Internet Gold Plans Expansion of 'Search' Activities Through Launch of MSN-Israel-Branded 'Index'

Internet Gold Plans Expansion of 'Search' Activities Through Launch of MSN-Israel-Branded 'Index'

Expands Partnership With Netex, Developer of Leading Hebrew-Language Index/Search Engine

PETACH TIKVA, Israel, January 14/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD) today announced that its
subsidiary MSN-Israel (50.1 Internet Gold. 49.9 Microsoft Corp.) has formed a
strategic partnership with Netex-Express Ltd., a company that operates one of
Israel's most popular Hebrew-language Internet search engines and index
sites, to launch a new MSN-Israel-branded index site.



For several years, Internet Gold has been cooperating with
Netex, selling paid placements and key words for Netex's index site on a
revenue-sharing basis. Taking the cooperation to the next level, the two
companies will now work together to launch a higher-profile site: an index
with Netex's functionality but the "look and feel" of MSN-Israel. Through
exposure to MSN-Israel's large user base, the site is expected to generate a
higher level of traffic than currently delivered by netex.co.il, resulting in
higher advertising revenues. In addition, the cooperation is also expected to
increase the yield of MSN-Israel's sales force by giving them an expanded
range of advertising opportunities to offer each business customer.



The new site is expected to be launched during the first few
weeks of February 2005. Profits generated by the site will be split between
MSN-Israel and Netex.



"The sale of paid placements and key words is becoming a
significant business in Israel as it is in other regions throughout the
world," said Mr. Eli Holtzman, Internet Gold's CEO. "We believe the
combination of the MSN-Israel brand, Netex's unique Hebrew-language search
functionality and the proven capabilities of our sales force that will
generate a growing stream of revenues, establishing 'search' as a major
engine of our future growth."



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 subsidiary, 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.



About Netex



Founded in 1998, Netex-Express Ltd. began with a vision of simplifying
the task of searching on the Internet for non-English speakers. Using
in-house developed, patent-pending search and logical technologies, the
company's netex search engine allows users throughout the world to search the
Internet easily using their native languages. In addition, Netex has
leveraged its success in Israel to launch a paid-for-placement Internet index
site.



For additional information about Netex, please visit www.netex.co.il.



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

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


-------
Profile: intent