Press Releases

27.07.2006

Intershop Communications AG Reports Second Quarter 2006 Financial Results

Jena, Germany – July 27, 2006 - Intershop Communications AG (Prime Standard: ISH2) today announced financial results for the second quarter of 2006, ended June 30, 2006.

Second quarter 2006 revenue totaled Euro 4.3 million, compared with Euro 5.1 million in the first quarter of 2006 and Euro 4.2 million in the second quarter of 2005. License revenue totaled Euro 1.0 million in the second quarter of 2006 as against the first quarter of 2006 to Euro 1.8 million, compared with Euro 0.4 million in the second quarter of 2005. Total operating costs (cost of revenues plus operating expenses) were reduced by EUR 1.0 million from EUR 6.4 million in the first quarter of 2006 to EUR 5.4 million in the second quarter of 2006. Total operating costs in the second quarter of 2005 were EUR 5.2 million.
Intershop reported Euro 1.3 million in net loss in the second quarter of 2006 or Euro 0.07 per share, compared to a net loss of Euro 1.5 million or a net loss of Euro 0.08 per share in the first quarter of 2006. In comparison, Intershop’s net loss in the second quarter of 2005 was Euro 1.2 million or a net loss of Euro 0.07 per share.

Total cash, including cash and cash equivalents, marketable securities, and restricted cash climbed from Euro 13.5 million as of December 31, 2005 to Euro 15.4 million as of June 30, 2006. The amount of unrestricted cash included in this total increased to EUR 7.9 million as of June 30, 2006 from EUR 7.3 million as of December 31, 2005.

Operating Highlights for the Second Quarter of 2006

In May 2006, Intershop was awarded its first full-service e-commerce order by a well-known brand manufacturer from a German-speaking country. As part of this project, which is expected to be completed in late summer 2006, Intershop will be responsible for all of the new customer's e-commerce business processes internationally.
In Europe Intershop has gained new customers in the shape of Netherlands-based electronic components supplier Nedis, as well as Free Record Shop, a Dutch entertainment products provider.
Intershop aquired SoQuero GmbH on June 28, 2006. SoQuero, headquartered in Frankfurt (Germany), is a provider of online marketing services. This acquisition will strengthen to position of Intershop as a full-service e-commerce provider and further extend its business activities.
As of June 30, 2006, the company employed 234 full-time equivalent employees, as compared to 219 full-time equivalent employees as of March 31, 2006. The increase is primarily the result of the acquisition of SoQuero GmbH.

Business Outlook

Intershop again expects to record a net profit for fiscal year 2006.

About Intershop
Intershop Communications AG (Prime Standard: ISH2) is a leading provider of comprehensive global e-commerce and online marketing solutions. Founded in 1992, Intershop has a long tradition of driving innovation in e-commerce by automating and simplifying business processes for mid to large-sized organizations. Intershop’s standard e-commerce software, Enfinity Suite 6, offers a highly scalable and robust solution for conducting online business, complemented by all necessary technical and business consulting services. Intershop also acts as a business process outsourcing (BPO) provider, managing all aspects of online retailing, including fulfillment, online marketing and hosting. Around the globe more than 320 enterprise customers, including HP, Sun Microsystems, BMW, and Deutsche Telekom run Intershop solutions. Intershop has offices in the United States and Europe. More information about Intershop can be found on the Web at www.intershop.com.

This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop's limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.

Intershop Press Contact:
Dr. Ute Danz
Director Corporate Development
Tel: +49.3641.50-1000
pr@intershop.com

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