1 SG Cowen Technology Conference VeriSign, Inc. September 2003

2 Disclosure Statements in this presentation other than historical data and information, including but not limited to, statements regarding new business relationships and new service offerings, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, VeriSign's limited operating history under its current business structure; the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results; the ability of VeriSign to successfully develop and market new services and customer acceptance of any new services; the risk that VeriSign's announced strategic relationships may not result in additional products, services, customers and revenues; increased competition and pricing pressures; and risks related to potential security breaches. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, especially in the company's Annual Report on Form 10-K for the year ended December 31, 2002 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this annual report. VeriSign is a registered trademark of VeriSign, Inc. Other names may be trademarks of their respective owners. The company provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles. Along with this information, we typically disclose and discuss certain pro forma financial information in our quarterly earnings press releases, during earnings calls and at investor conferences and related events. We believe that the pro forma info enhances investors’ overall understanding of our financial performance and the comparability of the company's operating results from period to period. We’ve provided a reconciliation of the pro forma financial information that we report each quarter with the comparable financial information prepared in accordance with GAAP and have made these reconciliations available on our web site under the Investor Relations tab at

3 VeriSign’s Mission Provide the critical infrastructure services that make the Internet and telecommunications networks more reliable, intelligent and secure Security Naming & Directory Telecom ATLAS Infrastructure Transaction 400,000 e-commerce sites 4,000 enterprise customers 1,000 carrier customers Exclusive registry for.com.net 15 data centers 25+% of N.A. e-commerce 2 billion SS7 messages 10 billion DNS queries

4 VeriSign Services Portfolio Payment Infrastructure Web Presence Infrastructure Security Infrastructure Telecom Infrastructure ATLAS Directory & Routing Infrastructure Web Presence Services Domain Names Web Site Security Payment Infrastructure Web Presence Infrastructure Security Infrastructure Telecom Infrastructure ATLAS Directory & Routing Infrastructure Trusted Infrastructure & Application Services Network & Security Services Authentication & Access Digital Brand Management Payment Services Web Presence Services Domain Names Web Site Security Payment Infrastructure Web Presence Infrastructure Security Infrastructure Telecom Infrastructure ATLAS Directory & Routing Infrastructure Telecom Infrastructure Services SS7 Signaling Database Services Wireless Billing Clearing & Mediation Internet Infrastructure Services Network & Security Services Authentication & Access Payment Services IP Addressing Directory Services Web Presence Services Domain Names Web Site Hosting Domain-based Transaction Infrastructure Web Presence Infrastructure Security Infrastructure Telecom Infrastructure ATLAS Directory & Routing Infrastructure 22 % 40 % 38 % Q2’03 Revenue Mix

5 Q2 ’03 Financial Snapshot Income Statement Revenue$265 millionA nticipated decline in Network Solutions Gross margin56% Consistent with guidance Operating margin (pf)17% Maintained margin through revenue decline from continued cost controls & expense management Net income (pf)$47 million Leverage in model generated solid income EPS (pf)$0.14 In-line with expectations, consistent QTR-QTR Operating Cash Flow$81 million Ahead of guidance of $60-70m Balance Sheet Cash & cash equivalents$530 million Increased $55m QTR-QTR A/R$101 million Continued benefits; declined by $18m from Q1 Deferred revenue$502 million Grew by 1% quarter-over-quarter

6 Managing What We Can Control  $350 million in operating cash flow  $250 million increase in cash and equivalents  $145 million reduction in AR  44 day reduction in net DSO’s  $50+ million reduction in quarterly operating expenses  Deployed new infrastructure and business systems  Continue to develop new services for the future Over the last 4 quarters …

7 Solid Growth Drivers Security Naming & Directory Telecom  Extend network security  Strong authentication for users, devices, networks  App security for Web services  Transaction intelligence  New end-user services in naming  Expand international footprint  Drive ATLAS into new markets  RFID, DRM  Tier 1 share of wallet  New mandated services  New wireless data platform  Expand international footprint

