VERISIGN INC/CA, S-4, 2000-04-12

VERISIGN INC/CA
S-4, 2000-04-12
COMPUTER PROGRAMMING SERVICES

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<PAGE>

As filed with the Securities and Exchange Commission on April 12, 2000

Registration No. 333-
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

----------------

FORM S-4

----------------

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

----------------

VERISIGN, INC.
(Exact name of Registrant as specified in its charter)

Delaware 7371 94-3221585
(State or other (Primary standard (I.R.S. employer
jurisdiction of industrial identification no.)
incorporation or classification code
organization) number)

VeriSign, Inc.
1350 Charleston Road
Mountain View, California 94043-1331
(650) 961-7500
(Address and telephone number of Registrant's principal executive offices)

Stratton D. Sclavos
President and Chief Executive Officer
VeriSign, Inc.
1350 Charleston Road
Mountain View, California 94043-1331
(650) 961-7500
(Name, address and telephone number of agent for service)

----------------
Copies to:

Jeffrey R. Vetter, Esq. William A. Rosoff, Esq.
Douglas N. Cogen, Esq. David W. Ferguson, Esq.
Andrew J. Schultheis, Esq. DAVIS POLK & WARDWELL
R. Gregory Roussel, Esq. 1600 El Camino Real
FENWICK & WEST LLP Menlo Park, CA 94025-4119
Two Palo Alto Square (650) 752-2000
Palo Alto, California 94306-2105
(650) 494-0600
----------------
Approximate date of commencement of proposed sale to the public: Upon
consummation of the merger described herein.

If the securities being registered on this form are being offered in
connection with the formation of a holding company and there is compliance
with General Instruction G, check the following box. [_]

If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement number for the same offering. [_]

If this Form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]

CALCULATION OF REGISTRATION FEE
<TABLE>
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- -------------------------------------------------------------------------------------------
<CAPTION>
Title of each class Proposed maximum Proposed maximum Proposed maximum Amount of
of securities to amount to be offering price aggregate offering registration
be registered registered (1) per share (2) price (2) fee
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock, $0.001 par
value................. 77,816,019 $145.06 $11,287,991,651 $2,980,030
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
</TABLE>

(1) Computed based on the number of shares of common stock of Network
Solutions, Inc. outstanding as of April 6, 2000 and a fixed exchange ratio
of 1.075 shares of VeriSign common stock for each of Network Solutions
common stock.
(2) Computed pursuant to Rules 457(f)(1) and 457(c) under the Securities Act
based on the average of the high and low per share prices of Network
Solutions common stock on the Nasdaq National Market on April 6, 2000.

The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment that specifically states that this Registration
Statement shall thereafter become effective in accordance with section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said section
8(a), may determine.

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<PAGE>

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to section 14(a) of
the Securities Exchange Act of 1934

Filed by the Registrant [X]

Filed by a Party other than the Registrant [_]

Check the appropriate box:

[X] Preliminary Proxy Statement [_] Confidential, for Use of the Commission
Only
(as permitted by Rule 14a-
6(e)(2))

[_] Definitive Proxy Statement

[_] Definitive Additional Materials

[_] Soliciting Material Pursuant to (S)240.14a-11(c) or (S)240.14a-12

VERISIGN, INC.
-----------------------------------------------------
(Name of Registrant as Specified In Its Charter)

-----------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

[_] No fee required.

[X] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

(2) Aggregate number of securities to which transaction applies: Up to
77,816,019 shares of Network Solutions common stock.
- -------------------------------------------------------------------------------

(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined): The filing fee
of $2,257,598 was calculated pursuant to Rule 0-11(c)(1) of the
Securities Exchange Act, by multiplying 1/50 of 1% of the value of the
Network Solutions common stock to be received by VeriSign, Inc. in the
transaction. The value of the Network Solutions common stock was
determined to be $155.94 in accordance with Rule 0-1(a)(4) of the
Exchange Act based on the average high and low prices of Network
Solutions common stock reported on the Nasdaq National Market on April 6,
2000.
- -------------------------------------------------------------------------------

(4) Proposed maximum aggregate value of transaction: $11,287,991,651
- -------------------------------------------------------------------------------

(5) Total fee paid: $2,257,598
- -------------------------------------------------------------------------------

[_] Fee paid previously with preliminary materials.

(1) Amount Previously Paid: $2,980,030
- -------------------------------------------------------------------------------

(2) Form, Schedule or Registration Statement No.: Form S-4
- -------------------------------------------------------------------------------

(3) Filing Party: VeriSign, Inc.
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(4) Date Filed: April 12, 2000
<PAGE>

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to section 14(a) of the Securities Exchange Act of
1934

Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]

Check the appropriate box:
[X] Preliminary Proxy Statement [_] Confidential, for Use of the Commission Only
[_] Definitive Proxy Statement (as permitted by Rule 14a-
[_] Definitive Additional Materials 6(e)(2))
[_] Soliciting Material Pursuant to (S)240.14a-11(c) or (S)240.14a-12

NETWORK SOLUTIONS, INC.
-----------------------------------------------------
(Name of Registrant as Specified In Its Charter)

-----------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):
[_] No fee required.
[X] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

(1) Title of each class of securities to which transaction applies: Common
stock, par value $0.001 per share of Network Solutions, Inc. ("Network
Solutions common stock").
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies: Up to
77,816,019 shares of Network Solutions common stock.
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined): The filing fee
of $2,257,598 was calculated pursuant to Rule 0-11(c)(1) of the
Securities Exchange Act, by multiplying 1/50 of 1% of the value of the
Network Solutions common stock to be received by VeriSign, Inc. in the
transaction. The value of the Network Solutions common stock was
determined to be $155.94 in accordance with Rule 0-1(a)(4) of the
Exchange Act based on the average high and low prices of Network
Solutions common stock reported on the Nasdaq National Market on April 6,
2000.
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction: $11,287,991,651
- --------------------------------------------------------------------------------
(5) Total fee paid: $2,257,598
- --------------------------------------------------------------------------------
[_] Fee paid previously with preliminary materials.

[X] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid: $2,980,030
- --------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.: Form S-4
- --------------------------------------------------------------------------------
(3) Filing Party: VeriSign, Inc.
- --------------------------------------------------------------------------------
(4) Date Filed: April 12, 2000

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<PAGE>

[LOGO]

VeriSign, Inc.
1350 Charleston Road
Mountain View, California 94043-1331

, 2000

To Our Stockholders:

You are cordially invited to attend the annual meeting of stockholders of
VeriSign, Inc. to be held at our executive offices at 1350 Charleston Road,
Mountain View, California 94043-1331 on , 2000 at 9:00 a.m., Pacific
time.

The matters expected to be acted upon at the meeting, including a proposed
merger that will cause Network Solutions, Inc. to become a wholly owned
subsidiary of VeriSign, are described in detail in the attached notice of
annual meeting of stockholders and prospectus/proxy statement.

After careful consideration, your board of directors has approved the merger
with Network Solutions, Inc. and determined that the issuance of shares of our
common stock in the merger is fair to and in the best interests of VeriSign and
its stockholders. VeriSign's board of directors has approved the issuance of
shares of VeriSign common stock in the merger and the amendment to our
certificate of incorporation in connection with the merger and recommends that
you approve these items, as well as the other matters to be voted upon at the
meeting.

It is important that you use this opportunity to take part in the affairs of
VeriSign by voting on the business to come before this meeting. Whether or not
you expect to attend the meeting, please complete, date, sign and promptly
return the accompanying proxy in the enclosed postage-paid envelope so that
your shares may be represented at the meeting. Your vote is very important.
Returning the proxy does not deprive you of your right to attend the meeting
and to vote your shares in person.

Sincerely,

Stratton D. Sclavos
President and Chief Executive
Officer

This prospectus/proxy statement is dated , 2000 and was first mailed to
stockholders on or about , 2000.
<PAGE>

[LOGO]

----------------

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

----------------

To Our Stockholders:

The annual meeting of stockholders of VeriSign, Inc. will be held at the
principal executive offices of VeriSign at 1350 Charleston Road, Mountain View,
California 94043-1331 on , 2000 at 9:00 a.m., Pacific time, for the
following purposes:

1. To approve the issuance of shares of VeriSign common stock in the
merger of Nickel Acquisition Corporation, a wholly owned subsidiary of
VeriSign, with and into Network Solutions, Inc. The merger agreement
relating to the proposed merger is included as Annex A to the attached
prospectus/proxy statement. In the merger, VeriSign will issue 1.075 shares
of common stock for each share of outstanding Network Solutions common
stock.

2. To approve an amendment to VeriSign's certificate of incorporation to
increase the number of authorized shares of common stock to 1,000,000,000
shares, which amendment is a condition to the effectiveness of the merger.

3. To approve an amendment to VeriSign's bylaws to increase the number of
board members from six to nine, or to another number as the board may
approve.

4. To elect two Class II directors of VeriSign, to hold office for a
three year term.

Class II Directors
Kevin R. Compton
David J. Cowan

5. To approve an amendment to VeriSign's 1998 Equity Incentive Plan to
increase the number of shares reserved for issuance under this plan by
10,000,000 shares.

6. To approve an amendment to VeriSign's 1998 Employee Stock Purchase
Plan to increase the number of shares reserved for issuance under this plan
by 500,000 shares and to provide for an automatic annual increase in the
shares reserved under the plan in an amount equal to 1% of the outstanding
shares of VeriSign common stock.

7. To approve an amendment to VeriSign's 1998 Directors Stock Option Plan
to increase the number of shares reserved for issuance under this plan by
250,000 shares.

8. To ratify the appointment of KPMG LLP as VeriSign's independent
auditors for the year ending December 31, 2000.

9. To transact any other business that may properly come before the
meeting or any adjournment.

The merger cannot be completed unless the holders of a majority of the total
voting power of the shares of VeriSign common stock represented in person or by
proxy at the meeting approve the issuance of common stock in the merger and
holders of a majority of the outstanding shares of common stock approve the
amendment to the certificate of incorporation. The vote required for each of
the other proposals is set forth in the section of the prospectus/proxy
statement entitled "The VeriSign Meeting."
<PAGE>

The merger is discussed in more detail in the sections of the attached
prospectus/proxy statement entitled "The Merger" and "The Merger Agreement."
You should read the attached prospectus/proxy statement carefully.

Only stockholders of record at the close of business on , 2000, the
record date, are entitled to notice of and to vote at the meeting or any
adjournment of the meeting.

By Order of the Board of Directors
of VeriSign, Inc.

Timothy Tomlinson
Secretary

Mountain View, California
, 2000

Whether or Not You Plan to Attend the Meeting, Please Complete, Sign, Date
and Return the Accompanying Proxy in the Enclosed Self-addressed Stamped
Envelope.
<PAGE>

[LOGO]

Network Solutions, Inc.
505 Huntmar Park Drive
Herndon, Virginia 20170-5139

, 2000

To Our Stockholders:

You are cordially invited to attend the special meeting of stockholders of
Network Solutions, Inc. to be held at the Hyatt Regency Reston, 1800 Presidents
Street, Reston, Virginia 20190-5627 on , 2000 at 10:00 AM, Eastern time.

The matter expected to be acted upon at the meeting, the proposed merger that
will cause Network Solutions to become a wholly owned subsidiary of VeriSign,
Inc., is described in detail in the attached notice of special meeting of
stockholders and prospectus/proxy statement.

After careful consideration, your board of directors has approved the merger
and merger agreement with VeriSign and determined the merger to be fair to and
in the best interests of Network Solutions and its stockholders.

It is important that you use this opportunity to take part in the affairs of
Network Solutions by voting on the business to come before this meeting.
Whether or not you expect to attend the meeting, please complete, date, sign
and promptly return the accompanying proxy in the enclosed postage-paid
envelope so that your shares may be represented at the meeting. YOUR VOTE IS
VERY IMPORTANT. Returning the proxy does not deprive you of your right to
attend the meeting and to vote your shares in person.

Sincerely,

Michael A. Daniels
Chairman

This prospectus/proxy statement is dated , 2000 and was first mailed to
stockholders on or about , 2000.

The merger and an investment in the shares of VeriSign common stock to be
issued in the merger involves risks. You should carefully consider the
discussion in the section entitled "Risk Factors" beginning on page 12 of this
prospectus/proxy statement.
<PAGE>

[LOGO]
----------------

NOTICE OF SPECIAL MEETING OF STOCKHOLDERS

----------------

To Our Stockholders:

The special meeting of stockholders of Network Solutions, Inc. will be held
at the Hyatt Regency Reston, 1800 Presidents Street, Reston, Virginia 20190-
5627 on , 2000 at 10:00 a.m., Eastern Standard time, for the following
purposes:

1. To approve the merger of Nickel Acquisition Corporation, a wholly
owned subsidiary of VeriSign, Inc., with and into Network Solutions, Inc.
and approve and adopt a merger agreement with VeriSign. The merger
agreement relating to the proposed merger is included as Annex A to the
attached prospectus/proxy statement. In the merger, VeriSign will issue
1.075 shares of common stock for each share of outstanding Network
Solutions common stock.

2. To transact any other business that may properly come before the
Network Solutions meeting or any adjournment.

The merger cannot be completed unless the holders of a majority of the total
voting power of the shares of Network Solutions common stock represented in
person or by proxy at the meeting approve the merger.

Only stockholders of record at the close of business on , 2000, the record
date, are entitled to notice of and to vote at the meeting or any adjournment
of the meeting.

By Order of the Board of Directors
of Network Solutions, Inc.

Michael A. Daniels
Chairman

Herndon, Virginia
, 2000

Whether or Not You Plan to Attend the Meeting, Please Complete, Sign, Date
and Return the Accompanying Proxy in the Enclosed Self-addressed Stamped
Envelope.
<PAGE>

Table of Contents

<TABLE>
<CAPTION>
Page
----
<S> <C>
Questions and Answers about the Merger................................... iii

Summary of the Prospectus/Proxy Statement................................ 1
The Companies.......................................................... 1
Summary of the Transaction............................................. 2
VeriSign's Selected Historical Financial Data.......................... 8
Network Solutions' Selected Historical Financial Data.................. 9
Selected Unaudited Pro Forma Combined Condensed Financial Data......... 10
Comparative Historical and Unaudited Pro Forma Per Share Data.......... 11

Risk Factors............................................................. 12
Risks related to the proposed merger................................... 12
Risks related to VeriSign's business................................... 14
Additional risks related to Network Solutions.......................... 22

The VeriSign Meeting..................................................... 31

The Network Solutions Meeting............................................ 34

The Merger and Related Transactions...................................... 37
Background of the merger............................................... 37
VeriSign's reasons for the merger...................................... 38
Recommendation of VeriSign's board of directors........................ 40
Network Solutions' reasons for the merger.............................. 40
Recommendation of Network Solutions' board of directors................ 41
Opinion of VeriSign's financial advisor................................ 42
Opinion of Network Solutions' financial advisors....................... 48
Interests of certain persons in the merger............................. 58
Completion and effectiveness of the merger............................. 58
Structure of the merger and conversion of Network Solutions common
stock................................................................. 59
Exchange of Network Solutions stock certificates for VeriSign stock
certificates.......................................................... 59
Material United States federal income tax consequences of the merger... 59
Accounting treatment of the merger..................................... 61
Regulatory filings and approvals required to complete the merger....... 61
Restrictions on sales of shares by affiliates of Network Solutions and
VeriSign.............................................................. 61
Listing on the Nasdaq National Market of VeriSign common stock to be
issued in the merger.................................................. 61
Delisting and deregistration of Network Solutions common stock after
the merger............................................................ 61

The Merger Agreement..................................................... 62

Related Agreements....................................................... 72
Voting Agreement....................................................... 72
Registration Rights Agreement.......................................... 72

Unaudited Pro Forma Condensed Combined Financial Information............. 73

Comparative Per Share Market Price Data.................................. 82

Comparison of Rights of Holders of VeriSign Common Stock and Network
Solutions Common Stock.................................................. 84

Share Ownership by Principal Stockholders, Management and Directors of
VeriSign................................................................ 90

Share Ownership by Principal Stockholders, Management and Directors of
Network Solutions....................................................... 92
</TABLE>

i
<PAGE>

<TABLE>
<CAPTION>
Page
----
<S> <C>
Additional Matters Being Submitted to a Vote of Only VeriSign
Stockholders............................................................. 94
Proposal No. 1 -- Issuance of Shares in the Merger...................... 94
Proposal No. 2 -- Approval of Amendment to Certificate of
Incorporation.......................................................... 94
Proposal No. 3 -- Approval of Amendment to Bylaws....................... 96
Proposal No. 4 -- Election of Directors................................. 97
Proposal No. 5 -- Approval of Amendment to 1998 Equity Incentive Plan... 100
Proposal No. 6 -- Approval of Amendment to 1998 Employee Stock Purchase
Plan................................................................... 105
Proposal No. 7 -- Approval of Amendment to 1998 Directors Stock Option
Plan................................................................... 109
Proposal No. 8 -- Ratification of Selection of Independent Auditors..... 111

Management of VeriSign.................................................... 112
Executive Officers...................................................... 112
Executive Compensation.................................................. 113

Report of the Compensation Committee of VeriSign.......................... 116
VeriSign, Inc. Stock Price Performance Graph.............................. 118
Certain Transactions with Respect to VeriSign............................. 119
VeriSign Stockholder Proposals............................................ 119
Section 16(a) Beneficial Ownership Reporting Compliance................... 120
Other Business............................................................ 120
Network Solutions Stockholder Proposals................................... 120
Legal Opinion............................................................. 120
Experts................................................................... 120
Documents Incorporated by Reference in this Prospectus/Proxy Statement.... 122
Where You Can Find More Information....................................... 123
Statements Regarding Forward-Looking Information.......................... 124
Annex A -- Agreement and Plan of Merger................................... A-1
Annex B -- Opinion of Morgan Stanley & Co. Incorporated................... B-1
Annex C -- Opinion of J. P. Morgan Securities Inc......................... C-1
Annex D -- Opinion of Chase H&Q, a division of Chase Securities Inc....... D-1
Annex E -- Voting Agreement............................................... E-1
Annex F -- Registration Rights Agreement.................................. F-1
Annex G -- Amendment to VeriSign's Certificate of Incorporation........... G-1
Annex H -- Amendment to VeriSign's Bylaws................................. H-1
</TABLE>

Unless otherwise indicated, all information in this document reflects 2-for-1
stock splits of Network Solutions common stock effected on March 23, 1999 and
March 10, 2000, as well as 2-for-1 stock splits of VeriSign's common stock
effected on May 29, 1999 and December 6, 1999.

ii
<PAGE>

QUESTIONS AND ANSWERS ABOUT THE MERGER

Q: What is the merger?

A:In the merger, Network Solutions will become a wholly owned subsidiary of
VeriSign.

Based on the capitalization of VeriSign and Network Solutions as of
March 6, 2000, the stockholders of Network Solutions will receive in
the merger a number of shares of VeriSign common stock representing an
aggregate of approximately 39% of VeriSign's outstanding common stock.

Q: What will Network Solutions' stockholders receive in the merger?

A: Network Solutions' stockholders will receive 1.075 shares of VeriSign
common stock for each share of Network Solutions common stock they own.
VeriSign will not issue fractional shares of stock. Network Solutions'
stockholders will receive cash based on the market price of VeriSign
common stock instead of any fractional share. VeriSign stockholders will
continue to own their shares of VeriSign common stock after the merger.

For example, a holder of 100 shares of Network Solutions common stock
will receive 107 shares of VeriSign common stock and an amount of cash
equal to 0.5 times the market price of a share of VeriSign common stock.

The number of shares of VeriSign common stock to be issued for each
share of Network Solutions common stock is fixed and will not be
adjusted based upon changes in the value of these shares. As a result,
the value of the shares Network Solutions' stockholders will receive in
the merger will not be known prior to the time of the merger and may go
up or down as the market price of VeriSign common stock goes up or down.
Network Solutions is not permitted to terminate its obligations to
complete the merger or resolicit the vote of its stockholders based
solely on changes in the value of Network Solutions common stock.

Q: Do the boards of directors of VeriSign and Network Solutions recommend
voting in favor of the merger?

A: Yes. After careful consideration, Network Solutions' board of directors
recommends that its stockholders vote in favor of the merger agreement
and the proposed merger. Likewise, after careful consideration, the
VeriSign board of directors recommends that its stockholders vote in
favor of the issuance of VeriSign common stock in the merger and the
amendment to VeriSign's certificate of incorporation.

For a more complete description of the recommendations of the boards of
directors of both companies, see the sections entitled "VeriSign's
reasons for the Merger" on page 38, "Recommendation of VeriSign's board
of directors" on page 40, "Network Solutions' reasons for the merger" on
page 40 and "Recommendation of Network Solutions' board of directors" on
page 41.

Q: Are there risks I should consider in deciding whether to vote for the
merger?

A: Yes. For example, the number of shares of VeriSign common stock that
Network Solutions stockholders will receive will not change even if the
market price of VeriSign common stock increases or decreases before the
completion of the merger. We urge you to obtain current market
quotations of VeriSign common stock and Network Solutions common stock.

In evaluating the merger, you should also carefully consider these and
other factors discussed in the section entitled "Risk Factors" on page
12.

Q: What do I need to do now?

A: Mail your signed proxy card in the enclosed return envelope as soon as
possible so that your shares may be represented at your meeting. If you
do not include instructions on how to vote your properly signed proxy,
your shares will be voted "FOR" approval and adoption of the merger
agreement and approval of the merger (for Network Solutions'
stockholders) or "FOR" approval of the issuance of shares of VeriSign
common stock in the merger, the amendment to the certificate of
incorporation and the other proposals (for VeriSign's stockholders).

iii
<PAGE>

For a more complete description of voting at the meetings, see the
sections entitled "Voting of proxies" on pages 32 and 35.

Q: What do I do if I want to change my vote?

A: If you want to change your vote, send the secretary of VeriSign or
Network Solutions, as appropriate, a later-dated, signed proxy card
before your meeting or attend your meeting in person. You may also
revoke your proxy by sending written notice to the secretary of VeriSign
or Network Solutions, as appropriate, before your meeting.

For a more complete description of how to change your vote, see the
sections entitled "Voting of proxies" on pages 32 and 35.

Q: If my shares are held in "street name" by my broker, will my broker vote my
shares for me?

A: Your broker will vote your shares only if you provide instructions on
how to vote by following the information provided to you by your broker.

For a more complete description of voting shares held in "street name,"
see the sections entitled "Voting of proxies" on pages 32 and 35.

Q: Should I send in my Network Solutions stock certificates now?

A: No. After the merger is completed, we will send you written instructions
for exchanging your Network Solutions stock certificates for VeriSign
stock certificates.

Q: When do you expect the merger to be completed?

A: We are working toward completing the merger as quickly as possible. We
hope to complete the merger during the third quarter of 2000.

For a more complete description of the conditions to the merger, see the
section entitled "Conditions to closing the merger" on page 67.

Q: Will I recognize a gain or loss on the transaction?

A: We expect that if the merger is completed, you will not recognize gain
or loss for United States federal income tax purposes, except that
Network Solutions' stockholders will recognize gain or loss with respect
to cash received instead of fractional shares. However, Network
Solutions' stockholders are urged to consult their own tax advisors to
determine their particular tax consequences.

For a more complete description of the tax consequences, see the section
entitled "Material United States federal income tax consequences of the
merger" on page 59.

Q: Am I entitled to dissenters' or appraisal rights?

A: Under Delaware law, holders of Network Solutions common stock and
holders of VeriSign common stock are not entitled to dissenters' or
appraisal rights in the merger.

Q: Whom should I call with questions?

A: Network Solutions' stockholders should call Network Solutions Investor
Relations at (703) 326-6090 with any questions about the merger.
VeriSign's stockholders should call VeriSign Investor Relations at (650)
429-3550 with any questions about the merger.

You may also obtain additional information about VeriSign and Network
Solutions from documents each of us files with the Securities and
Exchange Commission by following the instructions in the section
entitled "Where you can find more information" on page 123.

iv
<PAGE>

SUMMARY OF THE PROSPECTUS/PROXY STATEMENT

The Companies

[LOGO] [LOGO]
VeriSign, Inc.
1350 Charleston Road
Mountain View, California 94043-1331
Tel: (650) 961-7500

VeriSign is the leading provider of Internet-based trust services, including
authentication, validation and payment, needed by websites, enterprises,
electronic commerce service providers, and individuals to conduct trusted and
secure electronic commerce and communications over wired and wireless Internet
protocol (IP) networks.

VeriSign has established strategic relationships with industry leaders,
including British Telecommunications, Cisco, Microsoft, Netscape, RSA Security
and VISA, to enable widespread utilization of our digital certificate services
and to assure their interoperability with a wide variety of applications and
network equipment.

VeriSign has used its secure online infrastructure to issue over 215,000 of
our website digital certificates and over 3.9 million of its digital
certificates for individuals. VeriSign believes that it has issued more digital
certificates than any other company in the world. VeriSign's Website Digital
Certificate services are used by all of the Fortune 500 companies with a web
presence and all of the top 40 electronic commerce websites as listed by
Jupiter Communications.

VeriSign also provides enterprise digital certificate services which allow
enterprises and electronic commerce service providers to leverage its trusted
service infrastructure to develop and deploy customized digital certificate
services for use by the organization's employees, customers and business
partners. Over 800 enterprises and electronic commerce service providers have
subscribed to our managed certificate services since their introduction in
November 1997, including Agilent, Bank of America, Barclays, General Electric
Information Systems, Hewlett-Packard, the Internal Revenue Service, Southwest
Securities, Sumitomo Bank, Texas Instruments, VISA and US West.

VeriSign markets its Internet-based trust services worldwide through multiple
distribution channels, including the Internet, direct sales, telesales, VARs,
systems integrators and its network of over twenty affiliates which provide
trust services under licensed co-branding relationships using VeriSign
technology and business practices.

Network Solutions, Inc.
505 Huntmar Park Drive
Herndon, Virginia 20170-5139
Tel: (703) 742-0400

Network Solutions is a leading provider of web identity services worldwide.
Network Solutions' web identity offerings include Internet domain name regis-
tration services, for which it is the global leader, and related value-added
products and services.

Founded in 1979, Network Solutions, Inc. pioneered the development of regis-
tering Web addresses ending in .com, .net, .org and .edu and is the world's
leading Registrar with more than 8.1 million net registrations. To meet the
needs of corporations worldwide, Network Solutions also provides domain name
registration services for all available country-code Top-Level Domains, for ex-
ample, .de (Germany), .fr (France) and .uk (United Kingdom). Network Solutions
additionally plays a critical role in the infrastructure of the Internet
through its Registry services. Network Solutions' Registry customers include
all the Registrars of domain names ending in .com, .net and .org. Network Solu-
tions also provides Internet Technology Services that assist large commercial
organizations in the evolution and management of their Internet technologies.

Network Solutions is the leading registrar of Web addresses worldwide through
various channels, including nearly 240 companies in over 30 countries in its
Premier Program and over 41,000 companies in the Affiliate Program. Network So-
lutions has created value-added small business solutions through agreements
with leading companies such as American Express, IBM and Microsoft. Through its
Alliance Program, Network Solutions works closely with EarthLink, Interland,
Inc. and Interliant, Inc. Network Solutions also has entered into marketing
agreements with companies like AltaVista, Netscape and Yahoo! Inc.

1
<PAGE>

SUMMARY OF THE TRANSACTION

The merger

In the merger, Network Solutions and a wholly owned subsidiary of VeriSign
will merge and, as a result, Network Solutions will become a wholly owned
subsidiary of VeriSign.

The merger agreement is attached to this prospectus/proxy statement as Annex
A. We encourage you to read the merger agreement carefully.

No other negotiations

Until the merger is completed or the merger agreement is terminated, Network
Solutions has agreed, with limited exceptions, not to take any action, directly
or indirectly, with respect to an Acquisition Proposal, as defined on page 66
of this document.

If Network Solutions receives an unsolicited, written, bona fide Acquisition
Proposal that its board reasonably concludes based on written advice of its
financial advisor may constitute a Superior Offer, as defined on page 66 of
this document, Network Solutions may furnish non-public information regarding
it and may enter into discussions with the person or group who has made the
Acquisition Proposal if it provides written notice to VeriSign and follows
other specified procedures.

Network Solutions has agreed to inform VeriSign promptly as to any
Acquisition Proposal, or request for non-public information or inquiry that it
reasonably believes would lead to an Acquisition Proposal. Network Solutions
has agreed to inform VeriSign of the status and details of any Acquisition
Proposal.

The board of Network Solutions may change its recommendation in favor of the
merger if it receives a Superior Offer and VeriSign does not respond with a
corresponding offer at least as favorable as the Superior Offer.

For a more complete description of these limitations on each of our actions
with respect to an Acquisition Proposal, please refer to the sections entitled
"The Merger Agreement--No other negotiations," on page 65, "--Termination of
the merger agreement" on page 69 and "--Termination fee" on page 70 of this
document and the corresponding sections of the merger agreement.

Conditions to completion of the merger

The completion of the merger depends upon meeting a number of conditions,
including:

. the merger agreement and the merger must be approved by Network
Solutions' stockholders;

. the issuance of the shares of VeriSign common stock to be issued in the
merger, as well as the amendment to VeriSign's certificate of
incorporation, must be approved by VeriSign's stockholders;

. VeriSign's registration statement, of which this proxy
statement/prospectus is a part, must be effective, no stop order
suspending its effectiveness may be in effect and no proceedings for
suspending its effectiveness may be pending before or threatened by the
SEC;

. no governmental entity shall have enacted a law, regulation or order
that has the effect of making the merger illegal;

. the applicable waiting periods under antitrust laws must expire or be
terminated;

. the parties must have received legal opinions to the effect that the
merger will qualify as a tax-free reorganization;

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<PAGE>

. the shares of VeriSign common stock to be issued to Network Solutions'
stockholders in the merger must have been approved for listing on the
Nasdaq National Market;

. the representations and warranties of each party in the merger agreement
must be true and correct;

. the parties must have complied in all material respects with their
respective agreements in the merger agreement;

. no material adverse effect with respect to VeriSign or Network Solutions
shall have occurred;

. all consents and approvals that if not obtained would have a material
adverse effect on the combined companies shall have been obtained; and

. VeriSign must have appointed three members to its board of directors
that are mutually agreeable to the boards of directors of VeriSign and
Network Solutions.

If either VeriSign or Network Solutions waives any conditions, VeriSign and
Network Solutions will consider the facts and circumstances at that time and
make a determination as to whether a resolicitation of proxies from
stockholders is appropriate.

Votes required for approval

The holders of a majority of the outstanding shares of Network Solutions
common stock must approve the merger agreement and the merger. Network
Solutions stockholders are entitled to cast one vote per share of Network
Solutions common stock owned as of , 2000, the record date for the
meeting.

A stockholder of Network Solutions that beneficially owns approximately 23%
of the outstanding Network Solutions common stock as of the record date has
agreed to vote in favor of approval and adoption of the merger agreement and
approval of the merger. Directors and executive officers of Network Solutions
collectively beneficially owned approximately % of the outstanding Network
Solutions common stock as of the record date.

In order to approve the merger:

. the holders of a majority of the shares of VeriSign common stock present
and voting at the meeting must approve the issuance of the VeriSign
common stock in the merger; and

. the holders of a majority of the outstanding shares of VeriSign common
stock must approve the amendment to VeriSign's certificate of
incorporation.

Directors and executive officers of VeriSign collectively beneficially owned
% of the outstanding VeriSign common stock shares as of the record date for
the VeriSign meeting.

Termination of the merger agreement

The merger agreement may be terminated by the parties' mutual consent.

In addition, subject to qualifications, the merger agreement may be
terminated by either of the parties under any of the following circumstances:

. if the merger is not completed by September 15, 2000, so long as the
terminating party did not prevent completion of the merger by breaching
the merger agreement;

. if a final governmental injunction or order prohibiting the merger is
issued and is not appealable;

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<PAGE>

. if the Network Solutions stockholders do not approve the merger
agreement; however, Network Solutions may not terminate the agreement
for this reason if the failure to obtain stockholder approval resulted
from its breach of the merger agreement or the breach of the voting
agreement described in the section entitled "Related Agreements--Voting
Agreement";

. if the VeriSign stockholders do not approve the issuance of VeriSign
common stock in the merger and the amendment to its certificate of
incorporation; however, VeriSign may not terminate the agreement for
this reason if the failure to obtain stockholder approval resulted from
its breach of the merger agreement; or

. if the conditions to completion of the merger would not be satisfied (1)
because of a breach of an agreement in the merger agreement by the other
party, or (2) because a representation or warranty of the other party in
the merger agreement becomes untrue, and that breach or inaccuracy is
not cured by the party making that representation within 30 days, if the
inaccuracy is curable.

The merger agreement may be terminated by VeriSign if any of the following
"triggering events" occurs:

. Network Solutions' board changes its recommendation to its stockholders
that they approve and adopt the merger agreement and approve the merger;

. Network Solutions fails to include in this prospectus/proxy statement
the recommendation of its board of directors in favor of the approval
and adoption of the merger agreement and the approval of the merger;

. Network Solutions' board fails to reaffirm its recommendation of the
merger upon the request of VeriSign after an Acquisition Proposal
involving Network Solutions has been publicly announced;

. Network Solutions' board approves or publicly recommends an Acquisition
Proposal involving Network Solutions;

. Network Solutions enters into a letter of intent or other similar
document or agreement relating to an Acquisition Proposal involving
Network Solutions;

. Network Solutions shall have breached its non-solicitation obligations
or breached the provisions of the merger agreement relating to the
holding of the Network Solutions' stockholder meeting; or

. any tender or exchange offer relating to securities of Network Solutions
shall be commenced and Network Solutions shall not have recommended the
rejection of that tender offer or exchange offer.

For a more complete description of the manner in which the merger agreement
may be terminated, see the section entitled "The Merger Agreement--Termination
of the merger agreement" on page 69.

Termination fee

If the merger agreement is terminated by VeriSign because of any of the
triggering events described immediately above, Network Solutions will be
obligated to pay VeriSign a termination fee of $425 million. If, following the
public announcement of an Acquisition Proposal, the merger agreement is
terminated following the rejection of the merger by Network Solutions'
stockholders or the breach of the merger agreement by Network Solutions, and
within nine months following the termination, an extraordinary transaction,
such as a merger or sale of significant assets, occurs with respect to Network
Solutions, or Network Solutions enters into an agreement regarding an
extraordinary transaction and the transaction is later consummated, regardless
of when the consummation occurs, Network Solutions will also be obligated to
pay VeriSign $425 million.

For a more complete description of the payment of the termination fee, see
the section entitled "The Merger Agreement--Termination Fee" on page 70.

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<PAGE>

The voting agreement

SAIC Venture Capital Corporation, or SAIC Venture Capital, a wholly owned
subsidiary of Science Applications International Corporation, or SAIC, entered
into a voting agreement with VeriSign. The voting agreement requires this
stockholder to vote all the shares of Network Solutions common stock it owns in
favor of the merger and against competing proposals or proposals in opposition
to the merger. SAIC Venture Capital holds approximately 23% of the outstanding
Network Solutions common stock as of the record date.

For a more complete description of the voting agreement, please refer to the
section entitled "Related Agreements--Voting Agreement" on page 72. The voting
agreement is attached to this document as Annex E. We urge you to read it in
its entirety.

Opinions of financial advisors

In deciding to approve the merger, our boards of directors considered, among
other things, opinions from our respective financial advisors as to the
fairness of the exchange ratio from a financial point of view. VeriSign
received an opinion from its financial advisor, Morgan Stanley & Co.
Incorporated, and Network Solutions received opinions from its financial
advisors, J.P. Morgan Securities Inc. and Chase H&Q, a division of Chase
Securities Inc.

For a more complete description of the financial advisors' opinions see the
sections entitled "Opinion of VeriSign's financial advisor" on page 42 and
"Opinions of Network Solutions' financial advisors" on page 48. These opinions
are attached as Annexes B, C and D and you should read them.

Accounting treatment of the merger

We intend to account for the merger as a "purchase" for financial accounting
purposes under generally accepted accounting principles.

For a more complete description of the accounting treatment of the merger see
the section entitled "Accounting treatment of the merger" on page 61.

Interests of certain persons in the merger

When considering the recommendations of VeriSign's and Network Solutions'
boards of directors, you should be aware that some of the VeriSign and Network
Solutions directors and officers have interests in the merger that are
different from, or are in addition to, yours. These interests include:

. Three new directors, to be mutually agreed upon by the boards of
directors of VeriSign and Network Solutions, will be appointed to the
VeriSign board;

. Directors and officers of both VeriSign and Network Solutions are
entitled to specified indemnification rights;

. Some executive officers of Network Solutions will become executive
officers of VeriSign;

. SAIC Venture Capital, a holder of approximately 23% of Network
Solutions' outstanding common stock on the record date, some officers
and directors of which are directors of Network Solutions, will receive
registration rights with respect to the shares of VeriSign common stock
it will receive in the merger; and

. Stratton D. Sclavos, VeriSign's President and Chief Executive Officer,
is a member of the VeriSign and Network Solutions boards of directors
and holds options to purchase shares of Network Solutions and VeriSign
common stock.

5
<PAGE>

As a result, these executive officers and directors could be more likely to
vote in favor of the merger, and recommend the approval and adoption of the
merger agreement and approval of the merger than if they did not hold these
interests.

Antitrust approval required to complete the merger

The merger is subject to antitrust laws. We have made the required filings
with the Department of Justice and the Federal Trade Commission and we will
make any necessary filings with foreign regulatory agencies. However, the
Department of Justice or the Federal Trade Commission, as well as a foreign
regulatory agency or government, state or private person, may challenge the
merger at any time before or after its completion.

For a more complete description of the antitrust issues in connection with
the merger see the section entitled "Regulatory filings and approvals required
to complete the merger" on page 61.

Restrictions on the ability to sell VeriSign stock

All shares of VeriSign common stock received by Network Solutions
stockholders in connection with the merger will be freely transferable unless
the holder is considered an affiliate of either of us under the Securities Act.

For a more complete description of transfer restrictions applicable to our
affiliates see the section entitled "Restrictions on sales of shares by
affiliates of VeriSign and Network Solutions" on page 61.

