Internet Gold Enters Into Portal Agreement with Microsoft for Hebrew Web Search Service

Released_By: USANews Press Release Service
Date: 10/6/99
Time: 9:25:20 AM

For_Immediate_Release

ROSH HAAIN, Israel, Oct. 6  -- Internet Gold (Nasdaq: IGLD), a leading internet service provider in Israel, today announced that it has signed a portal agreement with Microsoft Corp. according to which both companies will initiate a Hebrew language web search service.

In addition to the portal both companies are contemplating establishing a joint venture to run this site. The parties are planning to execute the joint venture through the formation of a joint limited company with equity split of 50.1 percent to Internet Gold and 49.9 percent to Microsoft Corp. It is contemplated that Internet Gold will finance the activities of the joint venture.

The site will be called "MSN Israel" and is scheduled to be up and running by December 1999. It will offer Israeli web surfers an Internet search engine, access to on-line discussion groups, business services and electronic shopping. This portal will integrate the existing Internet Gold portals and will compete with other Israeli web portals.

Internet Gold's CEO, Eli Holtzman, commented, "We are very proud of our collaboration with Microsoft. This step is part of our business plan to focus on content and E-commerce in preparation for the next millennium."

Internet Gold is the leading Internet service provider in Israel in number of subscribers, based on recent surveys. The company provides a wide array of Internet services tailored to meet the needs of residential and business subscribers, including Internet access and related value-added services, as well as content through the Company's portals. The Company provides access through a nationwide network with 14 points of presence, allowing approximately 95% of the Israeli population to access the Internet with a local telephone call.

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 Registration Statement on Form F-1 filed with the Securities and Exchange Commission and its reports filed from time to time with the Securities and Exchange Commission.