William Blair & Company Initiates Coverage of NeuStar, Inc. With Outperform Rating

Business Wire, August 21, 2008

CHICAGO -- William Blair & Company initiated research coverage of NeuStar, Inc. (NYSE: NSR) ($24.02), a leading provider of clearinghouse services for communications databases, with an Outperform rating and an Aggressive Growth company profile. NeuStar plays a critical role in the nation's communications infrastructure, as the databases for which it provides clearinghouse services deliver the basic information needed to route telephone calls, resolve domain name queries, and provide mobile instant-messaging services.

Associate Analyst Jonathan Ho and Analyst Jeff Rosenberg estimated that the company would earn $0.92 per share in fiscal 2008 and $1.57 per share in fiscal 2009.

"We believe that NeuStar is an attractive investment as a result of its core monopoly franchises, predictable revenue model, relative immunity to a slowdown in the broader economy, and growth potential of 20% per year over the long term (both top and bottom line)," Ho said. "As communications networks continue to grow in both size and complexity, NeuStar stands to benefit from not only growth in transactions for directories it currently manages, but also new databases that will be needed to provide interoperability in the future."

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

William Blair & Company, L.L.C. (www.williamblair.com) is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients.

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