Additional matters to be voted upon by VeriSign stockholders

In conjunction with the merger, the stockholders of VeriSign will vote on an
amendment to VeriSign's certificate of incorporation to increase the number of
authorized shares of common stock to 1,000,000,000 shares. The approval of this
proposal is a condition to the completion of the merger. VeriSign stockholders
will also be asked to approve an amendment to the bylaws of VeriSign to
increase the number of board members from six to nine, or to another number as
the board may approve. VeriSign's stockholders will also be asked to elect two
Class II directors, to approve increases in its equity incentive plan,
directors stock option plan and employee stock purchase plans and to ratify the
selection of VeriSign's independent auditors for 2000.

For a more complete description of these votes, see the sections entitled
"Additional Matters Being Submitted to a Vote of Only VeriSign Stockholders" on
pages 94 through 111.

Forward-looking statements in this prospectus/proxy statement

This prospectus/proxy statement and the documents incorporated into this
prospectus/proxy statement by reference contain forward-looking statements
within the safe harbor provisions of the Private Securities Litigation Reform
Act. These statements include statements with respect to VeriSign's and Network
Solutions' financial condition, results of operations and business and on the
expected impact of the merger on VeriSign's financial performance. Words such
as "anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates" and similar expressions identify forward-looking statements.

These forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties that could cause actual results to
differ materially from the results contemplated by the forward-looking
statements. These risks and uncertainties include:

. the possibility that the value of the VeriSign common stock to be issued
in the merger will increase or decrease prior to completion of the
merger;

6
<PAGE>

. the possibility that the merger will not be consummated;

. the possibility that the anticipated benefits from the merger will not
be fully realized;

. the possibility that costs or difficulties related to the integration of
our businesses and infrastructure will be greater than expected;

. our dependence on the timely development, introduction and customer
acceptance of new products and services;

. the impact of competition on revenues and margins;

. rapidly changing technology and shifting demand requirements and
Internet usage patterns;

. other risks and uncertainties, including the risks and uncertainties
involved in continued acceptance of the combined company's products and
services, Network Solutions' customer acceptance of VeriSign's products
and services, increased use of the Internet for electronic commerce, the
impact of competitive services, products and prices, the unsettled
conditions in the Internet and other high-technology industries and the
ability to attract and retain key personnel;

. other risk factors as may be detailed from time to time in VeriSign's
and Network Solutions' public announcements and filings with the
Securities and Exchange Commission.

In evaluating the merger, you should carefully consider the discussion of
these and other factors in the section entitled "Risk Factors" beginning on
page 12.

Comparative market price information

Shares of both VeriSign and Network Solutions common stock are listed on the
Nasdaq National Market. On March 6, 2000, the last full trading day prior to
the public announcement of the proposed merger, VeriSign's common stock closed
at $247.44 per share, and Network Solutions' common stock closed at $180.31 per
share, adjusted to reflect the two-for-one stock split of Network Solutions
common stock on March 10, 2000. On , 2000, VeriSign's common stock closed
at $ per share, and Network Solutions' common stock closed at $ per share.
We urge you to obtain current market quotations.

For a more complete description of market price information see the section
entitled "Comparative per share market price data" on page 82.

This summary may not contain all of the information that is important to you.
You should read carefully this entire document and the other documents we refer
to for a more complete understanding of the merger. In particular, you should
read the documents attached to this prospectus/proxy statement, including the
merger agreement, which is attached as Annex A, the opinion of Morgan Stanley &
Co. Incorporated, which is attached as Annex B, the opinion of J.P. Morgan
Securities Inc., which is attached as Annex C, the opinion of Chase H&Q, which
is attached as Annex D, and the voting agreement, which is attached as Annex E.

In addition, we incorporate important business and financial information
about VeriSign and Network Solutions into this prospectus/proxy statement by
reference. See "Documents Incorporated by Reference in this Prospectus/Proxy
Statement" on page 122. You may obtain the information incorporated into this
prospectus/proxy statement by reference without charge by following the
instructions in the section entitled "Where You Can Find More Information" on
page 123.

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<PAGE>

VeriSign's Selected Historical Financial Data

The following selected historical financial data of VeriSign has been derived
from VeriSign's historical financial statements and related notes, and should
be read together with those financial statements and related notes that are
incorporated by reference in this prospectus/proxy statement.

<TABLE>
<CAPTION>
Period from
April 12, 1995
Years Ended December 31, (inception) to
-------------------------------------- December 31,
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------------
(In thousands, except per share data)
<S> <C> <C> <C> <C> <C>
Consolidated Statement
of Operations Data:
Revenues............... $ 84,776 $ 38,930 $ 13,356 $ 1,356 $ 382
Total costs and
expenses.............. 88,086 62,075 34,657 12,415 2,524
Operating loss......... (3,310) (23,145) (21,301) (11,059) (2,142)
Minority interest in
net loss of
subsidiary............ 836 1,282 1,538 838 --
Net income (loss)...... 3,955 (19,743) (18,589) (10,288) (1,994)
Basic net income (loss)
per share............. $ .04 $ (.24) $ (.65) $ (.52) $ (.11)
Diluted net income
(loss) per share...... $ .03 $ (.24) $ (.65) $ (.52) $ (.11)
<CAPTION>
As of December 31,
------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------------
(In thousands)
<S> <C> <C> <C> <C> <C>
Consolidated Balance
Sheet Data:
Cash, cash equivalents
and short-term
investments........... $156,480 $ 41,745 $ 12,893 $ 30,006 $ 2,687
Working capital........ 140,163 31,085 6,160 24,788 2,284
Total assets........... 341,166 64,295 26,904 36,537 4,052
Stockholders' equity... 298,359 40,728 13,541 28,520 3,376
</TABLE>

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<PAGE>

Network Solutions' Selected Historical Financial Data

The following selected historical financial data of Network Solutions has
been derived from Network Solutions' historical financial statements and
related notes, and should be read together with those financial statements and
the related notes that are incorporated by reference in this prospectus/proxy
statement. The Statements of Operations Data and Balance Sheet Data as of and
for the years ended December 31, 1996, 1997, 1998 and 1999 were derived from
Network Solutions' audited financial statements. The selected financial data
for the year ended December 31, 1995 were derived by combining Network
Solutions' results of operations for the period January 1, 1995 through March
10, 1995 and the period March 11, 1995 through December 31, 1995, both as
derived from Network Solutions' audited financial statements. Comparability of
pre-acquisition periods to post-acquisition periods is limited because the
financial statements have been prepared on differing bases of accounting as a
result of the acquisition by SAIC on March 10, 1995.

<TABLE>
<CAPTION>
Years Ended December 31,
-------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- ------- -------
(In thousands, except per share data)
<S> <C> <C> <C> <C> <C>
Statement of Operations Data:
Net revenue...................... $220,811 $ 93,652 $ 45,326 $18,862 $ 6,486
Total operating costs and
expenses........................ 185,112 80,495 39,719 21,626 8,098
Income (loss) from continuing
operations...................... 26,886 11,235 4,231 (1,625) (1,434)
Loss from discontinued
operations...................... -- -- -- -- (1,403)
Net income (loss)................ 26,886 11,235 4,231 (1,625) (2,837)
Basic net income (loss) per
share:
Income (loss) from continuing
operations..................... $ .40 $ .18 $ .08 $ (.03) $ (.04)
Loss from discontinued
operations..................... -- -- -- -- (.03)
-------- -------- -------- ------- -------
Net income (loss)............... $ .40 $ .18 $ .08 $ (.03) $ (.07)
======== ======== ======== ======= =======
Diluted net income (loss) per
share:
Income (loss) from continuing
operations..................... $ .38 $ .17 $ .08 $ (.03) $ (.04)
Loss from discontinued
operations..................... -- -- -- -- (.03)
-------- -------- -------- ------- -------
Net income (loss)............... $ .38 $ .17 $ .08 $ (.03) $ (.07)
======== ======== ======== ======= =======
<CAPTION>
As of December 31,
-------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- ------- -------
(In thousands)
<S> <C> <C> <C> <C> <C>
Balance Sheet Data:
Cash and cash equivalents........ $196,589 $ 12,862 $ 41,146 $15,540 $ 5
Total marketable securities...... 164,920 128,098 40,200 -- --
Working capital.................. 131,113 65,791 50,947 1,362 (559)
Total assets..................... 625,303 243,867 149,620 66,118 11,748
Restricted assets included in
total assets.................... -- -- 25,873 17,453 1,408
Deferred revenue, net............ 361,639 129,194 61,451 29,352 3,346
Long-term obligations, excluding
current portion................. 106,971 35,721 18,743 9,440 1,353
Stockholders' equity............. 178,599 75,130 47,655 1,437 3,062
</TABLE>

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<PAGE>

Selected Unaudited Pro Forma Combined Condensed Financial Data

The selected unaudited pro forma condensed combined financial data set forth
below reflect the acquisitions by VeriSign of Network Solutions, Signio, Inc.
and THAWTE HOLDINGS (PTY) LTD. and THAWTE USA, INC., collectively referred to
as THAWTE, are derived from the unaudited pro forma condensed combined
financial information, which give effect to each of the transactions as a
purchase, and should be read in conjunction with the unaudited pro forma
combined condensed financial information and related notes, which are included
elsewhere in this prospectus/proxy statement.

For pro forma purposes, VeriSign's, Signio's and Network Solutions'
historical statements of operations for the year ended December 31, 1999, and
THAWTE's historical statements of operations for the twelve months ended
November 30, 1999, have been combined to give effect to the merger as if it had
occurred on January 1, 1999, with respect to the results for VeriSign, Network
Solutions and Signio, or on December 1, 1998, with respect to the results for
THAWTE. The unaudited pro forma combined condensed balance sheet data assumes
that the mergers took place as of December 31, 1999 with respect to the balance
sheets of VeriSign, Network Solutions and Signio, or on November 30, 1999, with
respect to the balance sheet of THAWTE.

A charge for in-process research and development attributable to the purchase
of Network Solutions has been included in accumulated deficit in the pro forma
combined condensed balance sheet, but has been excluded from the pro forma
combined condensed statement of operations as it is non-recurring.

The total estimated purchase cost of the mergers has been allocated on a
preliminary basis to assets and liabilities based on management's best
estimates of their fair value with the excess cost over the net assets acquired
allocated to goodwill. This allocation is subject to change pending a final
analysis of the total purchase cost and the fair value of the assets acquired
and liabilities assumed. The impact of these changes could be material.

The unaudited pro forma condensed combined information is presented for
illustrative purposes only and is not necessarily indicative of the operating
results or financial position that would have occurred if the transactions had
been consummated at the times indicated, nor is it necessarily indicative of
future operating results or financial condition of VeriSign.
(In thousands, except per share data)
<TABLE>
<CAPTION>
Year Ended
December 31,
1999
------------
<S> <C>
Combined Statement of Operations Data:
Revenues........................................................ $ 308,790
Total costs and expenses........................................ 5,842,633
Operating loss.................................................. (5,533,843)
Minority interest in net loss of subsidiary..................... (836)
Net loss........................................................ (5,284,706)
Basic and diluted net loss per share............................ (28.07)
<CAPTION>
As of
December 31,
1999
------------
<S> <C>
Combined Balance Sheet Data:
Cash, cash equivalents and short-term investments............... $ 474,043
Working capital................................................. 208,969
Total assets.................................................... 22,411,381
Current and long-term deferred revenue, net..................... 333,528
Stockholders' equity............................................ 21,729,791
</TABLE>

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<PAGE>

Comparative Historical and Unaudited Pro Forma Per Share Data

The following tables reflect (1) the historical net income and book value per
share of VeriSign common stock and the historical net income and book value per
share of Network Solutions common stock in comparison with the unaudited pro
forma net loss and book value per share after giving effect to the proposed
merger, excluding for book value per share purposes in-process research and
development which is a non-recurring charge together with VeriSign's
acquisitions of THAWTE and Signio and (2) the equivalent historical net loss
from continuing operations and book value per share attributable to the 1.075
shares of VeriSign common stock that will be received for each share of common
stock of Network Solutions.

The information presented in the following tables should be read in
conjunction with the unaudited pro forma combined condensed financial
statements included elsewhere in this document and the historical financial
statements and related notes of VeriSign, Network Solutions, THAWTE and Signio
that are incorporated by reference in this document.

<TABLE>
<CAPTION>
Year Ended
or As of
December 31, 1999
-----------------
<S> <C>
VeriSign
Historical per share data:
Net income per share:
Basic................................................ $ .04
Diluted.............................................. .03
Book value per share(1)................................ 2.88
Network Solutions
Historical per share data:
Net income per share:
Basic................................................ $ .40
Diluted.............................................. .38
Book value per share(1)................................ 2.63
Pro Forma
Combined pro forma per share data:
Net loss per share--basic and diluted.................. $(28.07)
Net loss per equivalent Network Solutions share--basic
and diluted(2)........................................ (30.18)
Book value per share(1)................................ 115.44
Book value per equivalent Network Solutions share (2).. 124.10
</TABLE>
- --------
(1) The historical book value per share is computed by dividing stockholders'
equity by the number of shares of common stock outstanding at December 31,
1999, split adjusted. The pro forma combined book value per share is
computed by dividing pro forma stockholders' equity by the pro forma number
of shares of common stock outstanding at December 31, 1999.
(2) The Network Solutions equivalent pro forma combined per share amounts are
calculated by multiplying the VeriSign combined pro forma share amounts,
which include THAWTE and Signio, by the exchange ratio of 1.075.

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<PAGE>

RISK FACTORS

The merger involves a high degree of risk. Also, by voting in favor of the
merger, Network Solutions' stockholders will be choosing to invest in VeriSign
common stock. An investment in VeriSign common stock involves a high degree of
risk. In addition to the other information contained or incorporated by
reference in this prospectus/proxy statement, both VeriSign's and Network
Solutions' stockholders should carefully consider the following risk factors in
deciding whether to vote for the merger.

Risks related to the proposed merger

Network Solutions' stockholders will receive a fixed ratio of 1.075 shares of
VeriSign common stock per share of Network Solutions common stock even if there
are changes in the market value of Network Solutions common stock or VeriSign
common stock before the closing of the merger.

There will be no adjustment to the exchange ratio if the market price of
either Network Solutions common stock or VeriSign common stock fluctuates. The
specific dollar value of VeriSign common stock that Network Solutions
stockholders will receive upon completion of the merger will depend on the
market value of VeriSign common stock at the time of the merger. The share
prices of both Network Solutions common stock and VeriSign common stock are
subject to price fluctuations in the market for publicly traded equity
securities and have each experienced significant volatility. We cannot predict
the market prices for either Network Solutions common stock or VeriSign common
stock at any time before the completion of the merger or the market price for
VeriSign common stock after the completion of the merger. We encourage you to
obtain current market quotations of VeriSign common stock and Network Solutions
common stock.

VeriSign's pro forma accounting for the Network Solutions merger may change.

VeriSign has allocated the total estimated purchase price for the Network
Solutions merger on a preliminary basis to assets and liabilities based on
VeriSign's best estimates of the fair value of these assets and liabilities,
with the excess costs over the net assets acquired allocated to goodwill and
other intangible assets and in-process research and development. This
allocation is subject to change pending a final analysis of the fair values of
the assets acquired and liabilities assumed. The impact of these changes could
be material to VeriSign's future results of operations.

VeriSign will face technical, operational and strategic challenges that may
prevent it from successfully integrating Network Solutions with VeriSign.

The merger involves risks related to the integration and management of
acquired technology, operations and personnel. The integration of VeriSign and
Network Solutions will be a complex, time consuming and expensive process and
may disrupt VeriSign's business if not completed in a timely and efficient
manner. In addition, VeriSign must also integrate the operations of two
recently acquired companies, THAWTE and Signio. Following the merger, VeriSign
must operate as a combined organization utilizing common information and
communication systems, operating procedures, financial controls and human
resources practices.

VeriSign and Network Solutions may encounter substantial difficulties, costs
and delays involved in integrating their operations, including:

. potential incompatibility of business cultures;

. perceived adverse changes in business focus;

. potential conflicts in distribution, marketing or other important
relationships; and

. the loss of key employees and diversion of the attention of management
from other ongoing business concerns.

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Officers and directors of both companies have different interests from yours.

The directors and officers of VeriSign and Network Solutions have interests
in the merger and participate in arrangements that are different from, or are
in addition to, those of VeriSign and Network Solutions stockholders generally.
These include:

. three new directors, to be mutually agreed upon by the boards of
directors of VeriSign and Network Solutions, will be appointed to the
VeriSign board;

. directors and officers of both VeriSign and Network Solutions are
entitled to specified indemnification rights;

. some executive officers of Network Solutions will become executive
officers of VeriSign;

As a result, these executive officers and directors could be more likely to
vote to approve, and recommend the approval of, the merger agreement and the
merger than if they did not hold these interests.

If VeriSign does not successfully integrate Network Solutions or the merger's
benefits do not meet the expectations of financial or industry analysts, the
market price of VeriSign common stock may decline.

The market price of VeriSign common stock may decline as a result of the
merger if:

. the integration of VeriSign and Network Solutions is unsuccessful;

. VeriSign is unable to market its products and services successfully to
Network Solutions' customers;

. VeriSign does not achieve the perceived benefits of the merger as
rapidly as, or to the extent, anticipated by financial or industry
analysts; or

. the effect of the merger on VeriSign's financial results is not
consistent with the expectations of financial or industry analysts.

Network Solutions faces risks related to the proposed merger.

The announcement of the proposed merger may have a negative impact on Network
Solutions' ability to sell its services and products, attract and retain
employees and clients, and maintain strategic relationships with third parties.
For example, its employees may experience uncertainty about their future role
with VeriSign until VeriSign's strategies with regards to Network Solutions'
employees are announced or executed. The announcement may also have an adverse
effect on Network Solutions' relationships with significant clients and
strategic partners.

If the merger is successfully completed, holders of Network Solutions' common
stock will become holders of VeriSign's common stock. VeriSign's business
differs from Network Solutions' business, and VeriSign's results of operations,
as well as the price of VeriSign's common stock, may be affected by factors
different than those affecting Network Solutions' results of operations and the
price of its common stock before the merger.

While the merger agreement is in effect, subject to limited exceptions as set
forth in the merger agreement, Network Solutions is prohibited from soliciting,
initiating, encouraging or inducing, directly or indirectly, an Acquisition
Proposal, as that term is defined on page 66 of this document, from any third
party.

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Failure to complete the proposed merger could adversely affect Network
Solutions' stock price and future business and operations.

The merger is subject to the approval by Network Solutions' and VeriSign's
stockholders, and regulatory agencies, and we cannot assure you that the merger
will be successfully completed. In the event that the merger is not
successfully completed, Network Solutions may be subject to a number of
material risks, including the following:

. Network Solutions may be required to pay VeriSign a termination fee of
$425 million;

. the price of Network Solutions' common stock may decline to the extent
that the current market price for its common stock reflects a market
assumption that the proposed merger will be completed; and

. costs related to the proposed merger, such as legal, accounting, and
financial advisory fees and employee retention bonuses, must be paid by
Network Solutions, even if the merger is not completed.

In addition, in the event that the merger is not completed and the Network
Solutions board of directors determines to seek another merger or business
combination, it may not be able to find a partner willing to pay an equivalent
or more attractive price than that which would have been paid in the merger
with VeriSign.

Risk related to VeriSign's business

VeriSign has a limited operating history.

VeriSign was incorporated in April 1995, and began introducing its Internet
trust services in June 1995. Accordingly, it has only a limited operating
history on which to base an evaluation of its business and prospects. Its
prospects must be considered in light of the risks and uncertainties
encountered by companies in the early stages of development. These risks and
uncertainties are often worse for companies in new and rapidly evolving
markets. VeriSign's success will depend on many factors, including, but not
limited to, the following:

. the rate and timing of the growth and use of IP networks for electronic
commerce and communications;

. the extent to which digital certificates are used for electronic
commerce and communications;

. the continued evolution of electronic commerce as a viable means of
conducting business;

. the demand for VeriSign's Internet trust services;

. competition levels;

. the perceived security of electronic commerce and communications over
Internet protocol, or IP, based networks;

. the perceived security of services, technology, infrastructure and
practices; and

. VeriSign's continued ability to maintain its current, and enter into
additional, strategic relationships.

To address these risks VeriSign must, among other things:

. successfully market its Internet trust services and its digital
certificates to new and existing customers;

. attract, integrate, train, retain and motivate qualified personnel;
respond to competitive developments; successfully introduce new Internet
trust services; and

. successfully introduce enhancements to its existing Internet trust
services to address new technologies and standards.

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VeriSign cannot be certain that it will successfully address any of these
risks.

VeriSign's business depends on the adoption of IP networks.

To date, many businesses and consumers have been deterred from utilizing IP
networks for a number of reasons, including, but not limited to:

. potentially inadequate development of network infrastructure;

. security concerns including the potential for merchant or user
impersonation and fraud or theft of stored data and information
communicated over IP networks;

. inconsistent quality of service;

. lack of availability of cost-effective, high-speed service;

. limited numbers of local access points for corporate users;

. inability to integrate business applications on IP networks;

. the need to operate with multiple and frequently incompatible products;
and

. a lack of tools to simplify access to and use of IP networks.

The adoption of IP networks will require a broad acceptance of new methods of
conducting business and exchanging information. Companies and government
agencies that already have invested substantial resources in other methods of
conducting business may be reluctant to adopt new methods. Also, individuals
with established patterns of purchasing goods and services and effecting
payments may be reluctant to change.

VeriSign's market is new and evolving.

VeriSign targets its Internet trust services at the market for trusted and
secure electronic commerce and communications over IP networks. This is a new
and rapidly evolving demand that may not continue to grow. Accordingly, the
demand for VeriSign's Internet trust services is very uncertain. Even if the
business for electronic commerce and communications over IP networks grows,
VeriSign's Internet trust services may not be widely accepted. The factors that
may affect the level of market acceptance of digital certificates and,
consequently, VeriSign's Internet trust services, include the following:

. market acceptance of products and services based upon authentication
technologies other than those VeriSign uses;

. public perception of the security of digital certificates and IP
networks;

. the ability of the Internet infrastructure to accommodate increased
levels of usage; and

. government regulations affecting electronic commerce and communications
over IP networks.

Even if digital certificates achieve market acceptance, VeriSign's Internet
trust services may fail to address the market's requirements adequately. If
digital certificates do not achieve market acceptance in a timely manner and
sustain acceptance, or if VeriSign's Internet trust services in particular do
not achieve or sustain market acceptance, its business would be harmed.

VeriSign's quarterly operating results may fluctuate and its future revenues
and profitability are uncertain.

VeriSign's quarterly operating results have varied and may fluctuate
significantly in the future as a result of a variety of factors, many of which
are outside its control. These factors include the following:

. continued market acceptance of VeriSign's Internet trust services;

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<PAGE>

. the long sales and implementation cycles for, and potentially large
order sizes of, some of VeriSign's Internet trust services; the timing
and execution of individual contracts;

. customer renewal rates for VeriSign's Internet trust services;

. the timing of releases of new versions of Internet browsers or other
third-party software products and networking equipment that include
VeriSign's digital certificate service interface technology;

. the mix of VeriSign's services sold during a quarter;

. VeriSign's success in marketing other Internet trust services to its
existing customers and to new customers;

. continued development of VeriSign's direct and indirect distribution
channels, both in the U.S. and abroad;

. market acceptance of VeriSign's Internet trust services or its
competitors' products and services;

. VeriSign's ability to attract, integrate, train, retain and motivate a
substantial number of sales and marketing, research and development and
technical support personnel;

. VeriSign's ability to expand its operations;

. VeriSign's success in assimilating the operations and personnel of any
acquired businesses;

. the amount and timing of expenditures related to expansion of VeriSign's
operations;

. the impact of price changes in VeriSign's Internet trust services or its
competitors' products and services; and

. general economic conditions and economic conditions specific to IP
network industries.

VeriSign's limited operating history and the emerging nature of its market
make it difficult to predict future revenues. VeriSign's expenses are based, in
part, on its expectations regarding future revenues, and are largely fixed in
nature, particularly in the short term. VeriSign may be unable to predict its
future revenues accurately or to adjust spending in a timely manner to
compensate for any unexpected revenue shortfall. Accordingly, any significant
shortfall of revenues in relation to VeriSign's expectations could cause
significant declines in its quarterly operating results.

Due to all of the above factors, VeriSign's quarterly revenues and operating
results are difficult to forecast. Therefore, VeriSign believes that period-to-
period comparisons of its operating results will not necessarily be meaningful,
and you should not rely upon them as an indication of future performance. Also,
it is likely that VeriSign's operating results will fall below its expectations
and the expectations of securities analysts or investors in some future
quarter. If this happens, the market price of VeriSign's common stock could
decline.

System interruptions and security breaches could harm VeriSign's business.

VeriSign depends on the uninterrupted operation of its secure data centers
and its other computer and communications systems. VeriSign must protect these
systems from loss, damage or interruption caused by fire, earthquake, power
loss, telecommunications failure or other events beyond its control. Most of
VeriSign's systems are located at, and most of its customer information is
stored in, its facilities in Mountain View, California and Kawasaki, Japan,
both of which are susceptible to earthquakes. Any damage or failure that causes
interruptions in VeriSign's secure data centers and its other computer and
communications systems could harm its business. In addition, VeriSign's ability
to issue digital certificates depends on the efficient operation of the
Internet connections from customers to its secure data centers. These
connections depend upon efficient operation of web browsers, Internet service
providers and Internet backbone service providers, all of which have had
periodic operational problems or experienced outages in the past. Any of these
problems or outages could decrease customer satisfaction.

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VeriSign's success also depends upon the scalability of its systems.
VeriSign's systems have not been tested at the volumes that may be required in
the future. Thus, it is possible that a substantial increase in demand for
VeriSign's Internet trust services could cause interruptions in its systems.
Any interruptions could harm VeriSign's ability to deliver its Internet trust
services and therefore could harm its business.

Although VeriSign periodically performs, and retains accredited third parties
to perform, audits of its operational practices and procedures, it may not be
able to remain in compliance with its internal standards or those set by third-
party auditors. If VeriSign fails to maintain these standards, it may have to
expend significant time and money to return to compliance and its business
could suffer.

VeriSign retains some confidential customer information in its secure data
centers. It is critical to VeriSign's business strategy that its facilities and
infrastructure remain secure and are perceived by the marketplace to be secure.
Despite its security measures, its infrastructure may be vulnerable to physical
break-ins, computer viruses, attacks by hackers or similar disruptive problems.
It is possible that VeriSign may have to expend additional financial and other
resources to address these problems. Any physical or electronic break-ins or
other security breaches or compromises of the information stored at VeriSign's
secure data centers may jeopardize the security of information stored on its
premises or in the computer systems and networks of its customers. In this
event, VeriSign could face significant liability and customers could be
reluctant to use VeriSign's Internet trust services. This type of occurrence
could also result in adverse publicity and therefore harm the market's
perception of the security of electronic commerce and communications over IP
networks as well as of the security or reliability of VeriSign's services.

VeriSign faces significant competition.

VeriSign anticipates that the market for services that enable trusted and
secure electronic commerce and communications over IP networks will remain
intensely competitive. VeriSign competes with larger and smaller companies that
provide products and services that are similar to some aspects of its Internet
trust services. VeriSign expects that competition will increase in the near
term, and that its primary long-term competitors may not yet have entered the
market. Increased competition could result in pricing pressures, reduced
margins or the failure of VeriSign's Internet trust services to achieve or
maintain market acceptance, any of which could harm its business. Several of
VeriSign's current and potential competitors have longer operating histories
and significantly greater financial, technical, marketing and other resources.
As a result, VeriSign may not be able to compete effectively.

VeriSign may experience future losses.

VeriSign has experienced substantial net losses in the past. As of December
31, 1999, VeriSign had an accumulated deficit of approximately $47.5 million.
VeriSign's limited operating history, the emerging nature of its market and the
factors described under "--VeriSign's business depends on the adoption of IP
networks" and "--VeriSign's quarterly operating results may fluctuate and its
future revenues and profitability are uncertain," among other factors, make
prediction of VeriSign's future operating results difficult. As a result,
VeriSign may incur additional losses in the future. Although VeriSign's
revenues have grown in recent periods, it may be unable to sustain this growth.
Therefore, you should not consider its historical growth indicative of future
revenue levels or operating results.

Technological changes will affect VeriSign's business.

The emerging nature of the Internet and digital certificate businesses and
their rapid evolution requires VeriSign to continually improve the performance,
features and reliability of its Internet trust services, particularly in
response to competitive offerings. VeriSign must also introduce any new
Internet trust services as quickly as possible. The success of new Internet
trust services depends on several factors, including proper new service
definition and timely completion, introduction and market acceptance of
VeriSign's new Internet trust

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<PAGE>

services. VeriSign may not succeed in developing and marketing new Internet
trust services that respond to competitive and technological developments and
changing customer needs. This could harm VeriSign's business.

VeriSign must manage its growth and expansion.

VeriSign's historical growth has placed, and any further growth is likely to
continue to place, a significant strain on its resources. VeriSign has grown
from 26 employees at December 31, 1995 to 394 employees at December 31, 1999.
VeriSign has also opened additional sales offices and has significantly
expanded its operations, both in the U.S. and abroad, during this time period.
VeriSign also expanded its operations by acquiring SecureIT during 1998 and, in
January 2000 it acquired Signio and THAWTE. In addition, VeriSign will add a
substantial number of additional employees as a result of the merger with
Network Solutions. To be successful, VeriSign will need to implement additional
management information systems, develop further its operating, administrative,
financial and accounting systems and controls and maintain close coordination
among its executive, engineering, accounting, finance, marketing, sales and
operations organizations. Any failure to manage growth effectively could harm
VeriSign's business.

VeriSign depends on key personnel.

VeriSign depends on the performance of its senior management team and other
key employees. VeriSign's success will also depend on its ability to attract,
integrate, train, retain and motivate these individuals and additional highly
skilled technical and sales and marketing personnel, both in the U.S. and
abroad. There is intense competition for these personnel. In addition,
VeriSign's stringent hiring practices for some of its key personnel, which
consist of background checks into prospective employees' criminal and financial
histories, further limit the number of qualified persons for these positions.
VeriSign has no employment agreements with any of its key executives that
prevent them from leaving VeriSign at any time. In addition, VeriSign does not
maintain key person life insurance for any of its officers or key employees
other than VeriSign's President and Chief Executive Officer. The loss of the
services of any of VeriSign's senior management team or other key employees or
its failure to attract, integrate, train, retain and motivate additional key
employees could harm its business.

VeriSign must establish and maintain strategic relationships.

One of VeriSign's significant business strategies has been to enter into
strategic or other similar collaborative relationships to reach a larger
customer base than it could reach through its direct sales and marketing
efforts. VeriSign may need to enter into additional relationships to execute
its business plan. VeriSign may not be able to enter into additional, or
maintain its existing, strategic relationships on commercially reasonable
terms. If VeriSign failed to do so, it would have to devote substantially more
resources to the distribution, sale and marketing of its Internet trust
services than VeriSign would otherwise need to do. Furthermore, as a result of
its emphasis on these relationships, VeriSign's success in them will depend
both on the ultimate success of the other parties to these relationships,
particularly in the use and promotion of IP networks for trusted and secure
electronic commerce and communications, and on the ability of these parties to
market VeriSign's Internet trust services successfully. Failure of one or more
of VeriSign's strategic relationships to result in the development and
maintenance of a market for its Internet trust services could harm its
business.

VeriSign's existing strategic relationships do not, and any future strategic
relationships may not, afford VeriSign any exclusive marketing or distribution
rights. In addition, the other parties may not view their relationships with
VeriSign as significant for their own businesses. Therefore, they could reduce
their commitment to VeriSign at any time in the future. These parties could
also pursue alternative technologies or develop alternative products and
services either on their own or in collaboration with others, including
VeriSign's competitors. If VeriSign is unable to maintain its strategic
relationships or to enter into additional strategic relationships, its business
could suffer.

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Some of VeriSign's Internet trust services have lengthy sales and
implementation cycles.

VeriSign markets many of VeriSign's Internet trust services directly to large
companies and government agencies. The sale and implementation of VeriSign's
services to these entities typically involves a lengthy education process and a
significant technical evaluation and commitment of capital and other resources.
This process is also subject to the risk of delays associated with customers'
internal budgeting and other procedures for approving large capital
expenditures, deploying new technologies within their networks and testing and
accepting new technologies that affect key operations. As a result, the sales
and implementation cycles associated with some of VeriSign's Internet trust
services can be lengthy. VeriSign's quarterly and annual operating results
could be harmed if orders forecasted for a specific customer for a particular
quarter are not realized.

VeriSign's Internet trust services could have unknown defects.

Services as complex as those VeriSign offers or develops frequently contain
undetected defects or errors. Despite testing, defects or errors may occur in
existing or new Internet trust services, which could result in loss of or delay
in revenues, loss of market share, failure to achieve market acceptance,
diversion of development resources, injury to VeriSign's reputation, tort or
warranty claims, increased insurance costs or increased service and warranty
costs, any of which could harm its business. Furthermore, VeriSign often
provides implementation, customization, consulting and other technical services
in connection with the implementation and ongoing maintenance of its Internet
trust services and its digital certificate service agreements. The performance
of these Internet trust services typically involves working with sophisticated
software, computing and communications systems. VeriSign's failure or inability
to meet customer expectations or project milestones in a timely manner could
also result in loss of or delay in revenues, loss of market share, failure to
achieve market acceptance, injury to its reputation and increased costs.

Public key cryptography technology is subject to risks.

VeriSign's Internet trust services depend on public key cryptography
technology. With public key cryptography technology, a user is given a public
key and a private key, both of which are required to encrypt and decode
messages. The security afforded by this technology depends on the integrity of
a user's private key and that it is not stolen or otherwise compromised. The
integrity of private keys also depends in part on the application of specific
mathematical principles known as "factoring." This integrity is predicated on
the assumption that the factoring of large numbers into their prime number
components is difficult. Should an easy factoring method be developed, then the
security of encryption products utilizing public key cryptography technology
would be reduced or eliminated. Furthermore, any significant advance in
techniques for attacking cryptographic systems could also render some or all of
VeriSign's existing Internet trust services obsolete or unmarketable. If
improved techniques for attacking cryptographic systems are ever developed,
VeriSign would likely have to reissue digital certificates to some or all of
its customers, which could damage its reputation and brand or otherwise harm
its business. In the past there have been public announcements of the
successful decoding of some types of cryptographic messages and of the
potential misappropriation of private keys. This type of publicity could also
hurt the public perception as to the safety of the public key cryptography
technology included in VeriSign's digital certificates. This negative public
perception could harm Verisign's business.

VeriSign's international operations are subject to risks.

Revenues of VeriSign Japan and revenues from other international customers
accounted for approximately 27% of VeriSign's revenues in 1999 and 14% of
VeriSign's revenues in 1998. VeriSign intends to expand its international
operations and international sales and marketing activities. Expansion into
these markets has required and will continue to require significant management
attention and resources. VeriSign may also need to tailor its Internet trust
services for a particular market and to enter into international distribution
and operating relationships. VeriSign has limited experience in localizing its
Internet trust services and in developing international distribution or
operating relationships. VeriSign may not succeed in expanding its Internet
trust service offerings into international markets.

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Any of these factors could harm VeriSign's business. In addition, there are
risks inherent in doing business on an international basis, including, among
others:

. regulatory requirements;

. legal uncertainty regarding liability;

. export and import restrictions on cryptographic technology and products
incorporating that technology;

. tariffs and other trade barriers;

. difficulties in staffing and managing foreign operations;

. longer sales and payment cycles;

. problems in collecting accounts receivable;

. difficulties of authenticating customer information;

. political instability;

. seasonal reductions in business activity; and

. potentially adverse tax consequences.

VeriSign has licensed to international affiliates the VeriSign Processing
Center platform, which is designed to replicate its own secure data centers and
allows the affiliate to offer back-end processing of Internet trust services.
The VeriSign Processing Center platform provides these affiliates with the
knowledge and technology to offer Internet trust services similar to those
offered by VeriSign. It is critical to VeriSign's business strategy that the
facilities and infrastructure used in issuing and marketing digital
certificates remain secure and be perceived by the marketplace to be secure.
Although VeriSign provides its affiliates with training in security and trust
practices, network management and customer service and support, these practices
are performed by its affiliates and are outside of its control. Any failure of
an affiliate to maintain the privacy of confidential customer information could
result in negative publicity and therefore damage the market's perception of
the security of VeriSign's services as well as the security of electronic
commerce and communication over IP networks generally. For further information,
please see "--System interruptions and security breaches could harm VeriSign's
business."

All of VeriSign's international revenues from sources other than VeriSign
Japan are denominated in U.S. dollars. If additional portions of VeriSign's
international revenues were to be denominated in foreign currencies, it could
become subject to increased risks relating to foreign currency exchange rate
fluctuations.

VeriSign could be affected by government regulation.

Exports of software products utilizing encryption technology are generally
restricted by the U.S. and various non-U.S. governments. Although VeriSign has
obtained approval to export its Global Server digital certificate service, and
none of its other Internet trust services are currently subject to export
controls under U.S. law, the list of products and countries for which export
approval is required could be revised in the future to include more digital
certificate products and related services. If VeriSign does not obtain required
approvals it may not be able to sell specific Internet trust services in
international markets. There are currently no federal laws or regulations that
specifically control certificate authorities, but a limited number of states
have enacted legislation or regulations with respect to certificate
authorities. If the market for digital certificates grows, the U.S. federal or
state or non-U.S. governments may choose to enact further regulations governing
certificate authorities or other providers of digital certificate products and
related services. These regulations or the costs of complying with these
regulations could harm VeriSign's business.

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Acquisitions could harm its business.

Since January 1998, VeriSign has acquired three businesses. VeriSign may
acquire additional businesses, technologies, product lines or service offerings
in the future. Acquisitions involve a number of risks including, among others:

. the difficulty of assimilating the operations and personnel of the
acquired businesses;

. the potential disruption of VeriSign's business;

. VeriSign's inability to integrate, train, retain and motivate key
personnel of the acquired businesses;

. the diversion of its management from VeriSign's day-to-day operations;

. VeriSign's inability to incorporate acquired technologies successfully
into its Internet trust services;

. the additional expenses associated with completing acquisitions and
amortizing any acquired intangible assets;

. the potential impairment of relationships with VeriSign employees,
customers and strategic partners; and

. the inability to maintain uniform standards, controls, procedures and
policies.

If VeriSign is unable to successfully address any of these risks, its
business could be harmed.

VeriSign faces risks related to intellectual property rights.

