artnet AG — Interim / Quarterly Report 2014

May 15, 2014

Interim Group Management Report First Quarter 2014

Table of Contents

• 1 artnet AG Interim Group Management Report
• 6 artnet AG Consolidated Balance Sheet
• 7 artnet AG Condensed Interim Consolidated Income Statement
• 8 artnet AG Statement of Changes in Consolidated Equity (USD)
• 8 artnet AG Statement of Changes in Consolidated Equity (EUR)
• 9 artnet AG Consolidated Cash Flow Statement
• 10 Notes to the Interim Consolidated Financial Statements
• 17 Authorities, Offices, Investor Relations, Information on artnet Stock

artnet AG Interim Group Management Report For the Three Months Ended March 31, 2014

Global Economic Situation and Art Market Development

Over the course of 2013, world trade gained momentum. Data from the first quarter of 2014 indicate that this positive development is continuing. Recovery of global trade has largely been made possible by the strengthening and consolidation of the economic situation in the United States and Europe. The current euro crisis represents a significantly lower risk than it did a year ago. For emerging economies, a slowdown in growth is expected, even though Asia is likely to remain the driving source of growth.

In the first quarter of 2014, the strong growth of the previous year for the global Fine Art market continued. The value sold jumped from US\$1.6 billion in the first quarter of 2013 to over US\$2.2 billion this year. This increase was due, in large part, to an extremely successful first quarter in the United Kingdom, with UK auctions alone bringing in an additional US\$400 million. The total value sold in the UK this quarter represented over half of the value sold globally, and reached almost half of all value sold in the country last year.

Results of Operations, Financial Position, and Net Assets

Revenue

artnet was able to benefit from the positive development of the global Fine Art market during the first quarter of 2014. In the first three months of the current year, the Group's revenue in euros rose by 4% over the corresponding period in 2013, to 3,351,000 EUR (4,592,000 USD). In US dollars, the currency in which the Group's main business activities are processed, growth equals 8%. Even though a growth in overall revenue was achieved, not all segments contributed equally to this development.

With an increase of 190,000 EUR (287,000 USD), to 719,000 EUR (985,000 USD), artnet Auctions has achieved the highest growth rate of all segments. This corresponds to a rise of 36% (41% in USD). While the average buyer and seller premiums remained stable at

23%, the number of lots sold rose by 2%. The average price of lots sold increased, from 6,718 USD in the first quarter of 2013 to 9,116 USD.

The artnet Price Database also contributed to the Group's revenue growth. With a slight increase of 1% (5% in USD), revenue increased to 1,280,000 EUR (1,754,000 USD).

In the first quarter of 2014, revenue from the artnet Gallery Network decreased compared to last year by 87,000 EUR (59,000 USD), from 1,186,000 EUR (1,565,000 USD) to 1,099,000 EUR (1,506,000 USD). While the number of cancellations continues to decrease, the increase in new business fell short of expectations.

In euros, revenue from artnet Advertising remained at the same level as the previous year, totaling 253,000 EUR, while in US dollars, revenue rose by 4%, to 347,000 USD. The redesigned website, launched on April 26, 2014, will have a positive impact on future sales.

Changes in Costs and Results

In the first three months of the 2014 fiscal year, gross profit increased by 13% (18% in USD), to 2,015,000 EUR (2,762,000 USD), compared to 1,780,000 EUR (2,350,000 USD) in the previous year. This improvement in earnings was primarily due to increased revenue from artnet Auctions, and was supported by lower personnel costs and fewer expenses for website maintenance, which were allocated to the cost of sales. In general, the cost of sales declined by 119,000 EUR (90,000 USD), to 1,336,000 EUR (1,831,000 USD), corresponding to a decrease of 8% (5% in USD).

At 640,000 EUR (876,0000 USD), expenses for sales and marketing are up 38% (44% in USD), or 178,000 EUR (266,000 USD), over the previous year in the first three months of the 2014 fiscal year. The introduction of artnet News, a unique news platform for the international art market, resulted in additional costs amounting to 125,000 EUR (171,000 USD). Other sales and marketing expenses increased compared to the first quarter of 2013 as the result of a modified distribution of the marketing budget over the year.

At 680,000 EUR (932,000 USD), general administrative expenses were 24% (21% in USD) below the previous year (previous year: 893,000 EUR or 1,179,000 USD). This decrease is mainly due to lower legal and consultancy fees.

Expenses for product development increased by 12% (16% in USD) as compared to the previous year's level, to 524,000 EUR (718,000 USD), largely as a result of the efforts related to the development of the news platform, artnet News.

The performance indicator EBITDA increased by 9.3% (9.7% in USD) compared to the same period in the previous year, to 281,000 EUR (386,000 USD).

Consolidated earnings in the first quarter of the 2014 fiscal year were up, at 173,000 EUR (237,000 USD), well above the same period last year, which reported a loss of 78,000 EUR (103,000 USD).

Currency Conversion

Currency conversion in the consolidated statement of comprehensive income is based on the average exchange rate for the period from January 1 to March 31, 2014 and 2013, respectively. For the first quarter of 2014, the average rate was 0.730 euros/US dollars, compared to 0.757 euros/US dollars for the first quarter of 2013. Currency conversion for the balance sheet is based on the exchange rate at the end of the period. As of March 31, 2014, the rate was 0.727 euros/US dollars, compared to 0.726 euros/US dollars on December 31, 2013.

artnet is subject to exchange rate fluctuations since it invoices in euros, US dollars, and British pounds, but conducts most of its business in the United States. The Group attempts to reduce its exposure to exchange rate differences by billing European customers in euros and British customers in British pounds, and by paying vendors in the same currency with these cash funds.

