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30.09.2001

Intershop announces revised expectations for the second half Of 2001

Hamburg, Germany, September 30, 2001 – Intershop Communications AG (Nasdaq: ISHP; Neuer Markt: ISH), an established provider of e-business software applications, today announced revised expectations for the second half of 2001.

Continued global macro-economic weakness and low corporate spending on IT has caused Intershop to revise its revenue forecast for FY 2001 to approximately 80 million euros. In order to reach its stated goal of EBITDA breakeven in the fourth quarter of 2001, the Company has significantly reduced the future cost base with a 25% headcount reduction to 790 employees, as well as a cost reduction in other areas, including worldwide office space. These restructuring measures will result in approximately 22 million euros of one-time charges in the third quarter of 2001.

For the fourth quarter of 2001, the Company now expects total cost to be less than half of the comparable quarter of the previous year. In the third quarter, Intershop generated lower than expected revenues in a difficult market environment, but again significantly reduced its operating expenses (excluding one-time charges) as well as cash usage, which was 12.6 million euros, down from 20.2 million euros in the second quarter of 2001. The company ended the quarter with a cash position of 43 million euros, including restricted cash. Intershop expects cash usage to decline further in the fourth quarter as a result of the restructuring program. Full financial results for the third quarter of 2001 will be reported on October 31, 2001.

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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