VeriSign's success depends on its internally developed technologies and other
intellectual property. Despite VeriSign's precautions, it may be possible for a
third party to copy or otherwise obtain and use its intellectual property or
trade secrets without authorization. In addition, it is possible that others
may independently develop substantially equivalent intellectual property. If
VeriSign does not effectively protect its intellectual property, its business
could suffer.

In the future VeriSign may have to resort to litigation to enforce its
intellectual property rights, to protect its trade secrets or to determine the
validity and scope of the proprietary rights of others. This type of
litigation, regardless of its outcome, could result in substantial costs and
diversion of management and technical resources.

VeriSign also licenses third-party technology, such as public key
cryptography technology licensed from RSA and other technology that is used in
its products, to perform key functions. These third-party technology licenses
may not continue to be available to VeriSign on commercially reasonable terms
or at all. VeriSign's business could suffer if it lost the rights to use these
technologies. A third party could claim that the licensed software infringes
any patent or other proprietary right. Litigation between the licensor and a
third party or between VeriSign and a third party could lead to royalty
obligations for which it is not indemnified or for which indemnification is
insufficient, or VeriSign may not be able to obtain any additional license on
commercially reasonable terms or at all.

The loss of, or VeriSign's inability to obtain or maintain, any of these
technology licenses could delay the introduction of VeriSign's Internet trust
services until equivalent technology, if available, is identified, licensed and
integrated. This could harm VeriSign's business.

From time to time, VeriSign has received, and may receive in the future,
notice of claims of infringement of other parties' proprietary rights.
Infringement or other claims could be made against VeriSign in the future. Any
claims, with or without merit, could be time-consuming, result in costly
litigation and diversion of technical and management personnel, cause product
shipment delays or require VeriSign to develop non-infringing technology or
enter into royalty or licensing agreements. Royalty or licensing agreements, if
required, may not be available on acceptable terms or at all. If a successful
claim of product infringement were

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made against VeriSign and it could not develop non-infringing technology or
license the infringed or similar technology on a timely and cost-effective
basis, its business could be harmed.

VeriSign has implemented anti-takeover provisions.

Provisions of VeriSign's Amended and Restated Certificate of Incorporation
and Bylaws contain provisions that could make it more difficult for a third
party to acquire VeriSign without the consent of its board of directors. These
provisions include:

. VeriSign's stockholders may only take action at a meeting and not by
written consent;

. VeriSign's board must be given advance notice regarding stockholder-
sponsored proposals for consideration at annual meetings and for
stockholder nominations for the election of directors;

. VeriSign has a classified board of directors, with the board being
divided into three classes that serve staggered three-year terms;

. vacancies on the board may be filled until the next annual meeting of
stockholders only by majority vote of the directors then in office; and

. special meetings of stockholders may only be called by the Chairman of
the Board, the President or by the board, not by our stockholders.

While VeriSign believes these provisions provide for an opportunity to
receive a higher bid by requiring potential acquirors to negotiate with its
board of directors, these provisions may apply even if the offer may be
considered beneficial by some stockholders.

VeriSign's stock price may be volatile.

The market price of VeriSign's common stock has fluctuated in the past and is
likely to fluctuate in the future. In addition, the market prices of securities
of other technology companies, particularly Internet-related companies, have
been highly volatile. Factors that may have a significant effect on the market
price of VeriSign's common stock include:

. fluctuations in its operating results;

. announcements of technological innovations or new Internet trust
services by VeriSign or new products or services by its competitors;

. analysts' reports and projections;

. regulatory actions; and

. general market, economic or political conditions in the U.S. or abroad.

You may not be able to resell your shares of VeriSign's common stock at or
above its price on the date of the closing of the merger.

Additional Risks Related to Network Solutions

Industry Risks

Increased competition could harm Network Solutions' domain name registration
business.

The introduction of additional competition into the domain name registration
business could harm Network Solutions' business. This includes, in particular,
competition among registrars within a single top level domain, such as .com,
and competition among registrars and registries of existing and potential new
top level domains. Network Solutions currently faces competition in the domain
name registration business from other

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registrars in the top level domains for which it acts as registry, third level
domain name providers such as Internet access providers and registrars and
registries of top level domains other than those top level domains for which it
acts as registry. As of March 13, 2000, 33 accredited registrars (in addition
to Network Solutions) in the .com, .net and .org top level domains used Network
Solutions' shared registration system to register domain names. ICANN has
accredited 76 additional registrars as of that date. Network Solutions expects
these and additional accredited registrars to offer competing registration
services in these top level domains in the near future.

The accredited registrars include, among others, AT&T, Alabanza, America
Online, CORE or Internet Council of Registrars, Deutsche Telekom, France
Telecom Oleane, iDirections, interQ, Internet Domain Registrars, Melbourne IT,
NameSecure.com, NetBenefit, PSINet, Register.com, Talk.com and Verio. For the
quarter ended December 31, 1999, Network Solutions registered 1,600,000 net new
second level domain names and competing accredited registrars registered
890,000 second level domain names.

The introduction of potential new top-level domains is currently an issue of
global significance. At its most recent meeting in Cairo, the ICANN Board
requested the Names Council, a branch of the Domain Name Supporting
Organization, or DNSO, primarily responsible for the consensus-building process
of the DNSO, and its staff to prepare recommendations regarding the
introduction of new generic top-level domains, indicating that the ICANN Board
intends to act on these topics at its Yokohama meeting on July 15-16, 2000.

Future competition in the domain name registration business as a registry or
registrar could come from many different companies, including:

. domain name registration resellers;

. country code registries;

. Internet access providers; and

. major telecommunications firms.

Many of these entities have core capabilities to deliver registry and/or
registrar services, such as help desks, billing services and network
management, along with strong name recognition and Internet industry
experience. The recent agreements among ICANN, the Department of Commerce,
Network Solutions and other registrars permit flexibility in pricing for and
term of registrations. Network Solutions' revenue, therefore, could be reduced
due to pricing pressures, bundled service offerings and variable terms
resulting from increased competition. Some registrars and resellers in the
.com, .net and .org top level domains are already charging lower prices for
domain name registration services in those domains. In addition, other entities
are bundling, and may in the future bundle, domain name registrations with
other products or services at reduced rates or for free.

Issues arising from implementation of Network Solutions' agreements with ICANN
and the Department of Commerce could harm its registration business.

The Department of Commerce has adopted a plan for a phased transition of the
Department of Commerce's responsibilities for the domain name system to ICANN
by September 30, 2000. Network Solutions faces risks from this transition,
including:

. ICANN could adopt or promote policies, procedures or programs that are
unfavorable to its role in the registration of domain names or that are
inconsistent with its current or future plans;

. The Department of Commerce or ICANN could terminate Network Solutions'
agreements to be the registry and/or a registrar in the .com, .net and
.org top level domains if they find that it is in violation of its
agreements with them;

. If Network Solutions does not separate ownership of its registry and
registrar by May 2001 in accordance with the registry agreement, the
term of the registry agreement will expire in November 2003 and it may
not be chosen as the successor registry;

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<PAGE>

. The terms of the registrar accreditation contract could change, as a
result of an ICANN-adopted policy, in a manner that is unfavorable to
Network Solutions;

. The Department of Commerce's or ICANN's interpretation of provisions of
its agreements with either of them described above could differ from
Network Solutions';

. The Department of Commerce could revoke its recognition of ICANN, as a
result of which the Department of Commerce would take the place of ICANN
for purposes of the various agreements described above, and could take
actions that are harmful to Network Solutions;

. ICANN may approve new top level domains and Network Solutions may not be
selected to act as a registrar or registry with respect to those top
level domains;

. The U.S. Government could refuse to transfer certain responsibilities
for domain name system administration to ICANN due to security,
stability or other reasons, resulting in fragmentation or other
instability in domain name system administration; and

. Network Solutions' registry business could face legal or other
challenges resulting from the activities of other registrars.

Challenges to ongoing privatization of Internet administration could harm
Network Solutions' registration business.

Risks Network Solutions faces from challenges by third parties, including
other domestic and foreign governmental authorities, to its role in the ongoing
privatization of the Internet include:

. Legal, regulatory or other challenges, including challenges to the
agreements governing its relationship with, or to the legal authority
underlying the roles and actions of, the Department of Commerce, ICANN
and/or Network Solutions, could be brought;

. Congress has held two hearings in which various issues about the domain
name system have been raised and Congress could take action that is
unfavorable to Network Solutions;

. Congress has issued a Conference Report directing the General Accounting
Office to review the relationship between the Department of Commerce and
ICANN and the adequacy of security arrangements under existing
Department of Commerce cooperative agreements. An adverse report could
cause Congress to take action that is unfavorable to Network Solutions
or the stability of the domain name system;

. ICANN could fail to maintain legitimacy resulting in instability in
domain name system administration; and

. Some foreign governments and governmental authorities have in the past
disagreed with, and may in the future disagree with, the actions,
policies or programs of ICANN, the U.S. Government and Network Solutions
relating to the domain name system. These foreign governments or
governmental authorities may take actions or adopt policies or programs
that are harmful to Network Solutions' business.

Network Solutions depends on future growth of the Internet and Internet
infrastructure.

Network Solutions' future success substantially depends on the continued
growth in the use of the Internet. If the use of and interest in the Internet
does not continue to grow, Network Solutions' business would be harmed.
Continued growth of the Internet could be slowed by:

. inadequate infrastructure,

. lack of availability of cost-effective, high speed systems and service,

. delays in developing or adopting new standards and protocols to handle
increased levels of Internet activity or

. government regulation.

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Network Solutions relies on third parties who maintain and control root zone
and top level domain zone servers.

Network Solutions currently administers and operates only two of the 13 root
zone servers and four top level domain zone servers. The others are
administered and operated by independent operators on a volunteer basis.
Because of the importance to the functioning of the Internet of these root zone
servers and top level domain zone servers, Network Solutions' registration
business could be harmed if these volunteer operators fail to properly maintain
these servers or abandon these servers.

Further, Network Solutions' registration business could be harmed if any of
these volunteer operators fail to include or provide accessibility to the data
that it maintains in the root zone servers and the top level domain zone
servers that it controls.

In the event and to the extent that ICANN is authorized to set policy with
regard to an authoritative root server system, as provided in the registry
agreement, it is required to ensure that the authoritative root will point to
the top level domain zone servers designated by it. If ICANN does not do this,
Network Solutions' business could be harmed.

Network Solutions relies on Internet service providers.

Network Solutions' registration business could be harmed if a significant
number of Internet service providers decided not to route Internet
communications to or from domain names registered by it or if a significant
number of Internet service providers decided to provide routing to a set of
domain name servers that did not point to its top level domain zone servers.

Network Solutions Business Risks

Network Solutions' near term success depends on the growth of its domain name
registration business.

Network Solutions may not be able to sustain the revenue growth it has
experienced in recent periods. In addition, past revenue growth may not be
indicative of future operating results. If Network Solutions does not
successfully maintain its current position as a leading provider of domain name
registration services or develop or market additional value-added products and
services, its business could be harmed.

Network Solutions' domain name registration services business generates over
90% of its revenue and is expected to continue to account for a very
significant portion of total revenue in at least the near term. Its future
success will depend largely on:

. the continued increase in domain name registrations,

. re-registration rates of its customers,

. its ability to maintain its current position as a leading registrar of
domain names,

. the successful development, introduction and market acceptance of new
services that address the demands of Internet users,

. its ability to provide robust domain name registration systems, and

. its ability to provide a superior customer service infrastructure as a
registry and registrar.

The contractual requirement that Network Solutions provide bulk access to
customer data could hurt its ability to market and sell other value-added
services in addition to domain name registration services.

System failure or interruption, security breaches or Network Solutions' failure
to meet increasing demands on its systems could harm its business.

Any significant problem, including any security breach, with Network
Solutions' systems or operations could result in lost revenue, customer
dissatisfaction or lawsuits against it. A failure in the operation of its

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<PAGE>

registration systems or other events could result in deletion of one or more
domain names from the Internet for a period of time. A failure in the operation
of its shared registration system could result in the inability of one or more
other registrars to register and maintain domain names for a period of time. A
failure in the operation or update of the master database that Network
Solutions maintains could result in deletion of one or more top level domains
from the Internet and the discontinuation of second level domain names in those
top level domains for a period of time. The inability of Network Solutions'
registrar systems, including its back office billing and collections
infrastructure, and telecommunications systems to meet the demands of the
increasing number of domain name registration requests and corresponding
customer e-mails and telephone calls, including speculative, otherwise abusive
and repetitive e-mail domain name registration and modification requests, could
result in substantial degradation in its customer support service and its
ability to process, bill and collect registration requests in a timely manner.

Network Solutions recently completed a physical separation of its registrar
and registry computer systems and has run the operations of its new systems
separately for only a limited time. Any data integrity, non-compatibility or
other issues that may arise from this separation could materially harm its
business.

Network Solutions' operations depend on its ability to maintain its computer
and telecommunications equipment in effective working order and to reasonably
protect its systems against interruption and potentially on such maintenance
and protection by other registrars in the shared registration system. The root
zone servers and top level domain zone servers that Network Solutions operates
are critical hardware to its operations. Interruptions could result from:

. fire, natural disaster, sabotage, power loss, telecommunications
failure, human error or similar events,

. computer viruses, hackers or similar disruptive problems caused by
employees, customers or other Internet users, and

. systems strain caused by the growth of its customer base and its
inability to sufficiently maintain or upgrade its systems.

Network Solutions must attract, integrate, train and retain key personnel
knowledgeable about its business.

Network Solutions faces intense competition for the limited supply of people
qualified to work for it. Network Solutions' future success depends on the
continued service of key engineering, sales, marketing, executive and
administrative personnel, and its ability to identify, attract, hire,
integrate, train and retain such personnel. Competition for engineering, sales,
marketing and executive personnel is intense, particularly in the technology
and Internet sectors and in the regions where its facilities are located.
Network Solutions may be unable to retain existing personnel or attract, hire
or retain additional qualified personnel. The loss of the services of any of
its senior management team or other key employees or its failure to attract,
integrate, train and retain additional key employees could harm its business.

Network Solutions must effectively manage its marketing organization and
establish and maintain distribution channels.

Network Solutions will need to effectively manage its growing sales and
marketing organization if it wants to achieve future revenue growth. Network
Solutions may not be able to identify, attract and retain experienced sales and
marketing personnel with relevant experience. Further, its sales and marketing
organization may not be able to successfully compete against the significantly
more extensive and well-funded sales and marketing operations of its current or
potential competitors for registration or Internet technology services.

Network Solutions' ability to achieve future revenue growth will also depend
on its ability to continue to establish direct sales channels and to develop
multiple distribution channels. To do this it must maintain relationships with
Internet access providers and other third parties.

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<PAGE>

Network Solutions has a high level of uncollectible receivables.

Because of its high level of uncollectible receivables, Network Solutions
continually reviews its billing practices. Any modifications that it may
implement as a result of these reviews, including prepayment or other
reasonable assurance of payment for new registration orders could have
unanticipated harmful consequences to its business. Network Solutions has
recently implemented a prepayment or reasonable assurance of payment terms
billing practice as required by its agreements with ICANN. Network Solutions
believes it has experienced a high level of uncollectible receivables due to,
among other factors, the large number of individuals and corporations that have
registered multiple domain names with the apparent intention of transferring
such names at a profit. Network Solutions' experience has been that such
speculative resellers have a greater tendency than other customers to default
on their services fees. Network Solutions has established a provision for
uncollectible accounts that it believes to be adequate to cover anticipated
uncollectible receivables; however, actual results could differ from its
estimates.

Network Solutions is party to legal proceedings that could have a negative
financial impact on it.

Network Solutions is involved in a number of legal proceedings. It cannot
reasonably estimate the potential impact of any of these proceedings. On March
15, 2000, a group of eight plaintiffs filed suit against the U.S. Department of
Commerce, the National Science Foundation and Network Solutions in the United
States District Court for the Northern District of California challenging under
Article I, Section 8 and the Fifth Amendment of the U.S. Constitution, the
Independent Offices Appropriations Act (31 U.S.C. (S) 9701), the Administrative
Procedures Act, the Sherman Act, and the California Unfair Competition Act, (S)
17200, the lawfulness of the registration fees that Network Solutions was
authorized to charge for domain name registrations from September 1995 to
November 1999. The suit purports to be brought on behalf of all domain name
registrants who paid registration fees during that period and seeks
approximately $1.7 billion in damages. Network Solutions successfully defended
itself in a similar action and believes that this complaint also lacks merit.
Network Solutions intends to vigorously defend itself in response to this
action. For a more detailed description of this matter, see "Item 3. Legal
Proceedings" in Network Solutions' annual report on Form 10-K for the fiscal
year ended December 31, 1999, which is incorporated by reference in this
document. An adverse determination in this case or any other of these
proceedings, however, could harm Network Solutions' business. Legal proceedings
in which it is involved are expensive and divert the attention of its
personnel.

Network Solutions may not be able to protect its intellectual property rights
and proprietary information or it may be subject to claims of infringement of
third party intellectual property rights.

Network Solutions relies on a combination of nondisclosure and other
contractual arrangements with the U.S. Government, its employees, and third
parties, as well as copyright, privacy and trade secret laws, to protect and
limit the distribution of its proprietary data, computer software,
documentation, and processes used in conducting its domain name registration
and other businesses. If Network Solutions fails to adequately protect its
intellectual property rights and proprietary information, or if it is subject
to adverse results in litigation relating to its intellectual property rights
and proprietary information, its business could be harmed. Any actions it takes
may not be adequate to protect its intellectual property rights and proprietary
information. Other companies may develop competing technology that is similar
or superior to its technology. Although Network Solutions has no reason to
believe that its domain name registration business activities infringe on the
intellectual property rights of others, and it believes that it has all rights
needed to conduct its business, it is possible that it could become subject to
claims alleging infringement of third party intellectual property rights. Any
of these claims could subject it to costly litigation, and any adverse final
rulings on any of these claims could require it to pay damages, seek to develop
alternative technology, and/or seek to acquire licenses to the intellectual
property that is the subject of any alleged infringement, and any rulings not
in its favor could harm its business.

In addition, legal standards relating to the validity, enforceability, and
scope of protection of intellectual property rights in Internet-related
businesses are uncertain and still evolving. Because of the growth of the

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Internet and Internet related businesses, patent applications are continuously
and simultaneously being filed in connection with Internet-related technology.
There are a significant number of U.S. and foreign patents and patent
applications in its areas of interest, and Network Solutions believes that
there has been, and is likely to continue to be, significant litigation in the
industry regarding patent and other intellectual property rights.

Future acquisitions and investments could decrease operating income, cause
operational problems or otherwise disrupt Network Solutions' business.

Network Solutions evaluates potential acquisitions and investments on an
ongoing basis for various reasons including, among others, diversification of
its domain name registration services and Internet technology services
businesses. Network Solutions' acquisition and investment strategy poses many
risks, including:

. it may not be able to compete successfully for available acquisition or
investment candidates, complete future acquisitions and investments or
accurately estimate the financial effect on it of any businesses it
acquire or investments it make;

. future acquisitions and investments may require it to spend significant
cash amounts or may decrease its operating income;

. it may have trouble integrating the acquired business and retaining
personnel;

. acquisitions or investments may disrupt its business and distract its
management from other responsibilities;

. to the extent that any of the companies that it acquires or in which it
invests fail, its business could be harmed; and

. it may not identify appropriate acquisition or investment targets.

Network Solutions faces increasing risks associated with its international
business.

While substantially all of Network Solutions' operations, facilities, and
personnel are located within the United States, its revenues from sources
outside the United States have increased significantly and may continue to
increase in the future. As a result, Network Solutions is subject to the risks
of conducting business internationally, including unexpected changes in
regulatory requirements, competition from foreign companies, fluctuations in
the U.S. dollar, tariffs and other barriers and restrictions and the burdens of
complying with a variety of foreign laws. Network Solutions does not know what
the impact of such regulatory, geopolitical and other factors will be on its
business in the future or if it will have to modify its business practices. In
addition, the laws of certain foreign countries may not protect its proprietary
rights to the same extent as do the laws of the United States.

Network Solutions' quarterly operating results may fluctuate; its future
revenue and profitability are uncertain.

Network Solutions' quarterly operating results may fluctuate significantly in
the future due to a variety of factors, some of which are beyond its control.
Factors that may affect its revenue include:

. variations in the number of requests for domain name registrations or
demand for its services;

. successful competition by others;

. termination or completion of contracts in its Internet technology
services business or failure to obtain additional contracts in that
business; and

. market acceptance of new service offerings.

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<PAGE>

In addition, Network Solutions expects a significant increase in its
operating expenses as it:

. increases its sales and marketing operations and activities; and

. continues to update its systems and infrastructure.

If the increase in Network Solutions' expenses is not followed by a
corresponding increase in its revenue, its operating results will suffer. The
fact that in the past Network Solutions' revenue has increased and it has been
profitable on a quarterly and annual basis is not indicative of whether its
revenue will increase or whether it will be profitable on a quarterly or annual
basis in the future.

Investment Risks

Network Solutions' stock price, like that of many Internet companies, is highly
volatile.

The market price of its common stock has been and is likely to continue to be
highly volatile and significantly affected by factors such as:

. general market and economic conditions and market conditions affecting
technology and Internet stocks generally,

. actual or anticipated fluctuations in its quarterly or annual
registrations or operating results,

. announcements of technological innovations, acquisitions or investments,
developments in Internet governance or corporate actions such as stock
splits, and

. industry conditions and trends.

The stock market has experienced significant price and volume fluctuations
that have particularly affected the market prices of the stocks of technology
companies, especially Internet-related companies. These broad market or
technology or Internet sector fluctuations may adversely affect the market
price of Network Solutions common stock. Recently, the market price of its
common stock, like that of many Internet-related companies, has experienced
significant fluctuations. For instance, between January 1, 1999, and March 13,
2000, the reported last sale price for its split-adjusted common stock ranged
from $25.88 per share to $247.25 per share. On March 13, 2000, the reported
last sale price of its split-adjusted common stock was $236.25 per share.

The market price of Network Solutions common stock also has been and is
likely to continue to be significantly affected by expectations of analysts and
investors. Reports and statements of analysts do not necessarily reflect its
views. The fact that Network Solutions has in the past met or exceeded analyst
or investor expectations does not necessarily mean that it will do so in the
future.

In the past, securities class action lawsuits have often followed periods of
volatility in the market price of a particular company's securities. This type
of litigation could result in substantial costs and a diversion of its
management's attention and resources.

Future issuances or sales of common stock could cause Network Solutions' stock
price to decrease.

Network Solutions may in the future issue shares of common stock in
connection with acquisitions or other strategic investments. Also, SAIC Venture
Capital owns 16,300,000 shares of Network Solutions common stock. A decision by
Network Solutions to issue shares of common stock or by SAIC Venture Capital or
other stockholders to sell its common stock could depress the market price of
the common stock.

SAIC may maintain significant influence over Network Solutions.

SAIC Venture Capital owns approximately 23% of Network Solutions common stock
and is its largest stockholder. Matters requiring approval by its stockholders,
including the election of members of its board of

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<PAGE>

directors, changes in the size and composition of the board of directors and a
change in control, may need the approval of SAIC Venture Capital to be
effected. Network Solutions does not have an agreement with either SAIC or SAIC
Venture Capital that restricts SAIC Venture Capital's rights to distribute or
sell its shares of common stock.

Some of Network Solutions' directors may have conflicts of interest.

Some of the directors of Network Solutions currently serve as directors,
officers and employees of SAIC and other companies, including Stratton D.
Sclavos, who serves as Chief Executive Officer and President of VeriSign.
Therefore, there may be various conflicts of interest or conflicting duties for
these individuals. Since its directors and officers may also own stock of those
companies, there may be conflicts of interest when directors and officers are
faced with decisions that could have different implications for Network
Solutions and those companies. SAIC Venture Capital has agreed to vote its
shares in favor of the approval and adoption of the merger with VeriSign and
against approval of any proposal made in opposition to or in competition with
the consummation of the merger.

Network Solutions relies on SAIC for corporate services and employee benefits.

Network Solutions currently receives corporate services under an agreement
with SAIC. If SAIC were to terminate these services, Network Solutions might
not be able to secure alternative sources for such services or such services
might only be available to it at prices higher than those charged by SAIC.

Network Solutions employees are currently eligible to participate in some of
SAIC's employee benefit plans through the end of calendar year 2000. However,
since SAIC now indirectly owns less than 50% of its common stock, Network
Solutions will have to establish certain employee benefit plans of its own that
could result in incremental costs to it.

Network Solutions' certificate of incorporation contains provisions relating to
SAIC that may adversely affect it or its stockholders.

Network Solutions' certificate of incorporation includes provisions relating
to competition by SAIC with it, allocations of corporate opportunities,
transactions with interested parties and intercompany agreements and provisions
limiting the liability of certain people. It is unclear whether such provisions
are enforceable under Delaware corporate law. Network Solutions' certificate of
incorporation provides that any person purchasing or acquiring an interest in
shares of its capital stock shall be deemed to have consented to the provisions
in the certificate of incorporation relating to competition with SAIC,
conflicts of interest, corporate opportunities and intercompany agreements, and
such consent may restrict such person's ability to challenge transactions
carried out in compliance with such provisions. The corporate charter of SAIC
does not include similar provisions. Therefore, persons who are directors
and/or officers of Network Solutions and who are also directors and/or officers
of SAIC may choose to take action in reliance on such provisions rather than
act in a manner that might be favorable to it but adverse to SAIC.

This prospectus/proxy statement contains and incorporates by reference
forward-looking statements within the safe harbor provisions of the Private
Securities Litigation Reform Act. Forward-looking statements are based on
current expectations that involve a number of uncertainties, including those
disclosed in the risk factors above. Actual results could differ materially
from those projected in the forward-looking statements.

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THE VERISIGN MEETING

Date, time, place and purpose of VeriSign's meeting

The annual meeting of stockholders of VeriSign will be held at 9:00 a.m.,
Pacific time, on , 2000 at VeriSign's headquarters located at 1350
Charleston Road, Mountain View, California 94043-1331. At the meeting,
stockholders at the close of business on , 2000 will be asked:

1. To approve the issuance of shares of VeriSign common stock in the
merger. The merger agreement is attached as Annex A to this
prospectus/proxy statement.

2. To approve an amendment to VeriSign's certificate of incorporation
increasing the authorized number of shares of common stock to
1,000,000,000. The amendment is attached as Annex G to this
prospectus/proxy statement.

3. To approve an amendment to VeriSign's bylaws to increase the number of
board members from six to nine, or to another number as the board may
approve. The amendment is attached as Annex H to this proxy
statement/prospectus.

4. To elect two directors of VeriSign, consisting of two Class II
directors each to serve a three-year term, or until his successor has been
elected and qualified or until his earlier resignation or removal.
VeriSign's board of directors intends to present the following nominees for
election as directors:

Class II Directors
------------------
Kevin R. Compton
David J. Cowan

5. To approve an amendment to VeriSign's 1998 Equity Incentive Plan to
increase the number of shares reserved for issuance under this plan by an
aggregate of 10,000,000 shares.

6. To approve an amendment to VeriSign's 1998 Employee Stock Purchase
Plan to increase the number of shares reserved for issuance under this plan
by an aggregate of 500,000 shares and to provide for an automatic annual
increase in the shares reserved under the plan in an amount equal to 1% of
the outstanding shares of VeriSign common stock.

7. To approve an amendment to VeriSign's 1998 Directors Stock Option Plan
to increase the number of shares reserved for issuance under this plan by
an aggregate of 250,000 shares.

8. To ratify the selection of KPMG LLP as VeriSign's independent auditors
for the year ending December 31, 2000.

9. To transact any other business that may properly come before the
VeriSign meeting or any adjournment.

Record date and outstanding shares

Only holders of record of VeriSign common stock at the close of business on
the record date are entitled to notice of and to vote at the meeting. As of the
close of business on the record date, there were shares of VeriSign common
stock outstanding and entitled to vote, held of record by approximately
stockholders, although VeriSign has been informed that there are in excess of
beneficial owners.

Vote required

Holders of VeriSign's common stock are entitled to one vote for each share
held as of the record date.

Approval of amendment to certificate of incorporation and amendment of bylaws.

Approval of the amendment to VeriSign's certificate of incorporation requires
the affirmative vote of a majority of the outstanding shares of VeriSign common
stock as of the record date.

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Approval of the amendment to VeriSign's bylaws requires the affirmative vote
of a majority of the outstanding shares of VeriSign common stock as of the
record date.

Election of directors.

With respect to proposal no. 4, two Class II directors will be elected by a
plurality of the votes of the shares of common stock present in person or
represented by proxy at the meeting and voting on the election of directors.
Holders of VeriSign's common stock are not entitled to cumulative voting.

Issuance of shares in the merger.

Approval of the issuance of shares in merger with Network Solutions requires
the affirmative vote of a majority of the total voting power of the shares of
VeriSign common stock represented in person or by proxy at the meeting and
entitled to vote on the proposal.

Other proposals

Approval of each of the other proposals requires the affirmative vote of a
majority of the total voting power of the shares of VeriSign common stock
represented in person or by proxy at the meeting and entitled to vote on the
proposal.

Share ownership of management and certain stockholders

On the record date, directors, executive officers and affiliates of VeriSign
as a group beneficially owned shares of VeriSign common stock. These shares
constituted approximately % of all of the outstanding VeriSign common stock,
as of the record date.

Votes Needed for a Quorum, Effect of Abstentions and Broker Non-Votes

A majority of the shares of common stock outstanding on the record date will
constitute a quorum for the transaction of business. Abstentions will be
included in determining the number of shares present and voting at the meeting
and will have the same effect as votes against proposals nos. 2, 3, 4, 5, 6, 7
and 8. Since the required vote of holders of common stock to approve proposal
no. 1 is based on the total number of shares outstanding, a broker non-vote
will have the same effects as a vote against proposal no. 1. Broker non-votes
will have no effect on any of the other proposals.

Expenses of proxy solicitation

VeriSign will pay the expenses of soliciting proxies to be voted at the
meeting. Following the original mailing of the proxies and other soliciting
materials, VeriSign or its agents may also solicit proxies by mail, telephone,
telegraph or in person. VeriSign retained Georgeson & Company Inc. to aid in
the solicitation of proxies and to verify records relating to the
solicitations. Georgeson & Company Inc. will receive customary fees and expense
reimbursement for these services. Following the original mailing of the proxies
and other soliciting materials, VeriSign will request that brokers, custodians,
nominees and other record holders of VeriSign shares forward copies of the
proxy and other soliciting materials to persons for whom they hold shares and
request authority for the exercise of proxies. In these cases, VeriSign will
reimburse the record holders for their reasonable expenses if they ask VeriSign
to do so.

Voting of proxies

The proxy accompanying this prospectus/proxy statement is solicited on behalf
of the VeriSign board of directors for use at the meeting. Please complete,
date and sign the accompanying proxy and promptly return it in the enclosed
envelope or otherwise mail it to VeriSign. All properly signed proxies that
VeriSign receives

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prior to the vote at the meeting and that are not revoked will be voted at the
meeting according to the instructions indicated on the proxies or, if no
direction is indicated, to approve the issuance of VeriSign stock in the
merger. A proxy may be revoked by any of the following methods:

. a written instrument delivered to VeriSign stating that the proxy is
revoked;

. a subsequent proxy that is signed by the person who signed the earlier
proxy and is presented at the meeting; or

. attendance at the VeriSign meeting and voting in person.

Please note, however, that if a stockholder's shares are held of record by a
broker, bank or other nominee and that stockholder wishes to vote at the
VeriSign meeting, the stockholder must bring to the meeting a letter from the
broker, bank or other nominee confirming that stockholder's beneficial
ownership of the shares.

VeriSign's board of directors does not know of any matter that is not
referred to herein to be presented for action at the meeting. If any other
matters are properly brought before the meeting, the persons named in the
proxies will have discretion to vote on those matters in accordance with their
best judgment.

No appraisal rights

Holders of VeriSign common stock are not entitled to dissenters' rights or
appraisal rights with respect to any of the proposals to be considered at the
meeting.

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<PAGE>

THE NETWORK SOLUTIONS MEETING

Date, time and place

Time and Place:

, 2000

10:00 a.m., Eastern Standard Time

Hyatt Regency Reston
1800 Presidents Street
Reston, Virginia 20190-5627

Purpose of Meeting Is to Vote on the Following Items:

. the approval and adoption of the merger and the merger agreement, and

. any other matters properly brought before the Network Solutions special
meeting, including the approval of any adjournment of the meeting.

Notice Requirements. The Network Solutions bylaws provide that no business
may be transacted at the Network Solutions special meeting unless it is set
forth in the notice of the Network Solutions special meeting.

Recommended Action. The Network Solutions board of directors:

. has approved the merger and the merger agreement,

. believes that the terms of the merger are fair to, and in the best
interests of, Network Solutions' stockholders, and

. recommends that the Network Solutions stockholders vote FOR approval and
adoption of the merger and merger agreement.

Record Date. The record date for shares entitled to vote is , 2000.

Outstanding Shares Held on Record Date. As of the record date, there were
outstanding shares of Network Solutions common stock.

Shares Entitled to Vote. Only holders of record of Network Solutions common
stock on the record date are entitled to receive notice of and to vote at the
Network Solutions special meeting, and any adjournment or postponement.

You will have one vote for each share you owned on the record date for the
Network Solutions special meeting.

Quorum Requirement. A quorum of stockholders is necessary to hold a valid
meeting. The presence, in person or by proxy, of the holders of shares
representing a majority of the outstanding shares of Network Solutions common
stock is a quorum.

Abstentions and broker non-votes count as present at the special meeting for
establishing a quorum.

A broker non-vote occurs with respect to any proposal when a broker is not
permitted to vote on that proposal without instruction from the beneficial
owner of the shares and no instruction is given.

Shares Beneficially Owned by Network Solutions Directors and Executive
Officers as of the Record Date. On the record date, directors and executive
officers of Network Solutions and their affiliates beneficially owned, and were
entitled to vote, shares of Network Solutions common stock, or
approximately % of the outstanding shares.

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<PAGE>

Vote Necessary to Approve the Merger. A majority of the total votes
represented by the outstanding shares of Network Solutions common stock on the
record date are necessary to approve the merger. Broker non-votes and
abstentions have the same effect as a vote against the merger.

Voting of Proxies

The proxy accompanying this prospectus/proxy statement is solicited on
behalf of the Network Solutions board of directors for use at the meeting. You
may vote in person at the Network Solutions meeting or by proxy. Network
Solutions recommends that you vote by proxy even if you plan to attend the
meeting. You can always change your vote at the meeting.

How to Vote by Proxy

Voting instructions are included on the proxy accompanying this
prospectus/proxy statement. If you properly give your proxy and submit it to
Network Solutions in time to vote, one of the individuals named as your proxy
will vote your shares as you have directed. You may vote for or against the
proposals or abstain from voting. Please complete, sign, date and return the
accompanying proxy in the enclosed envelope. If you submit your proxy but do
not make specific choices, your proxy will follow the board's recommendations
and vote your shares FOR the proposal.

Revoking Your Proxy. You may revoke your proxy before it is voted by:

. notifying Network Solutions' Secretary in writing before the meeting
that you have revoked your proxy (contact Network Solutions 505 Huntmar
Park Drive, Herndon, Virginia 20170-5139, Fax: (703) 742-0065,
Attention: Secretary);

. submitting a new proxy with a later date; or

. voting in person at the meeting.

Voting in person. If you plan to attend the meeting and wish to vote in
person, Network Solutions will give you a ballot at the meeting. You should
realize that attendance at a stockholders meeting, however, will not in and of
itself constitute a revocation of a proxy.

Effect of Abstaining. You may abstain from voting on each of the proposals
required for approval of the merger. If you mark your proxy "ABSTAIN" with
respect to the proposal, you will be in effect voting against that proposal.
In addition, if you fail to send in your proxy, this, too, will have the same
negative effect.

Broker Non-Vote. If you are a Network Solutions' stockholder and your broker
holds shares in its name, the broker cannot vote your shares on the proposal
without your instructions. This is a "broker non-vote." A "broker non-vote"
with respect to the proposal will have the effect of a vote against the
proposal.

Confidential voting. Independent inspectors count the votes. Your individual
vote is kept confidential from Network Solutions, unless special circumstances
exist. For example, a copy of your proxy will be sent to Network Solutions if
you write comments on your proxy.

Proxy solicitation. Network Solutions will pay its own costs of soliciting
proxies. Network Solutions retained ChaseMellon Shareholder Services LLC, to
aid in the solicitation of proxies and to verify records relating to the
solicitations. ChaseMellon will receive customary fees and expense
reimbursement for these services. The extent to which these proxy soliciting
efforts will be necessary depends entirely upon how promptly proxies are
received. You should send in your proxy by mail, telephone or the Internet
without delay. Network Solutions also reimburses brokers and other custodians,
nominees and fiduciaries for their expenses in sending these materials to you
and getting your voting instructions.

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<PAGE>

Do not send in any stock certificates with your proxy. The exchange agent
will mail transmittal forms with instructions for the surrender of stock
certificates for Network Solutions common shares to former Network Solutions'
stockholders as soon as practicable after the completion of the merger.

Other Business; Adjournments

Network Solutions is not currently aware of any other business to be acted
upon at the Network Solutions special meeting. If, however, any other matters
are properly brought before the meeting, or any adjourned meeting, the persons
named in the enclosed form of proxy, and acting under that proxy, will have
discretion to vote or act on those matters in accordance with their best
judgment, including to adjourn the meeting.

Adjournments may be made for the purpose of, among other things, soliciting
additional proxies. Any adjournment may be made from time to time by approval
of the holders of shares representing a majority of the votes present in person
or by proxy at the meeting, whether a quorum exists, without further notice
other than by an announcement at the meeting. Network Solutions does not
currently intend to seek an adjournment of its meeting.

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<PAGE>

THE MERGER AND RELATED TRANSACTIONS

This section of the prospectus/proxy statement describes certain aspects of
the proposed merger and the merger agreement. While we believe that the
description covers the material terms of the merger and the related
transactions, this summary may not contain all of the information that is
important to you. You should read this entire document and the other documents
we refer to carefully for a more complete understanding of the merger. In
addition, we incorporate important business and financial information about
each of us into this prospectus/proxy statement by reference. See "Documents
Incorporated by Reference in this Prospectus/Proxy Statement". You may obtain
the information incorporated by reference into this prospectus/proxy statement
without charge by following the instructions in the section entitled "Where You
Can Find More Information."