Financial Position

The Group's operating cash flow as of March 31, 2014 amounted to 169,000 EUR (232,000 USD), and was slightly lower than the previous year (previous year: 189,000 EUR/250,000 USD). The main reasons for the negative cash flow were the higher cash outflows from changes in accounts payable and the short-peak

increase in accounts receivable. This is enhanced by an increase in deferred revenue due to the change of contract durations and payment cycles.

At 66,000 EUR (91,000 USD), the cash outflow from investing activities was lower than the previous year (previous year: 76,000 EUR/99,000 USD) due to investments in the development of the redesign of our website and the purchase of hardware and office equipment for the artnet News team.

The cash flow for financing activities amounted to -55,000 EUR (-76,000 USD) in the first quarter of 2014, and is essentially dominated by the repayment of liabilities from finance lease agreements. The cash inflow in the same period of the previous year (447,000 EUR/570,000 USD) was the result of a loan granted by the main shareholder in March 2013.

Cash and cash equivalents amounted to 1,243,000 EUR (1,709,000 USD) as of March 31, 2014, compared to 930,000 EUR (1,192,000 USD) as of March 31, 2013.

The cash investment policy for the Group is conservative and based on short-term investments. This policy allows all cash to be liquid and available. Based on the average outstanding shares of 5,552,986, liquidity per share was 0.22 EUR (0.31 USD) on March 31, 2014, compared to 0.17 EUR (0.21 USD) on March 31, 2013.

Asset Position

The balance sheet total was 6,033,000 EUR (8,297,000 USD) on March 31, 2014, and remained at about the same level as the previous year (previous year: 6,039,000 EUR/8,315,000 USD).

Trade accounts receivable decreased, compared to December 31, 2013, by 293,000 EUR (401,000 USD), to 923,000 EUR (1,269,000 USD), while the overall maturity structure of receivables has improved.

Fixed assets decreased by 24,000 EUR (36,000 USD), to 1,894,000 EUR (2,605,000 USD). The scheduled depreciation and amortization was offset by development costs for the redesign of the website, as well as necessary office equipment and hardware purchases.

At the end of the reporting period, the total current liabilities decreased by 4.6% (4.7% in USD), from 2,850,000 EUR (3,923,000 USD) as of December 31, 2013, to 2,719,000 EUR (3,739,000 USD) as of March 31, 2014. This decrease in current liabilities is mainly due to the reduction in trade payables. This development was partly offset by the increase in deferred revenue due to changes in contract durations and payment cycles.

As compared to the previous year, long-term liabilities decreased by 6%, to 922,000 EUR (1,268,000 USD). Long-term liabilities arising from finance leases and office rent amortization were reduced as scheduled. The loan granted by the main shareholder increased by the amount of accrued interest.

The Group's consolidated equity amounted to 2,392,000 EUR (3,290,000 USD) on March 31, 2014, compared to 2,214,000 EUR (3,048,000 USD) on December 31, 2013.

The artnet Price Database constitutes an intangible asset that has been developed by gathering auction information, with results dating back to 1985. This valuable asset to the Group has not been attributed full earnings recognition on the balance sheet due to accounting rules. Balance sheet assets would be substantially increased if this recognition were allowed by law.

General Information and Business Activities

artnet AG is a holding company listed on the "Geregelten Markt" in the Prime Standard segment of the Frankfurt Stock Exchange. artnet AG's principal holding is its wholly owned subsidiary, Artnet Worldwide Corporation, which was founded in 1989 in New York. artnet AG ("artnet" or the "Company") and Artnet Worldwide Corporation ("Artnet Corp.," collectively the "artnet Group" or the "Group") operate under the trade name "artnet."

Artnet Corp. has two wholly owned subsidiaries: artnet UK Ltd. and artnet France sarl. artnet UK Ltd. provides sales and client support in the United Kingdom. As part of the restructuring, the closing of the Paris office was resolved in June 2012.

With a monthly average of 1.3 million unique visitors in the first quarter of 2014 on its three domains, artnet.com, artnet.de, and artnet.fr, artnet offers the world's most comprehensive art market overview, enabling collectors and art professionals to better

navigate the art market by providing timely information about artworks, artists, galleries, price developments, exhibitions, news, and reviews.

As of March 31, 2014, the artnet Gallery Network represented approximately 1,500 of the world's most prestigious art galleries and auction houses from over 55 countries. Members of the Gallery Network are indexed by specialty and location, and feature approximately 170,000 works by nearly 35,000 artists. In addition to all forms of Contemporary, Modern, and Fine Art, the Gallery Network also offers Decorative Art and Design objects from the 1st century BC to the present. With artnet Auction House Partnerships, auction houses have the flexibility to post complete or partial sales on artnet, with the option of linking every lot on artnet back to the same lot in their own online catalogue. All lots are linked to artnet's upcoming auctions calendar and rank high on artnet and in Google search results. artnet Auction House Partnerships provide reporting and direct traffic from artnet to the auction house website.

