Internet Gold Receives Notice of Alleged Violation of Ministry of Communications License

Internet Gold Receives Notice of Alleged Violation of Ministry of Communications License

PETACH TIKVA, Israel, August 25/PRNewswire-FirstCall/ -- Internet Gold (NASDAQ: IGLD) today announced that it has received a
letter from the general manager of the Israeli Ministry of Communication
claiming that the company has violated its license by allowing third party
adult content services to use its international calls network. The general
manager further informed Internet Gold that he is contemplating imposing a
fine in the amount of Nis 5,160,000 on Internet Gold. The letter indicated
that Internet Gold will have the opportunity to raise objections and defenses
with respect to the claim.

Internet Gold has cooperated with the Israeli Ministry of Communication
in the above matter and denies the allegations. The company plans to
vigorously defend itself and to object to any fine, if imposed.

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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