Internet Gold Acquires 50% of TIPO, Israel's Leading Children's Portal

Internet Gold Acquires 50% of TIPO, Israel's Leading Children's Portal

PETACH TIKVA, Israel, August 23/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD) today announced that Goldmind,
Internet Gold's subsidiary, has acquired a 50% interest of Hype Active Media
Ltd ordinary shares ("Hype") and 50.1% of Hype's management shares. Hype is
the owner and operator of TIPO (tipo.co.il), Israel's leading children's
portal. In July 2005, TIPO achieved approximately 30 million page views,
making it Israel's highest rated portal targeting children aged 8-15. Hype's
founders will continue to hold the remaining of Hype's shares, and to take an
active role in its operations. Mr. Eli Holtzman, CEO of Internet Gold, has
been named the company's new chairman.

"This acquisition is another step in our efforts to expand
Internet Gold's leadership position in Israel's rapidly growing Internet
Advertising market," said Mr. Eli Holtzman, CEO of Internet Gold, who has
been named the company's new chairman. "With Internet Advertising already
accounting for about 4% of Israel's total advertising expenditures,
advertisers are recognizing the benefits of this highly-targeted media, and
TIPO offers them a superb channel for reaching a highly desirable
demographic. By bringing Internet Gold's experienced sales organization to
this proven channel, we believe we will be able to expand the revenues of
both organizations significantly."

Launched in 2003, TIPO offers a broad selection of exciting
content and youth-oriented applications, including web-based e-mail, instant
messaging, chat-rooms and forums, as well as personal website building and
hosting services. During July 2005, approximately 551,000 individual users
visited TIPO.

Mr. Holtzman added, "In addition to advertising, TIPO has
established additional revenue streams, including the sale of cellular
content to its users. This ideally positions TIPO to address the growing icon
and ringtone download market, which we believe will continue to experience
rapid growth -- especially in Israel where the penetration of cellular phones
is above 100%. We are confident that TIPO will immediately begin to
contribute to our revenues and profits in the third quarter and are very
pleased with this acquisition."

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

-------
Profile: intent