The artnet Price Database, which is comprised of the artnet Price Database Fine Art and Design and the artnet Price Database Decorative Art, is an online database with over 8 million colorillustrated auction results from more than 1,600 leading international auction houses, giving price transparency to an otherwise secretive market. Subscribers to the Price Database have access to current results, as well as auction records dating back to 1985, and with that, the most up-to-date and impartial appraisal value for artworks they would like to buy or sell. The artnet Price Database is widely subscribed to by appraisers, dealers, auctioneers, and financiers, as well as by private and government institutions, including the IRS and the FBI. Most importantly, it provides an illustrated "blue book" for private collectors with which to appraise the works they own, and measure opportunities at upcoming auctions or on the dealer market. Dealers and auctioneers also use comparable sales from the Price Database to support the valuation and sale of important works of art.

artnet Market Alerts, a derivative of the Price Database, informs subscribers via email when artworks by their favorite artists come up at auction, or are offered in the artnet Gallery Network or on artnet Auctions.

artnet Analytics, which was launched in May 2012, is the first art index that allows users to monitor the performance of artists, customer-specified groups of artworks, and art categories, such as Asian or Modern Art, with the option to compare market performance against financial indices, such as the Dow Jones or the S&P 500. artnet Analytics Reports cover over 600 artists and approximately 46,000 groups of comparable artworks.

With artnet Auctions, artnet has become a business-to-consumer transaction platform, that also acts as an integrated information resource. The main advantages for buyers and sellers on artnet Auctions are the attractive pricing and fast turnaround, which can be finalized in a few weeks, compared to the six months or a year required by brick-and-mortar auctioneers. artnet Auctions routinely sees works by blue-chip Modern and Contemporary artists sell in the five- and six-figure range.

artnet Monographs is an online art library developed in close collaboration with artists, estates, foundations, and galleries. This growing resource of Modern and Contemporary artists' monographs features comprehensive artwork selections and 148 biographies. artnet Monographs can be viewed free of charge on the artnet website.

Risks and Opportunity Report

The risk situation has not changed materially compared to the 2013 reporting year (March 25, 2014). A detailed overview of risks and opportunities can be found in the 2013 annual report. All statements included therein regarding risks and opportunities continue to be valid.

There are no risks that could endanger the company's existence, and, at present, none can be identified for the future.

Subsequent Events and Outlook

Subsequent Events

On April 26, 2014, the first phase of the website redesign was successfully launched. Management found no other material events that could have a significant impact on the results of operations, net assets, and the financial position of the Group between the end of the first quarter of 2014 and the publication of this report.

Outlook

After closing the 2013 fiscal year with a slight profit, we were able to carry the positive momentum into the first quarter of 2014. Three out of four artnet segments realized an increase in revenue compared to the first quarter of 2013. With the recently introduced redesign, we have achieved one of our main goals of offering our clients an attractive and contemporary site with a more intuitive navigation. The launch at the end of April marked an important milestone in strengthening artnet as a brand, emphasizing the usability of all of our products and services. Further improvements to the site will follow in the coming months, offering significant advantages to our clients and visitors, as well as a new customer experience.

Advertising, in particular, will benefit from the redesign. The attractive layout and intuitive navigation enables us to better market advertising space on our site. Since the end of April, we have offered our clients a wider range of advertising and placement opportunities, which gives them more ways to reach their target audience. We can therefore reaffirm the expectation of achieving a strong increase in revenue for this segment in 2014.

Furthermore, we anticipate that the redesign will strengthen the Gallery Network and increase revenue. In a competitive environment, this segment fell short of expectations in the first quarter. However, we intend to regain former clients through the new design, as the product offering has been improved. As a result, we are confident that we will achieve an increase in revenue for this segment during the 2014 fiscal year.

The Price Database, one of our core products, achieved a moderate increase in revenue in the first quarter compared to the same period in 2013. In the second quarter of 2014, a targeted campaign is planned for artnet Analytics, which sources information from the Price Database, to raise awareness of the unique value of this product and boost sales. Due to the unchanged and broad interest in art and the art market, we continue to expect a slight increase in revenue for the Price Database.

artnet Auctions performed particularly well during the first quarter of 2014. We observed an increase in sell-through rates for special sales, proving that our specialists can successfully connect more buyers and sellers online by selecting higher-quality works.

Revenue increased by 36% compared to the first quarter of 2013, which indicates that we are on track to achieving double-digit growth for the auctions segment in 2014.

Our news platform, artnet News, which was launched in February 2014, continues to grow, and is quickly establishing an audience among art enthusiasts and aficionados. By continuously publishing high-quality and in-depth news articles, we are confident that we will increase overall pageviews for artnet as anticipated.

artnet News and the first phase of the redesign mark two major developments, benefiting artnet as a brand. In addition, processoptimization in all segments, aimed at reducing costs and enhancing efficiency, is a key focus for Management. Following a positive start for the fiscal year, supported by the continual growth of the art market, we are confident that we will achieve a clear increase in revenue in 2014.