Background of the merger

From time to time during 1998 and 1999, the management teams of VeriSign,
Network Solutions and SAIC had exploratory discussions regarding the
possibility of a business relationship or strategic transaction between
VeriSign and Network Solutions. None of the discussions resulted in a strategic
relationship between the two companies and both companies determined that they
would independently pursue other transactions.

From early February through February 23, 2000, Mr. Stratton D. Sclavos,
President and Chief Executive Officer of VeriSign had independent discussions
with representatives of Network Solutions about the possibility of a VeriSign
acquisition of a portion or all of Network Solutions. It was determined that a
partial acquisition of Network Solutions was not feasible.

From February 25, 2000 to March 1, 2000, representatives of the parties held
further discussions at which general valuation and other issues relating to a
potential business combination between VeriSign and Network Solutions were
discussed.

On March 2, 2000, a meeting was held to discuss valuation and other issues
relating to a potential business combination. Various representatives of the
parties, as well as representatives from Morgan Stanley and J.P. Morgan
attended the meeting. The parties also discussed principal terms of a potential
merger.

On March 3, 2000, VeriSign's legal counsel sent to Network Solutions' legal
counsel a draft merger agreement and ancillary agreements. The terms of the
merger agreement and other agreements were negotiated by the parties' legal
counsel during the four-day period beginning March 3 and ending late March 6.
During this period, VeriSign and its legal and financial advisors conducted a
business, legal and financial due diligence review of Network Solutions, and
Network Solutions and its legal and financial advisors conducted a business,
legal and financial due diligence review of VeriSign. Representatives from SAIC
Venture Capital participated in the business, legal and financial due diligence
reviews of VeriSign and Network Solutions. Also during this period, senior
management of both companies held numerous discussions regarding various
business, financial, operational and technical issues involved in combining the
companies.

On March 4, 2000, Network Solutions held a special board meeting at which the
status of negotiations and the terms of a possible business combination between
Network Solutions and VeriSign were reviewed with the board by Network
Solutions' management and legal advisors, as well as its financial advisors,
J.P. Morgan and Chase H&Q. Following discussion, the board authorized its
representatives to proceed with further discussions and due diligence in
connection with the potential transaction. Mr. Sclavos, President and Chief
Executive Officer of VeriSign and a director of Network Solutions, did not
attend or participate in this board meeting or the board meeting on March 6,
2000, at which the proposed transaction was discussed and did not vote on
matters relating to the potential transaction because of a potential conflict
of interest.

The VeriSign board held a special meeting on March 5, 2000. VeriSign's legal
advisors reviewed the principal terms of the merger agreement and related
agreements. VeriSign's management, legal advisors and financial advisors
reported on the results of their respective due diligence reviews of Network
Solutions.

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<PAGE>

Morgan Stanley then made a presentation to the board regarding the financial
analyses it had performed in connection with its review of the transaction.
The board authorized its representatives to proceed with further discussions
and due diligence in connection with a potential transaction.

On March 6, 2000, Network Solutions held a special board meeting at which
its legal advisors reviewed the principal terms of the merger and J.P. Morgan
and Chase H&Q summarized the financial analyses each had performed relating to
the proposed transaction and rendered their oral opinions to the board,
subsequently confirmed in writing as of March 6, 2000, as to the fairness of
the exchange ratio in the merger to Network Solutions' stockholders and of the
consideration to be received by the holders of Networks Solutions' common
stock, respectively, from a financial point of view. Following discussion, the
directors in attendance unanimously approved the merger agreement and
determined to recommend that Network Solutions' stockholders vote to approve
the merger and the merger agreement.

On March 6, 2000, VeriSign's board held a special meeting at which its legal
advisors reviewed the principal terms of the merger and Morgan Stanley
summarized the financial analyses it had performed relating to the proposed
transaction. Morgan Stanley rendered its oral opinion to the board of
VeriSign, subsequently confirmed in writing as of March 6, 2000, as to the
fairness of the exchange ratio in the merger to VeriSign from a financial
point of view. Following discussion, the VeriSign board unanimously approved
the merger agreement and related agreements. The VeriSign board determined to
recommend to the VeriSign stockholders its approval of the issuance of shares
of VeriSign common stock in the merger, the amendment of its certificate of
incorporation and the amendment to its bylaws to increase the size of its
board of directors.

Late in the evening of March 6, 2000, the parties executed the merger
agreement and SAIC Venture Capital executed the voting agreement and the
registration rights agreement. Prior to the opening of the financial markets
on March 7, 2000, the parties publicly announced their agreement to merge.

VeriSign's reasons for the merger

At a meeting held on March 6, 2000, the board of directors of VeriSign
concluded that the merger was in the best interests of VeriSign and its
stockholders and determined to recommend that its stockholders approve the
proposals relating to the merger.

The decision of the board of directors of VeriSign was based upon several
potential benefits of the merger, including the following:

. VeriSign and Network Solutions together could deliver businesses and
consumers a wide range of services that cover the four key stages of the
e-commerce lifecycle, consisting of:

--establishing online presence by offering domain name registration,
global directory listings, Domain Name System, or DNS, distribution,
e-mail and basic web site creation;

--offering basic e-commerce services, such as digital certificate-based
authentication for secure web site transactions and e-mail, credit
card payment services and global domain name management;

--offering customer/supply-chain management services, such as secure
extranet services, virtual private networks, or VPNs, secure
messaging, wireless communications and real-time validation;

--offering global trading services, such as buyer and supplier
credentials for business to business exchanges, trusted directories,
purchase card and automated clearing house, or ACH, payments, digital
receipts and archiving;

. VeriSign and Network Solutions together could market VeriSign's services
to web sites registered through Network Solutions;

. VeriSign and Network Solutions will have the opportunity to market the
combined company's services through a larger number of partner and
reseller channels; and

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<PAGE>

. VeriSign and Network Solutions together could integrate data centers,
enable increased performance for customers and business partners, as
well as reduce capital expenditures for one combined company.

In its evaluation of the merger, the VeriSign board reviewed several factors,
including, but not limited to, the following:

. historical information concerning VeriSign's and Network Solutions'
respective businesses, financial performance and condition, operations,
technology and management, including reports for each company filed with
the SEC;

. VeriSign management's view of the financial condition, results of
operations and businesses of VeriSign and Network Solutions before and
after giving effect to the merger and the VeriSign board's determination
of the merger's effect on stockholders;

. current financial market conditions and historical market prices,
volatility and trading information;

. the consideration Network Solutions stockholders will receive in the
merger in light of comparable merger transactions;

. the ownership of the combined company by VeriSign stockholders;

. the opinion of Morgan Stanley & Co. Incorporated that, as of the date of
its opinion and subject to the limitations and considerations described
in the opinion, the exchange ratio in the merger was fair to VeriSign
from a financial point of view;

. the belief that the terms of the merger agreement are reasonable;

. the impact of the merger on VeriSign's customers and employees;

. reports from management, legal, financial and accounting advisors as to
the results of the due diligence investigation of Network Solutions; and

. the expectation that the merger will be accounted for as a purchase.

The VeriSign board also identified and considered a number of potentially
negative factors in its deliberations concerning the merger including the
following:

. the risk that the potential benefits of the merger may not be realized;

. the possibility that the merger may not be consummated, even if approved
by each company's stockholders;

. the effect of the public announcement of the merger on Network
Solutions' sales;

. the risk of management and employee disruption associated with the
merger, including the risk that despite the efforts of the combined
company, key technical, sales and management personnel might not remain
employed by the combined company;

. the risk that the merger could adversely affect VeriSign's or Network
Solutions' relationships with certain of its customers and strategic
partners; and

. other applicable risks described in this prospectus/proxy statement
under "Risk Factors."

The VeriSign board concluded however, that, on balance, the potential
benefits to VeriSign and its stockholders of the merger outweighed the risks
associated with the merger.

The discussion of the information and factors considered by the VeriSign
board is not intended to be exhaustive. In view of the variety of factors
considered in connection with its evaluation of the merger, the VeriSign board
did not find it practicable to, and did not quantify or otherwise assign
relative weight to, the specific factors considered in reaching its
determination.

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<PAGE>

Recommendation of VeriSign's board of directors

After careful consideration, the VeriSign board of directors has determined
the merger agreement and the merger to be fair to and in the best interests of
VeriSign. In connection with the merger, VeriSign's board of directors
recommends approval of the issuance of shares of VeriSign common stock in the
merger and the amendment of VeriSign's certificate of incorporation and bylaws
as described in this prospectus/proxy statement.

In considering the recommendation of the VeriSign board of directors with
respect to the proposals related to the merger, you should be aware that
Stratton D. Sclavos, President, Chief Executive Officer and a director of
VeriSign, has certain interests in the merger that are different from, or are
in addition to, the interests of VeriSign stockholders generally. Please see
the section entitled "Interests of certain persons in the merger."

Network Solutions' reasons for the merger

At the meeting of Network Solutions board of directors on March 6, 2000, the
directors present at the meeting voted unanimously to enter into the merger
agreement and to recommend that Network Solutions stockholders vote to approve
the merger and the merger agreement.

In the course of reaching its decision to adopt the merger agreement, the
Network Solutions board of directors consulted with Network Solutions'
management, as well as its outside legal counsel and financial advisors, and
considered the following material factors:

. that by combining complementary operations, the combined company would
have better opportunities for future growth;

. information concerning the business, earnings, operations, competitive
position and prospects of Network Solutions and VeriSign both
individually and on a combined basis including, but not limited to, the
compatibility of the two companies' operations as a result of the
consolidation of Network Solutions' and VeriSign's operations;

. analyses and other information with respect to Network Solutions and
VeriSign including, without limitation, a discussion of the
complementary nature of the businesses of Network Solutions and
VeriSign;

. the risks and potential rewards associated with continuing to execute
Network Solutions' strategic plan as an independent entity as an
alternative to the merger, including, among others, risks associated
with remaining independent amidst industry-wide consolidation and
rewards associated with the opportunity for existing Network Solutions'
stockholders to participate in the future growth of Network Solutions;

. the possibility, as alternatives to the merger, of seeking to acquire
another company, seeking to engage in one or more joint ventures or
seeking to engage in a combination with a company other than VeriSign
and the Network Solutions board's conclusion that a transaction with
VeriSign is more feasible;

. the presentations of J.P. Morgan and Chase H&Q at the Network Solutions
board of directors' meeting held on March 6, 2000, and the opinions of
J.P. Morgan and Chase H&Q that, as of the date of the opinions of J.P.
Morgan and Chase H&Q, the exchange ratio for the merger was fair to the
Network Solutions' stockholders from a financial point of view. We have
described the opinions of J.P. Morgan and Chase H&Q in detail under the
heading "Opinion of Network Solutions' financial advisers";

. the amount and form of the consideration to be received by Network
Solutions' stockholders in the merger and information on the historical
trading ranges of Network Solutions common stock and VeriSign common
stock;

. that Network Solutions' stockholders would hold approximately 40% of the
outstanding common stock of the combined company after the merger;

. that the merger would provide Network Solutions' stockholders with an
opportunity to receive a premium over the market price for their Network
Solutions common stock immediately prior to the

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<PAGE>

announcement of the merger. On March 6, 2000, the exchange ratio for the
merger represented a premium of approximately 50% over the closing sales
price of $180.31 per share of Network Solutions common stock on March 6,
2000, the last trading day prior to the announcement of the merger;

. the expectation that the merger will qualify as a tax-free
reorganization;

. that the merger will provide Network Solutions' stockholders with the
opportunity to share in the combined company's long-term growth as a
result of the merger;

. the financial and other terms and conditions of the merger and the
merger agreement including, without limitation:

--the limited conditions to VeriSign's obligation to close the merger;

--the ability of Network Solutions' board of directors, in the exercise
of its fiduciary duties in accordance with the merger agreement, to
authorize Network Solutions to provide information to, engage in
negotiations with, and, subject to payment of the termination fee,
enter into a transaction with, another party as described under "The
Merger Agreement--No other negotiations";

. that VeriSign's board is obligated to take all actions reasonably
necessary such that three persons mutually agreed by the boards of
VeriSign and Network Solutions will be appointed to the board of
VeriSign, as described under "The Merger Agreement--Conditions to
closing the merger;"

. that, while the merger is likely to be completed, there are risks
associated with obtaining necessary approvals, and, as a result of
certain conditions to the completion of the merger, it is possible that
the merger may not be completed even if approved by stockholders (see
"The Merger Agreement--Conditions to closing the merger"); and

. the interests that certain executive officers and directors of Network
Solutions may have with respect to the merger in addition to their
interests as stockholders of Network Solutions generally as described in
"Interests of certain persons in the merger."

In view of the number and wide variety of factors considered in connection
with its evaluation of the merger, and the complexity of these matters, the
Network Solutions board of directors did not find it practicable to, nor did it
attempt to, quantify, rank or otherwise assign relative weights to the specific
factors it considered. In addition, the Network Solutions board did not
undertake to make any specific determination as to whether any particular
factor was favorable or unfavorable to its ultimate determination or assign any
particular weight to any factor, but conducted an overall analysis of the
factors described above, including thorough discussions with and questioning of
Network Solutions' management and management's analysis of the proposed merger
based on information received from Network Solutions' legal, financial and
accounting advisors. In considering the factors described above, individual
members of the board of directors may have given different weight to different
factors. Network Solutions' board of directors considered all these factors
together and, on the whole, considered them to be favorable to, and to support,
its determination.

Stratton Sclavos, a director of both Network Solutions and VeriSign and Chief
Executive Officer and President of VeriSign, did not participate in any
deliberations of the Network Solutions board of directors with respect to the
merger and did not vote on the approval of the merger and the merger agreement.

Recommendation of Network Solutions' board of directors

The board of directors of Network Solutions believes that the terms of the
merger are fair to and in the best interests of Network Solutions and its
stockholders and recommends to its stockholders that they vote "FOR" the
proposal to approve and adopt the merger and the merger agreement.

In considering the recommendation of the Network Solutions board of directors
with respect to the merger, you should be aware that certain directors and
officers of Network Solutions have certain interests in the merger that are
different from, or are in addition to, the interests of Network Solutions'
stockholders generally. Please see the section entitled "Interests of certain
persons in the merger."

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Opinion of VeriSign's financial advisor

Under an engagement letter dated March 2, 2000, VeriSign retained Morgan
Stanley to provide financial advisory services and a financial fairness opinion
in connection with the merger. The VeriSign board of directors selected Morgan
Stanley to act as VeriSign's financial advisor based on Morgan Stanley's
qualifications, expertise and reputation and its knowledge of the business and
affairs of VeriSign. At a telephonic meeting of the VeriSign board of directors
on March 6, 2000, Morgan Stanley rendered its oral opinion, subsequently
confirmed in writing, that, as of March 6, 2000 and based upon and subject to
the various considerations set forth in the written opinion, the exchange ratio
pursuant to the merger agreement was fair to VeriSign from a financial point of
view.

The full text of the written opinion of Morgan Stanley, dated March 6, 2000,
is attached as Annex B to this document and sets forth, among other things, the
assumptions made, procedures followed, matters considered and limitations on
the scope of the review undertaken by Morgan Stanley in rendering its opinion.
VeriSign stockholders are urged to, and should, read the opinion carefully and
in its entirety. Morgan Stanley's opinion is directed to the VeriSign board of
directors and addresses only the fairness to VeriSign from a financial point of
view of the exchange ratio pursuant to the merger agreement as of the date of
the opinion. It does not address any other aspect of the merger and does not
constitute a recommendation to any holder of VeriSign common stock or Network
Solutions common stock as to how to vote at either the VeriSign meeting or the
Network Solutions special meeting. The summary of the opinion of Morgan Stanley
set forth in this document is qualified in its entirety by reference to the
full text of the written opinion.

In connection with rendering its opinion, Morgan Stanley, among other things:

1. reviewed certain publicly available financial statements and other
information of Network Solutions and VeriSign;

2. reviewed certain historical internal financial statements and other
historical financial and operating data concerning Network Solutions
prepared by the management of Network Solutions;

3. reviewed the past and current operations and financial condition and
the prospects of Network Solutions and VeriSign, including information
relating to certain strategic, financial and operational benefits
anticipated from the merger, with senior executives of Network Solutions
and VeriSign, respectively;

4. reviewed the pro forma impact of the merger on VeriSign's financial
performance;

5. reviewed the reported prices and trading activity for the Network
Solutions common stock and the VeriSign common stock;

6. compared the financial performance of Network Solutions and VeriSign
with that of other publicly-traded companies comparable to Network
Solutions and VeriSign, respectively;

7. reviewed the financial terms, to the extent publicly available, of
comparable business combinations;

8. participated in discussions and negotiations among representatives of
Network Solutions and VeriSign and their financial and legal advisors;

9. reviewed a draft of the merger agreement, dated as of March 6, 2000,
and related documents; and

10. performed such other analyses and considered such other factors as
Morgan Stanley deemed appropriate.

Morgan Stanley assumed and relied upon, without independent verification, the
accuracy and completeness of the information reviewed by it for the purposes of
the opinion. As VeriSign was aware, neither Network

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<PAGE>

Solutions nor VeriSign made available to Morgan Stanley any forecasts of future
financial performance. Rather, for purposes of its analysis, Morgan Stanley
relied, with the VeriSign board's consent, on the publicly available estimates
of certain research analysts, including those at Morgan Stanley. With respect
to the financial statements and data, including information relating to certain
strategic and operational benefits anticipated from the merger, Morgan Stanley
assumed that they were reasonably prepared on bases reflecting the best
currently available estimates and judgments of the future financial and
operational performance of Network Solutions and VeriSign, respectively. In
addition, Morgan Stanley assumed that the merger will be consummated in
accordance with the terms set forth in the draft of the merger agreement, dated
as of March 6, 2000, including that the merger will be treated as a tax-free
reorganization pursuant to the Internal Revenue Code.

Morgan Stanley relied upon, without independent verification, the assessment
by the managements of Network Solutions and VeriSign of the strategic benefits
expected to result from the merger. Morgan Stanley also relied upon, without
independent verification, the assessment by the management of VeriSign of the
impact of certain financial effects of accounting adjustments, pursuant to
purchase accounting, on the financial statements and performance of the
combined entity following the merger. In addition, Morgan Stanley relied on the
assessment by the managements of Network Solutions and VeriSign of the
technologies and products of Network Solutions and VeriSign, the timing and
risks associated with the integration of Network Solutions and VeriSign and the
validity of, and risks associated with, Network Solutions' and VeriSign's
existing and future products and technologies.

Morgan Stanley did not make any independent valuation or appraisal of the
assets or liabilities of Network Solutions or VeriSign, nor was Morgan Stanley
furnished with any such appraisals. Morgan Stanley's opinion is necessarily
based on financial, economic, market and other conditions as in effect on, and
the information made available to Morgan Stanley as of, the date of its
opinion.

The following is a brief summary of certain of the analyses performed by
Morgan Stanley in connection with its oral opinion and the preparation of its
written opinion dated March 6, 2000. Certain of these summaries of financial
analyses include information presented in tabular format. In order to
understand fully the financial analyses used by Morgan Stanley, the tables must
be read together with the text of each summary. The tables alone do not
constitute a complete description of the financial analyses.

Network Solutions

Exchange Ratio Analysis. Morgan Stanley reviewed the ratios of the closing
prices of Network Solutions common stock to the corresponding closing prices of
VeriSign common stock over various periods from March 3, 1999 through March 3,
2000. Morgan Stanley examined the premiums represented by the split adjusted
exchange ratio over the averages of these daily ratios over various periods:

<TABLE>
<CAPTION>
Transaction
Period Average Exchange Ratio
Period Ended March 3, 2000 Exchange Ratio Premium
-------------------------- -------------- --------------
(split
adjusted)
<S> <C> <C>
March 3, 2000................................ 0.72x 50%
Last 5 Days.................................. 0.66 64%
Last 10 Days................................. 0.64 68%
Last 20 Days................................. 0.66 62%
Last 30 Days................................. 0.66 61%
Last 60 Days................................. 0.68 55%
</TABLE>

Analyst Price Targets Analysis. Morgan Stanley reviewed the price per share
targets of selected publicly available securities research analysts for Network
Solutions common stock available as of March 3, 2000. The split adjusted range
of analyst price targets as of March 3, 2000 was $170.00 to $275.00 per share.

43
<PAGE>

Relative Contribution. Morgan Stanley analyzed the relative contributions of
certain financial statistics of Network Solutions and VeriSign to the pro forma
financial performance of the combined company based on selected financial
statistics. The relevant information for Network Solutions and VeriSign was
obtained from selected research analyst estimates as of March 3, 2000. Morgan
Stanley then compared the pro forma ownership of Network Solutions implied by
the relative contribution analysis to the pro forma ownership of Network
Solutions implied by the exchange ratio. Morgan Stanley observed the following:

<TABLE>
<CAPTION>
Implied Network Solutions
Calendar Year Financial Statistic Pro Forma Ownership
--------------------------------- -------------------------
<S> <C>
1999 Actual Revenues............................. 72.3%
2000 Estimated Revenues.......................... 71.4%
2001 Estimated Revenues.......................... 73.0%
1999 Actual Net Income........................... 87.2%
2000 Estimated Net Income........................ 65.1%
2001 Estimated Net Income........................ 64.4%
Based on transaction exchange ratio.............. 39.5%
</TABLE>

Comparable Company Trading Analysis. Morgan Stanley compared certain
financial information of Network Solutions with publicly available information
for selected companies comparable to the business or businesses of Network
Solutions. The following table lists the relevant comparable companies analyzed
by Morgan Stanley:

Network Solutions
Comparable Companies
--------------------
Register.com, Inc.
Exodus Communications, Inc.
Digex, Incorporated
FreeMarkets, Inc.
Sapient Corporation
Razorfish, Inc.
PSINet Inc.
Verio Inc.
Concentric Network Corporation
Globix Corporation

In conducting its analysis, Morgan Stanley applied the relevant financial
multiples of the comparable companies to publicly available securities research
analyst estimates of various financial statistics for Network Solutions. Morgan
Stanley then estimated the implied value per share of Network Solutions
available as of March 3, 2000. Morgan Stanley undertook the valuation analysis
both without and with a control premium. Morgan Stanley estimated the
following:

<TABLE>
<CAPTION>
Calendar Year Comparable Implied Value per Share
Financial Statistic Company Multiple of Network Solutions
------------------- ---------------- -----------------------
(split adjusted)
<S> <C> <C>
2000 Estimated Revenues........... 35.0x-60.0x $159-$268
2001 Estimated Revenues........... 25.0x-40.0x $183-$289
</TABLE>

Based on the comparable companies analysis, Morgan Stanley estimated a split-
adjusted value range of $175.00 to 287.50 per share of Network Solutions.
Morgan Stanley also applied a 40%--60% control premium to the range of implied
value per share of Network Solutions.

No company utilized in a comparable company analysis is identical to Network
Solutions or VeriSign. In evaluating the comparable companies, Morgan Stanley
made judgments and assumptions with regard to industry performance, general
business, economic, market and financial conditions and other matters, many of
which are beyond the control of Network Solutions or VeriSign, such as the
impact of competition on the

44
<PAGE>

businesses of Network Solutions or VeriSign and the industry in general,
industry growth and the absence of any material adverse change in the financial
condition and prospects of the businesses of Network Solutions or the industry
or in the financial markets in general. Mathematical analysis, such as
determining the average or median, is not in itself a meaningful method of
using comparable company data.

Analysis of Selected Precedent Transactions. Based on publicly available
information as of March 3, 2000, Morgan Stanley compared the premiums paid in
selected precedent merger and acquisition transactions to the relevant
financial statistics for Network Solutions implied by the exchange ratio and
the share price of VeriSign common stock as of March 5, 2000. The following
table presents certain of the precedent transactions analyzed by Morgan
Stanley:

Selected Precedent Transactions
-------------------------------
Acquiree / Acquiror
Excite, Inc. / @Home Corporation
Broadcast.com, Inc. / Yahoo! Inc.
Netscape Communications Corporation / America Online, Inc.
Geocities / Yahoo! Inc.
InterVU Inc. / Akamai Technologies, Inc.
VeriFone, Inc. / Hewlett-Packard Company

Based on its analysis of the precedent transactions, Morgan Stanley applied
the following premiums to the historical trading performance of Network
Solutions and VeriSign common stock:

<TABLE>
<CAPTION>
Implied Value
per Share of
Trading Performance Statistic Premium Network Solutions
----------------------------- ------- -----------------
(split-adjusted)
<S> <C> <C>
Premium to Price on March 3, 2000................ 25%-60% $222-$285
Premium to 30-day Average Exchange Ratio......... 35%-65% $224-$273
Premium to 60-day Average Exchange Ratio......... 30%-70% $225-$294
</TABLE>

No transaction utilized as a comparison in the precedent transactions
analysis is identical to the merger. In evaluating the transactions listed
above, Morgan Stanley made judgments and assumptions with regard to industry
performance, general business, economic, market and financial conditions and
other matters, many of which are beyond the control of VeriSign and Network
Solutions, such as the impact of competition on the businesses of Network
Solutions and the industry generally, industry growth and the absence of any
material adverse change in the financial condition and prospects of VeriSign or
Network Solutions or the industry or in the financial markets in general.
Mathematical analysis, such as determining the average or median, is not in
itself a meaningful method of using comparable transaction data.

Discounted Equity Value. Morgan Stanley performed a discounted future equity
value analysis to estimate the present value per share of Network Solutions.
The projections of financial performance were based on securities research
analyst estimates available as of March 3, 2000.

The following table presents the multiples and discount rates applied to the
financial performance of Network Solutions:

<TABLE>
<CAPTION>
Implied Value
Calendar Year Net Calendar Per Share
Financial Statistic Year Multiple Discount Rate of Network Solutions
------------------- ------------- ------------- --------------------
(split-adjusted)
<S> <C> <C> <C>
2002 Estimated Reve-
nues................... 25.0x-40.0x 17.7% $249-$395
2003 Estimated Reve-
nues................... 25.0x-40.0x 17.7% $340-$541
</TABLE>

Based on the foregoing multiples and discount rates, Morgan Stanley estimated
a split-adjusted implied value range per share of Network Solutions of $250 to
$400.

45
<PAGE>

VeriSign

Trading Range. Morgan Stanley reviewed the range of closing prices of
VeriSign common stock prior to March 3, 2000. Morgan Stanley observed the
following:

<TABLE>
<CAPTION>
Period Prior to March 3, 2000 Value Per Share
----------------------------- ---------------
<S> <C>
30 days.................................................... $161.38-$253
60 days.................................................... $112.38-$253
90 days.................................................... $ 57.25-$253
</TABLE>

Analyst Price Targets Analysis. Morgan Stanley reviewed the price targets of
selected securities research analysts for VeriSign common stock. The range of
analyst price targets, as of March 3, 2000, was $230.00 to $300.00. Morgan
Stanley observed that the price of VeriSign common stock as of March 3, 2000,
was $248.50.

Comparable Company Trading Analysis. Morgan Stanley compared certain
financial information of VeriSign with publicly available information for
selected companies comparable to the business or businesses of VeriSign. The
following table lists the relevant comparable companies analyzed by Morgan
Stanley:

VeriSign Comparable Companies

InfoSpace.com, Inc.
Akamai Technologies, Inc.
BroadVision, Inc.
Check Point Software Technologies Ltd.
Inktomi Corporation
Internap Network Services Corporation
Portal Software, Inc.
RealNetworks, Inc.
DoubleClick Inc.
Digital Island, Inc.
Entrust Technologies Inc.
Marimba, Inc.

In conducting its analysis, Morgan Stanley applied the relevant financial
multiples of the comparable companies to publicly available securities research
analyst estimates of the corresponding financial statistics for VeriSign as of
March 3, 2000. Morgan Stanley then calculated the value per share of VeriSign.
Based on the comparable company analyses, Morgan Stanley estimated the
following:

<TABLE>
<CAPTION>
Implied Value
Calendar Year Comparable per Share
Financial Statistic Company Multiple of VeriSign
------------------- ---------------- -------------
<S> <C> <C>
2000 Estimated Revenues..................... 125.0x-250.0x $163-$270
2001 Estimated Revenues..................... 80.0x-140.0x $131-$226
</TABLE>

Based on the comparable company analysis, Morgan Stanley estimated an implied
value range of $150 to $270 per share of VeriSign.

Discounted Equity Value. Morgan Stanley performed a discounted future equity
value analysis to calculate the present value per share of VeriSign. The
projections of financial performance were based on securities research analyst
estimates as of March 3, 2000.

46
<PAGE>

The following table presents the multiples and discount rates applied to the
financial performance of VeriSign:

<TABLE>
<CAPTION>
Implied Value
Calendar Year Next Calendar Per Share
Financial Statistic Year Multiple Discount Rate of VeriSign
------------------- ------------- ------------- -------------
<S> <C> <C> <C>
2002 Estimated Revenues.......... 80.0x-140.0x 18.2% $164-$284
2003 Estimated Revenues.......... 80.0x-140.0x 18.2% $206-$358
</TABLE>

Based on the foregoing multiples and discount rates, Morgan Stanley estimated
an implied value per share of VeriSign of $175 to $300.

Pro Forma Merger Analysis. Morgan Stanley analyzed the pro forma impact of
the merger on VeriSign's combined projected revenue per share and earnings per
share excluding the effect of transaction goodwill for calendar year 2000 and
2001. Such analyses were based on projections by securities research analysts
for VeriSign and Network Solutions. Excluding the effect of any potential
synergies resulting from the merger, Morgan Stanley observed the following:

<TABLE>
<CAPTION>
Accretion/(Dilution)
---------------------------
Calendar Year Calendar Year
Financial Statistic 2000 2001
------------------- ------------- -------------
<S> <C> <C>
Revenue Per Share............................ 64.8% 111.4%
Cash Earnings Per Share (excluding goodwill
amortization)............................... 41.9% 60.2%
</TABLE>

The preparation of a fairness opinion is a complex process and is not
necessarily susceptible to partial analysis or summary description. In arriving
at its opinion, Morgan Stanley considered the results of all of its analyses as
a whole and did not attribute any particular weight to any analysis or factor
considered by it. Furthermore, Morgan Stanley believes that selecting any
portion of its analyses, without considering all analyses, would create an
incomplete view of the process underlying its opinion. In addition, Morgan
Stanley may have given various analyses and factors more or less weight than
other analyses and factors, and may have deemed various assumptions more or
less probable than other assumptions, so that the ranges of valuations
resulting from any particular analysis described above should not be taken to
be Morgan Stanley's view of the actual value of VeriSign or Network Solutions.
In performing its analyses, Morgan Stanley made numerous assumptions with
respect to industry performance, general business and economic conditions and
other matters, many of which are beyond the control of VeriSign or Network
Solutions. Any estimates contained in Morgan Stanley's analyses are not
necessarily indicative of future results or actual values, which may be
significantly more or less favorable than those suggested by such estimates.

The analyses performed were prepared solely as part of Morgan Stanley's
analysis of the fairness from a financial point of view to VeriSign of the
exchange ratio pursuant to the merger agreement and were conducted in
connection with the delivery of Morgan Stanley's opinion. The analyses do not
purport to be appraisals or to reflect the prices at which VeriSign or Network
Solutions might actually be sold.

The exchange ratio pursuant to the merger agreement was determined through
arm's-length negotiations between VeriSign and Network Solutions and was
approved by the VeriSign board of directors. Morgan Stanley provided advice to
VeriSign during such negotiations; however, Morgan Stanley did not recommend
any specific form or amount of consideration to VeriSign or that any specific
form or amount of consideration constituted the only appropriate form or amount
of consideration in connection with the merger.

In addition, Morgan Stanley's opinion and presentation to the VeriSign board
of directors was one of many factors taken into consideration by VeriSign's
board of directors in making its decision to approve the merger. Consequently,
the Morgan Stanley analyses as described above should not be viewed as
determinative of the opinion of the VeriSign board of directors with respect to
the merger or of whether the VeriSign board of directors would have been
willing to agree to a transaction with a different form or amount of
consideration.

47
<PAGE>

The VeriSign board of directors retained Morgan Stanley based upon Morgan
Stanley's qualifications, experience and expertise. Morgan Stanley is an
internationally recognized investment banking and advisory firm. Morgan
Stanley, as part of its investment banking business, is continuously engaged in
the valuation of businesses and securities in connection with mergers and
acquisitions, negotiated underwritings, competitive biddings, secondary
distributions of listed and unlisted securities, private placements and
valuations for corporate, estate and other purposes. In the past, Morgan
Stanley and its affiliates have provided financing and advisory services for
VeriSign including acting as lead manager of VeriSign's initial public offering
in January 1998 and public offering of common stock in January 1999 and have
received fees for the rendering of these services. In the ordinary course of
Morgan Stanley's trading and brokerage activities, Morgan Stanley or its
affiliates may at any time hold long or short positions, may trade or otherwise
effect transactions, for its own account or for the account of customers, in
the equity securities of VeriSign or Network Solutions.

Under the engagement letter, Morgan Stanley provided financial advisory
services and the financial fairness opinion in connection with the merger, and
VeriSign agreed to pay Morgan Stanley a customary fee. In addition, VeriSign
has agreed to reimburse Morgan Stanley for any out-of-pocket expenses incurred
by Morgan Stanley in connection with its engagement and to indemnify Morgan
Stanley and its affiliates, their respective directors, officers, agents and
employees and each person, if any, controlling Morgan Stanley or any of its
affiliates against certain liabilities and expenses, including certain
liabilities under the federal securities laws, related to or arising out of
Morgan Stanley's engagement. In the past, Morgan Stanley and its affiliates
have provided financing services for VeriSign and Network Solutions and have
received fees for the rendering of these services.

Opinions of Network Solutions' financial advisors

Opinion of J.P Morgan Securities Inc.

Pursuant to an engagement letter dated March 1, 2000, Network Solutions
retained J.P. Morgan Securities Inc., or J.P. Morgan, as its financial advisor
in connection with the proposed merger. The Network Solutions board of
directors selected J.P. Morgan to act as its financial advisor due to J.P.
Morgan's qualifications, expertise and reputation, as well as J.P. Morgan's
experience and familiarity with Network Solutions.

At the meeting of Network Solutions' board of directors on March 6, 2000,
J.P. Morgan gave its oral opinion, subsequently confirmed in writing, to the
board of directors that, as of that date and based upon and subject to the
various considerations set forth in the opinion, the exchange ratio pursuant to
the proposed merger was fair from a financial point of view to the Network
Solutions common stockholders. Network Solutions' board of directors did not
limit J.P. Morgan in any way in the investigations it made or the procedures it
followed in giving its opinion.

We have attached as Annex C to this document the full text of J.P. Morgan's
written opinion. This opinion sets forth the assumptions made, matters
considered and limits on the review undertaken. We incorporate J.P. Morgan's
opinion into this document by reference and urge you to read the opinion in its
entirety. J.P. Morgan addressed its written opinion to the board of directors
of Network Solutions. The opinion addresses only the exchange ratio pursuant to
the Merger and is not a recommendation to any Network Solutions stockholder or
VeriSign stockholder as to how that stockholder should vote at the Network
Solutions special meeting or the VeriSign special meeting. The summary of the
opinion of J.P. Morgan set forth in this proxy statement/prospectus is
qualified in its entirety by reference to the full text of such opinion.
Network Solutions' stockholders are urged to, and should, read the opinion
carefully and in its entirety.

In arriving at its opinion, J.P. Morgan reviewed:

(1) the merger agreement;

(2) certain publicly available information concerning the business of
Network Solutions and of certain other companies engaged in businesses
comparable to those of Network Solutions and the reported market prices for
certain other companies' securities deemed comparable;

48
<PAGE>

(3) publicly available terms of certain transactions involving companies
comparable to Network Solutions and the consideration received for such
companies;

(4) current and historical market prices of Network Solutions common
stock and VeriSign common stock;

(5) the audited financial statements of Network Solutions and VeriSign
for the fiscal year ended December 31, 1998 and the unaudited financial
statements of Network Solutions and VeriSign for the period ended December
31, 1999; and

(6) the terms of other business combinations that J.P. Morgan deemed
relevant.

J.P. Morgan also held discussions with several members of the management of
Network Solutions and VeriSign on various aspects of the merger, the past and
current business operations of Network Solutions and VeriSign, the financial
condition and future prospects and operations of Network Solutions and
VeriSign, the effect of the merger on the financial condition and future
prospects and operations of Network Solutions and VeriSign and other matters
that J.P. Morgan believed necessary or appropriate to its inquiry. In addition,
J.P. Morgan reviewed other financial studies and analyses and considered other
information that it deemed appropriate for the purposes of its opinion.

As Network Solutions was aware, neither Network Solutions nor VeriSign made
available to J.P. Morgan any forecasts of future financial performance. Rather,
for purposes of its analysis, J.P. Morgan asked, with the board's consent, to
use the publicly available estimates of certain research analysts, including
those of J.P. Morgan.

J.P. Morgan relied upon and assumed, without independent verification, the
accuracy and completeness of all information that was publicly available or
otherwise reviewed by J.P. Morgan from third party sources. J.P. Morgan is not
responsible or liable for that information or its accuracy. J.P. Morgan did not
conduct any valuation or appraisal of any assets or liabilities, nor were any
valuations or appraisals provided to J.P. Morgan.

In relying on other financial analyses provided to it, J.P. Morgan assumed
that they had been reasonably prepared based on assumptions reflecting the best
currently available estimates as to the financial condition of Network
Solutions and VeriSign to which those analyses relate. J.P. Morgan also assumed
that the Merger will have the tax consequences described in discussions with,
and materials furnished to J.P. Morgan by, representatives of Network
Solutions, and that the parties will complete the other transactions
contemplated by the merger agreement as described in the merger agreement. J.P.
Morgan relied as to all legal matters relevant to rendering its opinion upon
the advice of counsel.

J.P. Morgan based its opinion on economic, market and other conditions as in
effect on, and the information made available to J.P. Morgan as of, the date of
the opinion. Subsequent developments may affect J.P. Morgan's opinion and J.P.
Morgan does not have any obligation to update, revise, or reaffirm its opinion.
J.P. Morgan expressed no opinion as to the price at which Network Solutions' or
VeriSign's common stock will trade at any future time.

The terms of the proposed merger were determined through negotiations between
Network Solutions and VeriSign and were approved by the Network Solutions board
of directors. Although J.P. Morgan provided advice to Network Solutions during
the course of these negotiations, the decision to enter into the merger was
solely that of the Network Solutions board of directors. As described above,
the opinion of J.P. Morgan and its presentation to the Network Solutions board
of directors were only one of a number of factors taken into consideration by
the Network Solutions board of directors in making its determination to approve
the proposed merger.

