Ad Hoc Announcements 2007

27.08.2007

Intershop Settles Long Lasting Rent Disputes Successfully

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.

 

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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