Berlin, May 15, 2014

Jacob Pabst Chairman and CEO, artnet AG

artnet AG Consolidated Balance Sheet

	3/31/14 USD	12/31/13 USD	3/31/14 EUR	12/31/13 EUR
Assets
Current Assets
Cash and Cash Equivalents	1,709,478	2,104,778	1,242,961	1,528,763
Accounts Receivable-Net	1,269,123	867,645	922,779	630,197
Other Current Assets	414,490	408,200	301,376	296,488
Total Current Assets	3,393,091	3,380,623	2,467,116	2,455,448
Non-Current Assets
Property, Plant, and Equipment	964,709	1,021,334	701,440	741,826
Intangible Assets	1,640,138	1,618,905	1,192,544	1,175,859
Security Deposit	391,888	386,167	284,942	280,485
Deferred Tax Assets	1,907,577	1,907,577	1,386,999	1,385,530
Total Non-Current Assets	4,904,312	4,933,983	3,565,925	3,583,700
Total Assets	8,297,403	8,314,606	6,033,041	6,039,148
Equity and Liability
Current Liabilities
Accounts Payable	288,641	641,167	209,871	465,699
Accrued Expenses and Other Liabilities	799,903	851,754	581,609	618,654
Provisions	164,770	164,770	119,804	119,677
Liabilities from Finance Leases	296,389	302,797	215,504	219,931
Deferred Revenue	2,189,365	1,962,823	1,591,887	1,425,657
Total Current Liabilities	3,739,068	3,923,311	2,718,675	2,849,618
Long-Term Liabilities
Office Rent Amortization	341,198	352,645	248,085	256,137
Long-Term Liabilities from Finance Leases	211,926	281,414	154,091	204,399
Loans	715,171	709,044	520,001	515,000
Total Long-Term Liabilities	1,268,295	1,343,103	922,177	975,536
Total Liabilities	5,007,363	5,266,414	3,640,852	3,825,154
Shareholders' Equity
Common Stock	5,941,512	5,941,512	5,631,067	5,631,067
Treasury Stock	(269,241)	(269,241)	(264,425)	(264,425)
Additional Paid-In Capital	52,254,815	52,252,827	50,873,639	50,872,189
Accumulated Deficit	(54,872,246)	(54,925,977)	(53,868,969)	(53,909,439)
Current Net Profit	237,452	53,731	173,268	40,470
Foreign Currency Translation	(2,252)	(4,660)	(152,391)	(155,868)
Total Shareholders' Equity	3,290,040	3,048,192	2,392,189	2,213,994
Total Liabilities and Total Shareholders' Equity	8,297,403	8,314,606	6,033,041	6,039,148

artnet AG Condensed Interim Consolidated Income Statement

	01/01/14–03/31/14 USD	01/01/14–03/31/13 USD	01/01/14–03/31/14 EUR	01/01/14–03/31/13 EUR
Revenue
artnet Gallery Network	1,506,036	1,565,478	1,098,954	1,185,537
artnet Price Database	1,754,298	1,672,362	1,280,111	1,266,480
artnet Advertising	347,255	335,445	253,392	254,032
artnet Auctions	984,818	697,798	718,622	528,442
Total Revenue	4,592,407	4,271,084	3,351,079	3,234,492
Cost of Sales	1,830,581	1,921,004	1,335,775	1,454,776
Gross Profit	2,761,826	2,350,080	2,015,304	1,779,716
Operating Expenses
Sales and Marketing	876,414	610,083	639,519	462,016
General and Administrative	932,440	1,178,790	680,401	892,698
Product Development	718,299	618,281	524,143	468,224
Non-Cash Compensation	1,988	4,638	1,451	3,512
Total Other Operating Expenses	2,529,140	2,411,792	1,845,514	1,826,450
Operating Income	232,686	(61,712)	169,790	(46,734)
Interest Expenses	(17,720)	(8,599)	(12,930)	(6,512)
Interest Income	39	80	28	61
Other Income/(Expenses)	26,575	(29,999)	19,392	(22,718)
Earnings Before Taxes	241,580	(100,230)	176,281	(75,903)
Income Taxes	(4,128)	(2,996)	(3,012)	(2,269)
Net Profit	237,452	(103,226)	173,269	(78,172)
Other Comprehensive Income
OCI Recycled:
Differences from Foreign Currency Translation	2,409	(27,811)	3,477	49,486
Total Comprehensive Income Earnings Per Share	239,861	(131,037)	176,745	(28,686)
Basic and Diluted	0.04	(0.02)	0.03	(0.01)

artnet AG Statement of Changes in Consolidated Equity (USD)

For the Three Months Ended March 31, 2014

		Common Stock
	Shares Issued	Amount	Treasury Stock	Additional Paid-In Currency	Accumulated Defecit	Foreign Currency Translation	Total
Balance as of 12/31/2012	5,631,067	5,941,512	(269,241)	52,240,459	(54,925,977)	144,067	3,130,820
Net Profit/(Loss)	–	–	–	–	(103,226)	(27,811)	(131,037)
Remuneration from Stock Options	–	–	–	4,638	–	–	4,638
Balance as of 3/31/2013	5,631,067	5,941,512	(269,241)	52,245,097	(55,029,203)	116,256	3,004,421
Balance as of 12/31/2013	5,631,067	5,941,512	(269,241)	52,245,097	(54,872,246)	(4,660)	3,048,192
Net Profit/(Loss)	–	–	–	–	237,452	2,409	239,861
Remuneration from Stock Options	–	–	–	1,988	–	–	1,988
Balance as of 3/31/2014	5,631,067	5,941,512	(269,241)	52,254,815	(54,634,795)	(2,252)	3,290,040

artnet AG Statement of Changes in Consolidated Equity (EUR)

