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SIGNATURE MARGARET B. DOYLE
TITLE PRESIDENT
<TABLE> <S> <C>
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<NAME> THE INTERNET FUND, INC.
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<S> <C>
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<PERIOD-START> JAN-01-1998
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</TABLE>
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
Board of Directors
The Internet Fund, Inc.
In planning and performing our audit of the financial
statements of The Internet Fund, Inc. for the year
ended December 31, 1998, we considered its internal
control structure, including procedures for the
purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal
control structure.
The management of The Internet Fund, Inc. is
responsible for establishing and maintaining an
internal control structure. In fulfilling this
responsibility, estimates and judgements by management
are required to assess the expected benefits and
related costs of the internal control structure
policies and procedures. Two of the objectives of an
internal control structure are to provide management
with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized
used or disposition and transactions are executed in
accordance with management's authorization and
recorded properly to permit preparation of financial
statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal
control structure, errors or irregularities may occur
and not be detected. Also, projection of any
evaluation of the structure to future periods is
subject to the risk that it may become inadequate
because of changes in conditions or that the
effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure
would not necessarily disclose all matters in the
internal control structure that might be material
weaknesses under standards established by the American
Institute of Certified Public Accountants. A material
weakness is a condition which the design or operation
of the specific internal control structure elements
does not reduce to a relatively low level the risk
that errors or irregularities in amounts that would be
material in relation to the financial statements being
audited may occur and not be detected within a timely
period by employees in the normal course of performing
their assigned functions.
However, we noted no matters involving the internal
control structure, including procedures for the
safeguarding securities, the we consider to be
material weaknesses as defined above as of December
31, 1998.
This report is intended solely for the information and
use of management as the Securities and Exchange
Commission.
/s/ Lilling & Company
CERTIFIED PUBLIC ACCOUNTANTS
February 15, 1999