J.P. Morgan employed generally accepted valuation methods in reaching its
opinion. The following is a summary of the material financial analyses that
J.P. Morgan utilized in providing its opinion. We have presented some of the
summaries of financial analyses in tabular format. In order to understand the
financial analyses used by J.P. Morgan more fully, you should read the tables
together with the text of each summary. The tables alone do not constitute a
complete description of J.P. Morgan's financial analyses.

49
<PAGE>

Implied Ownership

J.P. Morgan compared the pro-forma ownership by Network Solutions'
stockholders of the combined company based on the relative equity market
capitalizations of Network Solutions and VeriSign over the past twelve months,
to the pro-forma implied ownership from the merger exchange ratio. These
calculations were performed taking into account the fully diluted shares
outstanding of both Network Solutions and VeriSign.

<TABLE>
<CAPTION>
Implied ownership
------------------------------
Network Solutions VeriSign
Days prior to March 6, 2000 Stockholders Stockholders
--------------------------- ----------------- ------------
<S> <C> <C>
0 (Announcement)........................... 30% 70%
-15 days................................... 28% 72%
-30 days................................... 29% 71%
-60 days................................... 29% 71%
-90 days................................... 31% 69%
-180 days.................................. 31% 69%
-1 Year.................................... 35% 65%
Ownership based on merger exchange ratio... 39% 61%
</TABLE>

J.P. Morgan observed that the pro-forma ownership of the combined company by
Network Solutions stockholders based on the merger exchange ratio exceeded the
implied ownership under each of the data points set forth above.

Selected Public Trading Multiples

Using publicly available information, J.P. Morgan compared selected financial
data of Network Solutions with similar data for selected publicly traded
companies engaged in businesses that J.P. Morgan judged to be reasonably
comparable to Network Solutions. These companies were:

Selected publicly traded companies

VeriSign
Exodus Communications
Akamai Technologies
InfoSpace
Inktomi
Verio
CheckFree
Critical Path
PSINet
Concentric Network
CyberSource

J.P. Morgan selected these companies because they engage in businesses
reasonably comparable to those of Network Solutions. J.P. Morgan used publicly
available financial projections by equity analysts covering each comparable
company to determine the ratio of market capitalization to projected revenues
for 2000 and 2001 for each of these companies. The following table presents a
comparison of the median revenue multiples of the comparable companies and the
implied merger multiples for Network Solutions.

<TABLE>
<CAPTION>
Revenue
multiples
---------
2000 2001
---- ----
<S> <C> <C>
Network Solutions implied merger multiple........................ 59x 36x
Comparable company median........................................ 42x 22x
</TABLE>

50
<PAGE>

J.P. Morgan observed that the implied merger multiple exceeded the median of
the comparable company revenue multiples for each of 2000 and 2001.

It should be noted that no company utilized in the analysis above is
identical to Network Solutions. In evaluating companies identified by J.P.
Morgan as comparable to Network Solutions, J.P. Morgan made judgments and
assumptions with regard to industry performance, general business, economic,
market and financial conditions and other matters, many of which are beyond the
control of Network Solutions, such as the impact of competition on the business
of Network Solutions and the industry generally, industry growth and the
absence of any material change in the financial condition and prospects of
Network Solutions or the industry or in the financial markets in general.
Mathematical analysis (such as determining the mean or the median) is not in
itself a meaningful method of using selected Internet company data.

Comparable Transaction Analysis

Using publicly available information, J.P. Morgan examined the following
transactions to determine the ratio of transaction size to projected twelve
month revenues:

Selected comparable transactions

@Home/Excite
Yahoo!/GeoCities
Yahoo!/Broadcast.com
Akamai Technologies/InterVU
Kana Communications/Silknet
NextLink/Concentric
Whittman-Hart/USWeb/CKS
America Online/Mapquest.com
Earthlink/Mindspring

J.P. Morgan analyzed the ratio of transaction size to projected twelve month
revenues for each of those transactions. All multiples for the selected
transactions were based on public information available at the time of public
announcement, and J.P. Morgan's analysis did not take into account different
market and other conditions during the period in which the selected
transactions occurred. The comparable transaction analysis yielded the
following mean and median for the multiple of projected twelve month revenues:

<TABLE>
<CAPTION>
Mean Median
---- ------
<S> <C> <C>
Network Solutions implied merger multiple...................... 59x 59x
Multiple of projected twelve month revenues.................... 55x 28x
</TABLE>

J.P. Morgan observed that the implied merger multiple exceeded the mean and
median of the comparable transaction revenue multiples.

It should be noted that no transaction utilized in the analysis above is
identical to the Network Solutions-VeriSign merger. Mathematical analysis (such
as determining the mean or the median) is not in itself a meaningful method of
using selected Internet transaction data.

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<PAGE>

Acquisition Premium Analysis

J.P. Morgan compared the implied premium as of March 3, 2000 of the
consideration to be paid in the merger to the implied premiums paid in the
following transactions to determine the acquisition premium to market:

Selected comparable transactions

@Home/Excite
Yahoo!/GeoCities
Yahoo!/Broadcast.com
Akamai Technologies/InterVU
Kana Communications/Silknet
NextLink/Concentric
Whittman-Hart/USWeb/CKS
America Online/Mapquest.com

J.P. Morgan used publicly available financial information to determine the
premiums paid to market over the past twelve months. The premium analysis
yielded the following mean and median for the premiums:

<TABLE>
<CAPTION>
1 day 5 days 20 days 52-week high
----- ------ ------- ------------
<S> <C> <C> <C> <C>
Mean..................................... 33% 39% 85% 14%
Median................................... 42% 42% 81% 23%
</TABLE>

J.P. Morgan observed that on March 3, 2000, Network Solutions was trading at
a 52-week high and that the implied 1-day premium exceeded both the mean and
median 1-day premiums of the comparable transactions and exceeded the mean,
median and range of premiums over 52-week highs of the comparable transactions.
J.P. Morgan also observed that the exchange ratio to be paid in the merger
represented a premium of 73%, 91%, 108% and 137% over the 15-day, 30-day, 60-
day, and 90-day average trading prices of Network Solutions.

Contribution Analysis

J.P. Morgan performed a contribution analysis using current and historical
market capitalization data, and financial projections from equity research
analysts on a stand-alone basis, including deferred revenue as revenue. These
contributions were compared to the approximately 39% of continuing ownership
stake that Network Solutions' stockholders would have in the combined company
following the merger. The following table presents the contribution analysis of
Network Solutions to the combined company:

<TABLE>
<CAPTION>
Contribution of Network Contribution of Network Contribution of Network
Solutions to revenues Solutions to net income Solutions to market capitalization
----------------------- ----------------------- ---------------------------------------
15 day 90 day
2000E 2001E 2000E Current average average
----- ------------ ----- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
72% 74% 65% 30% 28% 30%
</TABLE>

This summary does not purport to be a complete description of the analyses or
data presented by J.P. Morgan. The preparation of a fairness opinion is a
complex process and is not necessarily susceptible to partial analysis or
summary description. J.P. Morgan believes that one must consider its opinion,
this summary and its analyses as a whole. Selecting portions of this summary
and these analyses, without considering the analyses as a whole, could create
an incomplete view of the processes underlying the analyses and opinion. In

52
<PAGE>

arriving at its opinion, J.P. Morgan considered the results of all of the
analyses as a whole. No single factor or analysis was determinative of J.P.
Morgan's fairness determination. Rather, the totality of the factors considered
and analyses performed operated collectively to support its determination. J.P.
Morgan based the analyses on assumptions that it deemed reasonable, including
assumptions concerning general business and economic conditions that impact the
companies' growth rates, labor costs and price competition and industry-
specific factors similar to those set forth under the heading "Risk Factors".
This summary sets forth under the description of each analysis the other
principal assumptions upon which J.P. Morgan based that analysis. J.P. Morgan's
analyses are not necessarily indicative of actual values or actual future
results that either company or the combined company might achieve, which values
may be higher or lower than those indicated. Analyses based upon forecasts of
future results are inherently uncertain, as they are subject to numerous
factors or events beyond the control of the parties and their advisors.
Accordingly, these forecasts and analyses are not necessarily indicative of
actual future results, which may be significantly more or less favorable than
suggested by those analyses. Therefore, none of Network Solutions, VeriSign,
J.P. Morgan or any other person assumes responsibility if future results are
materially different from those forecasted.

As a part of its investment banking business, J.P. Morgan and its affiliates
are continually engaged in the valuation of businesses and their securities in
connection with mergers and acquisitions, investments for passive and control
purposes, negotiated underwritings, secondary distributions of listed and
unlisted securities, private placements, and valuations for estate, corporate
and other purposes.

For services rendered in connection with the merger, Network Solutions has
agreed to pay J.P. Morgan a customary fee in connection with the financial
advisory services provided by J.P. Morgan and the delivery of the fairness
opinion. In addition, Network Solutions has agreed to reimburse J.P. Morgan for
its expenses incurred in connection with its services, including the fees and
disbursements of counsel, and will indemnify J.P. Morgan against certain
liabilities, including liabilities arising under the Federal securities laws.

An affiliate of J.P. Morgan has an equity investment in Network Solutions,
and J.P. Morgan acted as co-manager in the Network Solutions' initial public
offering and has acted as bookrunner and lead underwriter in subsequent follow-
on offerings for Network Solutions. J.P. Morgan and its affiliates maintain
banking and other business relationships with Network Solutions and its
affiliates, for which they receive customary fees. J.P. Morgan has no financial
advisory or other relationship with VeriSign. In the ordinary course of their
businesses, J.P. Morgan and its affiliates may actively trade the debt and
equity securities of Network Solutions or VeriSign for their own accounts or
for the accounts of customers and, accordingly, they may hold long or short
positions in those securities at any given time.

Opinion of Chase H&Q

Network Solutions engaged Chase H&Q, a division of Chase Securities Inc., to
act as a financial advisor to Network Solutions in connection with the proposed
merger. The Network Solutions board of directors selected Chase H&Q to act as a
financial advisor based on Chase H&Q's qualifications, expertise and
reputation, as well as Chase H&Q's historic investment banking relationship and
familiarity with Network Solutions. Chase H&Q delivered its oral opinion,
subsequently confirmed in writing, on March 6, 2000 to the Network Solutions
board of directors that, as of such date, based upon and subject to the
assumptions made, matters considered and limits of the review undertaken by
Chase H&Q, the consideration to be received by the holders of Network Solutions
common stock was fair from a financial point of view.

The full text of the opinion delivered by Chase H&Q to the Network Solutions
board of directors, dated March 6, 2000, which sets forth the assumptions made,
general procedures followed, matters considered and limitations on the scope of
review undertaken by Chase H&Q in rendering its opinion, is attached as Annex D
to this prospectus/proxy statement and is incorporated herein by reference. The
Chase H&Q opinion does not constitute a recommendation to any Network Solutions
stockholder as to how such stockholder should vote with respect to the merger
agreement. The summary of the Chase H&Q opinion set forth below is qualified in
its entirety by reference to the full text of such opinion attached hereto as
Annex D. Network Solutions stockholders are urged to read the opinion carefully
in its entirety.

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In reviewing the proposed transactions, and in arriving at its opinion, Chase
H&Q, among other things:

. reviewed the publicly available consolidated financial statements of
VeriSign for recent years and interim periods to date and certain other
relevant financial and operating data of VeriSign (including its capital
structure) available to Chase H&Q from published sources;

. discussed the business, financial condition and prospects of VeriSign
with certain members of VeriSign's senior management;

. reviewed the publicly available consolidated financial statements of
Network Solutions for recent years and interim periods to date and
certain other relevant financial and operating data of Network Solutions
available to Chase H&Q from published sources;

. discussed the business, financial condition and prospects of Network
Solutions with certain members of Network Solutions' senior management;

. reviewed the recent reported prices and trading activity for the common
stocks of VeriSign and Network Solutions and compared such information
and certain financial information for VeriSign and Network Solutions
with similar information for certain other companies engaged in
businesses Chase H&Q considered comparable;

. reviewed the financial terms, to the extent publicly available, of
certain comparable merger and acquisition transactions;

. reviewed a draft of the merger agreement dated March 6, 2000; and

. performed such other analyses and examinations and considered such other
information, financial studies, analyses and investigations and
financial, economic and market data as Chase H&Q deemed relevant.

Chase H&Q did not assume responsibility for independent verification of, and
did not independently verify, any of the information concerning Network
Solutions or VeriSign considered in connection with its review of the proposed
transactions, including without limitation any financial information, forecasts
or projections, considered in connection with the rendering of its opinion.
Accordingly, for purposes of its opinion, Chase H&Q assumed and relied upon the
accuracy and completeness of all such information. In connection with its
opinion, Chase H&Q did not prepare or obtain any independent valuation or
appraisal of any of the assets or liabilities of Network Solutions or VeriSign,
and it did not conduct a physical inspection of the properties and facilities
of Network Solutions or VeriSign. With respect to the published Wall Street
research analyst financial forecasts and projections used in its analysis,
Chase H&Q assumed that they reflected the best currently available estimates
and judgments of the expected future financial performance of Network Solutions
and VeriSign, and Chase H&Q expressed no view as to the reasonableness of such
forecasts and projections or the assumptions on which such forecasts or
projections were based. For the purposes of its opinion, Chase H&Q also assumed
that neither Network Solutions nor VeriSign was a party to any pending
transactions, including without limitation external recapitalizations or
material merger or acquisition discussions, other than the proposed merger and
transactions in the ordinary course of conducting their respective businesses.
Network Solutions advised Chase H&Q, and for purposes of its opinion Chase H&Q
assumed, that the proposed merger would be tax-free to each of Network
Solutions and VeriSign and would be treated as a purchase for financial
accounting purposes.

In performing its analyses, Chase H&Q used published Wall Street estimates of
calendar year 2000 and 2001 financial performance of Network Solutions and
VeriSign and made numerous assumptions with respect to industry performance,
general business and economic conditions and other matters, many of which are
beyond the control of Network Solutions, VeriSign or Chase H&Q. The analyses
performed by Chase H&Q and summarized below are not necessarily indicative of
actual values or actual future results, which may be significantly more or less
favorable than suggested by such analyses. Because such analyses are inherently
subject to uncertainty, being based upon numerous factors or events beyond the
control of Network Solutions, VeriSign or their respective advisors, neither
Network Solutions, Chase H&Q nor any other person assumes

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<PAGE>

responsibility if future results or actual values are materially different from
the results of analyses based on forecasts or assumptions. Additionally,
analyses relating to the values of businesses do not purport to be appraisals
or to reflect the prices at which businesses or securities actually may be
acquired or bought or sold.

Chase H&Q's opinion is necessarily based upon market, economic, financial and
other conditions as they existed and can be evaluated as of the date of the
opinion and any subsequent change in such conditions would require a
reevaluation of such opinion. Although subsequent developments may affect its
opinion, Chase H&Q has assumed no obligation to update, revise or reaffirm it.
Chase H&Q assumed for purposes of its analysis that the value of the VeriSign
common stock to be received by stockholders of Network Solutions in the
proposed merger is equal to the closing trading price of VeriSign common stock
as of March 3, 2000, and Chase H&Q expresses no opinion or view on the price or
value of VeriSign common stock.

The preparation of a fairness opinion is a complex process and is not
necessarily susceptible to summary description. The summary of Chase H&Q's
analyses set forth below summarizes the material analyses presented to the
Network Solutions board of directors but is not a complete description of the
presentation by Chase H&Q to the Network Solutions board of directors or the
analysis performed by Chase H&Q in connection with preparing its opinion. In
arriving at its opinion, Chase H&Q did not attribute any particular weight to
any analyses or factors considered by it, but rather made subjective,
qualitative judgments as to the significance and relevance of each analysis and
factor. Accordingly, Chase H&Q believes that its analyses and the summary set
forth below must be considered as a whole and that selecting portions of its
analyses, without considering all analyses, or of the following summary,
without considering all factors and analyses, could create an incomplete view
of the processes underlying the analyses set forth in the Chase H&Q
presentation to the Network Solutions board of directors and Chase H&Q's
opinion.

The terms of the proposed merger were determined through negotiations between
Network Solutions and VeriSign and were approved by the Network Solutions board
of directors. Although Chase H&Q provided advice to Network Solutions during
the course of these negotiations, the decision to enter into the merger was
solely that of the Network Solutions board of directors. As described above,
the opinion of Chase H&Q and its presentation to the Network Solutions board of
directors were only one of a number of factors taken into consideration by the
Network Solutions board of directors in making its determination to approve the
proposed merger.

The following is a brief summary of the material financial analyses performed
by Chase H&Q in connection with providing its opinion to the Network Solutions
board of directors on March 6, 2000. The summary includes information presented
in tabular format. You should read these tables together with the text of each
summary, because the tables alone are not a complete description of the
financial analysis.

Valuation Analysis of Network Solutions

Analysis of Publicly Traded Companies Considered Comparable to Network
Solutions. This analysis reviews a business' operating performance and outlook
relative to a group of peer companies to determine an implied value. Using
published Wall Street estimates, Chase H&Q compared, among other things, the
equity values and projected revenues for calendar years 2000 and 2001 for
Network Solutions to corresponding measures for certain publicly traded
Internet companies that Chase H&Q considered comparable to Network Solutions.
Chase H&Q used revenues when making its comparisons, because valuations based
on revenues are generally accepted in the analysis of Internet companies that,
in many cases, have not achieved profitability.

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<PAGE>

The Internet companies that Chase H&Q considered comparable to Network
Solutions were:

. Akamai Technologies . Inktomi
. Ask Jeeves . Looksmart
. Concentric Network . Lycos
. Critical Path . PSINet
. Excite@Home . Verio
. Exodus Communications . VeriSign
. InfoSpace . Yahoo!

Chase H&Q determined median revenue multiples for these companies. Applying
such multiples for the comparable companies to projected calendar year 2000 and
2001 revenues of Network Solutions resulted in a range of implied equity value
of Network Solutions of $13,021.4 million to $16,615.9 million and an implied
value per share of Network Solutions of $165.54 to $211.23. Chase H&Q observed
that the equity value and value per share of Network Solutions implied by the
proposed merger of $21,157.8 million and $267.14 per share, respectively,
exceeded the implied ranges.

Analysis of Selected Transactions. This analysis provides a valuation range
based on financial information of selected public companies that have been
recently acquired and are in similar industries as the business being
evaluated. Using published Wall Street estimates, Chase H&Q compared the
proposed merger with eleven selected mergers and acquisitions transactions
involving companies in the Internet industry. The acquirors and targets in the
transactions that Chase H&Q deemed comparable to the proposed merger were:

. Akamai Technologies/InterVU
. America Online/Netscape
. America Online/MapQuest.com
. @Home Network/Excite
. Kana Communications/Silknet
. Metromedia Fiber Network/AboveNet Communications
. Mindspring/Earthlink
. NextLink Communications/Concentric Network
. Whittman-Hart/USWeb/CKS
. Yahoo!/Broadcast.com
. Yahoo!/GeoCities

In examining these transactions, Chase H&Q analyzed, among other things, the
multiples of offer prices to (1) revenues of the target for the last four
fiscal quarters preceding the public announcement of the transaction and (2)
projected revenues of the target for the calendar year following the public
announcement of the transaction. All multiples for the selected transactions
were based on public information available at the time of public announcement,
and Chase H&Q's analysis did not take into account different market and other
conditions during the two-year period during which the selected transactions
occurred. Applying the medians of the foregoing sets of multiples to Network
Solutions' revenues for the four fiscal quarters preceding the announcement of
the merger and projected calendar year 2000 revenues resulted in the ranges of
implied equity and per share values of Network Solutions set forth in the
following table:

<TABLE>
<CAPTION>
Implied Range of Value
----------------------
<S> <C>
Equity value........................... $8,971.1 million--$12,102.4 million
Value per share........................ $114.05--$153.86
</TABLE>

Chase H&Q observed that the equity and per share values of Network Solutions
implied by the proposed merger of $21,157.8 million and $267.14, respectively,
exceeded these implied value ranges.

Premium Analysis. Chase H&Q compared the implied premium as of March 3, 2000
of the consideration to be paid in the proposed merger to the implied premiums
paid in the comparable public company transactions

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<PAGE>

listed above. Applying the median premiums paid to the closing price of Network
Solutions common stock on March 3, 2000 resulted in the following equity and
per share values of Network Solutions.

<TABLE>
<CAPTION>
Median Implied Implied per
Date of Sales Price Comparison Premium Paid Equity Value Share Value
------------------------------ ------------ ------------ -----------
<S> <C> <C> <C>
One trading day prior............... 35.9% $19,011.8 $241.69
Twenty trading days prior........... 82.7% $19,190.5 $243.96
</TABLE>

Chase H&Q observed that the equity and per share values of Network Solutions
implied by the proposed merger of $21,157.8 million and $267.14, respectively,
exceeded these implied value ranges.

Exchange Ratio Analysis. Chase H&Q calculated the ratio of the historical
price of Network Solutions common stock to the historical price of VeriSign
common stock over various periods. The results of such analysis are set forth
below:

<TABLE>
<CAPTION>
Period Implied Exchange Ratio Implied per Share Price
------ ---------------------- -----------------------
<S> <C> <C>
March 3, 2000.............. .7157 $177.85
5-trading day average...... .6547 $162.69
10-trading day average..... .6407 $159.21
20-trading day average..... .6627 $164.68
40-trading day average..... .6609 $164.23
60-trading day average..... .6822 $169.52
</TABLE>

Chase H&Q noted that the exchange ratio in the proposed merger of 1.075 and
the implied price of $267.14 per share of Network Solutions were greater than
the foregoing implied exchange ratio and per share price.

Pro Forma Contribution Analysis. Chase H&Q determined the implied pro forma
equity value of the combined company, based on an analysis of the multiple of
equity value to projected revenues for the calendar year 2001 for the following
companies that Chase H&Q considered comparable to the combined company:

. Akamai Technologies
. Critical Path
. Entrust
. InfoSpace
. Inktomi
. Tumbleweed Software
. Vignette

Chase H&Q then computed the implied equity value of the portion of the
combined company to be owned by Network Solutions' stockholders following the
proposed merger, based on the exchange ratio. Chase H&Q noted that, based on
published Wall Street estimates of each of Network Solutions' and VeriSign's
calendar year 2001 revenue, such implied value would be $21,397.9 million, or
$272.03 per share, compared to the equity value of $21,157.8 million and the
value per share of Network Solutions of $267.14 implied by the proposed merger,
and the closing price of Network Solutions common stock on March 3, 2000 of
$177.85.

Chase H&Q also observed that no company or transaction used in the above
analyses is identical to Network Solutions or the proposed merger, and the
reasons for and circumstances surrounding each of the analyzed transactions are
inherently different. Accordingly, an analysis of the results of the foregoing
is not mathematical; rather it involves complex, qualitative considerations and
judgments, reflected in Chase H&Q's opinion, concerning differences in the
financial and operating characteristics of the compared companies, the
characteristics of the selected transactions and other factors that could
affect the public trading values of the comparable companies, Network Solutions
and VeriSign.

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<PAGE>

The foregoing description of Chase H&Q's opinion is qualified in its entirety
by reference to the full text of such opinion that is attached as Annex D to
this proxy statement/prospectus.

Chase H&Q, as part of its investment banking services, is regularly engaged
in the valuation of businesses and their securities in connection with mergers
and acquisitions, strategic transactions, corporate restructurings, negotiated
underwritings, secondary distributions of listed and unlisted securities,
private placements and valuations for corporate and other purposes. Chase H&Q
has previously provided investment banking and other financial advisory
services to Network Solutions and has received fees for rendering these
services. Chase H&Q also has previously provided investment banking and other
financial advisory services to VeriSign and has received fees for rendering
these services. In the ordinary course of business, Chase H&Q acts as a market
maker and broker in the publicly traded securities of Network Solutions and
VeriSign, receives customary compensation in connection therewith and provides
research coverage for Network Solutions and VeriSign. In the ordinary course of
business, Chase H&Q actively trades in the equity and derivative securities of
Network Solutions and VeriSign for its own account and for the accounts of its
customers and, accordingly, may at any time hold a long or short position in
such securities. Chase H&Q may in the future provide investment banking or
other financial advisory services to Network Solutions or VeriSign.

Pursuant to an engagement letter with Chase H&Q, Network Solutions has agreed
to pay Chase H&Q a customary fee in connection with the financial advisory
services provided by Chase H&Q and the delivery of the fairness opinion.
Network Solutions also agreed to reimburse Chase H&Q for its reasonable out-of-
pocket expenses and to indemnify Chase H&Q against certain liabilities,
including liabilities under the federal securities laws or relating to or
arising out of Chase H&Q's engagement as financial advisor.

Interests of certain persons in the merger

When considering the recommendations of VeriSign's and Network Solutions'
boards of directors, you should be aware that the directors and officers of
VeriSign and Network Solutions have interests in the merger and have
arrangements that are different from, or are in addition to, those of VeriSign
and Network Solutions stockholders generally. These include:

. Employment. Three new directors, to be mutually agreed upon by the
boards of directors of VeriSign and Network Solutions, will be appointed
to the VeriSign board. In addition, some executive officers of Network
Solutions will become executive officers of VeriSign.

. Overlapping board seat. Stratton D. Sclavos, the President and Chief
Executive Officer of VeriSign, is a member of the VeriSign and Network
Solutions boards of directors.

. Registration Rights. SAIC Venture Capital, a holder of approximately 23%
of the outstanding common stock of Network Solutions, some officers and
directors of which are directors of Network Solutions, will receive
registration rights with respect to the shares of VeriSign common stock
it will receive in the merger.

. Stock Options. Stratton D. Sclavos holds options to purchase 93,000
shares of Network Solutions common stock and options to purchase 2.4
million shares of VeriSign common stock.

. Indemnification. VeriSign and Network Solutions directors and executive
officers have customary rights to indemnification against certain
liabilities.

As a result, these directors, executive officers and stockholders could be
more likely to vote in favor of recommending the merger agreement and the
merger than if they did not hold these interests.

Completion and effectiveness of the merger

The merger will be completed when all of the conditions to completion of the
merger are satisfied or waived, including approval and adoption of the merger
agreement, approval of the merger by the stockholders of Network Solutions,
approval of the issuance of shares of VeriSign common stock in the merger and
approval of the amendment to VeriSign's certificate of incorporation by the
VeriSign stockholders. The merger will become effective upon the filing of a
certificate of merger with the State of Delaware.

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<PAGE>

Structure of the merger and conversion of Network Solutions common stock

Nickel Acquisition Corporation, a newly formed and wholly owned subsidiary of
VeriSign, will be merged with and into Network Solutions. As a result of the
merger, the separate corporate existence of Nickel will cease and Network
Solutions will survive the merger as a wholly owned subsidiary of VeriSign.

Upon completion of the merger, each outstanding share of Network Solutions
common stock, other than shares held by Network Solutions and its subsidiaries,
will be converted into the right to receive 1.075 shares of fully paid and
nonassessable VeriSign common stock. The number of shares of VeriSign common
stock issuable in the merger will be proportionately adjusted for any stock
split, stock dividend or similar event with respect to VeriSign common stock or
Network Solutions common stock effected between the date of the merger
agreement and the completion of the merger. The ratio of 1.075 reflects Network
Solutions' two-for-one stock split that was effected on March 10, 2000.

No certificate or scrip representing fractional shares of VeriSign common
stock will be issued in connection with the merger. Instead, Network Solutions'
stockholders will receive cash, without interest, in lieu of a fraction of a
share of VeriSign common stock.

Exchange of Network Solutions stock certificates for VeriSign stock
certificates

When the merger is completed, VeriSign's exchange agent will mail to Network
Solutions stockholders a letter of transmittal and instructions for use in
surrendering Network Solutions stock certificates in exchange for VeriSign
stock certificates. When a Network Solutions' stockholder delivers the Network
Solutions stock certificates to the exchange agent along with an executed
letter of transmittal and any other required documents, your Network Solutions
stock certificates will be canceled and you will receive VeriSign stock
certificates representing the number of full shares of VeriSign common stock to
which you are entitled under the merger agreement. Network Solutions
stockholders will receive payment in cash, without interest, in lieu of any
fractional shares of VeriSign common stock that would have been otherwise
issuable to you in the merger.

You should not submit your Network Solutions stock certificates for exchange
unless and until you receive the transmittal instructions and a form of letter
of transmittal from the exchange agent.

Network Solutions stockholders are not entitled to receive any dividends or
other distributions on VeriSign common stock until the merger is completed and
they have surrendered their Network Solutions stock certificates in exchange
for VeriSign stock certificates. In addition, VeriSign does not anticipate
paying any dividends with respect to its stock.

VeriSign will only issue Network Solutions stockholders a VeriSign stock
certificate or a check in lieu of a fractional share in a name in which the
surrendered Network Solutions stock certificate is registered. If you wish to
have your certificate issued in another name you must present the exchange
agent with all documents required to show and effect the unrecorded transfer of
ownership and show that you paid any applicable stock transfer taxes.

Material United States federal income tax consequences of the merger

The following discussion summarizes the material United States federal income
tax consequences of the merger. This discussion is based on the Internal
Revenue Code, the related regulations promulgated thereunder, existing
administrative interpretations and court decisions, all of which are subject to
change, possibly with retroactive effect. This discussion assumes that Network
Solutions stockholders hold their shares of Network Solutions common stock as
capital assets within the meaning of section 1221 of the Internal Revenue Code.
This discussion does not address all aspects of United States federal income
taxation that may be important to you in light of your particular circumstances
or if you are subject to special rules. These special rules include rules
relating to:

. stockholders who are not citizens or residents of the United States;

. financial institutions;

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<PAGE>

. tax-exempt organizations;

. insurance companies;

. dealers in securities;

. stockholders who acquired their shares of Network Solutions common stock
through the exercise of options or similar derivative securities or
otherwise as compensation; or

. stockholders who hold their shares of Network Solutions common stock as
part of a straddle, conversion or other integrated transaction.

Our obligations to complete the merger are conditioned on (1) the delivery of
an opinion to Network Solutions from Davis Polk & Wardwell and (2) the delivery
of an opinion to VeriSign from Fenwick & West LLP, in each case regarding the
qualification of the merger as a reorganization within the meaning of section
368(a) of the Internal Revenue Code and that each of VeriSign and Network
Solutions will be a party to the reorganization within the meaning of section
368(a) of the Internal Revenue Code.

We believe, based on the advice of our respective counsel, that the merger
will have the United States federal income tax consequences discussed below.
The opinions of counsel referred to above (1) will assume the absence of
changes in existing facts and (2) will rely on assumptions, representations and
covenants including those contained in certificates executed by officers of
VeriSign and Network Solutions. The opinions referred to above neither bind the
IRS nor preclude the IRS from adopting a position contrary to that expressed in
the opinions, and no assurance can be given that contrary positions will not be
successfully asserted by the IRS or adopted by a court if the positions were
litigated. Neither of us intends to obtain a ruling from the IRS with respect
to the tax consequences of the merger.

Tax consequences to VeriSign stockholders. Current stockholders of VeriSign
will not recognize gain or loss for United States federal income tax purposes
as a result of the merger.

Tax consequences to Network Solutions stockholders. Except as discussed
below, current stockholders of Network Solutions will not recognize gain or
loss for United States federal income tax purposes on the exchange of Network
Solutions common stock for VeriSign common stock in the merger. The aggregate
tax basis of the VeriSign common stock received as a result of the merger will
be the same as the aggregate tax basis in the Network Solutions common stock
surrendered in the exchange, reduced by the tax basis of any shares of Network
Solutions common stock for which cash is received instead of fractional shares
of VeriSign common stock. The holding period of the VeriSign common stock
received as a result of the exchange will include the period during which the
Network Solutions common stock exchanged in the merger was held. Network
Solutions stockholders will recognize gain or loss for United States federal
income tax purposes with respect to the cash they receive instead of a
fractional share interest in VeriSign common stock. The gain or loss will be
measured by the difference between the amount of cash they receive and the
portion of the tax basis of their shares of Network Solutions common stock
allocable to the shares of Network Solutions common stock exchanged for the
fractional share interest. This gain or loss will be capital gain or loss and
will be a long-term capital gain or loss if the shares of Network Solutions
common stock have been held for more than one year at the time the merger is
completed.

Tax consequences to VeriSign and Network Solutions. VeriSign, including its
merger subsidiary, and Network Solutions will not recognize gain or loss for
United States federal income tax purposes as a result of the merger.

This discussion is only intended to provide you with a general summary, and
it is not intended to be a complete analysis or description of all potential
United States federal income tax consequences of the merger. In addition, this
discussion does not address tax consequences that may vary with, or are
contingent on, your individual circumstances. Moreover, this discussion does
not address any non-income tax or any foreign, state or local tax consequences
of the merger. Accordingly, you are strongly urged to consult with your tax
advisor to determine the particular United States federal, state, local or
foreign income or other tax consequences to you of the merger.

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<PAGE>

Accounting treatment of the merger

We intend to account for the merger as a purchase for financial reporting and
accounting purposes, under generally accepted accounting principles. After the
merger, the results of operations of Network Solutions will be included in the
consolidated financial statements of VeriSign. The purchase price, i.e., the
aggregate merger consideration, will be allocated based on the fair values of
the assets acquired and the liabilities assumed. Any excess of cost over fair
value of the net tangible assets of Network Solutions acquired will be recorded
as goodwill and other intangible assets and will be amortized by charges to
operations under generally accepted accounting principles. These allocations
will be made based upon valuations and other studies that have not yet been
finalized.

Regulatory filings and approvals required to complete the merger

The merger is subject to the requirements of the Hart-Scott-Rodino Antitrust
Improvements Act, which prevents certain transactions from being completed
until required information and materials are furnished to the Antitrust
Division of the Department of Justice and the Federal Trade Commission and the
appropriate waiting periods end or expire. We have filed the required
information and materials with the Department of Justice and the Federal Trade
Commission. The requirements of Hart-Scott-Rodino will be satisfied if the
merger is completed within one year from the termination of the waiting period.

The Antitrust Division of the Department of Justice or the Federal Trade
Commission may challenge the merger on antitrust grounds either before or after
expiration of the waiting period. Accordingly, at any time before or after the
completion of the merger, either the Antitrust Division of the Department of
Justice or the Federal Trade Commission could take action under the antitrust
laws. Certain other persons could take action under the antitrust laws,
including seeking to enjoin the merger. Additionally, at any time before or
after the completion of the merger, notwithstanding that the applicable waiting
period expired or ended, any state could take action under the antitrust laws.
A challenge to the merger could be made and if a challenge is made we may not
prevail.

Neither of us is aware of any other material governmental or regulatory
approval required for completion of the merger, other than the effectiveness of
the registration statement of which this prospectus/proxy statement is a part,
and compliance with applicable corporate law of Delaware.

Restrictions on sales of shares by affiliates of Network Solutions and VeriSign

The shares of VeriSign common stock to be issued in the merger will be
registered under the Securities Act. These shares will be freely transferable
under the Securities Act, except for shares of VeriSign common stock issued to
any person who is an affiliate of either of us. Persons who may be deemed to be
affiliates include individuals or entities that control, are controlled by, or
are under common control of either of us and may include some of our officers
and directors, as well as our principal stockholders. Affiliates may not sell
their shares of VeriSign common stock acquired in the merger except pursuant to
(1) an effective registration statement under the Securities Act covering the
resale of those shares, (2) an exemption under paragraph (d) of Rule 145 under
the Securities Act or (3) any other applicable exemption under the Securities
Act.

Listing on the Nasdaq National Market of VeriSign common stock to be issued in
the merger

It is a condition to the closing of the merger that the shares of VeriSign
common stock to be issued in the merger be approved for listing on the Nasdaq
National Market, subject to official notice of issuance.

Delisting and deregistration of Network Solutions common stock after the merger

If the merger is completed, the Network Solutions common stock will be
delisted from the Nasdaq National Market and will be deregistered under the
Securities Exchange Act.

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THE MERGER AGREEMENT

This section of the document describes the merger agreement. While we believe
that the description covers the material terms of the merger agreement, this
summary may not contain all of the information that is important to you. The
merger agreement is attached to this document as Annex A and we urge you to
carefully read this document in its entirety.

Representations and warranties

We each made representations and warranties in the merger agreement regarding
aspects of our respective businesses, financial condition, structure and other
facts pertinent to the merger, including representations and warranties by each
company as to:

Network Solutions' representations and warranties:

Network Solutions' representations and warranties include representations as
to:

. its corporate organization, good standing and qualification to do
business;

. its subsidiaries and ownership interests in other entities;

. its and its subsidiaries' certificates of incorporation and bylaws;

. its capitalization;

. its authority to enter into the merger agreement;

. required consents, waivers and approvals;

. regulatory approvals required to complete the merger;

. the effect of the merger on its outstanding obligations;

. Network Solutions' filings and reports with the Securities and Exchange
Commission;

. its financial statements and liabilities;

. changes in its business since its most recent financial statements;

. its taxes;

. title to the properties it owns and leases;

. its intellectual property, intellectual property that it uses and
infringement of other intellectual property;

. its compliance with applicable laws;

. permits required to conduct its business and compliance with those
permits;

. litigation with respect to Network Solutions;

. its employee benefit plans;

. its hazardous material activities and environmental liabilities;

. its agreements, contracts and commitments;

. brokers' and finders' fees in connection with the merger;

. its insurance;

. information supplied by it in this document and the related registration
statement filed by VeriSign;

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<PAGE>

. approval by its board of directors;

. the fairness opinions received by Network Solutions from its financial
advisors;

. the inapplicability of specified laws to the merger; and

. identification of its affiliates and transactions with related parties.

VeriSign's representations and warranties

VeriSign's representations and warranties include representations as to:

. its and the merger subsidiary's corporate organization and its authority
and qualification to do business;

. its and the merger subsidiary's certificate of incorporation and bylaws;

. its and the merger subsidiary's capitalization;

. authorization, execution and delivery of the merger agreement by it and
the merger subsidiary;

. regulatory or other approvals required to complete the merger;

. filings and reports with the Securities and Exchange Commission;

. financial statements;

. changes in its business since September 30, 1999;

. taxes;

. title to the properties it owns or leases;

. intellectual property, intellectual property it uses and infringement of
other intellectual property;

. compliance with applicable laws;

. litigation involving it;

. its employee benefit plans;

. hazardous material activities and environmental liabilities;

. any agreements involving acquisitions or dispositions;

. any exclusive agreement or any agreement restricting any of its lines of
businesses;

. brokers' and finders' fees in connection with the merger;

. information supplied by it in this prospectus/proxy statement;

. approval by its board of directors; and

. the fairness opinion received by it from its financial advisor.