		Common Stock
	Shares Issued	Amount	Treasury stock	Additional Paid-In Currency	Accumulated Defecit	Foreign Currency Translation	Total
Balance as of 12/31/2012	5,631,067	5,631,067	(264,425)	50,862,873	(53,909,439)	48,390	2,368,466
Net Profit/(Loss)	–	–	–	–	(78,172)	49,486	(28,686)
Remuneration from Stock Options	–	–	–	3,512		–	3,512
Balance as of 3/31/2013	5,631,067	5,631,067	(264,425)	50,866,385	(53,987,611)	97,876	2,343,292
Balance as of 12/31/2013	5,631,067	5,631,067	(264,425)	50,872,189	(53,868,969)	(155,868)	2,213,994
Net Profit/(Loss)	–	–	–	–	173,268	3,477	176,745
Remuneration from Stock Options	–	–	–	1,451	–	–	1,451
Balance as of 3/31/2014	5,631,067	5,631,067	(264,425)	50,873,639	(53,695,701)	(152,391)	2,392,189

artnet AG Consolidated Cash Flow Statement

	03/31/14 USD	03/31/13 USD	03/31/14 EUR	03/31/13 EUR
Cash Flow from Operating Activities
Net Profit/(Loss)	237,452	(103,226)	173,268	(78,172)
Adjustments to Reconcile Net Profit to Net Cash from Operating Activities:
Depreciation and Amortization	126,297	131,451	92,159	99,548
Impairment/Write-Offs for Receivables	75,005	112,054	54,731	84,858
Non-Cash Compensation from Stock Options	1,988	4,638	1,451	3,512
Other Non-Cash Transactions	4,931	(36,976)	3,598	(28,002)
Changes in Operating Assets and Liabilites:
Accounts Receivable	(476,483)	(177,009)	(347,689)	(134,049)
Other Current Assets	(6,290)	73,198	(4,590)	55,433
Security Deposits	(5,721)	(4,645)	(4,175)	(3,518)
Accounts Payable	(352,526)	131,966	(257,238)	99,938
Provisions	–	(5,271)	–	(3,992)
Accrued Expenses And Tax Liabilities	(63,298)	(397,741)	(46,189)	(301,209)
Deferred Revenue	226,542	21,815	165,308	16,520
Total Adjustments	(469,556)	(146,519)	(342,635)	(110,959)
Cash Flow from Operating Activities	(232,104)	(249,745)	169,366	(189,131)
Cash Flow from Investing Activities	(12,155)	(815)	(8,870)	(617)
Purchase of Property and Equipment	(78,750)	(98,898)	(57,464)	(74,895)
Purchase and Development of Intangible Assets	–	–	–	–
Net Cash used in Investing Activities	(90,905)	(99,713)	(66,333)	(75,513)
Cash Flow from Financing Activities
Repayment of Finance Leases	(75,896)	(70,362)	(55,381)	(53,285)
Loans Received	–	640,828	–	500,000
Net Cash used in Financing Activities	(75,896)	570,466	(55,381)	446,715
Effects of Exchange Rate Changes on Cash	3,605	(23,504)	5,279	(4,642)
Change in Cash and Cash Equivalents	(395,300)	197,504	(285,801)	177,429
Cash and Cash Equivalents—Start of Period	2,104,778	994,773	1,528,763	752,546
Cash and Cash Equivalents—End of Period	1,709,478	1,192,277	1,242,961	929,975

Notes to the Interim Consolidated Financial Statements

Corporate Information

artnet AG (hereafter referred to as "artnet AG" or the "Company") is a publicly traded corporation headquartered in Berlin, Germany. The address of its registered office is Oranienstraße 164, 10969 Berlin. artnet AG was incorporated under the laws of Germany in 1998.

artnet AG holds 100% of the shares in Artnet Worldwide Corporation ("Artnet Corp."), which is located in New York, United States. Artnet Corp. holds 100% of the shares in artnet UK Ltd. and artnet France sarl. artnet AG and Artnet Corp., together with Artnet Corp.'s wholly owned subsidiaries, are referred to as the "Group" or the "artnet Group."

The Group's mission is to provide a website to art collectors, galleries, publishers, auction houses, and art enthusiasts, where they can research artists and prices of artworks, and find artworks that are currently available at art galleries and auctions around the world. Additionally, artworks can be sold on artnet Auctions, a web-based auctions platform.

The consolidated financial statements were authorized for issuance by the chairman and CEO on May 15, 2014.

Basis of Presentation

These unaudited interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) for interim financial information effective within the EU. In particular, they correspond to the "Interim Financial Reporting" guidelines of IAS 34. They also comply with the German accounting Standard (DRS) No. 16 on interim reporting, as well as with §§ 37x, 37w of the Securities Trading Act. These financial statements do not include all of the information and footnotes required by IFRS for complete financial statements for year-end reporting purposes.

The following new or revised standards and interpretations became mandatory in fiscal 2014:

	Standard (IFRS) or Interpretation (IFRIC)	Mandatory Application in the EU	Endorsed by the European Commission
IFRS 10	Consolidated Financial Statements	1/1/2014	12/29/2012
IFRS 11	Joint Arrangements	1/1/2014	12/29/2012
IFRS 12	Disclosure of Interests in other Entities	1/1/2014	12/29/2012
IAS 27*	Consolidated and Separate Financial Statements	1/1/2014	12/29/2012
IAS 28*	Shares in Associated Companies	1/1/2014	12/29/2012
IAS 32*	Financial Instruments: Presentation— Offsetting Financial Assets and Financial Liabilities	1/1/2014	12/29/2012
Amend. IFRS 10, IFRS 12, IAS 27	Separate Financial Statements— Exception of Duty to Consolidation of Investment Companies	1/1/2014	11/20/2013
IAS 36*	Impairment of Assets—Information on the Recoverable Amount of Non Financial Assets	1/1/2014	Exp. Q1/2014
IAS 39*	Novation of Derivatives	1/1/2014	Exp. Q4/2013
IFRIC 21	Information	1/1/2014	Exp. Q1/2014
IFRS 9	Financial Instruments	N/A	N/A

*Amendments (changes to existing standards)

The first-time application of these standards does not have an impact on the presentation of the interim consolidated financial statements in 2014.

