1. NASDAQ NM / TASE symbol: IGLD Leveraging Israel’s Broadband Phenomenon Eli Holtzman, CEO Doron Turgeman, CFO March 2006 Internet Gold Leading Israeli IP Group Internet Gold Leading Israeli IP Group

2. 2 Forward Looking Statement The statements contained herein that are not purely historical are forward-looking statements. These forward-looking statements involve risks and uncertainties and actual results could differ materially from such results discussed in these statements.

3. 3 IGLD’s smile brand: major presence across all Internet-related business sectors

4. 4 2005: another year of strong revenue growth   ’03 / ’04 – –Mass Broadband Deployment – –Launch of int’l telephony   2005 – –Build-out of International VoIP Telephony services – –Expansion of Internet Advertising – –Expansion of Business Services – –Successful re-branding will contribute to future profitability Primary drivers: up 36% in NIS millions up 22%

5. 5 2006: riding the expansion of our markets to the next level of revenues and profits Online Advertising We expect our advertising revenues will grow as media budgets shift to the Internet VoIP International Telephony Continued effort to drive market-share from 8-9% to ~ 20% in coming 2-3 years Business Services We expect to carry out a larger number of major infrastructure projects Efficiency We trust that streamlining carried out in ‘05 will improve our profitability in ’06 and on

6. 6 Investment highlights Positioned to lead rapidly growing media markets As leading IP Group, IGLD is positioned to benefit from the strong growth forecast for Online Advertising and e-Commerce markets Working from strong cash generating platform IGLD’s ISP, VAS and telephony businesses are strong and profitable cash-generating platforms Financial Strength IGLD’s solid cash position will enable it to continue consolidating its markets Proven management & ownership IGLD’s established management team, working together with Eurocom (its controlling shareholder), has proven capable of carrying out aggressive growth / leadership strategies

7. 7 IGLD’s next major growth driver

8. 8 2005: the inflection point for Online Advertising “Marketers are shifting more of their advertising budgets online… As consumers spend a larger percentage of their media time online, it is natural for the flow of advertising dollars to follow.” David Silverman, Partner, PricewaterhouseCoopers LLP “Almost half of all marketers plan to increase online ad spending by decreasing spending in other channels…” Forrester Research Source: PWC IAB Internet Advertising Report, Sept. ‘05 US Internet Advertising CAGR = +19% Source: Market surveys & IGLD estimates Israel Internet Advertising CAGR = +43% +39% +22% +63% +83% +53% +25%

9. 9 Israeli Online Advertising is ripe for growth Israel’s broadband penetration is among the highest in the world  >60% of Israeli households have Internet access > 90% are connected via broadband!  >40% of users are online >10 hours per week. 2.7M users per day! Israel’s online advertising budgets are low compared to “eyeball” exposure – ad spending always follows rating  Internet Advertising in Israel is currently > 5% of overall media spending (~ $900M in 05’), and growing fast  Immediate growth potential: SEARCH revenues are just 15% of the mix in Israel compared to 40% in the US

10. 10  Joint venture - IGLD (50.1%) & Microsoft Corp. (49.9%)  Strong, productive sales force  Perfect synergy between Microsoft’s technology and brand, and IGLD’s sales capabilities and local knowledge  Strong user statistics: –4M unique users per month –160M page views –Massive usage of tools  Co-operations with recognized global and regional brands on content-branded channels (Coca Cola / P&G and more) IGLD’s anchor media property: Israel messenger hotmail search jobs

11. 11 IGLD - positioned to benefit msn-Israel50.1% Hebrew language MSN Messenger, Hotmail Israel & MSN Search Israel msn-jobs50.1% Hebrew language job search start100% General portal & Search engine zahav.ru100%Russian language portal V-games100% Games content portal seret51% Cinema portal getprice51% Price comparison TheMoney50.1% Lead-generation financial portal tipo50%Children’s portal nirshamim50%Portal for academics netex Exclusive marketing rights Search engine & directory goopYouth portal

12. 12 Israel’s e-Commerce market will follow the growth pattern of online advertising… Online shopping is already a force in Israel  2005 revenues: ~NIS 1B, growing at a rate of 20% per year  90% of revenues generated by auction and group sale sites (online marketplaces)  40% of surfers buy online regularly, (electronics and computer-related items are the most popular) The market is highly centralized  4 sites currently account for 80% of Israel’s online sales – our, Walla Shops (Bezeq Int’l), Nana Shops (Netvision) & Olsale Source: CIA & Gaon Capital Markets & IGLD estimates

13. 13 …and IGLD is positioned to benefit P1000 100%  One of Israel’s top 4 e-Commerce sites  Outlet for >100 of Israel’s largest consumer product suppliers  Growing revenues, positive EBIT  Low-risk commission model with fulfillment directly from suppliers msn shops 50.1%  Ventures between MSN-Israel and retailers dbook 50%  Israel’s “Amazon” getprice 51%  Israel’s #2 price comparison site

14. 14 (NIS millions) Smile media: ~ 22% of Israeli market

15. 15 A Strong & Consistent Revenue Generator

16. 16 While ISP residential business has leveled off, biz revenues & VAS sales continue to grow residential  Anti-spam & anti-virus solutions  WiFi home networking  e-Safe Secured Internet Access (server-based) smile.biz services  Professional services large-scale infrastructure projects and 24/7 outsourcing services   Specialized content  Website hosting  Co-location development  Web security  Global roaming  Training

17. 17 Pioneers of VoIP Telephony in Israel Smile.015 - an alternative provider  Existing customer base ~ 300k residential + 5000 business users  Brand capital  Leveraging existing operations / services / tech infrastructure  Effective / low cost investment in VoIP technology Smile.075 – the additional home line  Rely on existing switches and tech platform  Lower investment required (~$300,000 - $500,000)  State of the art services at lower / flat costs

18. 18

19. 19 EBIT for Q3/04 and Q4/04 reflects investment of NIS 8.5M to launch 015 business Towards end of Q4/04 this activity broke even and it is already contributing positively to our EBIT (NIS millions) * * * Stable and profitable performer

20. 20 Strong balance sheet  18 consecutive quarters of positive net cash flow from operations  Current ratio: 3.7  Return on Equity (ROE): ~12% for FY2005 ($4M profit / $32.3M equity)  Shareholders’ equity: 30% of total balance sheet  $55 million net cash reserves  Strong cash flow from operations: $3M in Q4 05  Low credit risk: most receivables covered by credit cards or standing bank orders

21. 21 Comparable media players Interesting market opportunity…

22. 22

23. 23 Strong Shareholders / Dedicated Management  Public ~ 31%  Eurocom Communications ~ 69% Focused, communications-oriented controlling parent group Leading Israeli private communications group representing Nokia, Panasonic, GE and more Also holds equity in radio stations, satellite communications, cellular and more  Closely-knit, results-oriented management team Most all level of management grows from within

24. 24 Investment highlights Positioned to lead rapidly growing media markets As leading IP Group, IGLD is positioned to benefit from the strong growth forecast for Online Advertising and e-Commerce markets Working from strong cash generating platform IGLD’s ISP, VAS and telephony businesses are strong and profitable cash-generating platforms Financial Strength IGLD’s solid cash position will enable it to continue consolidating its markets Proven management & ownership IGLD’s established management team, working together with Eurocom (its controlling shareholder), has proven capable of carrying out aggressive growth / leadership strategies thank you