Ad Hoc Announcements 2006

09.02.2006

Intershop Communications AG Reports Fourth Quarter and Full Year 2005 Financial Results

Jena, Germany – February 9, 2006 - Intershop Communications AG (Prime Standard: ISH2) today announced financial results for the fourth quarter 2005 and full financial year 2005, ended December 31, 2005.

Fourth quarter 2005 revenue rose 36% as against the previous quarter from Euro 3.9 million to Euro 5.3 million, compared with Euro 4.1 million in the fourth quarter of 2004. License revenue triples in the fourth quarter of 2005 as against the third quarter of 2005 to Euro 1.6 million, compared with Euro 0.5 million in the fourth quarter of 2004. Revenue for the full year of 2005 totaled Euro 17.8 million, as compared to Euro 17.6 million for the full year of 2004.

Intershop recorded fourth quarter 2005 total operational cost (cost of revenue plus operating expense) of Euro 4.6 million. Total operating costs declined 10% quarter-on-quarter to Euro 0.5 million in the fourth quarter of 2005. Compared to the fourth quarter of 2004, Intershop reduced its total operating costs by Euro 3.9 million or 54%. Intershop reduced its total annual operational cost in 2005 by 24%, to Euro 19.9 million. The reduction is due to the completed restructuring measures and efficiency increases in the operating business; in addition, accruals amounting to EUR 2.3 million for the now completed settlement of the class action suit in the U.S.A. are contained in the figures for Q4 2004.

Intershop reported Euro 0.2 million in net income in the fourth quarter of 2005 million or Euro 0.02 per share, compared to a net loss of Euro 1.5 million or a net loss of Euro 0.18 per share in the third quarter of 2005. In comparison, Intershop’s net loss in the fourth quarter of 2004 was Euro 4.4 million or a net loss of Euro 0.52 per share. For the full year of 2005, Intershop’s net loss totaled Euro 3.3 million or a net loss of Euro 0.34 per share, compared to a net loss of Euro 8.9 million or a net loss of Euro 0.57 per share for the full year of 2004. Total cash, including cash and cash equivalents, marketable securities, and restricted cash rose from Euro 11.2 million as of September 30, 2005 to Euro 13.5 million as of December 31, 2005. This includes unrestricted cash of Euro 7.3 million, which amounted to Euro 5,0 million at the end of the previous quarter. The increase in cash is based on the cash capital increase with gross proceeds amounting to Euro 4.3 million.

As Intershop is reporting the result in accordance with IFRSs for the first time, the comparative figures for the previous year and the prior quarters were also calculated in accordance with IFRSs. They therefore differ in some cases from the figures published in the previous year and prior quarters in accordance with U.S. GAAP. Due to the first-time reporting of the results in accordance with IFRSs, there may also be deviations in the results following the final audit of the annual financial statements as against the provisional figures presented here.

The full press release relating to this adhoc disclosure is available at www.intershop.com.

Investor Relations:
Annett Körbs
T: +49-3641-50-1370
F: +49-3641-50-1309
ir@intershop.de

Public Relations:
Dr. Ute Danz
T: +49-3641-50-1000
F: +49-3641-50-1002
pr@intershop.de

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