Internet Gold Announces That it is Ahead of its Original Plans for its New 015 International Telephony Services

Internet Gold Announces That it is Ahead of its Original Plans for its New 015 International Telephony Services

PETACH TIKVA, Israel, December 21/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD) today announced that it is ahead of its
original plans for its new 015 international telephony services. Launched in
the third quarter of 2004, this new activity was originally budgeted to begin
yielding operational profits after two full quarters of operations in the
first quarter of 2005. Internet Gold estimates that the 015 activity reached
operational profitability in the fourth quarter of 2004.



The company has recently commenced offering prepaid and post-paid
telephony services that are expected to contribute to its market share of
international telephony services.



Eli Holtzman, Internet Gold CEO added: "I am very pleased and proud of my
team that was successful in leading this important new addition to our other
growth drivers to positive EBIT in less than five months of operations. We
succeeded in our main goal by being the first new competitor to join the
international telephony market. As I earlier emphasized, we have leveraged
our synergistic resources to launch this new activity in a very cost
effective manner. The earlier than expected positive results is just another
proof of the soundness of our strategy. I trust that our group will return to
its traditional positive profitability levels already in this last quarter of
2004".



About Internet Gold



Internet Gold is a communications company that provides Internet access
and related value-added services, international telephony, e-advertising,
content and e-Commerce services throughout Israel to both residential and
business customers.



Internet Gold's operations are carried out through four subsidiaries. Its
fully-owned subsidiary Internet Gold International specializes in the
provision of international Internet and communication services. Its
fully-owned subsidiary Gold Mind focuses on the provision of Internet
value-added services. Through MSN Israel, its joint-venture with Microsoft
Corp., the Company operates two of Israel's leading Internet portals,
MSN-Israel and Start.co.il. Through P1000, its e-Commerce activity, the
Company has established itself as one of Israel's leading e-Commerce
providers.



For additional information about Internet Gold, please visit
our Website at www.igld.com.



Certain statements made herein that use the words "estimate," "project,"
"intend," "expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve known and unknown risks and uncertainties which could cause the
actual results, performance or achievements of the Company to be materially
different from those which may be expressed or implied by such statements,
including, among others, changes in general economic and business conditions
and specifically, decline in demand for the Company's services, inability to
timely develop and introduce new technologies, services and applications and
loss of market share and pressure on prices resulting from competition. For
additional information regarding these and other risks and uncertainties
associated with the Company's business, reference is made to the Company's
Annual Report filed with the Securities and Exchange Commission and its other
reports as filed from time to time with the Securities and Exchange
Commission.



For further information, please contact:
Ms. Idit Azulay, Internet Gold
+972-3-939-9848
idita@co.zahav.net.il





Source: Internet Gold

Ms. Idit Azulay, Internet Gold, +972-3-939-9848, idita@co.zahav.net.il



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