FOR IMMEDIATE RELEASE

Media Contact(s) for CosmoCom:
Kathy Salt
+1 631-940-4297
ksalt@enghouse.com

CosmoCom Secures Over $4 Million in Funding

Virtual Call Center Technology Company to Increase
Product / Technology Development and Marketing Initiatives

HAUPPAUGE, NY, JANUARY 19, 1999 -- Following a strong fourth quarter, CosmoCom, the leading developer of virtual call center technology, today announced that it has secured $4,160,000 in new funding.

The lead investors in the round was IDB Holding Corporation were PEC Israel Economic Corporation and Discount Investment Corporation, together making its their first investment in CosmoCom with $3 million. CosmoCom’s current investors also participated -- Wheatley Partners and the Long Island Venture Fund (LIVF) limited partners -- together investing an additional $1.16 million. The proceeds will be used for ongoing technology development of the CosmoCall virtual call center product, as well as for marketing initiatives for Version 2.0 of the product, which was launched earlier this month.

"The CosmoCall virtual call center has a valuable place in the rapidly expanding call center and ecommerce world, and major investors are recognizing the potential of this technology," said Ari Sonesh, President and CEO of CosmoCom. "We plan to use these funds to remain on the cutting edge of this technology, to further advance our aggressive marketing efforts, and to respond proactively to the rapidly increasing market demand for what we are doing."

CosmoCall is a unique call center technology in that it is completely IP-based. Where other systems handle only telephone protocols, converting IP based calls to telephony, all calls coming into a CosmoCall Center are converted to IP.

"CosmoCom has carved out its own niche in the marketplace, with advanced technology that meets the growing needs of the modern ecommerce and call center world, and that is why we see this as a significant investment opportunity," said Michael Recanati of IDBH. "We see the virtual call center as the natural progression for customer support services of the future."

About CosmoCom, Inc.
Founded in 1995, CosmoCom (www.cosmocom.com) creates advanced call center technology that, for the first time, enables Internet businesses to fully realize the potential of ecommerce. CosmoCom offers live, one-to-one, integrated multimedia customer service for Internet and telephone callers by combining the functions of ACD, CTI, IVR and unified messaging in one totally IP-based system. CosmoCom’s clients are a who’s who of top ecommerce companies, and the company’s major partners include Computer Associates, Microsoft, Dialogic and Siemens. Led by CEO and President Ari Sonesh, and Executive Vice President Stephen Kowarsky, CosmoCom is a privately held company based on Long Island in Hauppauge, NY.

About PEC Israel Economic Corporation and Discount Investment Corporation Ltd.
PEC Israel Economic Corporation organizes, acquires interests in, finances, and participates in the management of businesses. PEC is often involved in the early development of a company and has participated in the organization, financing or increase in capital of over 150 enterprises since its incorporation in 1926. PEC has interests in a broad cross-section of companies engaged in various fields, especially telecommunications and technology.

Discount Investment Corporation Ltd., an Israeli corporation, invests in businesses in various sectors of the Israeli economy, also concentrating in the telecommunications and technology fields. DIC’S stock is traded on the Tel Aviv Stock Exchange.

PEC is a subsidiary of DIC which, in turn, is a subsidiary of IDB Holding Corporation Ltd., one of the largest business enterprises operating in the private sector of the Israeli economy, with consolidated assets in excess of $2.8 billion.

About IDB Holding Corporation
IDB Holding Corporation is a diversified international investment group with total assets of approximately $1.2 billion in a broad cross-section of market segments including communications, high technology, industry, marketing, fuel, shipping, real estate, agriculture, finance, and insurance. Major subsidiaries and affiliates include Discount Investment Corporation, Clal (Israel) Ltd., and PEC Israel Economic Corp. (NYSE: IEC).

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