Internet Gold's MSN-Israel Wins Coca Cola Portal and Internet Advertising Business

Internet Gold's MSN-Israel Wins Coca Cola Portal and Internet Advertising Business

One of Israel's Largest Internet-Based Media Budgets

PETACH TIKVA, Israel, May 31/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD) today announced that Coca Cola
has chosen MSN-Israel, an Internet media company owned jointly by Internet
Gold (50.1%) and Microsoft Inc. (49.9%), to operate its popular "My Music"
(www.mymusic.co.il) portal. As part of its new media strategy, Coca Cola
transferred its Internet media budget, one of the largest in Israel, to
MSN-Israel after two years of working with Walla, one of MSN-Israel's major
competitors. Coca Cola's decision was made in light of its successful
cooperation with MSN-Israel in the development and operation of the
"FeelGood" site associated with its Diet Coca Cola brand
(www.feelgood.co.il).

The "My Music" portal, which targets the youth audience with
news and reviews about "hit" music, is an integral part of Coca Cola's
growing cross-media marketing focus. In addition, the site is Coca Cola's
focus for the promotional activities surrounding "A Star Is Born," the
phenomenally popular television competition that it sponsors, and facilitates
voting by millions of fans.

To support these cutting-edge activities, MSN-Israel has used
Microsoft's robust and flexible Content Management Server (CMC 2002) system
as the platform for the site.

Orly Klein-Dagan, marketing manager of Coca-Cola Israel commented:
"Migrating to MSN have opened for us a range of possibilities for enriching
the content in our "My Music" site in areas such as video, messenger, etc.
these options are extremely important to our young audience and this
contributes in making "My Music" a leading music's site in their perception.
During the past months, we experienced an increase in both the numbers of
visits and duration of time spent on the site by our surfers".

Mr. Uri Adoni, CEO of MSN Israel, added, "We are delighted
that our years of cooperation with Coca Cola, including the development of
the "FeelGood" site, have led it to choose us for this major contract. Our
association with Microsoft and MSN International has been an important part
of our success, giving us a competitive edge in terms of technology and
content as well as in innovative marketing concepts."

Mr. Adoni continued, "This competitive advantage is helping us
secure a growing number of important agreements with such international
advertisers as Gillette and Procter & Gamble. The growing e-advertising
budgets and Internet-related activities of these and other world-class
consumer brands demonstrates that the Internet is emerging as a major
advertising medium, a trend that plays to the strengths of MSN-Israel and
Internet Gold."

About Internet Gold

Internet Gold is a communications group 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.

The group's operations are carried out through four main
companies. Internet Gold, the publicly traded parent company serves as HQ to
the group and also is the ISP which provides access and telephony services.
Through MSN Israel, its joint-venture (50.1% owned) with Microsoft Corp.
(49.9% owned), the Company operates Israel's leading Internet portal. Its
fully-owned subsidiary, GoldMind, focuses on the provision of Internet
value-added services and is the owner of 100% of the Start portal. Through
GoldTrade, its fully-owned e-Commerce subsidiary, the Company has established
itself as one of Israel's leading e-Commerce providers, P1000. In addition,
its fully-owned subsidiary Internet Gold International specializes in the
provision of international Internet and communication services.

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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