The same accounting and valuation methods have been applied to this interim report as were applied to the most recent annual financial statements. A detailed description of the accounting policies is published in the notes to the 2013 annual consolidated financial statements.

The Management of the Company is convinced that the interim consolidated financial statements include all adjustments of a normal and recurring nature considered necessary for a fair presentation of results for the interim period. Results of the period ended March 31, 2014 are not necessarily indicative of future results.

As of March 31, 2014, the interim financial statements and the interim management report, have not been audited in accordance with § 317 of the German Commercial Code or reviewed by an auditor.

The consolidated financial statements have been prepared on a historical cost basis. The balance sheet date is March 31, 2014.

Reporting Period

The consolidated financial statements were prepared for the reporting period from January 1 through March 31, 2014. The fiscal year for all Group companies coincides with the calendar year.

Foreign Currency Translation and Transactions Amounts mentioned in the interim consolidated financial statements, and notes to the interim consolidated financial statements, are stated in euros (EUR), unless otherwise noted.

The currency of the primary economic environment in which the artnet Group operates is US dollars, which is the functional currency of the operating subsidiary Artnet Corp. Transactions in currencies other than US dollars are recorded at the exchange rates prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses from foreign currency transactions are recognized as other income/expenses.

On consolidation, the assets and liabilities of the Group's operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. The accumulated gains and losses resulting from translation are recorded as a separate component of the Group's equity.

Currency exchange rates significant to the artnet Group are the translation of US dollars to euros, and of US dollars to British pounds (GBP). The following exchange rates have been used for the currency translation in the periods presented:

	USD to EUR			USD to GBP
	3/31/2014	12/31/2013	3/31/2013	3/31/2014	12/31/2013	3/31/2013
Spot Rate	0.727	0.726	0.780	0.601	0.606	0.658
Average Rate	0.730	0.753	0.757	0.604	0.631	0.644

Basis of Consolidation and Consolidated Companies The consolidated financial statements include the legal parent company, artnet AG, its wholly owned subsidiary Artnet Corp., as well as the subsidiaries of the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

On February 23, 1999, artnet AG entered into a transaction with Artnet Corp. that was treated as a recapitalization of Artnet Corp., with Artnet Corp. as the acquirer of artnet AG (reverse acquisition). The Company accounted for the business merger of artnet AG and Artnet Corp. as a reverse acquisition in accordance with IFRS 3.

On November 1, 2007, Artnet Corp. established artnet UK Ltd., which is a wholly owned subsidiary that acts as a sales agent for Artnet Corp. in the United Kingdom.

On July 3, 2008, Artnet Corp. established artnet France sarl, which is a wholly owned subsidiary of Artnet Corp. As part of its restructuring, artnet resolved to close the Paris office of artnet France sarl in June 2012. The key French market is now supported from our headquarters in New York and Berlin.

All significant inter-company transactions, balances, income, and expenses are eliminated.

Share Capital

Conditional Capital—Share-Based Payments

The Shareholders' Meeting on July 15, 2009, conditionally increased the capital stock by 560,000 EUR, through the issue of up to 560,000 new no-par value bearer shares, which can be issued as stock options to members of the Company's Board of Directors, members of the management of affiliated entities, and employees of artnet AG or its affiliated entities (Conditional Capital 2009/I).

No shares have been issued from conditional capital at this point.

Authorized Capital

The Shareholders' Meeting of artnet AG on July 15, 2009 authorized the Board of Directors, with the approval of the Supervisory Board, to increase the capital stock by up to 2,800,000 EUR before July 14, 2014, through the issue of 2,800,000 new no-par value bearer shares in exchange for cash contributions or contributions in kind (Authorized Capital 2009/I).

No shares have been issued from Authorized Capital 2009/I at this point.

Treasury Shares

As of March 31, 2014, artnet AG held 78,081 of its own shares, representing 1.4% of common stock.

The Shareholders' Meeting of artnet AG on July 14, 2010, authorized the Board of Directors, with the approval of the Supervisory Board, to acquire its own shares until the end of July 13, 2015, up to a 10% stake in current share capital. At no point may the acquired shares, together with other shares owned by the Company or attributable to the Company under Articles 71 et seq. AktG (German Stock Corporation Act), constitute more than 10% of the share capital. The time limit applies only to acquiring—and not holding—the shares.

Related-Party Transactions

As of March 31, 2014, financial liabilities of the artnet Group comprise, in addition to the accounts payable and other liabilities, a loan granted by the main shareholder (including interest) in the amount of 520,000 EUR, repayable on May 1, 2015. These measures serve as collateral to potential temporary liquidity bottleneck, which could result from seasonal changes of cash collections. Accounts payable contain consulting fees of Galerie Neuendorf AG in the amount of 70,500 EUR.

Income Taxes

Income tax expense is recognized in the interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year. Due to its tax loss carryforward, Artnet Corp. only has to pay the alternative minimum corporation tax.

The Group reviews the carrying amount of its deferred tax asset once per year, and will review the deferred tax asset in the fourth quarter of 2014 based on the most recent budget for the fiscal years 2015 through 2017.

Segment Reporting

The Group reports on the operating segments in the same way it reports operating segment information to the Management and Supervisory Boards.

