Ad Hoc Announcements 2008

07.05.2008

Intershop reports sharp jump in revenue and earnings in Q1 compared to prior-year quarter

• 35% sales growth over prior-year period
• Intershop consistently profitable with EBIT margin at 6%

Jena, Germany, May 7, 2008 – Intershop Communications AG (Prime Standard: ISH2) today announced its results for the first quarter of 2008 ended March 31, 2008.

In the first quarter of 2008, Intershop generated positive net earnings before tax of EUR 0.4 million. In the prior-year period, the Company had reported a quarterly loss of EUR 1.4 million. Intershop has therefore recorded a profit from operating activities before restructuring expenses (2007) for the past four quarters and positive net earnings for three consecutive quarters.

Revenues

In the first quarter of 2008, Intershop’s total net revenues rose by 35% from EUR 5.1 million in the prior-year quarter to EUR 6.9 million. The license revenues included in this figure increased by 31% from EUR 0.8 million to EUR 1.1 million. Net revenues from services, maintenance, etc. increased by 35%, from EUR 4.3 million to EUR 5.9 million.

Gross revenues (net revenues including media revenue from online marketing) increased from EUR 6.1 million to EUR 8.1 million.

Earnings

Intershop generated a profit in the first three months of fiscal year 2008, sustaining the positive earnings trend that began in 2007.

The result from operating activities (EBIT) amounted to EUR 0.4 million in the first quarter of 2008. In the prior-year quarter, EBIT was negative at EUR  1.4 million. The EBIT margin improved from -26% to +6%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to EUR 0.5 million (Q1 2007: EUR  1.1 million); the EBITDA margin amounted to 8% (Q1 2007: -22%).

Earnings after tax totaled EUR 0.3 million, while Intershop’s earnings per share were EUR 0.01. In the first quarter of the previous year, earnings after tax were negative at EUR -1.4 million, and the Company reported a loss per share of EUR 0.06.

Balance sheet and cash flow

Intershop’s equity stood at EUR 13.0 million as of March 31, 2008. The equity ratio therefore rose from 26% as of March 31, 2007 to 51%.

Unrestricted cash increased from EUR 5.9 million as of December 31, 2007 and EUR 1.8 million as of March 31, 2007 to EUR 6.9 million (+16%) as of March 31, 2008. Total liquidity (cash and restricted cash) amounted to EUR 8.5 million as of March 31, 2008, in comparison to EUR 8.1 million as of March 31, 2007, and EUR 9.9 million on December 31, 2007.

Outlook

Intershop’s results in the first quarter of 2008 confirm the target it announced for the year as a whole of growth in excess of the industry average and the expectation that it will generate significant profits in the current year.
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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