8-K

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                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549



                                    FORM 8-K

                               (AMENDMENT NO. ___)


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


              Date of report (Date of earliest event reported): August 8, 2000


                              IBS INTERACTIVE, INC.
               (Exact Name of Registrant as Specified in Charter)

    DELAWARE                      0-24073                       13-3817344
(State or Other                  (Commission                  (IRS Employer
 Jurisdiction                    File Number)              Identification No.)
of Incorporation)


2 RIDGEDALE AVENUE, SUITE 350, CEDAR KNOLLS, NEW JERSEY                07927
     (Address of Principal Executive Offices)                        (Zip Code)

       Registrant's telephone number, including area code: (973) 285-2600




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ITEM 5.     OTHER EVENTS.

            The Registrant  hereby  incorporates by reference the contents of
the press  release of the  Registrant,  dated August 8, 2000,  filed  herewith
as Exhibit 99.1.

ITEM 7.     FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

               (A)  FINANCIAL STATEMENTS OF BUSINESS ACQUIRED.

               Not applicable.

               (B)  PRO FORMA FINANCIAL INFORMATION.

               Not applicable.

               (C)  EXHIBITS.

               The  following  exhibit is  included  as part of this  Current
               Report on Form 8-K:

               (99.1)  Press release of IBS Interactive, Inc. dated August 8,
                       2000.







                                   SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of
1934,  the  registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                       IBS INTERACTIVE, INC.
                                          (Registrant)




Date:   August 9, 2000            By:  /s/ Howard Johnson
- -----------------------------     ----------------------------------------------
                                  Name:   Howard Johnson
                                  Title:  Chief Financial Officer






                                  EXHIBIT INDEX

            The  following  exhibit is included as part of this Report:


            99.1   Press release of IBS Interactive, Inc. dated August 8, 2000.

EX-99.1

                                                                    EXHIBIT 99.1

                IBS Interactive to Sell Consumer Dial-Up Business

                               To EarthLink, Inc.

             - Divestiture Furthers IBS Interactive's Evolution Into

                         e-Business Solutions Provider -

         IBS Interactive,  Inc.  (Nasdaq:  IBSX), an e-Business and IT solutions
provider (the "Company"),  and EarthLink, Inc. (Nasdaq: ELNK; "EarthLink") today
announced that EarthLink has agreed to purchase the Company's  consumer  dial-up
business.  Under the terms of the agreement,  IBS Interactive  will receive cash
based upon final  determination  of the total number of  subscribers  who remain
with  EarthLink.  The Company expects to use proceeds from the sale primarily to
pay off bank debt assumed in its March 2000 acquisition of digital fusion, inc.

         "The  divestiture of our consumer dial-up business is the last piece of
our  strategic  plan we  began  in  late  1999 to  concentrate  entirely  on IBS
Interactive's  higher-margin,   consultative  e-business  services,"  said  Nick
Loglisci,  chief executive officer of IBS Interactive.  "We have taken this step
in anticipation of the pending merger with Infonautics and First Avenue Ventures
whereby IBS Interactive will contribute its e-business services expertise to the
combined company's suite of services."

         Due to the writeoff of goodwill  associated with this business segment,
and  the  accrual  of  severance  and  other   expenses   associated   with  the
discontinuation  of the  business,  the Company  expects to report a loss on the
sale in its  second  quarter  financial  statements.  It will  also  report  its
consumer dial up business as a discontinued  operation.  The ultimate  amount of
the loss will depend upon a number of factors  including  the ultimate  proceeds
received.  The final  proceeds of the sale are expected to be  determined in the
fourth quarter.

         "EarthLink  is  pleased  to welcome  IBS  Interactive's  members to our
family," said Cliff Bryant,  manager of subscriber  acquisitions  for EarthLink.
"We have a long  history  of  integrating  subscriber  bases  with a minimum  of
hassles for the customer and we look  forward to exceeding  these new  EarthLink
members' expectations."

         "Our dial-up  customers  have been very loyal to us and we believe that
EarthLink,  which has built its  reputation  on providing  exceptional  customer
service and support,  will quickly gain the same  loyalty.  We will  continue to
work  closely  with  EarthLink  to ensure the  transition  goes as  smoothly  as
possible,   without  any   interruptions  and  a  minimum  of  changes  for  our
subscribers," concluded Mr. Loglisci.

About IBS Interactive

         IBS  Interactive  provides  comprehensive  e-Business  and  information
technology (IT) solutions to businesses and organizations. Professional services
include programming and applications development,  network services,  consulting
and training.  Web-site hosting services include shared and co-location hosting.
Internet access services include  dedicated lease lines, and digital  subscriber
line   (DSL)   Internet   access.    IBS    Interactive's    web   address   is:
http://www.interactive.net

About EarthLink

         EarthLink is one of the world's  leading  Internet  service  providers,
bringing the magic of the Internet to approximately 3.7 million  individuals and
businesses  every day.  In June 2000,  the  company  announced  plans to acquire
Reston,  Va.-based  OneMain.com,  a move that will  extend  EarthLink's  host of
award-winning  services into rural America and smaller metropolitan areas across
the United States.  Headquartered in Atlanta, EarthLink provides a full range of
innovative access, hosting, and e-commerce solutions to thousands of communities
internationally from more than 5,000 points of presence.  EarthLink is committed
to doing an  exceptional  job of pleasing its customers,  shareholders,  and the
community by following the company's Core Values and Beliefs.  Information about
EarthLink and EarthLink  Sprint services is available by calling  1-800-395-8425
and through EarthLink's Web site at www.earthlink.net.