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Network Solutions Enjoys Record Growth, Signs New Canadian Partners

Leading domain name registrar Network Solutions, Inc. today reported record revenues for the second quarter and signed new registration agreements with five Canadian companies for its international partner program.

The company said net revenues for the second quarter ended June 30, 1998 were approximately $20 million, up 103% from net revenues of around $10 million for 1997's second quarter.

Net income increased 233% to $2,463,000 or $0.15 per share on a diluted basis, compared to $740,000 or $0.06 per share for the second quarter of 1997.

For the six months ended June 30, 1998, Network Solutions said net revenues doubled to around $36 million from the same period a year ago. Net income for the first half of 1998 grew 259% to $4,512,000 or $0.27 per share, compared to $1,256,000 or $0.10 per share for the first half of 1997.

Earnings were helped by a substantial increase in domain name registrations. The company said it registered 443,000 new domain names in the second quarter, up 91% from a second quarter 1997 total of 232,000. The cumulative total of net registrations grew 120% from 1.04 million at June 30, 1997, to 2.29 million at June 30, 1998.

"In the second quarter we continued our significant growth in dot com Web addresses, growing our entire registration base 23 percent in the past quarter alone," said Gabe Battista, CEO, Network Solutions, Inc. "We continue to invest in our back-office infrastructure, strategic marketing channels and customer support services to take full advantage of the opportunities we've identified in the small business and global markets."

"The successful introduction of RegistrationPlus for small business, and the launch of our international premier partners program, have allowed Network Solutions to capitalize on these emerging market opportunities."

Separately, Network Solutions announced today that five Canadian companies joined its International Premier Domain Registration Services partner program.

The companies--Bell Global Solutions, GlobalServe Communications, Inc., Golden Triangle On Line, Inc., Interlog Internet Services and Internet Gateway Corporation--will now be able to provide domain name registration services to Canadian Web sites under the program.

Today's Network Solutions news comes on the heels of an agreement between the U.S. and the European Union to reform the domain registration system to reflect a more global perspective.