The Group's reporting is based on the following four segments:

• The artnet Gallery Network segment presents artworks from member galleries online
• The artnet Price Database comprises all database-related products, including the artnet Price Database Fine Art and Design and the artnet Price Database Decorative Art, as well as the products based thereupon, including artnet Market Alerts, artnet Market Reports, artnet Monographs, and artnet Analytics
• artnet Advertising produces banner, as well as national and international, advertising on the website
• artnet Auctions provides an online platform to buy and sell artworks online

Segment performance is evaluated based on profit or loss before taxes. Non-directly attributable expenses are allocated to the reportable segments primarily based on the headcount and revenue for each reportable segment.

A measure of total assets or liabilities for each reportable segment is not provided to the Management. Therefore, total assets or liabilities are not disclosed for each reportable segment.

For the Three Months Ended March 31, 2014
EUR	Revenue	Profit Before Tax
artnet Gallery Network	1,099,000	182,000
artnet Price Database	1,280,000	282,000
artnet Advertising	253,000	(57,000)
artnet Auctions	719,000	(231,000)
Total	3,351,000	176,000

For the Three Months Ended March 31, 2013
EUR	Revenue	Profit Before Tax
artnet Gallery Network	1,186,000	224,000
artnet Price Database	1,266,000	98,000
artnet Advertising	254,000	53,000
artnet Auctions	528,000	(451,000)
Total	3,234,000	(76,000)

Earnings per Share

Basic earnings per share are calculated by dividing net income by the weighted-average number of common shares outstanding during the year.

Diluted earnings per share are calculated in the same manner as basic earnings per share, with the exception that the average number of shares outstanding increases by adding the potential number of shares from stock option conversions.

The calculation of earnings per share is based on the following data:

	1/1/2014–3/31/2014 EUR	1/1/2013–3/31/2013 EUR
Numerator (earnings)
Consolidated Result of the First Nine Months Denominator (Number Of Shares)	173,268	(78,172)
Weighted Average Number of Ordinary Shares used to Calculate Basic Earnings per Share (Issued and Fully Paid Ordinary Shares)	5,552,986	5,552,986
Effect of Potential Dilutive Shares from Stock Options	-	-
Weighted Average Number of Ordinary Shares used to Calculate Dilutive Earnings Per Share	5,552,986	5,552,986

The weighted average exercise price is higher than the average share price in 2014. As a result, there are no diluted shares.

Employees

On March 31, 2014, there were 113 full-time employees, as compared with 116 in the first quarter of 2013. Additionally, the Group employed 5 part-time employees as of March 31, 2014, as compared to 9 in the same period last year. Sales and other consultants working for the group as of March 31, 2014 totaled 11, the same as last year.

Accounting Estimates and Assumptions

The preparation of the consolidated financial statements in accordance with IFRS necessitates estimates and assumptions that influence assets and liabilities, income and expenses, as well as information in the notes to the six month financial statements. Actual results and developments may differ from those estimates and assumptions.

Estimates made by the Management that have a significant effect on the interim consolidated financial statements include the recognition of deferred tax assets and of development costs, the measurement of provisions and accruals, the useful lives of non-current assets, and the assessment of bad debt provisions on accounts receivable.

Notification Concerning Transactions by Persons Performing Managerial Responsibilities in Accordance with § 15a of the Securities Trading Act

The Company was not informed about transactions by persons performing managerial responsibilities to § 15a of the Securities Trading Act.

Voting Rights Notifications

In accordance with Section 21 of the Securities Trading Act (WpHG), shareholders are required to report the level of their shareholdings if they exceed or fall below certain thresholds. The thresholds for reporting are 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50%, and 75%.

artnet AG was notified about the following voting rights announcements pursuant to section 26 WpHG (German Securities Trading Act):

January 2, 2014

1. Redline Capital Management S.A. with its registered office in Luxembourg, Luxembourg, informed us on December 27, 2013 that its share of the voting rights in artnet AG fell below the threshold of 3% on December 24, 2013 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

2. Instacom International S.A. SPF with its registered office in Luxembourg, Luxembourg, informed us on December 27, 2013 that its share of the voting rights in artnet AG fell below the threshold of 3% on December 24, 2013 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

3. Mr. Vladimir Evtushenkov, Russia, informed us on December 27, 2013 that his share of the voting rights in artnet AG fell below the threshold of 3% on December 24, 2013 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

4. Skate Capital Corp. with its registered office in Road Town, Tortola, British Virgin Islands, informed us on December 27, 2013 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on December 27, 2013 and on this date amounts to 5.68% (320,035 voting rights of the total of 5,631,067 voting rights in artnet AG).

5. Mr. Sergey Skaterschikov, Russia, informed us on December 27, 2013 that his share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on December 27, 2013 and on this date amounts to 5.68%, (320,035 voting rights of the total of 5,631,067 voting rights in artnet AG). The entire voting rights are attributable to Mr. Sergey Skaterschikov pursuant to sec. 22 para. 1 sent. 1 no. 1 WpHG via Skate Capital Corp.

January 8, 2014

1. Weng Fine Art AG with its registered office in Krefeld, Germany, informed us on January 4, 2014 that its share of the voting rights in artnet AG fell below the threshold of 5% on December 28, 2013 and on this date amounts to 3.55% (200,000 voting rights of the total of 5,631,067 voting rights in artnet AG).

2. Mr. Rüdiger K. Weng, Germany, informed us on January 4, 2014 that his share of the voting rights in artnet AG fell below the threshold of 5% on December 28, 2013 and on this date amounts to 3.55%, (200,000 voting rights of the total of 5,631,067 voting rights in artnet AG). The entire voting rights are attributable to Mr. Rüdiger K. Weng pursuant to sec. 22 para. 1 sent. 1 no. 1 WpHG via Weng Fine Art AG.

