1. 1 VeriSign Confidential & Proprietary Market Trends Seminar ICANN Luxembourg July 2005

2. VeriSign Confidential & Proprietary 2 VeriSign, Inc. Overview Key Metrics for the Domain Name Industry Key Drivers of the Business Currently Trends in Registrar Behavior Going Forward

3. VeriSign Confidential & Proprietary 3 VeriSign, Inc. Metric: Domain Name Base 22% Increase YOY 8% Increase QOQ.info Had the Highest Base Growth % Increase YOY at 199%

4. VeriSign Confidential & Proprietary 4 VeriSign, Inc. Industry Composition Com at 47% ccTLDs in Total are 35% Not Much Change over Past 2 Years.

5. VeriSign Confidential & Proprietary 5 VeriSign, Inc. ccTLD growth 27M Registrations 8% Increase in Base Growth YOY 6% Increase in Base Growth QOQ Top 10 ccTLDs make up 70%

6. VeriSign Confidential & Proprietary 6 VeriSign, Inc. Metric: New Registrations 6.7M New Registrations in Q1 2005 4% Growth QOQ 36% Growth YOY YOY ccTLD New Registrations grew by 62.5%; CN by 31% and the other gTLDs by 9.5%

7. VeriSign Confidential & Proprietary 7 VeriSign, Inc. Metric: Renewal Rates COM NET 1st Time Expiring Names Average Renewal Rate Previously Renewed Expiring Names Stability in the Name Base 74.5% Average Renewal rate

8. VeriSign Confidential & Proprietary 8 VeriSign, Inc. Metric: Names Associated with Website COM NET Source: Cyveillence 2004 Highest usage ever Names Associated with Website Higher usage = higher renewals

9. VeriSign Confidential & Proprietary 9 VeriSign, Inc. Driver: PPC Impact On Domain Market “The key to remember on a $7 domain is that if it makes more than 2 cents a day it is profitable at the end of the year.” Adam Dicker, CEO, High Impact Sites, Inc.

10. VeriSign Confidential & Proprietary 10 VeriSign, Inc. Key Takeaway: PPC market is driving domain name registration growth as domain names are registered that contain meaningful terms or attract traffic. Registrants generate revenue by enhancing resale value or by placing PPC advertising on a parked page. Driver: Paid Search – PPC Market Source: Jupiter Research as cited in Wired News October 2004

11. VeriSign Confidential & Proprietary 11 VeriSign, Inc. Driver: Broadband Penetration

12. VeriSign Confidential & Proprietary 12 VeriSign, Inc. Domain Name Market (ccTLDs and Com Net) Blue = COM NET % Red = ccTLD % Source: Zooknic, Inc., December 2004 Composition Shift in total com/net registration reliance from NA from 68% in 2002 to 61% in 2005. Asia Pac increased contribution to total com/net registrations from 9% - 12% in same time period. 76% in 2004 – 73% of registered ccTLDs are European

13. VeriSign Confidential & Proprietary 13 VeriSign, Inc. Trends in Registrar Behavior Participation in the PPC Market Bundling & Packaging: +Hosting services +Blogging +ccTLD & gTLD domain names International Expansion into upcoming areas by sellers

14. VeriSign Confidential & Proprietary 14 VeriSign, Inc. Com Net ICANN-accredited Registrar Locations Source: VeriSign internal data. November 2004

15. VeriSign Confidential & Proprietary 15 VeriSign, Inc. Thank you! Sarah Langstone slangstone@verisign.com

16. VeriSign Confidential & Proprietary 16 VeriSign, Inc. Thank You Any Questions? Sarah Langstone Slangstone@verisign.com