The representations and warranties in the merger agreement are complicated
and are not easily summarized. We urge you to read the articles of the merger
agreement entitled "Representations and warranties of company," and
"Representations and warranties of parent and merger sub" carefully.

Conduct of each company's business before the closing of the merger

Network Solutions and VeriSign have each agreed that until the closing of the
merger, or unless the other consents in writing, each of them and their
subsidiaries will carry on their business in the usual, regular and

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<PAGE>

ordinary course, and pay its debts and taxes when due. Each party has also
agreed to use its commercially reasonable efforts consistent with past
practices and policies to:

. preserve intact its present business organization;

. keep available the services of its present officers and employees; and

. preserve its relationships with customers, suppliers, licensors,
licensees, and others with which it has business dealings.

Network Solutions

Network Solutions has also agreed that until the closing of the merger, or
unless VeriSign consents in writing, Network Solutions and each of its
subsidiaries will conduct its business in compliance with specific restrictions
relating to the following:

. waiving restrictions on, accelerating or modifying the terms of or
payment for options granted, restricted stock purchased under its stock
plans, or repricing of stock options granted under its stock plans;

. transferring or licensing intellectual property;

. except for the stock split that occurred on March 10, declaring or
paying dividends or making other distributions with respect to its
capital stock;

. purchasing or redeeming shares of its capital stock except repurchases
of unvested shares in connection with employee terminations;

. granting any severance or termination pay except under written
agreements then in effect or in an amount equal to four months' salary
of the terminated person;

. issuing securities other than grants of options to purchase no more than
500,000 shares of Network Solutions' common stock with respect to newly
hired employees or promotions of existing employees, or as a part of
Network Solutions' annual option grant program, in each case, in the
ordinary course of business, consistent with past practice, or issuances
of Network Solutions common stock upon exercise of outstanding options
on the date of the merger agreement, or issuances under Network
Solutions' employee stock purchase plan or to participants in its 401(k)
plan;

. amending its charter and bylaws;

. acquiring or agreeing to merge with or acquire the assets of, or making
equity investments in, other entities subject to exceptions related to
the amount of the transaction;

. selling, leasing, licensing, encumbering or disposing of property or
assets that are material to the business of Network Solutions;

. incurring or guaranteeing indebtedness except in the ordinary course of
business or under existing credit facilities;

. adopting or amending any employee benefit plan;

. making any material capital expenditures other than those contained in
Network Solutions' capital budget approved prior to the date of the
merger agreement;

. entering into, modifying or terminating contracts or waiving, releasing
or assigning any material rights under the contract in a manner that
could reasonably be expected to materially adversely affect Network
Solutions;

. changing accounting practices or revaluing assets;

. entering into any agreement regarding the acquisition, distribution or
licensing of Network Solutions' intellectual property other than in the
ordinary course; or

. materially changing the pricing of the registration fees for its
registration services.

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<PAGE>

VeriSign

VeriSign has also agreed that until the closing of the merger, or unless
Network Solutions consents in writing, VeriSign and each of its subsidiaries
will conduct its business in compliance with specific restrictions relating to
the following:

. declaring or paying dividends or making other distributions with respect
to its capital stock;

. purchasing or redeeming shares of its capital stock except repurchases
of unvested shares in connection with employee terminations;

. amending its certificate of incorporation or bylaws;

. acquiring or agreeing to merge with or acquire the assets of, or making
equity investments in, other entities, subject to exceptions related to
the amount of the transaction;

. entering into any agreement regarding the acquisition, distribution or
licensing of any material intellectual property, other than in the
ordinary course; or

. changing accounting practices.

The agreements related to the conduct of the companies' business in the
merger agreement are complicated and not easily summarized. We urge you to read
the sections of the merger agreement entitled "Conduct Prior to the Effective
Time" carefully.

No other negotiations

Until the merger is completed or the merger agreement is terminated, Network
Solutions has agreed not to take any of the following actions directly or
indirectly:

. solicit, initiate, encourage or induce any Acquisition Proposal, as
defined below;

. participate in any discussions or negotiations regarding any Acquisition
Proposal;

. furnish any non-public information with respect to any Acquisition
Proposal;

. take any other action to facilitate any inquiries or the making of any
Acquisition Proposal;

. engage in discussions with any person with respect to any Acquisition
Proposal;

. approve, endorse or recommend any Acquisition Proposal; or

. enter into any letter of intent or similar document or any contract,
agreement or commitment relating to any Acquisition Proposal.

However, if Network Solutions receives an unsolicited, written, bona fide
Acquisition Proposal prior to its stockholders' meeting that its board
reasonably concludes based on written advice of its financial advisor may
constitute a Superior Offer, as defined below, Network Solutions may furnish
non-public information regarding it and may enter into discussions with the
person or group who has made that Acquisition Proposal, if:

. neither Network Solutions nor its representatives shall have violated
the provisions relating to any other negotiations;

. Network Solutions' board of directors concludes in good faith after
consultation with outside legal counsel that this action is required for
the board of directors to meet its fiduciary obligations to Network
Solutions' stockholders under applicable law;

. prior to furnishing non-public information to, or entering into any
discussions with, a party making the Acquisition Proposal, Network
Solutions gives VeriSign written notice of the Acquisition Proposal,
including the identity of the party making the Acquisition Proposal and
the material terms and conditions of the Acquisition Proposal;

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<PAGE>

. Network Solutions furnishes the non-public information to VeriSign at
the same time that Network Solutions furnishes this information to the
party making the Acquisition Proposal and the information furnished to
the other party is subject to an agreement requiring the confidential
treatment of that information; and

. Network Solutions gives VeriSign at least two business days' advance
notice of its intent to furnish non-public information to or enter into
discussions.

Network Solutions has agreed to inform VeriSign promptly as to any
Acquisition Proposal, request for non-public information that Network Solutions
believes would lead to an Acquisition Proposal or inquiry that Network
Solutions reasonably should believe would lead to an Acquisition Proposal, the
identity of the party making the Acquisition Proposal, request or inquiry, and
the material terms of the Acquisition Proposal, request or inquiry. Network
Solutions also has agreed to keep VeriSign informed as to the status of any
Acquisition Proposal, request or inquiry.

An Acquisition Proposal is any offer or proposal by a third party relating
to:

. the acquisition or purchase of more than a 20% interest in the total
outstanding voting securities of Network Solutions or any of its
subsidiaries;

. any tender offer or exchange offer, that, if consummated, would result
in any person or group beneficially owning 20% or more of the total
outstanding voting securities of Network Solutions or any of its
subsidiaries;

. any merger, consolidation, business combination or similar transaction
involving Network Solutions under which stockholders of Network
Solutions immediately prior to the acquisition hold less than 80% of the
equity interest in the resulting entity;

. any sale, lease outside the ordinary course of business, exchange,
transfer, license outside the ordinary course of business, or
acquisition or disposition of more than 50% of the assets of Network
Solutions or any sale, lease, license or transfer to a third party of
either the registrar or registry businesses of Network Solutions; or

. any liquidation or dissolution of Network Solutions.

A Superior Offer with respect to Network Solutions is an unsolicited, bona
fide written proposal made by a third party to complete any of the following
transactions:

. a merger or consolidation involving Network Solutions under which the
stockholders of Network Solutions immediately preceding the transaction
hold less than 50% of the equity interest in the surviving entity of the
transaction; or

. the acquisition by any person or group, including by way of a tender
offer or an exchange offer or a two step transaction involving a tender
offer followed with reasonable promptness by a merger involving the
company, directly or indirectly, of ownership of 100% of the then
outstanding shares of capital stock of Network Solutions

on terms that the board of Network Solutions determines, in its reasonable
judgment, based on the written advice of its financial advisor, to be more
favorable to Network Solutions' stockholders than the terms of the merger. An
offer will not be a Superior Offer if any financing required to complete the
transaction is not committed and it is not likely in the reasonable judgment of
Network Solutions' board of directors, based on the advice of its financial
advisor, to be obtained on a timely basis.

Network Solutions' board may, without breaching the merger agreement,
withhold, withdraw, amend or modify its recommendation in favor of the merger
proposal if:

. a Superior Offer is made to Network Solutions and is not withdrawn;

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<PAGE>

. Network Solutions provides written notice to VeriSign, including the
identity of the party making the Superior Offer and specifying the
material terms and conditions of the Superior Offer;

. VeriSign does not, within three business days after receiving this
written notice, make an offer that the board of Network Solutions
determines by majority vote in its good faith judgment, based on written
advice of its financial advisor, to be at least as favorable to Network
Solutions' stockholders as the Superior Offer;

. Network Solutions' board concludes in good faith, after consultation
with its outside legal counsel, that the withholding, withdrawal,
amendment or modification of its recommendation is required for the
board to comply with its fiduciary obligations to Network Solutions'
stockholders under applicable law; and

. Network Solutions has not violated specified provisions in the merger
agreement.

Network Solutions also agreed to provide VeriSign with prior notice of any
meeting of its board at which Network Solutions' board is reasonably expected
to consider any Acquisition Proposal to determine whether it is a Superior
Offer. Even if the board's recommendation is withheld, withdrawn, amended or
modified, Network Solutions must nevertheless hold and convene the stockholders
meeting.

Public disclosure

Each of us will consult with the other and, to the extent practicable, agree
before issuing any press release or making any public statement with respect to
the merger, the merger agreement, or any Acquisition Proposal.

Employee benefit plans

VeriSign and Network Solutions will work together to agree upon mutually
acceptable employee benefit and compensation arrangements. VeriSign and Network
Solutions will terminate its severance, separation, retention and salary
continuation plans, programs or arrangements prior to the effective time of the
merger, subject to specified exceptions.

Conditions to closing the merger

Our obligations to complete the merger are subject to the satisfaction or
waiver of each of the following conditions before closing the merger:

. the merger agreement and the merger must be approved by stockholders of
Network Solutions;

. the issuance of the shares of VeriSign common stock to be issued in the
merger, as well as the amendment to VeriSign's certificate of
incorporation, must be approved by VeriSign's stockholders;

. no governmental entity shall have enacted or issued any law, regulation
or order that has the effect of making the merger illegal, otherwise
prohibiting the closing of the merger;

. all applicable waiting periods under applicable antitrust laws must have
expired or been terminated;

. VeriSign and Network Solutions must each receive from its tax counsel an
opinion to the effect that the merger will constitute a tax-free
reorganization within the meaning of section 368(a) of the Internal
Revenue Code;

. the shares of VeriSign common stock to be issued in the merger must be
authorized for quotation on the Nasdaq National Market, subject to
notice of issuance; and

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<PAGE>

. all required approvals and consents shall have been obtained unless the
failure would not have a material adverse effect on the combined
companies and the approvals and consents shall be on terms that are not
reasonably likely to have a material adverse effect on the companies.

Network Solutions' obligations to complete the merger are subject to the
satisfaction or waiver of each of the following additional conditions:

. VeriSign's representations and warranties must be true and correct in
all respects at and as of the date the merger is to be completed as if
made at and as of that time, except:

-- VeriSign's representations and warranties that address matters only
as of a particular date, which must be true and correct, or true and
correct as of that date, and

-- where the failure to be true and correct would not have a material
adverse effect, defined below;

. VeriSign must have performed or complied in all material respects with
all of its agreements and covenants required by the merger agreement to
be performed or complied with by it at or before closing the merger;

. no material adverse effect with respect to VeriSign shall have occurred
since March 6, 2000 and be continuing; and

. VeriSign shall have taken all action necessary to appoint three
individuals mutually agreed upon by the boards of directors of VeriSign
and Network Solutions to VeriSign's board of directors.

VeriSign's obligations to complete the merger are subject to the
satisfaction or waiver of each of the following additional conditions:

. Network Solutions' representations and warranties must be true and
correct as of the date the merger is to be completed as if made at and
as of that time, except:

-- Network Solutions' representations and warranties that address
matters only as of a particular date must be true and correct or
true and correct in all material respects, as applicable, as of that
date; and

-- where the failure to be true and correct would not have a material
adverse effect on Network Solutions;

. Network Solutions must have performed or complied in all material
respects with all of its agreements and covenants required by the merger
agreement to be performed or complied with by Network Solutions at or
before the closing of the merger;

. No material adverse effect with respect to Network Solutions shall have
occurred since March 6, 2000 and be continuing; and

. There shall not be instituted or pending any action or proceeding by a
governmental entity seeking to:

-- restrain or prohibit the ownership or operation by VeriSign of all
or any portion of Network Solutions' business or for VeriSign to
dispose of any business or assets of Network Solutions;

-- seeking to impose limitations on the ability of VeriSign to exercise
full ownership rights of the Network Solutions stock it acquires; or

-- seeking to require VeriSign to divest the shares of Network
Solutions it acquires.

A material adverse effect is defined to be any change, event, circumstance
or effect that is, or is reasonably likely to be, materially adverse to the
business, assets, capitalization, financial condition, operations or results
of operations of the company taken as a whole with its subsidiaries. A
material adverse effect does not include a change, event, circumstance or
effect that results from:

. changes in general economic conditions;

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<PAGE>

. changes affecting the company's industry generally, so long as the
change does not affect the company in a substantially disproportionate
manner; or

. changes in the market price of VeriSign or Network Solutions common
stock.

Termination of the merger agreement

The merger agreement may be terminated at any time prior to closing the
merger, whether before or after the requisite stockholder approval:

. by mutual consent duly authorized by the boards of VeriSign and Network
Solutions;

. by either VeriSign or Network Solutions, if the merger is not completed
by September 15, 2000, except that the right to terminate the merger
agreement under this provision is not available to any party whose
action or failure to act has been a principal cause of or resulted in
the failure of the merger to occur on or by September 15, 2000, and this
action or failure to act constitutes a breach of the merger agreement;

. by VeriSign or Network Solutions, if a governmental authority has issued
an order, decree or ruling or taken any other action that is final and
nonappealable, having the effect of permanently enjoining, restraining
or prohibiting the merger;

. by VeriSign or Network Solutions, if the merger is not approved by the
stockholders of Network Solutions, except that the right to terminate
the merger agreement under this provision is not available to Network
Solutions where the failure to obtain stockholder approval was caused by
an action or failure to act by Network Solutions that constitutes a
breach of the merger agreement, or a breach of the voting agreement
described under "Related Agreements--Voting Agreement";

. by either VeriSign or Network Solutions if the approval of the issuance
of shares of VeriSign common stock in the merger and the amendment to
VeriSign's certificate of incorporation shall not have been approved by
VeriSign's stockholders, except that the right to terminate the merger
agreement under this provision is not available to VeriSign if the
failure to obtain stockholder approval was caused by an action or
failure to act by VeriSign that constitutes a breach of the merger
agreement;

. by VeriSign at any time prior to the adoption and approval of the merger
agreement and the merger by the required vote of stockholders of Network
Solutions, if a Triggering Event, as described below, occurs; or

. by Network Solutions, on the one hand, or VeriSign, on the other, upon a
breach of any representation, warranty, covenant or agreement on the
part of the other in the merger agreement, or if any of the other's
representations or warranties are or become untrue, so that the
corresponding condition to closing the applicable merger would not be
met. However, if the breach or inaccuracy is curable by the other
through the exercise of its commercially reasonable efforts, and the
other continues to exercise commercially reasonable efforts, then the
other may not terminate the merger agreement if the breach or inaccuracy
is cured within 30 days after delivery of the notice of breach or
inaccuracy.

A Triggering Event will occur if:

. Network Solutions' board of directors or any committee withdraws or
amends or modifies in a manner adverse to VeriSign its recommendation in
favor of the adoption and approval of the merger agreement and the
approval of the merger;

. Network Solutions fails to include in this prospectus/proxy statement
the recommendation of its board of directors in favor of the adoption
and approval of the merger agreement and the approval of the merger;

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<PAGE>

. Network Solutions' board of directors fails to reaffirm its
recommendation in favor of adoption and approval of the merger agreement
and the approval of the merger within 10 days after VeriSign requests in
writing that this recommendation be reaffirmed at any time after the
public announcement of an Acquisition Proposal;

. Network Solutions' board of directors approves or publicly recommends
any Acquisition Proposal;

. Network Solutions enters into a letter of intent or agreement accepting
an Acquisition Proposal;

. Network Solutions shall have breached the non-solicitation provisions of
the merger agreement or the provisions of the merger agreement relating
to holding the Network Solutions' stockholders meeting; or

. if a tender or exchange offer relating to the securities of that company
is commenced by a person or entity unaffiliated with the other company,
and the company does not send to its stockholders within 10 business
days after the tender or exchange offer is first commenced a statement
disclosing that the company recommends rejection of the tender or
exchange offer.

Termination fee

Network Solutions is obligated to pay VeriSign a termination fee equal to
$425 million in immediately available funds if VeriSign terminates the merger
agreement at any time prior to approval of the merger by Network Solutions'
stockholders because a Triggering Event has occurred.

Network Solutions is obligated to pay a termination fee equal to $425 million
if:

. prior to termination of the merger agreement an Acquisition Proposal is
publicly announced;

. within nine months of the termination of the merger agreement, Network
Solutions completes an Acquisition or enters into an agreement providing
for an Acquisition and that Acquisition is later consummated with the
person with whom the agreement was entered into or an affiliate of that
person, regardless of when the consummation occurs, if Network Solutions
had entered into the agreement during the nine-month period; and

. either

-- Network Solutions or VeriSign terminates the merger agreement
because the required approval of the merger by Network Solutions'
stockholders was not obtained; or

-- VeriSign terminates the merger agreement due to a breach of a
representation, warranty covenant or agreement of Network Solutions.

An Acquisition is any of the following:

. a merger, consolidation, business combination, recapitalization,
liquidation, dissolution or similar transaction involving the company in
which Network Solutions' stockholders immediately preceding the
transaction hold less than 50% of the aggregate equity interests in the
surviving entity of the transaction;

. a sale or other disposition by Network Solutions of assets representing
in excess of 50% of the aggregate fair market value of its business
immediately prior to the sale or of either the "registry" or "registrar"
business of Network Solutions; or

. the acquisition by any person or group, including by way of a tender
offer or an exchange offer or issuance by Network Solutions, directly or
indirectly, of beneficial ownership or a right to acquire beneficial
ownership of shares representing in excess of 50% of the voting power of
the then outstanding shares of capital stock of Network Solutions.

An Acquisition does not include a spin-off or other distribution of either
the "registry" or "registrar" business of Network Solutions to Network
Solutions' stockholders.

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Amendment, extension and waiver of the merger agreement

We may amend the merger agreement before closing the merger by execution of a
written instrument signed by each of us, provided that we comply with
applicable state law in amending the agreement. Either of us may extend the
other's time for the performance of any of the obligations or other acts under
the merger agreement, waive any inaccuracies in the other's representations and
warranties and waive compliance by the other with any of the agreements or
conditions contained in the merger agreement.

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RELATED AGREEMENTS

This section of the prospectus/proxy statement describes agreements related
to the merger agreement including the voting agreement and registration rights
agreement. While we believe that these descriptions cover the material terms of
these agreements, these summaries may not contain all of the information that
is important to you. The voting agreement is attached as Annex E, and the
registration rights agreement is attached as Annex F, and we urge you to read
them carefully.

Voting Agreement

VeriSign required SAIC Venture Capital to enter into a voting agreement. This
voting agreement requires SAIC Venture Capital to vote the shares of Network
Solutions common stock owned by it in favor of the merger agreement and the
merger and against any proposal in opposition to or competition with the
merger. SAIC Venture Capital also granted VeriSign an irrevocable proxy to vote
its shares of Network Solutions common stock at the special meeting. As of the
record date, SAIC Venture Capital owned 16,300,000 shares of Network Solutions
common stock, which represented approximately 23% of the outstanding Network
Solutions common stock. SAIC Venture Capital also agreed not to sell or
transfer the Network Solutions common stock it owns until the termination of
the voting agreement. The voting agreement will terminate upon the earlier of
the termination of the merger agreement or the completion of the merger.

Registration Rights Agreement

VeriSign entered into a registration rights agreement with SAIC Venture
Capital. This agreement will require VeriSign on up to three occasions when
requested by SAIC Venture Capital, to file a registration statement with the
Securities and Exchange Commission registering for public resale at least
2,000,000 shares of VeriSign common stock it receives in the merger. VeriSign
will only be required to effect one registration in any six month period. In
addition, SAIC Venture Capital will be entitled to "piggyback" registration
rights so as to be able to include the shares of VeriSign common stock it
receives in the merger in a registration statement filed by VeriSign. This
agreement will terminate after May 6, 2005 or earlier if VeriSign provides a
written opinion that the shares may be resold in a three-month period under
Rule 144 or 145 under the Securities Act without restrictions on manner of
sale, notice or current public information.

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UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL INFORMATION

The following unaudited pro forma combined condensed financial information
has been prepared to give effect to the merger, to be accounted for using the
purchase method of accounting. This financial information reflects certain
assumptions deemed probable by management regarding the merger (e.g., that
share information used in the unaudited pro forma information approximates
actual share information at the effective date). The total estimated purchase
cost of the mergers has been allocated on a preliminary basis to assets and
liabilities based on management's best estimates of their fair value with the
excess cost over the net assets acquired allocated to goodwill. The adjustments
to the unaudited pro forma combined condensed financial information are subject
to change pending a final analysis of the total purchase cost and the fair
value of the assets and liabilities assumed. The impact of these changes could
be material.

The unaudited pro forma combined condensed balance sheet as of December 31,
1999 gives effect to the merger as if it had occurred on December 31, 1999, and
combines the historical consolidated balance sheet of VeriSign and the
historical consolidated balance sheets of Network Solutions and Signio as of
that date and THAWTE as of November 30, 1999.

The unaudited pro forma combined condensed statement of operations for the
year ended December 31, 1999 combines the historical consolidated statement of
operations of VeriSign for the year ended December 31, 1999 with the historical
consolidated statements of operations of Network Solutions and Signio for the
year ended December 31, 1999, and of THAWTE for the year ended November 30,
1999 and excludes in-process research and development as it is a non-recurring
charge.

The unaudited pro forma combined condensed financial information is based on
estimates and assumptions. These estimates and assumptions are preliminary and
have been made solely for purposes of developing this pro forma information.
Unaudited pro forma combined financial information is presented for
illustrative purposes only and is not necessarily indicative of the combined
financial position or results of operations of future periods or the results
that actually would have been realized had the entities been a single entity
during this period. This unaudited pro forma combined financial information is
based upon the respective historical consolidated financial statements of
VeriSign, THAWTE, Signio and Network Solutions and notes thereto, incorporated
in this proxy statement/prospectus by reference and should be read in
conjunction with those statements and the related notes.

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VERISIGN, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
(In thousands)

<TABLE>
<CAPTION>
Signio
Historical THAWTE Adjustments Adjustments
----------------------------------------------------------- ------------------- -------------------
VeriSign THAWTE Signio Network Solutions
As of As of As of As of
Dec. 31, 1999 Nov. 30, 1999 Dec. 31, 1999 Dec. 31, 1999 Amount Reference Amount Reference
------------- ------------- ------------- ----------------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash
equivalents..... $ 70,382 $1,694 $ 766 $196,589 $ (60) (a) $ --
Short-term
investments..... 86,098 -- 2,232 116,342 -- --
Receivables,
net............. 22,727 266 230 31,916 -- --
Prepaid expenses
and other
current assets.. 3,635 16 363 8,809 -- --
Income taxes
receivable...... -- -- -- 16,193 -- --
Deferred income
taxes........... -- -- -- 100,997 -- --
-------- ------ ------- -------- -------- --------
Total current
assets.......... 182,842 1,976 3,591 470,846 (60) --
Property, plant
and equipment,
net.............. 10,194 988 1,756 57,406 (5) (a) --
Long-term
investments...... 144,751 -- -- 62,475 -- --
Other assets..... 3,379 -- 672 -- -- --
Goodwill and
other intangible
assets, net...... -- -- 858 6,379 649,053 (a), (b) 882,572 (c), (d)
Deferred income
taxes............ -- 639 -- 28,197 -- (639) (c)
-------- ------ ------- -------- -------- --------
$341,166 $3,603 $ 6,877 $625,303 $648,988 $881,933
======== ====== ======= ======== ======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Current
liabilities:
Accounts
payable......... $ 4,665 $ 91 $ 864 $ 3,283 $ -- $ --
Due to Science
Applications
International
Corporation..... -- -- -- 30,177 -- --
Accrued
liabilities..... 6,237 -- 1,860 49,674 -- --
Income taxes
payable......... -- 842 -- 1,045 -- --
Long-term
obligations--
current......... -- -- 178 247 -- --
Deferred
revenue, net.... 31,777 2,212 185 255,307 (511) (b) (135) (d)
-------- ------ ------- -------- -------- --------
Total current
liabilities..... 42,679 3,145 3,087 339,733 (511) (135)
Long-term
liabilities...... -- -- 412 639 -- --
Deferred income
taxes............ -- -- -- -- -- 7,740 (c), (e)
Long-term
deferred revenue,
net.............. -- -- -- 106,332 -- --
Minority interest
in subsidiary.... 128 -- -- -- -- --
Stockholders'
equity:
Preferred
stock........... -- -- 1 -- -- (1) (c)
Common stock.... 103 -- 14 68 4 (a) (8) (c)
Additional paid-
in capital...... 258,239 -- 27,118 117,289 649,947 (a) 851,418 (c), (e)
Notes payable to
(receivable
from)
stockholders.... -- 6 (836) -- -- --
Unearned
compensation.... (172) -- (4,776) -- -- 4,776 (c)
Retained
earnings
(accumulated
deficit)........ (47,452) 447 (18,143) 29,259 (447) (a) 18,143 (c)
Accumulated
other
comprehensive
income.......... 87,641 5 -- 31,983 (5) (a) --
-------- ------ ------- -------- -------- --------
Total
stockholders'
equity.......... 298,359 458 3,378 178,599 649,499 874,328
-------- ------ ------- -------- -------- --------
$341,166 $3,603 $ 6,877 $625,303 $648,988 $881,933
======== ====== ======= ======== ======== ========
<CAPTION>
Network Solutions
Adjustments
----------------------
Amount Reference Combined
------------ --------- ------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash
equivalents..... $ -- $ 269,371
Short-term
investments..... -- 204,672
Receivables,
net............. -- 55,139
Prepaid expenses
and other
current assets.. -- 12,823
Income taxes
receivable...... -- 16,193
Deferred income
taxes........... (100,997) (g) --
------------ ------------
Total current
assets.......... (100,997) 558,198
Property, plant
and equipment,
net.............. -- 70,339
Long-term
investments...... -- 207,226
Other assets..... -- 4,051
Goodwill and
other intangible
assets, net...... 20,032,705 (f), (g) 21,571,567
Deferred income
taxes............ (28,197) (g) --
------------ ------------
$19,903,511 $22,411,381
============ ============
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Current
liabilities:
Accounts
payable......... $ -- $ 8,903
Due to Science
Applications
International
Corporation..... -- 30,177
Accrued
liabilities..... -- 57,771
Income taxes
payable......... -- 1,887
Long-term
obligations--
current......... -- 425
Deferred
revenue, net.... (38,769) (g) 250,066
------------ ------------
Total current
liabilities..... (38,769) 349,229
Long-term
liabilities...... -- 1,051
Deferred income
taxes............ 239,980 (f), (g) 247,720
Long-term
deferred revenue,
net.............. (22,870) (g) 83,462
Minority interest
in subsidiary.... -- 128
Stockholders'
equity:
Preferred
stock........... -- --
Common stock.... 4 (f) 185
Additional paid-
in capital...... 19,843,077 (f), (g) 21,747,088
Notes payable to
(receivable
from)
stockholders.... -- (830)
Unearned
compensation.... -- (172)
Retained
earnings
(accumulated
deficit)........ (85,928) (f) (104,121)
Accumulated
other
comprehensive
income.......... (31,983) (f) 87,641
------------ ------------
Total
stockholders'
equity.......... 19,725,170 21,729,791
------------ ------------
$19,903,511 $22,411,381
============ ============
</TABLE>

See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements

74
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)

<TABLE>
<CAPTION>
Historical
-----------------------------------------------------------
VeriSign THAWTE Signio Network Solutions THAWTE Adjustments Signio Adjustments
Year Ended Year Ended Year Ended Year Ended -------------------- --------------------
Dec. 31, 1999 Nov. 30, 1999 Dec. 31, 1999 Dec. 31, 1999 Amount Reference Amount Reference
------------- ------------- ------------- ----------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues......... $84,776 $2,461 $ 742 $220,811 $ -- $ --
------- ------ -------- -------- --------- ---------
Costs and
expenses:
Cost of
revenues........ 31,898 638 2,562 81,606 -- --
Sales and
marketing....... 34,145 209 3,347 54,757 -- --
Research and
development..... 13,303 -- 2,798 10,989 -- --
General and
administrative.. 8,740 687 6,451 37,760 -- (2,385) (l)
Amortization of
goodwill and
other intangible
assets.......... -- -- -- -- 218,239 (h) 294,191 (j)
------- ------ -------- -------- --------- ---------
Total costs and
expenses........ 88,086 1,534 15,158 185,112 218,239 291,806
------- ------ -------- -------- --------- ---------
Operating income
(loss)........... (3,310) 927 (14,416) 35,699 (218,239) (291,806)
<CAPTION>
Network Solutions
Adjustments
----------------------
Amount Reference Combined
------------ --------- ------------
<S> <C> <C> <C>
Revenues......... $ -- $ 308,790
------------ ------------
Costs and
expenses:
Cost of
revenues........ -- 116,704
Sales and
marketing....... -- 92,458
Research and
development..... -- 27,090
General and
administrative.. (843) (m) 50,410
Amortization of
goodwill and
other intangible
assets.......... 5,043,541 (m) 5,555,971
------------ ------------
Total costs and
expenses........ 5,042,698 5,842,633
------------ ------------
Operating income
(loss)........... (5,042,698) (5,533,843)

Non-operating income (expense):
Interest
income.......... 7,365 70 -- 9,928 -- --
Other (income)
expense, net.... (936) 3 (77) (52) -- --
------- ------ -------- -------- --------- ---------
Income (loss)
before income
taxes............ 3,119 1,000 (14,493) 45,575 (218,239) (291,806)
Provision
(benefit) for
income taxes..... -- 591 -- 18,689 -- --
------- ------ -------- -------- --------- ---------
Net income (loss)
before minority
interest......... 3,119 409 (14,493) 26,886 (218,239) (291,806)
Minority interest
in net loss of
subsidiary....... (836) -- -- -- -- --
------- ------ -------- -------- --------- ---------
Net income
(loss)........... $ 3,955 $ 409 $(14,493) $ 26,886 $(218,239) $(291,806)
======= ====== ======== ======== ========= =========
Net income (loss)
per share:
Basic........... $ .04
=======
Diluted......... $ .03
=======
Weighted-average
shares used in
per share
computation:
Basic........... 100,531 4,360 (i) 5,592 (k)
======= ========= =========
Diluted......... 114,610 4,360 (i) 5,592 (k)
======= ========= =========
Non-operating income (expense):
Interest
income.......... -- 17,363
Other (income)
expense, net.... -- (1,062)
------------ ------------
Income (loss)
before income
taxes............ (5,042,698) (5,517,542)
Provision
(benefit) for
income taxes..... (251,280) (n) (232,000)
------------ ------------
Net income (loss)
before minority
interest......... (4,791,418) (5,285,542)
Minority interest
in net loss of
subsidiary....... -- (836)
------------ ------------
Net income
(loss)........... $(4,791,418) $(5,284,706)
============ ============
Net income (loss)
per share:
Basic........... $ (28.07)
============
Diluted......... $ (28.07)
============
Weighted-average
shares used in
per share
computation:
Basic........... 77,759 (o) 188,242
============ ============
Diluted......... 63,680 (o) 188,242
============ ============
</TABLE>

See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements

75
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA COMBINED
CONDENSED FINANCIAL STATEMENTS

Note 1. Unaudited Pro Forma Combined Condensed Balance Sheet

The pro forma combined condensed balance sheet gives effect to the mergers as
if they had occurred on December 31, 1999 with respect to the balance sheets of
VeriSign, Network Solutions and Signio, or on November 30, 1999, with respect
to the balance sheet of THAWTE.

THAWTE

On February 1, 2000, VeriSign acquired all the outstanding capital stock of
THAWTE in exchange for 4,360,424 shares of VeriSign common stock and $60,000 of
cash. The following adjustments have been reflected in the unaudited pro forma
combined condensed balance sheet:

(a) To record common stock issued to the shareholder of THAWTE and the
application of purchase accounting, excluding the effect on deferred
revenue. Transaction costs were not significant to the total purchase price
and were therefore not included below.

Under purchase accounting, the total purchase price will be allocated to
THAWTE's tangible assets and liabilities based on their relative fair
values. Allocations are subject to valuations as of the date of the
consummation of the merger. The amounts and components of the estimated
purchase price along with the preliminary allocation of the estimated
purchase price to net assets purchased are presented below.

Purchase Price

<TABLE>
<CAPTION>
(In thousands)
<S> <C>
Cash....................................................... $ 60
Common stock............................................... 4
Additional paid-in capital................................. 649,947
--------
Total purchase price....................................... $650,011
========

Net Assets Acquired

Book value of net tangible assets of THAWTE................ $ 447
--------
Intangible assets:
Workforce in place....................................... 342
Non-compete agreement.................................... 939
Technology in place...................................... 2,963
THAWTE's trade name...................................... 913
Customer relationships................................... 2,807
Internet Service Provider ("ISP") hosting partnerships... 11,330
--------
19,294
Goodwill................................................... 630,270
--------
Net assets acquired........................................ $650,011
========
</TABLE>

The actual allocation of the purchase price will depend upon the
composition of THAWTE's net assets on the closing date and VeriSign's
evaluation of the fair value of the net assets as of that date.
Consequently, the actual allocation of the purchase price could differ from
that presented above.

76
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA COMBINED
CONDENSED FINANCIAL STATEMENTS--(Continued)

(b) To record a reduction in deferred revenue related to the estimated
calculation of VeriSign's obligation to perform life cycle services around
digital certificates equal to the expected costs to provide the services,
plus a normal profit margin.

Signio

On February 29, 2000, VeriSign acquired all the outstanding capital stock of
Signio in exchange for 5,591,819 shares of VeriSign common stock. In addition,
VeriSign assumed options to purchase an equivalent total of approximately
234,227 shares of VeriSign common stock in exchange for all issued and
outstanding Signio options. The following adjustments have been reflected in
the unaudited pro forma combined condensed balance sheet:

(c) To record common stock and options issued to the shareholders of
Signio, and the application of purchase accounting, excluding the effect on
deferred revenue. Transaction costs were not significant to the total
purchase price and were therefore not included below.

Under purchase accounting, the total purchase price will be allocated to
Signio's assets and liabilities based on their relative fair values.
Allocations are subject to valuations as of the date of the consummation of
the merger. The amounts and components of the estimated purchase price
along with the preliminary allocation of the estimated purchase price to
net assets purchased are presented below.

Purchase Price

<TABLE>
<CAPTION>
(In thousands)
<S> <C>
Common stock................................................ $ 6
Fair value of Signio options assumed........................ 31,798
Additional paid-in capital.................................. 839,002
--------
$870,806
========

Net Assets Acquired

Book value of net assets of Signio.......................... $ 4,214
--------
Intangible assets:
Workforce in place........................................ 961
Signio's trade name....................................... 4,501
Customer relationships.................................... 29,061
Technology in place....................................... 5,764
--------
40,287
Goodwill.................................................. 842,420
Deferred tax liability attributable to identifiable
intangible assets........................................ (16,115)
--------
Net assets acquired....................................... $870,806
========
</TABLE>

The actual allocation of the purchase price will depend upon the
composition of Signio's net assets on the closing date and VeriSign's
evaluation of the fair value of the net assets as of that date.
Consequently, the actual allocation of the purchase price could differ from
that presented above.

77
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA COMBINED
CONDENSED FINANCIAL STATEMENTS--(Continued)

(d) To record a reduction in deferred revenue related to the estimated
calculation of VeriSign's obligation to perform life cycle services around
payment services equal to the expected costs to provide the services, plus
a normal profit margin.

(e) To reduce VeriSign's valuation allowance of $7.7 million on deferred
tax assets as it more likely than not, as a result of the merger with
Signio, that these deferred tax assets will be utilized by the combined
entities.

Network Solutions

On March 7, 2000 VeriSign announced it would acquire all the outstanding
capital stock of Network Solutions in exchange for approximately 77,816,019
shares of VeriSign common stock. In addition, VeriSign will assume options to
purchase an equivalent total of approximately 8,763,609 shares of VeriSign
common stock in exchange for all issued and outstanding Network Solutions
options. The following adjustments have been reflected in the unaudited pro
forma combined condensed balance sheet:

(f) To record common stock and options issued to the shareholders of
Network Solutions, and the application of purchase accounting, excluding
the effect on deferred revenue, but including the write-off of in-process
research and development (IPRD).

Under purchase accounting, the total purchase price will be allocated to
Network Solutions' assets and liabilities based on their fair values.
Allocations are subject to valuations as of the date of the consummation of
the merger. The amounts and components of the estimated purchase price
along with the preliminary allocation of the estimated purchase price to
net assets purchased are presented below.

The total purchase price of approximately $20.0 billion consists of
approximately 77.8 million shares of VeriSign's common stock with an
estimated fair value of $18.4 billion, 8.1 million vested and unvested
stock options with an estimated fair value of $1.5 billion, and estimated
direct transaction costs of approximately $84.0 million. The fair value of
VeriSign's common stock was determined as the average market price from
February 28, 2000 to March 13, 2000, which includes five trading days prior
and five trading days subsequent to the public announcement of the merger.
The fair value of the common stock options was estimated using the Black
Scholes option pricing model with the following weighted-average
assumptions: risk-free interest rate of 6.5%, expected life of 3.4 years,
expected dividend rate of 0%, and volatility of 85%. The total purchase
price is expected to be allocated to tangible assets and liabilities,
intangible assets, including goodwill, and amortized over three to four
years, and in-process research and development. In addition, it is expected
that following the merger, the combined company will incur additional
restructuring costs, which cannot currently be estimated, associated with
the integration of the operations of the two companies.

