TEL AVIV, Israel – IncrediMail Ltd. (NASDAQ: MAIL) (www.incredimail-corp.com), an Internet company, announced that it has reached a new, two-year direct agreement with Google Inc. (NASDAQ: GOOG). Although terms of the agreement were not disclosed, IncrediMail’s CEO Ofer Adler said, “We are very happy with the agreement.”

IncrediMail has been using AdSense since the end of 2006 enabling it to share in advertising revenue generated from users clicking on Google sponsored links, in response to a search query conducted on IncrediMail sites. These sponsored links represent a significant revenue generating channel for IncrediMail in its efforts to monetize its user base. IncrediMail reported in May that about 70% of its revenue was generated from its Search business model that includes multiple search engines.

“We are very happy, having extended our agreement with Google. This renewal reflects the positive relationship established between our companies and a relationship that has allowed IncrediMail to continue to perform well,” said Ofer Adler, IncrediMail’s CEO. “The contract renewal facilitates our current business strategy, which allows IncrediMail users to carry out ‘Google searches’, will continue to move forward for another two years. It also reaffirms our commitment to our current business model that we believe has demonstrated our approach to monetizing our user base is clearly working.”

About IncrediMail Ltd.

IncrediMail Ltd. (NASDAQ: MAIL) is an internet company that develops customized, downloadable graphic consumer applications used to generate search related revenues and designs, markets and delivers high end personal desktop software. The company’s award winning e-mail client product, IncrediMail Premium, is sold in over 100 countries in 10 different languages. Other products include, HiYo a graphic add-on to instant messaging software, Magentic, a wallpaper and screensaver software, and PhotoJoy, software for presenting digital personal photos.