Network Solutions Will Move to Web-Based Prepayment Model for Domain Name Registration

Business Wire, July 21, 1999

HERNDON, Va.--(BUSINESS WIRE)--July 21, 1999--

Internet users to benefit from faster, easier one-step solution;

Speculator abuses to decrease

Network Solutions Inc. (NASDAQ: NSOL) today announced a new prepayment model that will give Internet users the flexibility to pay for all of their .com, .net and .org Web addresses by credit card at the time of their online registration.

The new model will replace the invoice system currently in effect for customers who register domain names with Network Solutions. Network Solutions already offers a credit card payment option for some of its Web-based services. The new policy is scheduled for implementation in September 1999.

"Credit card payments have become the industry standard on the Internet, and it's the right time to transition to this prepayment model," said Jim Rutt, chief executive officer. "Not only do consumers increasingly want the ease and simplicity of purchasing online with a credit card, but we feel we can minimize `speculator' abuses - cases in which individuals register excessive numbers of Web addresses and never pay for them."

The move to a prepayment model for registrations offers customers two key benefits. First, they will experience an expedited, real-time purchase by securing and confirming a Web address in a simple point-and-click process that eliminates the need to receive a return e-mail confirmation or worry about paper invoices, payment check processing and paperwork. Second, the new purchase process will discourage "cybersquatters" and other speculators who register Web addresses with the intent of reselling them and often do not pay, effectively removing the domain names they register from the market.

Network Solutions will also introduce a Business Account Program designed for qualified customers who apply for Web addresses in volume - such as Internet Service Providers and Web hosting companies. Business Account customers can qualify for continued use of Network Solutions' registration and invoice system. Network Solutions' Premier Program members automatically qualify for invoicing.

For more information on the Business Account program, please visit http:\\www.networksolutions.com/business_account/business_info.html. For those interested in the Premier Program, contact Bruce Beckwith via email at partners-group@netsol.com. About Network Solutions Founded in 1979, Network Solutions, Inc. (NASDAQ: NSOL) pioneered the development of registering Web addresses ending in .com, .net, .org and .edu. Network Solutions also provides Internet Technology Services that assist large commercial organizations in the evolution and management of their Internet technologies. For more information, see the http://www.networksolutions.com Web site.

Network Solutions is the world's leading registrar, with more than 5 million registrations. Network Solutions registers the majority of Web addresses worldwide through various reseller channels including nearly 200 companies in its Premier program. Network Solutions has created value-added small business solutions through agreements with leading companies such as American Express (NYSE: AXP). Through its Alliance Program, Network Solutions works closely with EarthLink (NASDAQ: ELNK), MindSpring Enterprises, Inc. (NASDAQ: MSPG), Interliant, Inc. (NASDAQ: INIT), ValueWeb (NASDAQ: ESPI), and Interland, Inc. Network Solutions also has entered into marketing agreements with companies including Yahoo! Inc. (NASDAQ: YHOO) and Netscape Communications Corporation.

For Network Solutions, Media: Nancy Huddleston nancyh@netsol.com, (703) 742-4852. Investor Relations: Sean McClorey, smcclorey@netsol.com, (703) 326-6090

Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, uncertainty of Internet governance and regulation, increased competition in the domain name registration business, customer acceptance of new products and services offered by the company in addition to or as enhancements of its registration services, risks associated with the company's international business, uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. More information about potential factors that could affect the company's business and financial results is included in the company's filings with the Securities and Exchange Commission, especially in the company's Registration Statement on Form S-3 filed on January 4, 1999, as amended, Annual Report on Form 10-K for the year ended December 31, 1998 and Quarterly Report on Form 10-Q for the period ended March 31, 1999.