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Subject: IP: 2 more years of NSI -- Press Release
US Government Extends Network Solutions Cooperative Agreement through
September 2000
HERNDON, Va.--(BUSINESS WIRE)--Oct. 6, 1998--Network Solutions, Inc.
(Nasdaq: NSOL - news) and officials from the Department of Commerce's
National Telecommunications and Information Administration (NTIA) have
agreed to a two-year extension of the Cooperative Agreement between the US
Government and Network Solutions with provisions to transition relevant US
Government authority to a new non-profit corporation for coordination of
some domain name system functions.
As part of the agreement, Network Solutions and NTIA have agreed to a plan
for the transition to a shared registration system in a phased approach
beginning March 31, 1999 with full implementation by June 1, 1999. Network
Solutions will build a shared registration system to support multiple
licensed, accredited registrars offering registration services. Network
Solutions and other domain name registrars will function as retailers of
domain name registration services through Network Solutions' shared
registration system. Network Solutions will also continue in its role as
the registry -- or wholesaler -- of .com, .net and .org domain name
registrations. Network Solutions has registered more than 2.3 million
domain names, or Web addresses, in .com, .net, .org and .edu.
Network Solutions has worked with the US Government pursuant to a five
year Cooperative Agreement to develop and maintain some of the key
administrative functions of the Internet including the domain name
registration system. This new amendment extends the Cooperative Agreement
through September 30, 2000.
Other highlights from the extension include the following:
*Network Solutions will submit a copy of all software and data generated
under the Cooperative Agreement through September 30, 1998 to the US
Government. *Once a shared registration system is implemented, pricing for
Network Solutions' shared registry services for .com, .net, .org and .edu
will be a specific dollar amount per registration, per year, and will be
specified in a further amendment reflecting Network Solutions' costs and a
reasonable return on its investment. *Following the finalization of the US
Government's agreement with a new non-profit corporation -- also known as
Newco -- that will act as a coordinating body for domain name system
administrative functions, Network Solutions will negotiate a contractual
relationship with Newco. *Network Solutions will continue to function as
the administrator for the primary root server -- known as root server A --
for the root server system and as a root zone administrator until such
time as the US Government instructs Network Solutions to transfer either or
both of these functions to Newco or a specific alternate entity.
Founded in 1979, Network Solutions, Inc. (Nasdaq: NSOL - news) pioneered
the development of registering Web addresses ending in .com, .net, .org
and .edu. Network Solutions also provides enterprise network consulting
services, focusing on network engineering, network security and network
management solutions for commercial customers. For more information, see
the http://www.networksolutions.com Web site.
------------------------------------------------------------------------
Contact:
Network Solutions, Inc.
Media: Christopher Clough, 703/742-4706
chrisc@netsol.com
Investor Relations: Bob Korzeniewski, 703/742-4741
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