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EXHIBIT 99.2
US GOVERNMENT EXTENDS NETWORK SOLUTIONS
COOPERATIVE AGREEMENT THROUGH SEPTEMBER 2000
HERNDON, VA., OCTOBER 6, 1998 - Network Solutions, Inc. (NASDAQ: NSOL) 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.
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- 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) 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
xxx.xxxxxxxxxxxxxxxx.xxx Web site.
Contact: For Media, Xxxxxxxxxxx Xxxxxx, xxxxxx@xxxxxx.xxx (000) 000-0000, for
Investor Relations, Xxx Xxxxxxxxxxxx, xxxx@xxxxxx.xxx, (000) 000-0000.
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