Purchase Price

<TABLE>
<CAPTION>
(In thousands)
<S> <C>
Common stock................................................ $ 72
Additional paid-in capital.................................. 18,397,105
Fair value of Network Solutions' options assumed............ 1,479,266
Transaction costs........................................... 83,995
-----------
Total purchase price........................................ $19,960,438
===========
</TABLE>

78
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA COMBINED
CONDENSED FINANCIAL STATEMENTS--(Continued)

Net Assets Acquired

<TABLE>
<S> <C>
Book value of net assets of Network Solutions............... $ 178,599
-----------
Intangible assets:
Workforce in place......................................... 12,630
Contracts with ICANN and customer list..................... 747,113
Technology in place........................................ 28,848
Network Solutions' tradename............................... 72,703
-----------
861,294
-----------
In-process research and development......................... 56,669
Goodwill.................................................... 19,208,394
Deferred tax liability attributable to identifiable
intangible assets.......................................... (344,518)
-----------
Net assets acquired......................................... $19,960,438
===========
</TABLE>

The actual allocation of the purchase price will depend upon the
composition of Network Solutions' net assets on the closing date and
VeriSign's evaluation of the fair value of the net assets as of the date
indicated. Consequently, the actual allocation of the purchase price could
differ from that presented above.

The value of the acquired in-process research and development (IPRD) was
estimated utilizing a profit split methodology in which a portion of the
Registry's earnings before interest and taxes (EBIT) was allocated to
developed technology and IPRD. This methodology was utilized due to the
inherent difficulty of differentiating between revenues generated directly
by developed technology and IPRD in VeriSign's business model.

In developing the level of profit to assign to the developed technology
and IPRD, the profitability was analyzed of a set of guideline companies in
the networking and telecommunications equipment and systems industry. This
set of guideline companies was selected for the similarity of their
technology and research and development efforts to that of VeriSign. For
each guideline company, contributory asset charges for assets such as
capital assets, working capital, assembled workforce, customer lists, and
tradenames was deducted. After deducting these contributory asset charges,
the remaining profit was determined to be attributable to the technology
and research and development in process.

In applying this profit split methodology to the Registry business, the
same level of profit on a percentage basis from the cash flow projected to
be generated by the Registry business over the life of the technology was
deducted. The deducted cash flow was then allocated between developed
technology and acquired IPRD. The acquired IPRD cash flow was then reduced
by a percentage of completion factor. The resulting cash flows were
discounted to a present value and summed to arrive at the IPRD value of
$56.7 million.

(g) To record a reduction in deferred revenue and related deferred tax
effect of $24.7 million arising from the estimated calculation of
VeriSign's obligation to perform life cycle services around registry and
registrar services equal to the expected costs to provide the services,
plus a normal profit margin.

Note 2. Unaudited Pro Forma Combined Condensed Statement of Operations

The unaudited pro forma combined condensed statement of operations gives
effect to the mergers as if they had occurred at the beginning of the period
presented.

79
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA COMBINED
CONDENSED FINANCIAL STATEMENTS--(Continued)

THAWTE

The following adjustments have been reflected in the unaudited pro forma
combined condensed statement of operations:

(h) Adjustment to record the amortization of goodwill and intangible
assets resulting from the allocation of the purchase price. The pro forma
adjustment assumes goodwill and other intangible assets will be amortized
on a straight-line basis over the following estimated lives:

<TABLE>
<S> <C>
Intangible assets:
Workforce in place............................................. 3.0 years
Non-compete agreement.......................................... 3.0 years
Technology in place............................................ 3.0 years
THAWTE trade name.............................................. 3.0 years
Current products and relationships:
Customer relationships......................................... 3.0 years
Internet Service Provider ("ISP") hosting partnerships......... 2.0 years
Goodwill......................................................... 3.0 years
</TABLE>

The ultimate lives assigned will be determined at the date of acquisition
based on the facts and circumstances existing at that date.

(i) To reflect the estimated shares to be issued as consideration for the
merger.

Signio

The following adjustments have been reflected in the unaudited pro forma
combined condensed statement of operations:

(j) Adjustment to remove the amortization of historical goodwill and
other intangible assets previously recorded by Signio and to record the
amortization of goodwill and intangible assets resulting from the
allocation of the purchase price. The pro forma adjustment assumes goodwill
and other intangible assets will be amortized on a straight-line basis over
the following estimated lives:

<TABLE>
<S> <C>
Intangible assets:
Workforce in place............................................. 3.0 years
Signio trade name.............................................. 3.0 years
Current products and relationships:
Customer relationships......................................... 3.0 years
Technology in place............................................ 3.0 years
Goodwill......................................................... 3.0 years
</TABLE>

The ultimate lives assigned will be determined at the date of acquisition
based on the facts and circumstances existing at that date.

(k) To reflect the estimated shares and options to be issued as
consideration for the merger.

80
<PAGE>

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA COMBINED
CONDENSED FINANCIAL STATEMENTS--(Continued)

(l) To eliminate the stock based compensation recorded by Signio since
pro forma amortization of intangibles already considers this amount. Since
the stock-based compensation generated by stock options issued by Signio
and recorded in its historical financial statements represent outstanding
equity interests at the time of its acquisition date, and the intrinsic
value of those stock option issuances is considered in the purchase
accounting acquisition price for this transaction, amounts representing the
amortization of the excess purchase price attributable to this transaction
already retroactively include a charge for such stock option issuances.

Network Solutions

The following adjustments have been reflected in the unaudited pro forma
combined condensed statement of operations:

(m) Adjustment to remove the amortization of historical goodwill and
other intangible assets previously recorded by Network Solutions in general
and administrative expenses and to record the amortization of goodwill and
intangible assets resulting from the allocation of the purchase price. The
pro forma adjustment assumes goodwill and other intangible assets will be
amortized on a straight-line basis over the following estimated lives:

<TABLE>
<S> <C>
Intangible assets:
Workforce in place............................................. 4.0 years
DOC/ICANN Agreements and customer list......................... 3.4 years
Technology in place............................................ 3.0 years
Network Solutions tradename.................................... 4.0 years
Goodwill....................................................... 4.0 years
</TABLE>

The ultimate lives assigned will be determined at the date of acquisition
based on the facts and circumstances existing at that date.

(n) To reduce income tax expense for the effect of the pro forma
adjustments.

(o) To reflect the estimated shares and options to be issued as
consideration for the merger, and to reduce the number of shares used to
calculate the dilutive net loss per share as their effects were
antidilutive.

81
<PAGE>

COMPARATIVE PER SHARE MARKET PRICE DATA

VeriSign common stock has been traded on the Nasdaq National Market under the
symbol VRSN since January 29, 1998, the date of VeriSign's initial public
offering. Network Solutions common stock has been traded on the Nasdaq National
Market under the symbol NSOL since September 26, 1997, the date of Network
Solutions' initial public offering.

The following table sets forth, for the calendar quarters indicated, the high
and low sale prices per share of VeriSign common stock and Network common stock
as reported on the Nasdaq National Market. The prices in the table have been
adjusted to reflect VeriSign's two-for-one stock splits that were effected on
May 29, 1999 and December 6, 1999. The prices in the table also reflect Network
Solutions' two-for-one stock splits which were effected on March 23, 1999 and
March 10, 2000.

<TABLE>
<CAPTION>
VeriSign Network Solutions
common stock common stock
--------------- -----------------
High Low High Low
------- ------- -----------------
<S> <C> <C> <C> <C>
Fiscal Year Ended December 31, 1998:
First Quarter (VeriSign beginning January
30, 1998)................................. $ 11.72 $ 5.13 $ 9.28 $ 3.23
Second Quarter............................. 12.25 6.50 13.75 8.13
Third Quarter.............................. 11.22 5.47 11.58 6.44
Fourth Quarter............................. 19.38 4.85 41.18 7.09
Fiscal Year Ended December 31, 1999:
First Quarter.............................. $ 38.50 $ 15.00 $ 72.00 $35.00
Second Quarter............................. 44.13 24.63 57.75 25.88
Third Quarter.............................. 58.00 29.47 47.52 27.06
Fourth Quarter............................. 190.94 51.16 136.13 42.56
Fiscal Year Ending December 31, 2000:
First Quarter.............................. $258.50 $141.00 $ 255.63 $96.125
</TABLE>

The following table sets forth the closing prices per share of VeriSign
common stock and Network Solutions common stock as reported on the Nasdaq
National Market on (1) March 6, 2000, the business day preceding public
announcement that VeriSign and Network Solutions had entered into the merger
agreement and (2) , 2000, the last full trading day for which closing
prices were available at the time of the printing of this prospectus/proxy
statement.

This table also sets forth the equivalent price per share of Network
Solutions common stock on those dates. The equivalent price per share is equal
to the closing price of a share of VeriSign common stock on that date
multiplied by 1.075, the number of shares of VeriSign common stock to be issued
in exchange for each share of Network Solutions common stock.

<TABLE>
<CAPTION>
Network
Solutions VeriSign Equivalent
common common per
stock stock share price
--------- -------- -----------
<S> <C> <C> <C>
March 6, 2000.................................... $180.31 $247.44 $266.00
, 2000........................................ $ $ $
</TABLE>

VeriSign and Network Solutions believe that Network Solutions common stock
presently trades on the basis of the value of the VeriSign common stock
expected to be issued in exchange for the Network Solutions common stock in the
merger, discounted primarily for the uncertainties associated with the merger.
Apart from the publicly disclosed information concerning VeriSign that is
included and incorporated by reference in this prospectus/proxy statement,
VeriSign cannot state with certainty what factors account for changes in the
market price of the VeriSign common stock.

Network Solutions stockholders are advised to obtain current market
quotations for VeriSign common stock and Network Solutions common stock. No
assurance can be given as to the market prices of VeriSign

82
<PAGE>

common stock or Network Solutions common stock at any time before the
consummation of the merger or as to the market price of VeriSign common stock
at any time after the merger. Because the exchange ratio is fixed, the exchange
ratio will not be adjusted to compensate Network Solutions stockholders for
decreases in the market price of VeriSign common stock that could occur before
the merger becomes effective. In the event the market price of VeriSign common
stock decreases or increases prior to the consummation of the merger, the value
of the VeriSign common stock to be received in the merger in exchange for
Network Solutions common stock would correspondingly decrease or increase.

VeriSign has never paid cash dividends on its shares of capital stock.
Network Solutions paid a $10.0 million dividend to SAIC in 1997. Under the
merger agreement, each of VeriSign and Network Solutions has agreed not to pay
cash dividends pending the consummation of the merger, without written consent
of the other. If the merger is not consummated, the Network Solutions board
presently intends that it would continue its policy of retaining all earnings
to finance the expansion of its business. The VeriSign board presently intends
to retain all earnings for use in its business and has no present intention to
pay cash dividends before or after the merger.

83
<PAGE>

COMPARISON OF RIGHTS OF HOLDERS OF
VERISIGN COMMON STOCK AND
NETWORK SOLUTIONS COMMON STOCK

This section of the prospectus/proxy statement describes certain differences
between VeriSign common stock and Network Solutions common stock. While we
believe that the description covers the material differences between the two,
this summary may not contain all of the information that is important to you,
including the certificates of incorporation and bylaws of each company. You
should read this entire document and the other documents we refer to carefully
for a more complete understanding of the differences between VeriSign common
stock and Network Solutions common stock. You may obtain the information
incorporated by reference into this prospectus/proxy statement without charge
by following the instructions in the section entitled "Where you can find more
information."

After the merger, the holders of Network Solutions common stock will become
stockholders of VeriSign. Because VeriSign and Network Solutions are both
Delaware corporations, the Delaware General Corporation Law, or the DGCL, will
continue to govern the rights of the stockholders. The Network Solutions
certificate of incorporation and the Network Solutions bylaws currently govern
the rights of the stockholders of Network Solutions. As stockholders of
VeriSign after the merger, the VeriSign certificate of incorporation, and the
VeriSign bylaws, will instead govern their rights following the merger. The
following paragraphs summarize certain differences between the rights of
VeriSign stockholders and Network Solutions stockholders under the certificates
of incorporation and bylaws of VeriSign and Network Solutions, as applicable.
This summary includes the changes to VeriSign's certificate of incorporation
and bylaws that VeriSign stockholders are being asked to approve at the
meeting.

Voting

Each stockholder of Network Solutions and VeriSign has the right to one vote
for each share of common stock held by the stockholder.

Special meeting of stockholders

The VeriSign bylaws provide that only a majority of the members of the board
of directors, chairman of the board or president may call special meetings of
the stockholders.

The Network Solutions bylaws provide that special meetings of the
stockholders may be called by the chairman of the board, the chief executive
officer, the president or a majority of the members of the board of directors.

Action by written consent in lieu of a stockholder's meeting

VeriSign stockholders do not have the ability to take action by written
consent.

Network Solutions stockholders have the ability to take action by written
consent of the holders of outstanding shares of Network Solutions so long as
the action is signed by the holders having the minimum number of shares to
approve the action if the action were taken at a meeting at which all
outstanding shares of common stock were present and voting.

Voting by written ballot

Both the VeriSign and Network Solutions certificates of incorporation contain
provisions not requiring written ballots for the election of directors.

84
<PAGE>

Record date for determining stockholders

The VeriSign bylaws provide that the board of directors may fix a record date
that shall not be more than 60 nor less than 10 days before the date of the
stockholder meeting nor more than 60 days prior to any other action.

The VeriSign bylaws provide that if the board of directors does not fix a
record date in the manner described above, then:

(1) the record date for determining stockholders entitled to notice of
or to vote at a meeting of stockholders shall be at the close of
business on the day next preceding the day on which notice is
given, or, if notice is waived, at the close of business on the day
next preceding the day on which the meeting is held; and

(2) the record date for determining stockholders for any other purpose
shall be at the close of business on the same day on which the
board of directors adopts the related resolution.

The Network Solutions bylaws provide that the board of directors may fix a
record date that shall not be more than 60 nor less than 10 days before the
date of the stockholder meeting nor more than 60 days prior to any other
action.

Notice of board nomination and other stockholder business--annual meetings

The VeriSign bylaws require that nominations of persons for election to the
board of directors and the proposal of business to be considered at an annual
meeting of stockholders must be generally made by the board of directors. If
made by a stockholder, the proposal or nomination must be made by advance
written notice given to VeriSign between 60 and 90 days prior to the first
anniversary of the preceding year's annual meeting of stockholders. However, if
the date of the annual meeting at which the nomination or business is proposed
by a stockholder is more than 30 days before or more than 60 days after that
anniversary, then the notice may be given by the stockholder no earlier than
the 90th day prior to the meeting and not later than the later of 60 days prior
to the meeting or the 10th day following the first public announcement of the
meeting. These notice provisions are subject to certain exceptions with respect
to electing directors to fill board seats resulting from increases in the size
of the board of directors not publicly announced at least 70 days prior to the
annual meting. In addition, certain other information regarding the business
proposed for discussion must be included in the stockholder notice to VeriSign.

The Network Solutions bylaws require that nominations for election to the
board of directors at an annual meeting may be made on behalf of the board or
by any stockholder of the corporation entitled to vote for the election of
directors at that meeting. Nominations submitted by a stockholder shall be made
by notice in writing and mailed or delivered to Secretary of Network Solutions
not less than 120 days prior to any meeting of stockholders called for the
election of directors. However, if less than 100 days' notice of the meeting is
given to stockholders, nominations shall have been mailed or delivered to the
Secretary of Network Solutions not later than the close of business on the
seventh day following the day on which the notice of meeting was mailed.

This notice shall set forth as to each proposed nominee who is not an
incumbent director:

. the name, age, business address and, if known, residence address of each
nominee proposed in this notice;

. the principal occupation or employment of each nominee;

. the number of shares of stock of Network Solutions that are beneficially
owned by each nominee and by the nominating stockholder; and

. any other information concerning the nominee that must be disclosed of
nominees in proxy solicitations regulated by regulation 14A of the
Securities Exchange Act of 1934.

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<PAGE>

The Network Solutions bylaws require that stockholder business brought before
a meeting must be specified in the notice of meeting given by or at the
direction of the board, otherwise properly brought before the meeting by or at
the direction of the board or otherwise properly brought before the meeting by
a stockholder. Stockholder business brought before an annual meeting by a
stockholder must be provided in writing to the Secretary of Network Solutions
not less than 50 days nor more than 75 days prior to the meeting. However, in
the event that less than 65 days' notice or prior public disclosure of the date
of the meeting is made to stockholders, notice by the stockholder to be timely
must be so received not later than the close of business on the 15th day
following the day on which this notice of the date of the annual meting was
mailed or that public disclosure was made.

This notice shall set forth as to each matter the stockholder proposes to
bring before the annual meeting:

. a brief description of the business desired to be brought before the
annual meeting and the reasons for conducting the business at the annual
meeting;

. the name and record address of the stockholder proposing the business;

. the class and number of shares of Network Solutions that are
beneficially owned by the stockholder; and

. any material interest of the stockholder in the business.

Notice of board nomination and other stockholder business--special meetings

The VeriSign bylaws provide that, at special meetings of stockholders, the
only business that can be conducted will be the items of business set forth in
the notice of the special meeting. The bylaws also provide that nominations of
candidates for directors at a special meeting at which directors are to be
elected shall be made (1) by the board of directors or (2) if the board of
directors has determined that directors will be elected at the meeting, by a
stockholder meeting certain qualifications who gives VeriSign advance written
notice of the nominations no earlier than 90 days prior to that special meeting
and no later than the later of (A) 60 days before the special meeting, or (B)
the 10th day after the first public announcement of the meeting and the
nominees proposed by the board of directors to be elected at the meeting.

The Network Solutions bylaws do not distinguish between annual and special
meetings for purposes of the requirements for business to be brought before the
meeting.

Number of directors

The VeriSign bylaws provide that the board of directors shall consist of not
fewer than five and not more than seven directors. Under the proposed amendment
to the VeriSign bylaws, the number of directors on the VeriSign board would be
determined by the vote of a majority of the VeriSign board of directors only.

The Network Solutions bylaws provide that the board of directors shall
consist of one or more members, with changes in the number of directors
permitted exclusively by a resolution of the board of directors.

Election of directors

The holders of VeriSign common stock and Network Solutions common stock elect
all members of the respective company's board of directors.

The VeriSign certificate of incorporation and bylaws provide for a staggered
board of directors divided into three classes with the term of office of the
first class, Class I, to expire at the annual meeting of the stockholders held
in 2001; the term of office of the second class, Class II, to expire at the
annual meeting of stockholders held in 2000; the term of office of the third
class, Class III, to expire at the annual meeting of stockholders held in 2002;
and after for each term to expire at each third succeeding annual meeting of
stockholders after the corresponding election.

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<PAGE>

The Network Solutions certificate of incorporation contains no similar
provisions.

Removal of directors

The Network Solutions bylaws and the VeriSign bylaws each provide that any
director or the entire board of directors may be removed, with or without
cause, by the holders of a majority of the shares then entitled to vote at an
election of directors of the respective company.

Board of directors vacancies

The VeriSign bylaws provide that vacancies may be filled by the stockholders,
by a majority of the directors then in office or by a sole remaining director.
The Network Solutions bylaws provide that vacancies may be filled by a majority
of the directors then in office or by a sole remaining director.

Notice of special meetings of the board of directors

The VeriSign bylaws provide that the chairman of the board, the president or
one-third of the directors then in office may call a special meeting of the
board of directors. The bylaws require that written notice of the time and
place of these meetings be given at least four days before the meeting if the
notice is mailed, or at least 48 hours before the meeting if notice is given by
hand, telegram, telecopy or telex, unless this notice requirement is waived in
writing by each member of the board of directors.

The Network Solutions bylaws provide that the chairman of the board, chief
executive officer, the president or a majority of the board may call a special
meeting of the board of directors. The bylaws require that notice of the time,
date and place of the meeting be given at least two days before the meeting if
the notice is mailed, or at least four hours before the meeting if notice is
given by hand delivery, telegram, cable, facsimile, commercial delivery
service, telex or similar communication method.

Board action--generally

The VeriSign bylaws provide that, except as required by the DGCL, the vote of
a majority of the directors present at a meeting at which a quorum is present
or a written consent to action executed by all members of the board of
directors shall be the act of the board of directors of VeriSign.

The Network Solutions bylaws provide that, except as required by the DGCL,
the vote of majority of the directors present at a meeting at which a quorum is
present or a written consent to action executed by all members of the board of
directors shall be the act of the board of directors of Network Solutions.

Action by committees

Both the VeriSign bylaws and the Network Solutions bylaws authorize their
respective boards of directors to establish committees by resolution setting
forth the powers and duties of these committees.

Preferred stock

Both the VeriSign and Network Solutions certificates of incorporation
authorize the respective board of directors to issue shares of preferred stock
in one or more series and to fix the designations, preferences, powers and
rights of the shares to be included in each series. The VeriSign certificate of
incorporation reserves for issuance 5,000,000 shares of preferred stock and the
Network Solutions certificate of incorporation reserves for issuance 10,000,000
shares of preferred stock.

Indemnification

The VeriSign certificate of incorporation and bylaws and the Network
Solutions certificate of incorporation provide that its respective directors
and officers shall be indemnified to the full extent authorized by Delaware

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<PAGE>

law against all expenses, liabilities and losses reasonably incurred by that
person in connection with any action, proceeding or suit brought against that
person by reason of the fact that he or she is or was a director or officer of
VeriSign or Network Solutions, as the case may be, or is or was serving at the
request of VeriSign or Network Solutions, as the case may be, as a director or
officer of another corporation, partnership, joint venture, trust or similar
entity. The VeriSign bylaws and Network Solutions bylaws require the respective
corporations to pay all expenses incurred by a director or officer in defending
any proceeding within the scope of the indemnification provisions as these
expenses are incurred in advance of its final disposition.

Limitation on liability

Both the VeriSign certificate of incorporation and Network Solutions
certificate of incorporation provide that a director of the respective
corporation shall not be personally liable to the respective corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except for liability (a) for any breach of the director's duty of loyalty to
the Corporation and its stockholders; (b) for acts or omissions not in good
faith or which involve intentional misconduct or knowing violations of law; (c)
under section 174 of the DGCL; or (d) for any transaction from which the
director derived an improper personal benefit.

If one of Network Solutions' directors, officers or employees who is also a
director, officer or employee of SAIC knows of a potential transaction or
matter that may be a corporate opportunity both for Network Solutions and SAIC,
the director, officer or employee is entitled to offer the corporate
opportunity to Network Solutions or SAIC as the director, officer or employee
deems appropriate under the circumstances in his or her sole discretion, and no
director, officer or employee will be presumed liable to Network Solutions or
its stockholders for breach of any fiduciary duty or duty of loyalty or failure
to act in our best interests or the derivation of any improper personal benefit
by reason of the fact that:

. the director, officer or employee offered the corporate opportunity to
SAIC (rather than to Network Solutions) or did not communicate
information regarding the corporate opportunity to Network Solutions, or

. SAIC pursues or acquires that corporate opportunity for itself or
directs the corporate opportunity to another person or does not
communicate the corporate opportunity to Network Solutions.

The enforceability of the provisions discussed above under Delaware corporate
law has not been established and, due to the absence of relevant judicial
authority, Network Solutions' counsel is not able to deliver an opinion as to
the enforceability of these provisions. These provisions of the Network
Solutions certificate of incorporation eliminate certain rights that might have
been available to Network Solutions stockholders under Delaware law, although
the enforceability of these provisions has not been established.

These provisions of the Network Solutions certificate of incorporation expire
on the date that SAIC ceases to own at least 20% of Network Solutions'
outstanding shares of common stock and no person who is a director or officer
of Network Solutions is also a director or officer of SAIC or its subsidiaries.

Interested directors

The VeriSign bylaws require that in order for a transaction between VeriSign
and an interested director or officer not to be void or voidable solely for
this reason, there must be full disclosure of material facts as to the
interested director's relationship or interest to the transaction as well as
each of the following:

. approval by a majority of disinterested directors, even though the
disinterested directors may be less than a quorum;

. approval by a good faith vote of the stockholders entitled to vote
thereon; and

. the transaction must be fair to VeriSign as of the time it is
authorized, approved or ratified by the board of directors, a committee
thereof, or the stockholders.

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<PAGE>

The Network Solutions certificate of incorporation provides that SAIC has no
duty to refrain from engaging in the same or similar activities or lines of
business as Network Solutions and that neither SAIC nor any of its directors,
officers or employees will be liable to Network Solutions or its stockholders
for breach of any fiduciary duty due to any of these activities. If SAIC learns
of a potential matter that may be a corporate opportunity for both SAIC and
Network Solutions, SAIC has no duty to communicate or offer this opportunity to
Network Solutions. In addition, SAIC will not be liable to Network Solutions or
its stockholders for breach of any fiduciary duty if SAIC pursues or acquires
the corporate opportunity or does not communicate it to Network Solutions.

These provisions of Network Solutions' certificate of incorporation expire on
the date that SAIC ceases to own at least 20% of Network Solutions' outstanding
shares of common stock and no person who is a director or officer of Network
Solutions is also a director or officer of SAIC or its subsidiaries.

Dividends

VeriSign and Network Solutions stockholders are entitled to receive
dividends, subject to preferences of any outstanding preferred stock, out of
assets legally available for dividend distribution at times and in amounts as
the respective boards of directors may from time to time determine.

Liquidation

In the event of a liquidation, dissolution or winding up of either VeriSign
or Network Solutions, after payment of any amounts owed to creditors, subject
to preferences of any outstanding preferred stock, the remaining assets of
VeriSign or Network Solutions will be divided equally, on a share for share
basis, to the holders of the common stock of VeriSign or Network Solutions,
respectively.

Amendment of bylaws

The VeriSign bylaws provide that stockholders holding a majority of
VeriSign's outstanding voting stock may adopt, amend or repeal the bylaws. The
VeriSign certificate of incorporation and bylaws provide that the board of
directors has the power to adopt, amend or repeal the bylaws.

The Network Solutions bylaws provide that the board of directors may,
provided 66 2/3% of the total number of authorized directors so approve or
stockholders holding not less than 66 2/3% of the total voting power of the
then outstanding capital stock of Network Solutions entitled to vote thereon
may, adopt, amend or repeal the bylaws.

Delaware takeover statute

The Network Solutions certificate of incorporation provides that Network
Solutions is not subject to section 203 of the DGCL that, subject to certain
exceptions, prohibits a Delaware corporation from engaging in any business
combination with any interested stockholder for a period of three years
following the date that that stockholder became an interested stockholder.

Because the VeriSign certificate of incorporation and bylaws do not contain a
provision expressly electing for Network Solutions to not be governed by
section 203 of the DGCL, VeriSign is subject to the Delaware takeover statute.

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<PAGE>

SHARE OWNERSHIP BY PRINCIPAL
STOCKHOLDERS, MANAGEMENT AND DIRECTORS OF VERISIGN

The following table sets forth certain information with respect to the
beneficial ownership of VeriSign's common stock as of March 3, 2000 by:

. each person who is known by VeriSign to own beneficially more than 5% of
VeriSign's common stock;

. each director of VeriSign;

. each of the named executive officers of VeriSign; and

. all directors and executive officers of VeriSign as a group.

The percentage ownership is based on 114,820,683 shares of common stock
outstanding at March 3, 2000. Shares of common stock that are subject to
options currently exercisable or exercisable within 60 days of March 3, 2000,
are deemed outstanding for the purpose of computing the percentage ownership
of the person holding those options but are not deemed outstanding for
computing the percentage ownership of any other person. Unless otherwise
indicated in the footnotes following the table, the persons and entities named
in the table have sole voting and sole investment power with respect to all
shares beneficially owned, subject to community property laws where
applicable.

<TABLE>
<CAPTION>
Shares
Beneficially
Owned
-----------------
Name of Beneficial Owner Number Percent
------------------------ --------- -------
<S> <C> <C>
Putnam Investments Inc.(1)................................ 9,738,266 8.5
Janus Capital Corporation(2).............................. 9,055,055 7.9
D. James Bidzos(3)........................................ 5,255,300 4.6
Stratton D. Sclavos(4).................................... 696,856 *
Richard A. Yanowitch(5)................................... 421,796 *
Arnold Schaeffer(6)....................................... 240,115 *
Kevin R. Compton(7)....................................... 172,401 *
David J. Cowan(8)......................................... 130,195 *
Dana L. Evan(9)........................................... 126,650 *
Quentin P. Gallivan(10)................................... 40,000 *
Diana S. Keith(11)........................................ 33,600 *
Timothy Tomlinson(12)..................................... 9,815 *
William Chenevich......................................... 3,000 *
All officers and directors as a group (11 persons)(13).... 7,129,728 6.2
</TABLE>
- --------
* Less than 1% of VeriSign's common stock
(1) Based on a Schedule 13G filed on February 18, 2000. Represents 8,814,170
shares held by Putnam Investment Management, Inc. and 924,096 shares held
by The Putnam Advisory Company, Inc. Putnam Investment Management and The
Putnam Advisory Company are wholly owned subsidiaries of Putnam
Investments. The address of Putnam Investments is One Post Office Square,
Boston, Massachusetts 02109.
(2) Based on a Schedule 13G filed on February 15, 2000. The address of Janus
Capital Corporation is 100 Fillmore Street, Denver, Colorado 80206-4923.
(3) Represents 5,000,000 shares held by RSA Security, Inc. or by its wholly
owned subsidiaries, 1,000 shares held by D. James Bidzos, 191,800 shares
held by Kairdos L.L.C., 40,000 shares subject to options held by D. James
Bidzos that are exercisable within 60 days of March 3, 2000 and 22,500
shares subject to options held by Kairdos L.L.C. that are exercisable
within 60 days of March 3, 2000. Mr. Bidzos, the Chairman of the Board of
VeriSign, is the President of RSA Security, Inc. an Executive Vice
President and a director of RSA Security, Inc. and the General manager
and a member of Kairdos L.L.C. Mr. Bidzos disclaims

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<PAGE>

beneficial ownership of the shares held by Kairdos L.L.C. except for his
proportional interest therein, and disclaims beneficial ownership of the
shares held by RSA Security, Inc. or its wholly owned subsidiaries.
(4) Includes 4,400 shares held by Stratton or Jody Sclavos as Custodians
under UTMA for Nicholas L. Sclavos, 4,400 shares held by Stratton or Jody
Sclavos as Custodians under UTMA for Alexandra C. Sclavos and 17,205
shares held by the Sclavos family foundation, of which Mr. Sclavos is a
beneficiary.. Also includes 350,000 shares subject to options held by
Stratton D. Sclavos that are exercisable within 60 days of March 3, 2000.
Mr. Sclavos is President, Chief Executive Officer and a director of
VeriSign.
(5) Includes 67,500 shares subject to options held by Richard A. Yanowitch
that are exercisable within 60 days of March 3, 2000. Mr. Yanowitch is
Executive Vice President of Worldwide Marketing of VeriSign. Of the
shares shown in the table, as of March 3, 2000, 145,000 are subject to a
right of repurchase that lapses as to 72,500 of the shares each quarter.
(6) Includes 74,227 shares subject to options held by Arnold Schaeffer that
are exercisable within 60 days of March 3, 2000. Mr. Schaeffer is Vice
President of Engineering of VeriSign. Of the shares shown in the table,
as of March 3, 2000, 38,000 are subject to the right of repurchase that
lapses as to 35,500 of the shares each quarter.
(7) Includes 65,875 shares subject to options held by Kevin R. Compton that
are exercisable within 60 days of March 3, 2000.
(8) Includes 29,625 shares subject to options held by Deer III & Co. LLC that
are exercisable within 60 days of March 3, 2000 and 18,750 shares subject
to options held by David J. Cowan that are exercisable within 60 days of
March 3, 2000. Mr. Cowan, a director of VeriSign, is a manager of Deer
III & Co. LLC. Mr. Cowan disclaims beneficial ownership of shares held by
Deer III & Co. LLC except for his manager interest in that entity.
(9) Includes 14,000 shares held by Dana L. Evan as Custodian under UTMA for
Christopher Thomas Evan, 14,000 shares held by Dana L. Evan as Custodian
under UTMA for Ryan Joseph Evan and 68,580 shares subject to options held
by Dana L. Evan that are exercisable within 60 days of March 3, 2000. Ms.
Evan is Executive Vice President of Finance and Administration and Chief
Financial Officer of VeriSign. Of the shares shown in the table, as of
March 3, 2000, 62,500 are subject to a right of repurchase that lapses as
to 31,248 of the shares each quarter.
(10) Includes 40,000 shares subject to options held by Quentin Gallivan that
are exercisable within 60 days of March 3, 2000. Mr. Gallivan is
Executive Vice President of Worldwide Sales of VeriSign.
(11) Includes 20,937 shares subject to options held by Diana Keith that are
exercisable within 60 days of March 3, 2000. Diana Keith is Vice
President of Customer Service of VeriSign.
(12) Includes 4,050 shares subject to options held by Timothy Tomlinson that
are exercisable within 60 days of March 3, 2000 and 3,375 shares subject
to options held by TZM Investment Fund that are exercisable within 60
days of March 3, 2000. Mr. Tomlinson, the Secretary and a director of
VeriSign, is a general partner of TZM Investment Fund. Mr. Tomlinson
disclaims beneficiary ownership of shares held by TZM Investments Fund
except for his proportional interest in that entity.
(13) Includes the shares described in footnotes (3)--(12).

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<PAGE>

SHARE OWNERSHIP BY PRINCIPAL STOCKHOLDERS,
MANAGEMENT AND DIRECTORS OF NETWORK SOLUTIONS

The following table sets forth certain information regarding beneficial
ownership of Network Solutions' common stock as of March 13, 2000, except as
otherwise indicated, by:

. each person who is known by it to beneficially own more than five
percent of its common stock;

. each of its directors and nominees for director;

. each of (A) the chief executive officer, or acting chief executing
officer during the year ended December 31, 1999, (B) the other four most
highly compensated executive officers of Network Solutions, and (C) an
individual for whom disclosure in item (B) would have been provided but
for the fact that the individual was not serving as an executive officer
at the fiscal year ended December 31, 1999; and

. all of its directors and executive officers as a group.

<TABLE>
<CAPTION>
Shares
Beneficially
Name of Beneficial Owner(1) Owned Percent(2)
--------------------------- ------------ ----------
<S> <C> <C>
Principal Stockholders:
SAIC Venture Capital Corporation(3)................ 16,300,000 22.5%
3573 Howard Hughes Parkway, Suite 200
Las Vegas, Nevada 89109
Janus Capital Corporation(4)....................... 8,782,900 12.1
100 Fillmore Street
Denver, Colorado 80206-4923
MFS Investment Management(5)....................... 5,200,000 7.2
500 Boylston Street
Boston, MA 02116
Directors and Named Executive Officers:
Alan E. Baratz(6).................................. 61,500 *
J. Robert Beyster.................................. 7,200 *
Bruce L. Chovnick(7)............................... 77,012 *
Michael A. Daniels(8).............................. 115,360 *
Jonathan W. Emery(9)............................... 33,169 *
Craig I. Fields(10)................................ 30,000 *
J. Dennis Heipt(10)................................ 30,000 *
Robert J. Korzeniewski(11)......................... 99,631 *
William A. Roper, Jr............................... 4,000 *
James P. Rutt(12).................................. 4,200 *
Stratton D. Sclavos(13)............................ 60,400 *
Donald N. Telage(14)............................... 62,474 *
Douglas L. Wolford(15)............................. 16,803 *
All current executive officers and directors as a
group (17 persons)(16)............................ 703,747 *
</TABLE>
- --------
* Less than 1%
(1) This table is based upon information supplied by officers, directors and
principal stockholders, and, in the case of principal stockholders,
Schedules 13D and 13G filed with the SEC. Beneficial ownership is
determined in accordance with the rules of the SEC and generally includes
voting or investment power with respect to securities. Except as
indicated by footnotes and subject to community property laws, where
applicable, the persons named above have sole voting and investment power
with respect to all shares of common stock shown as beneficially owned by
them.
(2) Applicable percentage ownership is based on 72,367,694 shares of common
stock outstanding as of March 13, 2000. Shares of common stock subject to
options or other conversion that are exercisable or convertible within 60
days of March 13, 2000 are deemed to be beneficially owned by the person
holding those options or conversion rights for the purpose of computing
the percentage ownership of the person but are not treated as outstanding
for the purpose of computing any other person's percentage ownership.