February 24, 2014

1. Skate Capital Corp. with its registered office in Road Town, Tortola, British Virgin Islands, informed us on February 19, 2014 that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on February 14, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

2. Mr. Sergey Skaterschikov, Russia, informed us on February 19, 2014 that his share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounts to 0.00%, (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

3. Abbey House Group S.A. with its registered office in Warsaw, Poland, informed us February 19, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 2.60% (146,574 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey House Group S.A. pursuant to Section 22 para. 2 WpHG.

4. Abbey Asset Management Sp. z o.o. SKA with its registered office in Warsaw, Poland, informed us February 19, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 7.62% (429,330 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Asset Management Sp. z o.o. SKA pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

5. Abbey Asset Management Sp. z o.o. 2 SKA with its registered office in Warsaw, Poland, informed us February 19, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 7.79% (438,804 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Asset Management 2 Sp. z o.o. SKA pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

6. Abbey Asset Management Sp. z o.o. 3 SKA with its registered office in Warsaw, Poland, informed us February 19, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to

8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 6.84% (385,119 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Asset Management 3 Sp. z o.o. SKA pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

1. Abbey Asset Management Sp. z o.o. with its registered office in Warsaw, Poland, informed us February 21, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 2.60% (146,574 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Asset Management Sp. z o.o. pursuant to Section 22 para. 1 sent. 1 no. 1 WpHG. Furthermore, of this total, 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Asset Management Sp. z o.o. pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

2. Kenedix Investments Limited with its registered office in Nicosia, Cyprus, informed us February 21, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 2.60% (146,574 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Kenedix Investments Limited pursuant to Section 22 para. 1 sent. 1 no. 1 WpHG. Furthermore, of this total, 5.68% (320,035 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Kenedix Investments Limited pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

3. Mr. Ioannis Zavros, Cyprus, informed us February 21, 2014 that his share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 2.60% (146,574 voting rights of the total

of 5,631,067 voting rights in artnet AG) are attributed to Mr. Zavros pursuant to Section 22 para. 1 sent. 1 no. 1 WpHG. Furthermore, of this total, 5.68% (320,035 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Mr. Zavros pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

1. Abbey Art Fund FIZAN with its registered office in Warsaw, Poland, informed us February 21, 2014 that its share of the voting rights in artnet AG exceeded the thresholds of 3% and 5% on February 14, 2014 and on this date amounted to 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG). Of this total, 2.60% (146,574 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Art Fund FIZAN pursuant to Section 22 para. 1 sent. 1 no. 1 WpHG. Furthermore, of this total, 8.29% (466,609 voting rights of the total of 5,631,067 voting rights in artnet AG) are attributed to Abbey Art Fund FIZAN pursuant to Section 22 para. 2 WpHG, including the voting rights of the following shareholder whose holdings of voting rights amount to 3% or more: Abbey House Group S.A.

April 4, 2014

1. Abbey Asset Management Sp. z o.o. SKA with its registered office in Warsaw, Poland, informed us on April 2, 2014, that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

2. Abbey Asset Management Sp. z o.o. 2 SKA with its registered office in Warsaw, Poland, informed us on April 2, 2014, that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

3. Abbey Asset Management Sp. z o.o. 3 SKA with its registered office in Warsaw, Poland, informed us on April 2, 2014, that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

4. Abbey Asset Management Sp. z o.o. with its registered office in Warsaw, Poland, informed us on April 2, 2014, that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

5. Kenedix Investments Limited with its registered office in Nicosia, Cyprus, informed us on April 2, 2014, that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

6. Mr. Ioannis Zavros, Cyprus, informed us on April 2, 2014, that his share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

7. Abbey Art Fund FIZAN with its registered office in Warsaw, Poland, informed us on April 2, 2014, that its share of the voting rights in artnet AG fell below the thresholds of 5% and 3% on April 2, 2014 and on this date amounts to 0.00% (0 voting rights of the total of 5,631,067 voting rights in artnet AG).

The Company published these notifications verbatim on its Investor Relations site.

Berlin, May 15, 2014

Jacob Pabst Chairman and CEO, artnet AG

artnet AG

Supervisory Board John Hushon, Chairman Hans Neuendorf, Deputy Chairman Piroschka Dossi Management Board Jacob Pabst, Chairman and CEO

Artnet Worldwide Corporation

Jacob Pabst, CEO

artnet UK Ltd. Jacob Pabst, CEO

artnet France sarl Jacob Pabst, CEO

Addresses

artnet AG

Oranienstraße 164 10969 Berlin

info@artnet.de

T: +49 (0)30 209 178-0 F: +49 (0)30 209 178-29

Artnet Worldwide Corporation

233 Broadway, 26th Floor New York, NY 10279 USA

info@artnet.com

T: +1-212-497-9700 F: +1-212-497-9707

artnet UK Ltd.

Morrell House 98 Curtain Road London EC2A 3AF United Kingdom info@artnet.co.uk T: +44 (0)20 7729 0824

F: +44 (0)20 7033 9077

Investor Relations

You can find information for investors and the annual financial statements at www.artnet.com/investor-relations.

If you have further queries, please send an email to ir@artnet.com or send your inquiry by mail to one of our offices.

German securities code number

The common stock of artnet AG is traded on the Prime Standard of the Frankfurt Stock Exchange under the symbol "ART." You can find notices of relevant company developments at www.artnet.com/investor-relations.

Wertpapier-Kenn-Nummer

[WKN] A1K037 ISIN DE000A1K0375

Concept and Production Artnet Worldwide Corporation

©2014 artnet AG, Berlin