8 Solid Growth Drivers Security Naming & Directory Telecom  Extend network security  Strong authentication for users, devices, networks  App security for Web services  Transaction intelligence  New end-user services in naming  Expand international footprint  Drive ATLAS into new markets  RFID, DRM  Tier 1 share of wallet  New mandated services  New wireless data platform  Expand international footprint VeriSign  Network intelligence & monitoring  VoIP directory, security and mediation  Propagation into all devices, networks  ATLAS everywhere

9 Security Services Ben Golub SVP, Security Services September 2003

10 Unique Data and Intelligence on Internet Security Threats “With a company like VeriSign, who does this for many other companies, as well as the data they have from running the.com domains, they probably have more information about security incidents than anyone else. It also gives us early warning. They can, often before others can, see an attack occurring on the Internet.” David Bauer CSO, Merrill Lynch Source: InformationWeek, May 21, 2003

11 We Play in a Large and Growing Market … Source: IDC (12/02); IDC WW IT spending data (Apr 2002)

12 … Where 15% of Companies Account for 70% of the Security Market Regulated cutting-edge Regulation- centric Internet centric Largely satisfied CompaniesIT spendEstimated Security spend 4.8M$361B$12.6B %  Financial services  Banking  % of Retail*  % of Wholesale*  % of Discrete mfg.*  Utilities  Telecom  Government  Healthcare  Insurance  Services  Process mfg  Transportation  Resources  Education  % of Retail  % of Wholesale  % of Discrete mfg Source: IDC; US Census Bureau; Bain analysiswww.bizstats.com Note: # of companies is for corporations only- excludes 17.6M sole proprietorships. * Retail and Wholesale – 1% of #, 66% of IT spend, 90% of IT security spend allocated to Internet centric, the rest to Largely Satisfied; Discrete Manufacturing – 20% of high-tech vertical companies, 30% of overall IT spend, 85% of overall IT security spend. Total US Market Size 2003

13 Customers Face Unprecedented Pressures Increasing Risk - Business Disruption - Lost Revenue - Corporate Liability - Customer Trust - Shareholder Confidence Cost -Less capital and operating budget -Staff reduction -Rely on Internet to save connection cost -Leverage existing investment Compliance Sarbanes-Oxley -Sarbanes-Oxley -HIPAA -Patriot Act -Gramm-Leach-Bliley -Privacy Acts Complexity -Increase demand for access -Inconsistent environment -Lack of control -Keeping up with vulnerability -Threats from new technology Security is critical strategic issue to business continuity

14 Intelligence and Control Services Data, Intelligent Infrastructure, Technology, Expertise, Integration Intelligence and Control Services Data, Intelligent Infrastructure, Technology, Expertise, Integration Partner/Supplier Financial Networks … Which We Address with the Right Model for Security Customers Remote Office Internet

15 VeriSign Security Solutions Atlas, 24*7 redundancy, secure operations, PKI roots Delivered from Solid Infrastructure Technology Data Intelligence/ Expertise Intelligence/ Expertise (Internet health monitoring, event correlation, fraud detection engine) (enterprise event data, 9 billion DNS transactions, 25% N. American payment volume, SSL certificate validation) (Managed Security Services, DNS, PKI, Trust Gateway, SSL, Payment Gateway) Leveraging World-Class Assets Business Continuity Regulatory Compliance eCommerce Enablement Business Partner Integration Business Partner Integration Provide targeted Solutions to business needs Network Infrastructure Continuity HIPAA, FDA Secure Extranets Security, Payments Tranaction Security Strong Authentication Network Security With flexibly deployed Offerings Secure Access To Networks Intelligent Monitoring & Management Fraud Protection Secure Web Services Application Security

16 Business drivers  Need to protect critical networks and applications with stronger authentication of users and devices  Increased use of remote access, VPN and wireless LAN  Regulatory and audit requirements  Government mandates (National IDs, OMB memo) Strong Authentication What we have today  Managed PKI / Digital certificates for users and devices  Key partnerships with Intel, Microsoft, IBM  Partner solutions - Smart cards - USB tokens - Biometrics Transaction Security Network Security Application Security Strong Authentication

