Internet Gold's MSN-Israel to Launch Entertainment Portal With Israel's Entertainment Channel

Internet Gold's MSN-Israel to Launch Entertainment Portal With Israel's Entertainment Channel

PETACH TIKVA, Israel, July 6/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD, TASE: IGLD) today announced that
MSN-Israel, the subsidiary it owns with Microsoft Corporation (Internet
Gold's share: 50.1%), has signed a memorandum of understanding (MOU) with the
Israel Entertainment Channel (owned jointly by Israel's HOT communications
company and Slutzky Communication channels) to jointly create a
Hebrew-language Internet entertainment portal. The portal will be hosted on
the MSN-Israel home page and marketed to all Israeli web users. The companies
plan to launch the new portal in the near future and believe that it will
become an important traffic and revenue driver for MSN-Israel.

Commenting on the news, Uri Adoni, CEO of MSN-Israel, said,
"This agreement reflects the fact that an increasing portion of the public
now sees the Internet as an important entertainment media, just as they do
television. By joining forces with Israel's leading provider of entertainment
content, we will be able to create a portal that will become a powerful force
in the local entertainment market."

Hagit Caspi-Yakoby, the CEO of the Israel Entertainment
Channel, added, "By joining with MSN-Israel, Israel's leading Internet media
portal, we will be able to expand our reach beyond television, re-positioning
ourselves as a cross-media provider of entertainment content. We are excited
by the opportunity to offer unique designed-for-the-Internet programming and
to bring our most popular television programs to the Internet."

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. Through MSN Israel, its (50.1% owned) joint-venture with
Microsoft Corp. (49.9% owned), the Company operates several of Israel's
Internet portals. Its fully-owned subsidiary, Internet Gold International,
specializes in the provision of international Internet and communication
services. Its fully-owned subsidiary, GoldMind, focuses on the provision of
Internet value-added services. Through GoldTrade, its fully-owned 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.

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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