Internet Gold to Acquire Operations of Israeli ISP AquaNet

Internet Gold to Acquire Operations of Israeli ISP AquaNet

PETACH TIKVA, Israel, December 1/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD) today announced that it has signed an
agreement to acquire the operations and some of the assets of AquaNet, an
Israeli Internet Service Provider (ISP).



The Company estimates that the AquaNet activities will be
accretive to both revenues and operating profits during the fourth quarter of
2004, with an operating margin similar to that of the Company's current ISP
operations.



The agreement will take effect retroactively as of November 1,
2004, with AquaNet's results for November and December consolidated into
Internet Gold's fourth quarter and full year 2004 financial results.



"This acquisition is another step forward in our strategy to
expand our share of the Israeli broadband market," said Mr. Eli Holtzman,
Internet Gold's CEO. "The structure of the deal has allowed us to acquire the
portions we wanted of AquaNet's business - those that are most synergistic
with our current operations, and those that give us entry into several niches
that look very promising. The deal is also good for AquaNet's subscribers,
allowing them to continue benefiting from AquaNet's superb customer service
with the better backup that we can offer.



"A major part of our interest in Aquanet is its know-how of
the Internet Space. Aquanet is one of the oldest Israeli Internet players,
founded in 1992 by Mr. Meni Nachman, a great entrepreneur who will now be
joining our team. I trust that Menni's experience, backed by Internet Gold's
infrastructure and resources, will contribute in a major way to our success
in integrating Aquanet's business.



"Looking forward, we continue to operate according to a plan
aimed at capitalizing fully on Israel's rapid telecommunications market
growth, and positioning ourselves to benefit from its developing e-commerce
and e-advertising industries."



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 (50.1% ownership)
with Microsoft Corp. (49.9% ownership), the Company operates two of Israel's
leading Internet portals, MSN-Israel and Start.co.il. Through P1000, its
e-Commerce joint venture (48.3% ownership), 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, tel +972-3-939-9848, idita@co.zahav.net.il


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