17 Strong Authentication – Case Study  Secure virtual system for sharing justice information by authorized federal, state, county and local users Business Challenge  Strong Authentication using Managed PKI  Integration with wireless access devices (e.g., PDAs) used by law enforcement officials VeriSign Solution  Sensitive criminal information now shared securely across agencies  Homeland Security network in place and operating in Pennsylvania Results

18 Business drivers  Increased demand for access outside traditional enterprise boundaries  New technologies blurring the perimeter (e.g., Wireless LAN)  Regulatory requirements  Minimize disruptions due to security events Network Security Transaction Security Strong Auth Application Security Network Security What we have today  Managed Firewall, VPN, IDS, Authentication, Routers with broad device coverage  eBusiness Assurance (MSS + DNS + Consulting)  Vulnerability scanning and management  Event correlation within and across enterprise  World-class operations with industry leading SLAs

19 Network Security – Case Study  Augment advanced security infrastructure with Internet-wide intelligence for fastest possible detection and response  Achieve significant operational efficiencies Business Challenge  Security Architecture & Consolidation  Managed Firewall  Managed IDS  Over 300 Devices VeriSign Solution  Faster detection and response  Security infrastructure continuity  Cost savings Results “We chose to work with VeriSign because of its powerful event correlation capabilities, industry leading service level, and security and infrastructure expertise” – David Bauer, Merrill Lynch – David Bauer, Merrill Lynch

20 Secure Customer Portals – Case Study  Grow online brokerage business by enabling secure online transactions  Simplify account set-up process  Dramatically reduce 80% abandonment rate Business Challenge  Digital certificates issued by Barclays to all online clients  Leveraging VeriSign’s global PKI service  Design and implementation of fully automated account set up process VeriSign Solution  Reduced account set-up time from weeks to minutes  Acquired 125,000 clients in one year  Increased online trading volume by 10X Results

21 Application Security: Our Roadmap  Web Services security assessment  Managed security services for Web Services - Monitor & manage Trust Gateway - Application-level IDS Future roadmap Transaction Security Strong Auth Application Security Network Security How we are getting there  Maintain leadership in Web Services security standards  Sign up “light house” enterprise accounts - Fortune 500 healthcare provider - Govt agency  Propagate technology through security appliances

22 Trend: Web crime growing faster than web commerce Snapshots from 2002  Online credit card fraud 17 times offline fraud, 7% of merchant revenues  Installed base of 375K SSL sites and 90,000 merchants  Currently process over 28% of North American e- commerce  Transaction based pricing today  Great renewal rates, and merchants process 40% this year than last year  Opportunities to increase per transaction fees through fraud offering, additional services Transaction Security Growth Index (1998 = 100) ,000 1,500 2,000 2, Web commerce Growth = 74% CAGR Avg. Loss Per Financial Fraud Event = 84% CAGR Total Financial Fraud Losses = 79% CAGR Security Incidents = 117% CAGR Strong Auth Application Security Network Security Transaction Security

23 The Security Services Strategy  Expand solutions with emphasis on 4 key areas –Expand breadth of offering in strong authentication –Aggressively grow the network security business –Long-term bet on application security services –Move transaction security deeper into the enterprise  Develop and extend services and channels through partnerships and international expansion  Focused Marketing –Key verticals – Financial Services, Public Sector, Healthcare –New positioning and packaging solutions

24 VeriSign’s Industry-leading Security Services  Highly attractive, large and growing market  #1 position in key markets –SSL and Internet payments –Continued top and bottom line growth  Solid top line and bottom line growth expected with large enterprises –Targeting key verticals and concentrating on four primary service offerings.  All are platform-based businesses –Scale drives growth in profitability

25 SG Cowen Technology Conference VeriSign, Inc. September 2003