the long lasting disputes regarding the rental relationship amicably with the landlord of the company’s headquarter Intershop Tower in Jena, Josef Saller Gewerbebau. Intershop will pay a lump sum in the amount of Euro 5.5 million (net) to the landlord to settle all claims in dispute. Furthermore, the parties have terminated the existing rental agreement and concluded a new agreement regarding reduced premises in the Intershop Tower expiring in November 2013. Due to the cancellation of the previous rental contract, Intershop will be able to dispose over restricted cash in an amount of Euro 6.1 million.
The settlement payment will not have any negative effect on the future results of Intershop because the reserves built precautiously in the past will suffice to cover these expenses.
Due to the new rental agreement, the contractually owed rental fees will be reduced significantly because the current rental premises are considerably smaller than the original rental premises. The rental security to be newly provided amounts to approximately Euro 3.9 million and will be reduced annually by roughly 766,000 Euro
The successful settlement of the long-lasting rental dispute exonerates Intershop from a considerable past liability, provides for the flexibility required for future planning and enables a concentration of the resources of the company on the operative business.
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.