Microsoft Names Internet Gold's Subsidiary MSN-Israel as Top Sales and Marketing Performer for Q2 2005

Microsoft Names Internet Gold's Subsidiary MSN-Israel as Top Sales and Marketing Performer for Q2 2005

Internet Gold's Share of Israeli Internet Advertising: 25%

PETACH TIKVA, Israel, July 28/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD , TASE: IGLD) today announced that
Microsoft International has named MSN-Israel (owned jointly by Internet
Gold-50.1% and Microsoft-49.9%) as its Top Q2 Sales and Marketing Performer,
singling it out for excellence from the 38 MSN-affiliated portals around the
world. The award was announced in the Microsoft's annual convention (MGB)
held last week in Atlanta, Georgia.

"We are proud to receive this recognition from Microsoft," said Uri
Adoni, CEO of MSN-Israel. "Our success shows what can be created when you
combine the efforts of a talented and dedicated team with MSN's strong brand
name and excellent technology."

MSN-Israel earned this award by delivering the highest revenue
growth during the period compared to projections made originally at the
beginning of Microsoft's fiscal year (July 2004). During the 12 month period
from July 2004 to June 2005, MSN-Israel's revenues were $6.5 million, 12%
higher than forecast.

In addition to MSN-Israel as its main e-Advertising asset,
Internet Gold holds several additional niche portals which together
contributed approximately $2 million to the Company's last 12 months
revenues. As such, Internet Gold's market share of Israel's Internet
Advertising has reached approximately 25%.

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

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

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