[ga] Fwd: VeriSign sells Network Solutions

[Elisabeth Porteneuve <Elisabeth.Porteneuve@xxxxxxxxxxxx>]

FYI,
Elisabeth Porteneuve
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cf. http://www.verisign.com/corporate/news/2003/pr_20031016.html


      VeriSign to Sell Network Solutions Business to Pivotal Private Equity

      .com and .net Registry and Naming and Directory Services
Infrastructure to Remain with VeriSign as Cornerstone of Internet
Infrastructure Business

      Mountain View, CA, October 16, 2003 VeriSign, Inc, the leading
provider of critical infrastructure services for the Internet and
telecommunications networks, today announced it has signed a definitive
agreement to sell the Network Solutions business unit to Pivotal Private
Equity. Under the terms of the agreement, VeriSign will receive
approximately $100 million, consisting of $60 million in cash and a $40
million senior subordinated note. VeriSign will also retain a 15% equity
stake in Network Solutions. The transaction is subject to certain closing
conditions and is anticipated to close in the fourth quarter.

      When VeriSign acquired Network Solutions in 2000, it obtained two
distinct businesses:

        a. The customer-facing Registrar business is the world's leading
provider of domain name registrations, and an industry leader in value added
services such as business email, websites, hosting and other web presence
services. The Registrar, which re-assumed the Network Solutions name in
January of this year, constitutes the current Network Solutions business
that is being sold.
        b. The Registry business that is the backbone of the global .com
and .net domain name infrastructure currently handles over 10 billion
interactions per day, remains with VeriSign as a critical component of its
business. This Registry business was recently renamed VeriSign Naming and
Directory Services and is a core piece of VeriSign's Internet Services
Group.
      "We believe that this transaction will strategically position VeriSign
to focus exclusively on our core mission of providing critical
infrastructure services for the Internet and telecommunication networks,
while allowing Network Solutions to pursue its own independent strategy in
the web presence market." said Stratton Sclavos, Chairman and CEO of
VeriSign.

      "Network Solutions has a strong base of over four million satisfied
customers," said J. Jahm Najafi, the Chief Executive Officer of Pivotal
Private Equity. "We will continue to provide stellar service, launch
innovative products, and build new channels of distribution to accelerate
the rate of market growth. This broader set of products will make Network
Solutions the one stop shop for web presence services."

      VeriSign's core infrastructure services continue to be organized
around the company's two core services areas:

      Internet Services Group

        a. Security Intelligence and Control Services - Strong
authentication, network, application and commerce security services for
thousands of enterprises and hundreds of thousands of websites. The Security
business unit also provides payment gateway and fraud protection services
for close to 100,000 online merchants.
        b. Naming and Directory Services - DNS database management and
resolution services for approximately 30 million digital identities,
including the authoritative directory for all .com, .net, .cc, and .tv
domain names. The unit also provides Digital Brand Management Services and
DNS Assurance services for large enterprises with complex domain name and IP
addressing portfolios.

      Telecommunications Services Group

      VeriSign provides managed communication services for wireline,
wireless and next generation carriers. Current offerings include Signaling
System 7 (SS7) signaling and connectivity, intelligent database services,
pre-pay and post-pay billing services and clearing and mediation services.
VeriSign serves nearly 1,000 voice and data communication service providers
throughout North, South, Central America, and the Caribbean.

      Earnings Conference Call

      VeriSign will provide further information on the sale of Network
Solutions, including details of the financial impact of the transaction,
during the company's regularly scheduled Q3 2003 Earnings Call on Thursday,
October 23. See the VeriSign's web site at www.verisign.com for conference
call logistics.

      About VeriSign

      VeriSign, Inc. (Nasdaq: VRSN), delivers critical infrastructure
services that make the Internet and telecommunications networks more
intelligent, reliable and secure. Every day VeriSign helps thousands of
businesses and millions of consumers connect, communicate, and transact with
confidence. Additional news and information about the company is available
at http://www.verisign.com.

      Statements in this announcement other than historical data and
information, including but not limited to, statements regarding revenue and
earning expectations for future quarters, and new business relationships and
new service offerings, constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements involve risks and
uncertainties that could cause VeriSign's actual results to differ
materially from those stated or implied by such forward-looking statements.
The potential risks and uncertainties include, among others, the uncertainty
of future revenue and profitability and potential fluctuations in quarterly
operating results due to the sale of Network Solutions, the potential loss
of customer leads generated from the Network Solutions' retail storefront,
the inability of VeriSign to successfully develop and market new services or
the failure of new services to gain customer acceptance, reduced demand for
our services as a result the sale of Network Solutions. More information
about potential factors that could affect the company's business and
financial results is included in VeriSign's filings with the Securities and
Exchange Commission, including in the company's Annual Report on Form 10-K
for the year ended December 31, 2002 and quarterly reports on Form 10-Q.
VeriSign undertakes no obligation to update any of the forward-looking
statements after the date of this press release.

      Contact Information:
      VeriSign Media Relations: Tom Galvin, tgalvin@xxxxxxxxxxxx,
202-973-6610
      VeriSign Investor Relations: Katie Bare, kbare@xxxxxxxxxxxx,
650-426-3421
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