Press Releases

27.04.2006

Intershop Communications AG Reports First Quarter 2006 Financial Results

Jena, Germany – April 27, 2006 - Intershop Communications AG (Prime Standard:

ISH2) today announced financial results for the first quarter of 2006, ended March 31, 2006. First quarter 2006 revenue totaled Euro 5.1 million, compared with Euro 5.3 million in the fourth quarter of 2005 and Euro 4.4 million in the first quarter of 2005. License revenue rose by Euro 1.8 million in the first quarter of 2006 as against the fourth quarter of 2005 to Euro 1.6 million, compared with Euro 1.3 million in the first quarter of 2005.

Total operating costs (cost of revenues plus operating expenses) were Euro 6.4 million in the first quarter of 2006, compared with Euro 4.6 million in the previous quarter and Euro 5.1 million in Q1 2005. Among other things, around Euro 0.4 million of this increase relates to the expenses from stock options required to be recognized due to the conversion to IFRSs. Onetime expenses of around Euro 0.6 million were also incurred; in the fourth quarter of 2005, these were offset by one-time income of Euro 0.6 million.

Intershop reported Euro 1.5 million in net loss in the first quarter of 2006 or Euro 0.08 per share, compared to a net income of Euro 0.2 million or a net income of Euro 0.02 per share in the fourth quarter of 2005. In comparison, Intershop’s net loss in the first quarter of 2005 was Euro 0.8 million or a net loss of Euro 0.09 per share.

Intershop generated cash flow from operating activities of around Euro 0.2 million in the first quarter of 2006.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 13.6 million as of March 31, 2006. This includes unrestricted cash of Euro 7.4 million, which amounted to Euro 7.3 million at the end of the previous quarter.

Operating Highlights for the First Quarter of 2006

Intershop received a large order from a US-based international technology company.
Intershop signed up Music Store A.Sauer GmbH and a leading Nordic retail chain of sporting goods as new customers in Central Europe.
At this year's CeBIT show, Intershop announced its entry into the full-service e-commerce business. Effective immediately, the company covers the full range of e-commerce business processes-from software, service, and fulfillment to online marketing and logistics.
As of March 31, 2006, the company employed 219 full-time equivalent employees, as compared to 222 full-time equivalent employees as of December 31, 2005.

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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