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INTERSHOP Communications AG

ots Ad hoc-Service: INTERSHOP Communications <DE0006227002> INTERSHOP Reports First Quarter Profits

Hamburg/ San Francisco (ots Ad hoc-Service) -

The sender is solely responsible for the contents of this
announcement.
Intershop
Communications (Neuer Markt: ISH), the worlds leading provider of
sell-side e-commerce applications & software solutions, today
announced record financial results for the first quarter of 2000
which ended March 31, 2000.
First quarter revenues were E25.0 million ($23.75 million), an
increase of 258% from E7.0 million ($6.65 million) reported in the
comparable 1999 period. Intershop reported a Q1 2000 profit of E1.6
million ($1.5 million), the first profitable quarter in the Company's
history, compared to a loss of E3.5 million ($3.3 million) for Q1
1999. Intershop announced E0.08 ($0.08) first quarter earnings per
fully diluted share, compared to a loss of E0.19 ($0.18) per fully
diluted share a year ago.
"We are very pleased to report record revenues for the first
quarter that lead to Intershop generating net income earlier than
expected", said Wilfried Beeck, CFO. "The quarter represents a
significant achievement for Intershop. In addition to reporting our
ninth consecutive quarter of increased revenue, we have reached the
important milestone of profitability."
With license revenues up 288% to E17.4 from the comparable
first-quarter 1999 figure of E4.5 million, licensing activities
represented the driving force behind this quarter's outstanding
performance. As a result, license revenues also went from 64 % to 70
% of total revenues. The increase in U.S. revenues was especially
encouraging. First-quarter revenues rose 488 % to E11.5 million. This
improvement was primarily due to license revenues, which were up 792
% over the previous year.
"Our strong results are due to numerous factors from increasing
revenues through both new customer acquisitions and repeat sales to
existing customers including telcos, enterprise class businesses and
internet service providers as well as marketplace operators," said
Stephan Schambach, CEO. "In addition, we have continued to see a
strong adoption and deployment of our Intershop Enfinity solutions by
global enterprises, further demonstrating our position as the world
technology leader in the Digital Economy. The market for electronic
commerce software is growing at a fast pace and we are planning to
significantly increase our investments in marketing in order to not
only lead by technology but also in brand awareness."

Contact:

Investor Relations Europe: Dr. John Lange Phone +49-40-23709-128
Fax +49-40-23709-111 E-mail: investorrelations@intershop.de
http://www.intershop.de

Investor Relations U.S.A.: Phil Oreste Phone +1-415-229-0100 Fax
+1-415-229-0555 E-mail: info@INTERSHOP.com http://www.INTERSHOP.com

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