NASDAQ NM / TASE

symbol: IGLD

LeveragingIsrael’s Broadband

Phenomenon

Eli Holtzman, CEODoron Turgeman, CFOMarch 2006

Internet GoldInternet GoldLeading Israeli IP GroupLeading Israeli IP Group

Internet GoldInternet GoldLeading Israeli IP GroupLeading Israeli IP Group

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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.

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IGLD’s smile brand: major presence across allIGLD’s smile brand: major presence across allInternet-related business sectors Internet-related business sectors

IGLD’s smile brand: major presence across allIGLD’s smile brand: major presence across allInternet-related business sectors Internet-related business sectors

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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 InternetAdvertising

– Expansion of BusinessServices

– Successful re-branding will contribute to future profitability

Primary drivers:

297.7

219.6179.6

0

50

100

150

200

250

300

350

2003 2004 2005

up 36%

in NIS millions

up 22%

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2006: riding the expansion of our marketsto the next level of revenues and profits

Online Advertising

We expect our advertising revenues will grow as media budgets shift to the Internet

VoIP InternationalTelephony

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

EfficiencyWe trust that streamlining carried out in ‘05 will improve our profitability in ’06 and on

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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

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IGLD’s next major growth IGLD’s next major growth driverdriver

IGLD’s next major growth IGLD’s next major growth driverdriver

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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

$6B$7.3B

$9.6B

~$12B

0

2

4

6

8

10

12

14

2002 2003 2004 2005

Source: PWC IAB Internet Advertising Report, Sept. ‘05

US Internet Advertising CAGR = +19%

$12M

$22M

$36M

$50M

0

10

20

30

40

50

60

2002 2003 2004 2005

Source: Market surveys & IGLD estimates

Israel Internet Advertising CAGR = +43% +39%

+22%

+63%

+83%

+53%

+25%

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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

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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

messengerhotmail search jobs

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IGLD - positioned to benefit

msn-Israel 50.1%Hebrew language MSN Messenger, Hotmail Israel & MSN Search Israel

msn-jobs 50.1% Hebrew language job search

start 100% General portal & Search engine

zahav.ru 100% Russian language portal

V-games 100% Games content portal

seret 51% Cinema portal

getprice 51% Price comparison

TheMoney 50.1% Lead-generation financial portal

tipo 50% Children’s portal

nirshamim 50% Portal for academics

netex Exclusive marketing

rights

Search engine & directory

goop Youth portal

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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

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…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

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(NIS millions)

10.4 10.812.0

13.215.5

0.4 1.0 1.0 0.6 1.42.2 2.7 2.7

13.4 14.515.4

Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05

Revenues EBIT

Smile media: ~ 22% of Israeli market

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A Strong & Consistent Revenue GeneratorA Strong & Consistent Revenue GeneratorA Strong & Consistent Revenue GeneratorA Strong & Consistent Revenue Generator

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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

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Pioneers of VoIP Telephonyin 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 technologySmile.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

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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

43.9 44 44.3 47.5

61.168

75.3 73.3

4.9 5.2 6.2 7.2 7.7 8.7 8.1 7.9 5.7 7.1

54.353.251

81.1

8.7 8.7

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05

Revenues EBIT

(NIS millions)

**

**

**

Stable and profitable performer

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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

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Comparable media players

Interesting market opportunity…

Internet Sohu.Com Rediff.Com Sina.comGold

as of March 10, 2006

Ticker IGLD SOHU REDF SINAShare price $5.69 $21.80 $24.10 $24.10Market cap (M$) 105 798 621 1,281

main results Q4 '05Revenues (K$) 17,618 30,466 5,020 51,950Net income (K$) 1,167 8,937 320 13,759Operating Income (K$) 1,551 5,811 960 10,899Cash flow from operations (M$)

price to revenues multiple 1.5 6.5 30.9 6.2

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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,

cellularand more

Closely-knit, results-oriented management team Most all level of management grows from within

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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