GSI Commerce, Inc. (NASDAQ: GSIC), a strategic partner to Intershop and a large shareholder has committed  to exercising its subscription rights and also to exercise all remaining subscription rights, which have not been exercised by other shareholders.

The capital increase will provide Intershop with funds to enhance its product suite, grow in the US market and to strengthen its sales and marketing activities.

Furthermore, Intershop has granted GSI exclusive reseller rights for its software products in the Americas and non-exclusive rights on a global basis. The U.S. company is among the world’s largest providers of full service, e-commerce and multi-channel solutions.

The agreement strengthens Intershop’s license business and allows the company to expand its presence in the key US market.

To underline the strategic importance of the agreement GSI has purchased a 10.5 percent equity stake in Intershop. Furthermore, GSI will purchase approximately 560,000 newly-issued shares, representing an additional 2.1 percent of Intershop’s outstanding share capital.

Jena, February 24, 2010 – Intershop Communications AG (ISIN: DE000A0EPUH1), a provider of integrated e-commerce solutions, today announced its preliminary figures for fiscal year 2009.

Revenues rose by 13% to EUR 31.8 million. The Company therefore exceeded its growth forecast of 7% to 11% in 2009. The main reasons for the increase in revenues were important contracts with strategic customers (Platinum Accounts) and a large number of additional new customers. In the past fiscal year, Intershop recorded a significant increase in the license segment in particular. License revenues rose from EUR 4.1 million to EUR 6.9 million, an increase of 69%. In the services, maintenance, and other segment, Intershop recorded a 4% increase in revenues to EUR 24.9 million.

Gross profit rose considerably by 31% to EUR 14.9 million, corresponding to a rise in the gross margin to 47% from 41% in the prior-year period. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by a good 60% to EUR 3.8 million; operating profit (EBIT) rose by 7% to EUR 2.0 million. Operating expenses in fiscal year 2009 were up approximately 35% on the prior-year level. This increase reflects in particular Intershop’s investments in innovation, which resulted in significantly higher research and development personnel costs. Further reasons include the amortization of software development costs and higher expenses for marketing, sales, and administration. Earnings before tax rose from EUR 1.8 million to EUR 2.1 million; consolidated net income for the period amounted to EUR 1.7 million compared with EUR 1.5 million in the previous year. Basic earnings per share amounted to EUR 0.07 and EUR 0.06 to diluted basic following EUR 0.06 in the 2008 reporting period.

Intershop’s preliminary consolidated balance sheet as of December 31, 2009 continues to show a strong financial position. Total assets rose by 16% to EUR 28.7 million compared with December 31, 2008. Higher trade receivables related to major license and service contracts were the main reason for this increase.

As a result of outstanding receivables, (unrestricted) cash amounted to EUR 6.3 million as of December 31, 2009, down approximately 22% on the end of 2008. However, cash rose again significantly as of February 22, 2010 to approximately EUR 13 million. Intershop had no financial liabilities as of the end of 2009. Equity increased by 13% compared with the previous year’s level to EUR 18.4 million, corresponding to an equity ratio of 64%.

Intershop also generated a positive operating cash flow of EUR 0.8 million in 2009 (previous year: EUR 3.0 million). The lower inflow from operating activities, despite the increase in earnings, is mainly the result of the above-mentioned increase in trade receivables.

Overall, Intershop exceeded its revenue and earnings growth targets in 2009. The Company more than offset lost revenue and valuation allowances relating to Quelle, an insolvent key client, with more than 70 new projects in the past fiscal year. Provided that the macroeconomic situation is stable, the Management Board expects additional organic revenue growth of 7% to 13% and sustained positive earnings in 2010.

All figures are preliminary and are subject to audit.