Israel's Ministry of Communications Approved, for the First Time in Israel, the Establishment of an Innovative Community-Wide Wi

PETACH TIKVA, Israel, September 19  /PRNewswire-FirstCall/ -- Internet Gold (Nasdaq NMS: IGLD, TASE: IGLD), Alvarion (Nasdaq NMS: ALVR) and Intel (Nasdaq NMS: INTL) today announced that they are cooperating to establish Israel's first community-wide WiMAX-based broadband network, bringing high-speed Internet access, data and voice services to an area within the city of Sderot and Israel's Western Negev. These areas are remote from Israel's densely populated central region and are currently dealing with difficult security challenges. The new network will transform the specific area into a "hot spot" with free of charge, "always-on" Internet access and state-of-the-art communications services, making it one of the country's - and the world's - most technologically advanced regions.

The project was made possible by the issuance today by the Israeli Ministry of Communications to Internet Gold's fully-owned subsidiary, 012 Smile.Communications, of an extension to the limited license for WiMAX field trials in restricted areas the company received which currently ends on March 2008 and the issuance in February of an unlimited license for nationwide VOB (Voice Over Broadband) services. WiMAX is an emerging technology designed for the wireless, high-speed delivery of broadband Internet access and related services in areas with diameters of up to ten kilometers, such as campuses or municipalities.

The Sderot Project represents an extension of these field trials. Through the use of Alvarion's advanced WiMAX technology and Intel network equipment, the area's schools, kindergartens and public spaces will receive broadband connections to 012 Smile.Communications' 012-branded Internet Access services and 072-branded telephony services.

"We are proud to be the 'midwife' of this important project and grateful for the enthusiastic participation of our partners Alvarion and Intel," said Ms. Stella Handler, CEO of 012 Smile.Communications. "As one of Israel's leading communications groups, we have always searched out ways to give back to the community, and are strong believers in the power of technology as an enabler of developmental change. We are therefore doubly pleased to bring WiMAX to Sderot, a city that has suffered on both developmental and security fronts, helping it to become one of the world's first 'connected' cities and giving it the technology to reach its full potential."

Mr. Tzvika Friedman, President and CEO of Alvarion, added, "In developing regions throughout the world, broadband Internet access is proving to be a great 'leveler' that brings improved education and economic progress in its wake. We are proud to be a world-leading developer of cost-effective WiMAX technologies -- and delighted to take part in this worthwhile project so close to our home base."

Mr. Raviv Melamed, General Manager of Intel's Mobile Group, commented, "We feel that it is especially appropriate for us to contribute our world-leading WiFi and WiMAX modems and adapters - the majority of which were developed in our Israeli R&D centers -- to these heroic Israeli communities. By extending the 'connectedness' of local kindergartens, schools, public agencies and businesses, we hope our joint project will improve the quality of life for Sderot residents."

About Internet Gold

Internet Gold is one of Israel's leading communications groups with a major presence across all Internet-related sectors. Its 012 Smile.Communications 100% owned subsidiary is one of Israel's major Internet and International Telephony service providers, and one of its largest providers of enterprise/IT integration services. Its 100% owned Smile.Media subsidiary manages a growing portfolio of Internet portals and e-Commerce sites.

Internet Gold is part of the Eurocom Communications Group and its shares trade on the Nasdaq Global Market and on the Tel Aviv Stock Exchange.

For additional information about Internet Gold, please visit its investors' site at http://www.igld.com/.

  For further information, please contact:

  Lee Roth - KCSA Worldwide
  
  Tel: [phone]

  Mor Dagan - Investor Relations
  
  Tel: [phone]

  Ms. Idit Azulay, Internet Gold
  
  Tel: [phone]


DATASOURCE: Internet Gold



CONTACT:  For further information, please contact: Lee Roth - KCSA

Worldwide, , Tel: [phone]; Mor Dagan - Investor

Relations, , Tel: [phone]; Ms. Idit Azulay, Internet

Gold, , Tel: [phone]

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