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<PAGE>

(3) Based on a Schedule 13D filed with the SEC on March 16, 2000 and includes
shared voting power and shared dispositive power for 16,300,000 shares.
According to the Schedule 13D, these shares are subject to a voting
agreement dated March 6, 2000 between VeriSign and SAIC Venture Capital
pursuant to which SAIC Venture Capital has granted VeriSign an
irrevocable proxy to vote the shares in favor of the proposed merger
between us and VeriSign. VeriSign disclaims beneficial ownership of these
shares. SAIC Venture Capital is a wholly owned subsidiary of SAIC.
(4) Based on Schedule 13G filed with the SEC dated March 10, 2000 and
includes sole voting power and sole dispositive power for 8,782,900
shares.
(5) Based on our internal information and belief; such beneficial owner did
not file a report on Schedule 13G with the SEC as of the dates hereof.
(6) Represents 61,500 shares of common stock issuable under options
exercisable within 60 days of March 13, 2000.
(7) Represents 76,200 shares of common stock issuable under options
exercisable within 60 days of March 13, 2000, 706 shares purchased under
Network Solutions' Employee Stock Purchase Plan (through December 31,
1999), 72 shares purchased and contributed by Network Solutions under the
Network Solutions 401(k) Retirement Plan (through December 31, 1999), 29
shares purchased and contributed pursuant to the profit sharing component
of Network Solutions' 401(k) Retirement Plan (through December 31, 1999),
and 5 shares contributed pursuant to Network Solutions' match under
SAIC's 401(k) Retirement Plan (through July 1999).
(8) Includes 67,200 shares of common stock issuable under options exercisable
within 60 days of March 13, 2000.
(9) Includes 29,600 shares of common stock issuable under options exercisable
within 60 days of March 13, 2000, 3,540 shares purchased under Network
Solutions' Employee Stock Purchase Plan (through December 31, 1999), and
29 shares purchased and contributed pursuant to the profit sharing
component of Network Solutions' 401(k) Retirement Plan (through December
31, 1999).
(10) Includes 30,000 shares of common stock issuable under options exercisable
within 60 days of March 13, 2000.
(11) Includes 47,240 shares of common stock issuable under options exercisable
within 60 days of March 13, 2000, 3,322 shares purchased under Network
Solutions' Employee Stock Purchase Plan (through December 31, 1999), 22
shares purchased and contributed by Network Solutions under the Network
Solutions 401(k) Retirement Plan (through December 31, 1999), 29 shares
purchased and contributed pursuant to the profit sharing component of
Network Solutions' 401(k) Retirement Plan (through December 31, 1999) and
10 shares contributed pursuant to Network Solutions' match under SAIC's
401(k) Retirement Plan (through July 1999).
(12) Represents 4,200 stock units, representing the right to receive 4,200
shares of Network Solutions' common stock, granted to Mr. Rutt pursuant
to his offer letter.
(13) Includes 58,400 shares of common stock issuable pursuant to options
exercisable within 60 days of March 13, 2000.
(14) Includes 10,200 shares of common stock issuable pursuant to options
exercisable within 60 days of March 13, 2000, 3,736 shares purchased
under Network Solutions' Employee Stock Purchase Plans (through December
31, 1999), 29 shares purchased and contributed pursuant to the profit
sharing component of Network Solutions' 401(k) Retirement Plan (through
December 31, 1999), 9 shares contributed pursuant to Network Solutions'
match under SAIC's 401(k) Retirement Plan (through July 1999) and 4
shares purchased and contributed by Network Solutions pursuant to Network
Solutions' 401(k) Retirement Plan. Includes 2,000 shares indirectly
beneficially owned by Mr. Telage through his spouse.
(15) Represents 16,600 shares of common stock issuable pursuant to options
exercisable within 60 days of March 13, 2000, 132 shares purchased under
Network Solutions' Employee Stock Purchase Plan (through December 31,
1999), 32 shares purchased and contributed by Network Solutions under the
Network Solutions 401(k) Retirement Plan (through December 31, 1999), 29
shares purchased and contributed pursuant to the profit sharing component
of Network Solutions' 401(k) Retirement Plan (through December 31, 1999)
and 10 shares contributed pursuant to Network Solutions' match under
SAIC's 401K Retirement Plan (through July 1999).
(16) Includes an aggregate of 558,480 shares of common stock issuable pursuant
to options exercisable within 60 days of March 13, 2000, 11,720 shares
purchased under the Employee Stock Purchase Plan (through December 31,
1999), 846 shares purchased and contributed by Network Solutions under
the Network Solutions 401(k) Retirement Plan (through December 31, 1999),
232 shares purchased and contributed pursuant to the profit sharing
component of Network Solutions' 401(k) Retirement Plan (through December
31, 1999) and 47 shares contributed pursuant to Network Solutions' match
under SAIC's 401(k) Retirement Plan (through July 1999).

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<PAGE>

ADDITIONAL MATTERS BEING SUBMITTED TO A
VOTE OF ONLY VERISIGN STOCKHOLDERS

Proposal No. 1
Issuance of Shares in the Merger

Please refer to the section entitled "The Merger."

Proposal No. 2
Approval of Amendment to Certificate of Incorporation

VeriSign's Certificate of Incorporation currently authorizes VeriSign to
issue up to 200,000,000 shares of common stock and 5,000,000 shares of
preferred stock. This proposal would amend the certificate of incorporation to
authorize VeriSign to issue up to 1,000,000,000 shares of common stock and
5,000,000 shares of preferred stock. The larger number of authorized shares of
common stock provided for in this proposal will provide VeriSign the certainty
and flexibility to undertake various types of transactions, including stock
splits, in the form of stock dividends, financings, increases in the shares
reserved for issuance under stock incentive plans or other corporate
transactions not yet determined.

In order for the VeriSign board to be able to respond to future circumstances
with a reasonable degree of flexibility, VeriSign must have a sufficient number
of authorized shares to cover any stock dividends or other transactions. For
example, since there are currently 200,000,000 shares authorized and over
100,000,000 issued and outstanding shares of VeriSign's common stock and
approximately another 16,800,000 shares reserved for issuance under VeriSign's
stock plans, assuming that proposal nos. 5, 6 and 7 are approved. In addition,
VeriSign will issue approximately 78 million shares in the merger. Under the
proposed amendment to the certificate of incorporation, the additional shares
of common stock would be available for issuance without further stockholder
action, unless stockholder action is otherwise required by Delaware law or the
rules of any stock exchange or automated quotation system on which the common
stock may then be listed or quoted. VeriSign has no current plans to issue the
remainder of the additional authorized shares other than shares that could be
issued in connection with any additional stock options granted as a result of
any approved increase in the number of shares reserved for issuance under our
1998 Equity Incentive Plan or our 1998 Employee Stock Purchase Plan.

Based on the number of shares of common stock outstanding as of March 3, 2000
and on consummation of the merger, the VeriSign would have approximately
192,600,000 shares of common stock being issued and outstanding. This number
does not include approximately 25.0 million shares of common stock reserved for
issuance upon exercise of options outstanding and equity awards to be granted
under VeriSign's equity compensation plans, shares reserved for issuance under
VeriSign's 1998 Employee Stock Purchase Plan, shares reserved for issuance
under VeriSign's 1998 Directors Stock Option Plan and shares to subject to
options (as of March 6, 2000) to be assumed in the merger. Furthermore, during
the past 12 months, VeriSign has issued shares of its common stock in
connection with two business combinations and has agreed to issue shares in
connection with the acquisition of Network Solutions. Although VeriSign
currently has no agreements or understandings with respect to any other
material acquisitions, the increase in the authorized number of shares of
VeriSign common stock will provide VeriSign with additional flexibility with
regard to any future acquisitions.

The additional shares of VeriSign common stock that would become available
for issuance if the proposed amendment were adopted could also be used by
VeriSign to oppose a hostile takeover attempt or delay or prevent changes of
control of VeriSign or changes in or removal of management of VeriSign. For
example, without further stockholder approval, the VeriSign board could
strategically sell shares of common stock in a private transaction to
purchasers who would oppose a takeover or favor the current board. Although
this proposal to increase the number of authorized shares of common stock has
been prompted by business and financial considerations, not by the threat of
any attempt to accumulate shares or otherwise gain control of VeriSign,
stockholders nevertheless should be aware that approval of the proposal could
facilitate future efforts

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<PAGE>

by VeriSign to deter or prevent changes of control of VeriSign, including
transactions that are favored by a majority of the independent stockholders or
in which the stockholders might otherwise receive a premium for their shares
over then-current market prices or benefit in some other manner.

VeriSign's certificate of incorporation and bylaws contain provisions that
could have an anti-takeover effect, including the following:

. VeriSign's stockholders may only take action at a meeting and not by
written consent;

. VeriSign's board must be given advance notice regarding stockholder-
sponsored proposals for consideration at annual meetings and for
stockholder nominations for the election of directors;

. VeriSign has a classified board of directors, with the board being
divided into three classes that serve staggered three-year terms;

. vacancies on the board may be filled until the next annual meeting of
stockholders only by majority vote of the directors then in office; and

. special meetings of stockholders may only be called by the Chairman of
the Board, the President or the board, not by VeriSign's stockholders.

In addition, the authority granted by VeriSign's certificate of incorporation
to the board to fix the designations, powers, preferences, rights,
qualifications, limitations and restrictions of any class or series of
VeriSign's preferred stock could be used for anti-takeover purposes. The
proposal to increase the number of authorized shares of common stock, however,
is not part of any plan to adopt a series of amendments having an anti-takeover
effect, and VeriSign's management presently does not intend to propose anti-
takeover measures in future proxy solicitations.

The Board Recommends a Vote "FOR" the Amendment
to VeriSign's Certificate of Incorporation.

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<PAGE>

Proposal No. 3
Approval of Amendment to Bylaws

VeriSign's bylaws currently set the number of directors on VeriSign's board
at no less than five and no more than seven. VeriSign's bylaws further require
any amendment to the bylaws changing the authorized number of directors to be
adopted only by the affirmative vote of the stockholders holding a majority of
the outstanding common stock of VeriSign.

This proposal would amend the bylaws to provide a board of directors
consisting of no less than six members nor more than nine, or other number as
may be fixed from time to time by resolution of the board of directors.
Furthermore, for three years following the closing of the merger, any increase
in the actual number of directors to a total of more than nine will require the
affirmative vote of 80% of the directors then in office. Because three
additional directors will have been associated with Network Solutions, SAIC and
the consent of two of these three directors will be required for subsequent
increases in the number of directors, it will be more difficult to increase the
number of directors on the board over nine, which may make it more difficult to
effect a change in control. The requirement for any amendment to the bylaws
changing the authorized number of directors to be adopted only by the
affirmative vote of the stockholders holding a majority of the outstanding
stock of VeriSign entitled to vote will be removed.

The increase in the number of directors is being proposed to comply with
section 5.12 of the merger agreement, which states that three additional
directors mutually agreed upon by VeriSign's board and Network Solutions board
shall be appointed to VeriSign's board. Additionally, removal of the
requirement to obtain the affirmative vote of the stockholders holding a
majority of the outstanding stock of VeriSign before changing the authorized
number of directors will grant the board greater flexibility to change the size
of the board in the future it VeriSign deems it necessary to do so. The
requirement of the affirmative vote of 80% of the directors in office was
negotiated in conjunction with the merger agreement and was designed to prevent
the disenfranchisement of former Network Solutions stockholders through the
subsequent appointment of additional board members, which would dilute their
representation on the VeriSign board.

The Board Recommends a Vote "FOR" Amending VeriSign's Bylaws.

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Proposal No. 4
Election of directors

VeriSign's bylaws currently authorize no fewer than five and no more than
seven directors. VeriSign's board of directors, is currently comprised of six
directors. The bylaws divide the board into three classes: Class I, Class II
and Class III, with members of each class serving staggered three-year terms.
One class of directors is elected by the stockholders at each annual meeting to
serve a three-year term or until its successors are duly elected and qualified.
The existing directors were elected pursuant to the provisions of a
Stockholders' Agreement, which has terminated. The Class I directors, Mr.
Sclavos and Mr. Tomlinson, will stand for reelection at the 2002 annual
meeting. The Class II directors, Mr. Compton and Mr. Cowan, are standing for
reelection or election at this meeting and the Class III directors, Mr. Bidzos
and Mr. Chenevich, will stand for reelection or election at the 2001 annual
meeting. If any nominee for any reason is unable to serve, or for good cause
will not serve, as a director, the proxies may be voted for a substitute
nominee as the proxy holder may determine. We are not aware of any nominee who
will be unable to serve, or for good cause will not serve, as a director.

Directors/Nominees

The names of the nominees for election as Class II directors at the VeriSign
meeting and of the incumbent Class I and Class III directors, and some
information about them, are included below.

<TABLE>
<CAPTION>
Name Age Position
- ---- --- --------
<S> <C> <C>
Nominees for election as Class II
directors for a term expiring in 2003:
Kevin R. Compton(2).................... 41 Director
David J. Cowan(1)...................... 33 Director
Incumbent Class I directors with terms
expiring in 2002:
Stratton D. Sclavos.................... 38 President, Chief Executive Officer
and Director
Timothy Tomlinson(2)................... 50 Secretary and Director
Incumbent Class III directors with
terms expiring in 2001:
D. James Bidzos(1)..................... 44 Chairman of the Board
William Chenevich(1)(2)................ 56 Director
</TABLE>
- --------
Notes: (1)Member of the compensation committee
(2)Member of the audit committee

Stratton D. Sclavos has served as President and Chief Executive Officer and
as a director of VeriSign since he joined VeriSign in July 1995. From October
1993 to June 1995, he was Vice President, Worldwide Marketing and Sales of
Taligent, Inc., a software development company that was a joint venture among
Apple Computer, Inc., IBM and Hewlett-Packard. Prior to that time, he served in
various sales, business development and marketing capacities for GO
Corporation, MIPS Computer Systems, Inc. and Megatest Corporation. Mr. Sclavos
is also a director and a member of the compensation committee of Network
Solutions, Inc. and a director of Keynote Systems, Inc., Marimba, Inc. and
SalesForce.com, Inc.! Mr. Sclavos holds a B.S. degree in Electrical and
Computer Engineering from the University of California at Davis.

Timothy Tomlinson has been Secretary and a director of VeriSign since its
founding in April 1995. He has been a partner of Tomlinson Zisko Morosoli &
Maser LLP, a law firm, since 1983. Mr. Tomlinson is also a director of Portola
Packaging, Inc. and Oak Technology, Inc. Mr. Tomlinson holds a B.A. degree in
Economics, an M.B.A. degree and a J.D. degree from Stanford University.

Kevin R. Compton has been a director of VeriSign since February 1996. He has
been a general partner of Kleiner Perkins Caufield & Byers, a venture capital
firm, since January 1990. Mr. Compton is also a director of

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Citrix Systems, Inc., Corsair Communications, Inc., Active Software Inc. and
Rhythms NetConnections, Inc. Mr. Compton holds a B.S. degree in Business
Management from the University of Missouri.

David J. Cowan has been a director of VeriSign since its founding in April
1995. From April 1995 to June 1996, he served as our Chairman of the Board, and
from April 1995 to June 1995 as our Chief Financial Officer. Since August 1996,
Mr. Cowan has been a general partner of Bessemer Venture Partners, a venture
capital investment firm, where he now serves as the Managing General Partner.
Mr. Cowan was an associate at Bessemer Venture Partners from July 1992 to July
1996. From August 1996 to April 1997, he served as Chief Executive Officer of
Visto Corporation, an Internet services company. Mr. Cowan also serves as a
director on the board of Keynote Systems, Inc. as well as the board of several
private companies. Mr. Cowan holds an A.B. degree in mathematics and computer
science and an M.B.A. degree from Harvard University.

D. James Bidzos has served as Chairman of the Board of VeriSign since its
founding in April 1995 and served as Chief Executive Officer of VeriSign from
April 1995 to July 1995. He served as President and Chief Executive Officer of
RSA Data Security from 1986 to 1999. RSA Data Security, an encryption software
company, was acquired by Security Dynamics Technologies, Inc., which
subsequently changed its name to RSA Security, in July 1996 and has been a
wholly owned subsidiary of Security Dynamics since that time. Mr. Bidzos is
presently Vice Chairman of the board of directors of RSA Security and a
director of SmartDisk Corporation. He served as Executive Vice President of RSA
Security from 1996 to 1999.

William Chenevich has been a director of VeriSign since its founding in April
1995. He has been Vice Chairman, Information Systems and Operations of Firstar
Corporation, a regional bank holding company, since April 1999. Prior to that
time, he served as Group Executive Vice President, Data Processing Systems of
VISA, a financial services company, from October 1993. From May 1992 to October
1993, he was Executive Vice President and Chief Information Officer of Ahmanson
Corporation, a financial services company. Mr. Chenevich is also a director of
Longs Drug Stores Corporation. Mr. Chenevich holds a B.B.A. degree in Business
and an M.B.A. degree in Management from the City College of New York.

Board of Directors' Meetings and Committees

The board met five times, including telephone conference meetings, and took
two actions by written consent during 1999. No director attended fewer than 75%
of the aggregate of the total number of meetings of the board held during the
period for which that director was a director and the total number of meetings
held by all committees of the board on which that director served during the
period that the director served.

The board has established an audit committee to meet with and consider
suggestions from members of management, as well as VeriSign's independent
auditors, concerning the financial operations of VeriSign. The audit committee
also has the responsibility to review audited financial statements of VeriSign
and consider and recommend the employment of, and approve the fee arrangements
with, independent auditors for both audit functions and for advisory and other
consulting services. The audit committee is currently comprised of
Mr. Chenevich, Mr. Compton and Mr. Tomlinson. The Audit Committee met five
times during 1999.

The board has also established a compensation committee to review and approve
the compensation and benefits for VeriSign's key executive officers, administer
VeriSign's stock purchase, equity incentive and stock option plans and make
recommendations to the board regarding these matters. The compensation
committee is currently comprised of Mr. Bidzos, Mr. Chenevich and Mr. Cowan.
The compensation committee met three times and acted by written consent two
times during 1999.

Director Compensation

Directors do not receive any cash fees for their service on the board or any
board committee, but they are entitled to reimbursement of all reasonable out-
of-pocket expenses incurred in connection with their attendance at board and
board committee meetings. All board members are eligible to receive stock
options under VeriSign's stock option plans, and outside directors receive
stock options pursuant to automatic grants of stock options under the 1998
Directors Stock Option Plan, or the Directors Plan.

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<PAGE>

In October 1997, the board adopted, and in January 1998 the stockholders
approved, the Directors Stock Option Plan and reserved a total of 500,000
shares, as adjusted for stock splits, of VeriSign's common stock for issuance
under that plan. As of December 31, 1999, options to purchase 300,000 shares of
common stock had been granted under the Directors' Plan and 200,000 shares
remained available for future grant. If proposal no. 7 is approved, an
additional 250,000 shares will be reserved for future grant. Members of the
board who are not employees of VeriSign, or any parent, subsidiary or affiliate
of VeriSign are eligible to participate in the Directors Plan. The option
grants under the Directors Plan are automatic and nondiscretionary, and the
exercise price of the options is 100% of the fair market value of the common
stock on the date of grant. Each new director who is eligible to participate
will initially be granted an option to purchase 60,000 shares on the date that
director first becomes a director. These grants are referred to as "Initial
Grants." On each anniversary of a director's Initial Grant or most recent grant
if that director did not receive an Initial Grant, each eligible director will
automatically be granted an additional option to purchase 30,000 shares if that
director has served continuously as a member of the board since the date of
that director's Initial Grant, or most recent grant if that director did not
receive an Initial Grant. The term of these options is ten years. They will
terminate seven months following the date the director ceases to be a director
or, if VeriSign so specifies in the grant, a consultant of VeriSign (twelve
months if the termination is due to death or disability). All options granted
under the Directors Plan will vest as to 6.25% of the shares each quarter after
the date of grant, provided the optionee continues as a director or, if
VeriSign so specifies in the grant, as a consultant of VeriSign. Additionally,
immediately prior to the dissolution or liquidation of VeriSign or a "change in
control" transaction, all options granted under the Directors Plan will
accelerate and will be exercisable for a period of up to six months following
the transaction, after which period any unexercised options will expire. In
July 1999, VeriSign granted to each of Messrs. Bidzos, Chenevich, Compton,
Cowan and Tomlinson an option to purchase 30,000 shares of its common stock
under the Directors Plan with an exercise price of $41.19 per share.

Compensation Committee Interlocks and Insider Participation

No interlocking relationship exists between the board or compensation
committee and the board of directors or compensation committee of any other
company.

The Board Recommends a Vote "FOR" the Election of
Each of the Nominated Directors.

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Proposal No. 5
Approval of Amendment to 1998 Equity Incentive Plan

The following is a summary of the principal provisions of VeriSign's 1998
Equity Incentive Plan, or the Equity Incentive Plan. This summary is qualified
in its entirety by reference to the full text of the plan.

Plan History

In October 1997, the board adopted, and in January 1998 the stockholders
approved, the Equity Incentive Plan. In addition to the 8,000,000 shares
initially reserved for issuance under the Equity Incentive Plan, all shares
remaining available under two predecessor plans, the 1995 Stock Option Plan and
the 1997 Stock Option Plan, were transferred to the Equity Incentive Plan. In
March 1999, the board approved, and in May 1999, the stockholders approved, an
amendment to the Equity Incentive Plan to increase the number of shares
reserved for issuance under the plan by 8,000,000 shares. As of December 31,
1999, options to purchase 4,835,074 shares of common stock had been granted
under the 1998 Equity Incentive Plan and 4,677,031 shares remained available
for future grant. The Equity Incentive Plan authorizes the award of options,
restricted stock awards and stock bonuses. Each of these is referred to as an
Award.

Proposed Amendment to the Equity Incentive Plan

In March 2000, the board approved an amendment to the Equity Incentive Plan
to increase the number of shares reserved and authorized for issuance under the
plan by 10,000,000 shares. This amendment to the Equity Incentive Plan to
increase, by an aggregate of 10,000,000 shares, the total number of shares
issuable under the plan to 25,000,000 shares, excluding any shares transferred
from the predecessor plans, is the subject of this proposal. The board believes
that the increase in the number of shares reserved under the Equity Incentive
Plan proposed by this amendment is necessary in order to enable VeriSign to
continue to use the grant of stock options and other Awards to retain and
attract qualified employees, which number of employees will increase
substantially upon completion of the merger, and to also encourage stock
ownership by Equity Incentive Plan participants, thereby aligning their
interests with those of VeriSign's stockholders.

VeriSign has no current plans or proposals to award any specific portion of
the additional options authorized under this proposal to any specific person or
class of persons.

Shares Subject to the Equity Incentive Plan

An aggregate of 25,000,000 shares of VeriSign's common stock has been
reserved by the board for issuance under the Equity Incentive Plan, after
approval of the amendment under this proposal. If any option granted pursuant
to the Equity Incentive Plan, or the predecessor 1995 Stock Option Plan or 1997
Stock Option Plan, expires or terminates for any reason without being exercised
in whole or in part, or any award terminates without being issued, or any award
is forfeited or repurchased by VeriSign at the original purchase price, the
shares released from this award will again become available for grant and
purchase under the Equity Incentive Plan. This number of shares is subject to
proportional adjustment to reflect stock splits, stock dividends and other
similar events.

Administration

The compensation committee, the members of which are appointed by the board,
administers the Equity Incentive Plan. The compensation committee currently
consists of Mr. Bidzos, Mr. Chenevich and Mr. Cowan, all of whom are "non-
employee directors," as that term is defined in the Securities Exchange Act of
1934, and "outside directors," as that term is defined pursuant to section
162(m) of the Internal Revenue Code.

Subject to the terms of the Equity Incentive Plan, the compensation committee
determines the persons who are to receive Awards, the number of shares subject
to each Award and the terms and conditions of each Award.

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The compensation committee has the authority to construe and interpret any of
the provisions of the Equity Incentive Plan or any Awards granted under the
plan.

Eligibility

Employees, officers, directors and consultants of VeriSign, and of any
subsidiaries and affiliates, are eligible to receive awards under the Equity
Incentive Plan. No person is eligible to receive more than 400,000 shares of
common stock in any calendar year under the Equity Incentive Plan, other than
new employees of VeriSign, including directors and officers who are also new
employees, who are eligible to receive up to a maximum of 1,000,000 shares of
common stock in the calendar year in which they commence their employment with
VeriSign. As of March 3, 2000 approximately 408 persons were eligible to
participate in the Equity Incentive Plan.

Stock Options

The Equity Incentive Plan provides for the grant of both incentive stock
options, or ISOs, that qualify under section 422 of the Internal Revenue Code,
and nonqualified stock options, or NQSOs. ISOs may be granted only to employees
of VeriSign or of a parent or subsidiary of VeriSign. All awards other than
ISOs may be granted to employees, officers, directors and consultants. The
exercise price of ISOs must be at least equal to the fair market value of the
common stock on the date of grant. The exercise price of NQSOs must be at least
equal to 85% of the fair market value of the common stock on the date of grant.
The maximum term of options granted under the Equity Incentive Plan is ten
years, although options are generally granted with a term of seven to ten
years. Awards granted under the Equity Incentive Plan generally vest as to 25%
of the shares on the first anniversary of the date of grant and as to 6.25% of
the shares each of the next 12 quarters.

The exercise price of options granted under the Equity Incentive Plan may be
paid as approved by the compensation committee at the time of grant: (1) in
cash (by check); (2) by cancellation of indebtedness of VeriSign to the
participant; (3) by surrender of shares of VeriSign's common stock owned by the
participant for at least six months and having a fair market value on the date
of surrender equal to the aggregate exercise price of the option; (4) by tender
of a full recourse promissory note; (5) by waiver of compensation due to or
accrued by the participant for services rendered; (6) by a "same-day sale"
commitment from the participant and a National Association of Securities
Dealers, Inc., or NASD, broker; (7) by a "margin" commitment from the
participant and a NASD broker; or (8) by any combination of the above.

Termination of Options

Options are generally exercisable for a period of seven to ten years. Options
granted under the Equity Incentive Plan generally expire three months after the
termination of the optionee's service, except in the case of death or
disability, in which case the options generally may be exercised for up to 12
months following the date of death or termination of service due to disability.
Options will generally terminate immediately upon termination for cause.

Restricted Stock Awards

The compensation committee may grant restricted stock awards to purchase
stock either in addition to, or in tandem with, other Awards under the Equity
Incentive Plan, under terms, conditions and restrictions as the compensation
committee may determine. The purchase price for these Awards must be no less
than 85% of the fair market value of VeriSign's common stock on the date of the
Award. In the case of an Award granted to a 10% stockholder, the purchase price
must be 100% of fair market value. The purchase price can be paid for in any of
the forms of consideration listed in items (1) through (5) in "Stock Options"
above, as are approved by the compensation committee at the time of grant. To
date, VeriSign has not granted any restricted stock awards.

Stock Bonus Awards

The compensation committee may grant stock bonus awards either in addition to
or in tandem with, other Awards under the Equity Incentive Plan, under terms,
conditions and restrictions as the compensation committee may determine. To
date, VeriSign has not granted any stock bonus awards.

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Mergers, Consolidations and Change of Control

In the event of the dissolution or liquidation of VeriSign or a "change in
control" transaction, outstanding Awards may be assumed or substituted by the
successor corporation, if any. If a successor corporation does not assume or
substitute the Awards, they will expire upon the effectiveness of the
transaction. The compensation committee, in its discretion, may provide that
the vesting of any or all Awards will accelerate prior to the effectiveness of
the transaction.

Amendment of the Plan

The board may at any time amend or terminate the Equity Incentive Plan,
including amendment of any form of award agreement or instrument to be executed
pursuant to the Equity Incentive Plan. However, the board may not amend the
Equity Incentive Plan in any manner that requires stockholder approval or
related regulations, or the Securities Exchange Act or Rule 16b-3, or any
successor.

Term of the Plan

The Equity Incentive Plan will terminate in October 2007, unless sooner
terminated in accordance with the terms of the Equity Incentive Plan.

Federal Income Tax Information

The following is a general summary as of the date of this document of the
federal income tax consequences to VeriSign and participants under the Equity
Incentive Plan. The federal tax laws may change and the federal, state and
local tax consequences for any participant will depend upon his or her
individual circumstances. Each participant has been, and is, encouraged to seek
the advice of a qualified tax advisor regarding the tax consequences of
participation in the Equity Incentive Plan.

Incentive Stock Options. A participant will not recognize income upon grant
of an ISO and will not incur tax on its exercise, unless the participant is
subject to the alternative minimum tax described below. If the participant
holds the stock acquired upon exercise of an ISO, or the ISO shares, for one
year after the date the option was exercised and for two years after the date
the option was granted, the participant generally will realize capital gain or
loss, rather than ordinary income or loss, upon disposition of the ISO shares.
This gain or loss will be equal to the difference between the amount realized
upon that disposition and the amount paid for the ISO shares.

If the participant disposes of ISO shares prior to the expiration of either
required holding period, which is called a disqualifying disposition, then gain
realized upon the disposition, up to the difference between the fair market
value of the ISO shares on the dates of exercise, or, if less, the amount
realized on a sale of the shares, and the option exercise price, generally will
be treated as ordinary income. Any additional gain will be capital gain; taxed
at a rate that depends upon the amount of time the ISO shares were held by the
participant.

Alternative Minimum Tax. The difference between the fair market value of the
ISO shares on the date of exercise and the exercise price is an adjustment to
income for purposes of the alternative minimum tax, or "AMT." The AMT, which is
imposed to the extent it exceeds the taxpayer's regular tax, is 26% of an
individual taxpayer's alternative minimum taxable income. The AMT rate
increases to 28% in the case of alternative minimum taxable income in excess of
$175,000. A maximum 20% AMT rate applies to the portion of alternative minimum
taxable income that would otherwise be taxable as net capital gain. Alternative
minimum taxable income is determined by adjusting regular taxable income for
certain items, increasing that income by certain tax preference items,
including the difference between the fair market value of the ISO shares on the
date of exercise and the exercise price, and reducing this amount by the
applicable exemption amount. The exemption amount is $45,000 in the case of a
joint return, subject to reduction under certain circumstances. If a
disqualifying disposition of the ISO shares occurs in the same calendar year as
an exercise of the ISO, there is no AMT adjustment with respect to those
shares. Also upon a sale of ISO shares that is not

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a disqualifying disposition, alternative minimum taxable income is reduced in
the year of sale by the excess of fair market value of the ISO shares at
exercise over the amount paid for the ISO shares. Special rules apply where all
or a portion of the exercise price is paid by tendering shares of common stock.

Nonqualified Stock Options. A participant will not recognize any taxable
income at the time a NQSO is granted. However, upon exercise of a NQSO the
participant will include in income as compensation an amount equal to the
difference between the fair market value of the shares on the date of exercise
and the participant's exercise price. The included amount will be treated as
ordinary income by the participant and may be subject to income tax and FICA
withholding by VeriSign, either by payment in cash or withholding out of the
participant's salary. Upon resale of the shares by the participant, any
subsequent appreciation or depreciation in the value of the shares will be
treated as capital gain or loss. Special rules apply where all, or a portion,
of the exercise price is paid by tendering shares of common stock.

Tax Treatment of VeriSign. VeriSign will be entitled to a deduction in
connection with the exercise of a NQSO by a participant or the receipt of
restricted stock or stock bonuses by a participant to the extent that the
participant recognizes ordinary income. VeriSign will be entitled to a
deduction in connection with the disposition of ISO shares only to the extent
that the participant recognizes ordinary income on a disqualifying disposition
of the ISO shares.

ERISA

The Equity Incentive Plan is not subject to any of the provisions of the
Employee Retirement Income Security Act of 1974 or "ERISA" and is not qualified
under section 401(a) of the Internal Revenue Code.

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New Plan Benefits

No option grants have been made through March 31, 2000 under the Equity
Incentive Plan out of the 10,000,000 additional shares reserved under the
Equity Incentive Plan that stockholders are being asked to approve. The numbers
of option grants to be made under the Equity Incentive Plan in 2000 to the
individuals or groups of individuals listed in the table below, and the prices
at which these grants will be made, are not determinable. The following table
sets forth the option grants that were made during the year ended December 31,
1999 under the Equity Incentive Plan to:

. the VeriSign named executive officers;

. all current executive officers, as a group;

. all current directors who are not executive officers, as a group; and

. all employees including officers who are not executive officers, as a
group.

<TABLE>
<CAPTION>
Weighted Average Number of
Exercise Price Shares
Name and Position (1) (1)
- ----------------- ---------------- ---------
<S> <C> <C>
Stratton D. Sclavos................................ $37.0625 400,000
President and Chief Executive Officer
Quentin P. Gallivan................................ 37.0625 300,000
Executive Vice President of Worldwide Sales
Richard A. Yanowitch............................... 37.0625 200,000
Executive Vice President of Worldwide Marketing
Dana L. Evan....................................... 37.0625 200,000
Executive Vice President of Finance and
Administration and Chief Financial Officer
Diana Keith........................................ 37.0625 150,000
Vice President of Customer Service
Arnold Schaeffer................................... -- --
Executive Vice President of Engineering
All current executive officers as a group (5
persons).......................................... 37.0625 1,250,000
All current directors who are not executive
officers as a group (5 persons)................... 41.1875 150,000
All employees, including officers who are not
executive officers, as a group.................... 35.1869 5,529,950
</TABLE>
- --------
(1) The exercise price and number of options to be granted in the future under
the Equity Incentive Plan is unknown, as the exercise price will be equal
to fair market value on the date of grant, and option grants are made at
the discretion of the compensation committee.

The Board Recommends a Vote "FOR" Increasing the Number
of Shares of Common Stock Authorized For Issuance
Under the Equity Incentive Plan.

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<PAGE>

Proposal No. 6
Approval of Amendment to 1998 Employee Stock Purchase Plan

The following is a summary of the principal provisions of VeriSign's 1998
Employee Stock Purchase Plan, or the Purchase Plan. This summary is qualified
in its entirety by reference to the full text of the plan.

Purchase Plan History

In December 1997, the board adopted, and in January 1998 the stockholders
approved, the Purchase Plan. Except for the first offering, each offering under
the Purchase Plan will be for a period of 24 months and will consist of six-
month purchase periods. Offering periods begin on February 1 and August 1. Each
participant will be granted an option on the first day of the offering period
and the option will be automatically exercised on the last day of each purchase
period during the offering period. The purchase price for the common stock
purchased under the Purchase Plan is 85% of the lesser of the fair market value
of the common stock on the first day of the applicable offering period and on
the last day of the applicable purchase period. The Compensation Committee has
the power to change the duration of offering periods and purchase periods
without stockholder approval, if the change is announced at least 15 days prior
to the beginning of the offering or purchase period to be affected.

VeriSign initially reserved 2,000,000 shares of its common stock for issuance
under the Purchase Plan and in March 1999, the board approved, and in May 1999,
the stockholders approved, an amendment to the Purchase Plan to increase the
number of shares reserved for issuance thereunder by 1,000,000 shares. As of
December 31, 1999, 780,796 shares had been issued under the Purchase Plan and
1,219,204 shares remained available for future issuance under the Purchase
Plan.

Proposed Amendment to the Purchase Plan

In March 2000, the board approved an amendment to the Purchase Plan to
increase the number of shares reserved and authorized for issuance under the
Purchase Plan by 500,000 shares and an automatic annual increase in an amount
equal to 1% of the outstanding shares of VeriSign common stock. This amendment
to the Purchase Plan to increase, by an aggregate of 500,000 shares, the total
number of shares issuable under the Purchase Plan to 3,500,000 shares is the
subject of this proposal. The board believes that the increase in the number of
shares reserved under the Purchase Plan proposed by this amendment is necessary
in order to enable VeriSign to continue to provide its employees, which will
increase substantially upon completion of the merger, the opportunity to
purchase common stock through payroll deductions and to encourage stock
ownership by Purchase Plan participants, thereby aligning their interests with
those of VeriSign's stockholders.

Shares Subject to the Purchase Plan

The board has reserved an aggregate of 3,500,000 shares of VeriSign common
stock for issuance under the Purchase Plan, after approval of the amendment
under this proposal. In addition, on each January 1, the aggregate number of
shares of common stock reserved for issuance shall be increased automatically
by a number of shares equal to 1% of the total outstanding shares of VeriSign
as of the immediately preceding December 31. However, in no event shall this
increase exceed 2,500,000 shares per year.

Administration

The compensation committee, administers the Purchase Plan, The compensation
committee has the authority to construe and interpret any of the provisions of
the Purchase Plan.

Eligibility

Employees generally are eligible to participate in the Purchase Plan if they
are customarily employed by VeriSign or by a participating subsidiary for more
than 20 hours per week and more than five months in a

105
<PAGE>

calendar year. VeriSign or a participating subsidiary also must have employed
the employee at least ten days prior to the beginning of the offering period.
Eligible employees may select a rate of payroll deduction between 2% and 10% of
their compensation and are subject to certain maximum purchase limitations.

As of February 1, 2000, the beginning of the most recent offering period,
approximately 344 employees, including five executive officers, were eligible
to participate in the Purchase Plan.

Special Limitations

The Purchase Plan imposes limitations upon a participant's rights to acquire
common stock, including the following limitations:

. Purchase rights may not be granted to any individual who owns stock,
including stock purchasable under any outstanding purchase rights,
possessing 5% or more of the total combined voting power or value of all
classes of stock of VeriSign or any of its affiliates; and

. Purchase rights granted to a participant may not permit the individual
to purchase more than $25,000 of common stock, valued at the time each
purchase right is granted, during any one calendar year.

Termination of Purchase Rights

A purchase right will terminate upon the participant's election to withdraw
from the Purchase Plan. Any payroll deductions that the participant may have
made with respect to the terminated purchase right will be refunded to the
participant if the election to withdraw from the Purchase Plan is received by
VeriSign at least 15 days prior to the end of a purchase period. If the
participant's election to withdraw is received by VeriSign less than 15 days
prior to the end of a purchase period, the participant's payroll deductions
will be used to purchase shares on the purchase date and his/her participation
will end at the beginning of the next purchase period or offering period. A
participant's election to withdraw from the Purchase Plan is irrevocable, and
the participant may not rejoin the purchase period or offering period for which
the terminated purchase right was granted.

A purchase right will also terminate upon the participant's termination of
employment. Any payroll deductions that the participant may have made during
the purchase period in which the termination occurs will be refunded to the
participant.

In addition, VeriSign has specifically reserved the right, exercisable in the
sole discretion of the board, to terminate the Purchase Plan at any time. If
VeriSign exercises this right, then the Purchase Plan will terminate in its
entirety and no further purchase rights will be granted or exercised under the
Purchase Plan.

Stockholder Rights

No participant will have any stockholder rights with respect to the shares
covered by his or her purchase rights until the shares are actually purchased
on the participant's behalf. No adjustment will be made for dividends,
distributions or other rights for which the record date is prior to the date of
the purchase.

Assignability

No purchase rights will be assignable or transferable by the participant,
except by will or the laws of inheritance following the participant's death.
Each purchase right will, during the lifetime of the participant, be
exercisable only by the participant.

Mergers, Consolidations and Change of Control

The Purchase Plan provides that, in the event of the proposed dissolution or
liquidation of VeriSign, the offering period will terminate immediately prior
to the consummation of the proposed action, provided that the

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<PAGE>

Compensation Committee may fix a different date for termination of the Purchase
Plan and may give each participant the opportunity to purchase shares under the
Purchase Plan prior to the termination. The Purchase Plan provides that, in the
event of specified "change of control" transactions, the Purchase Plan will
continue for all offering periods that began prior to the transaction and
shares will be purchased based on the fair market value of the surviving
corporation's stock on each purchase date.

Amendment of the Plan

The board has the authority to amend, terminate or extend the term of the
Purchase Plan, except that no action may adversely affect any outstanding
options previously granted under the Purchase Plan and stockholder approval is
required to increase the number of shares that may be issued or change the
terms of eligibility under the Purchase Plan.

The Purchase Plan will terminate in December 2007, unless terminated earlier
under the terms of the Purchase Plan, including the issuance of all of the
shares of common stock reserved for issuance under the Purchase Plan.

Federal Tax Consequences

The Purchase Plan is intended to be an "employee stock purchase plan" within
the meaning of section 423 of the Internal Revenue Code. Under a qualified
plan, no taxable income will be reportable by a participant, and no deductions
will be allowable to VeriSign, as a result of the grant or exercise of the
purchase rights issued under the Purchase Plan. Taxable income will not be
recognized until there is a sale or other disposition of the shares acquired
under the Purchase Plan or in the event the participant should die while still
owning the purchased shares.

If the participant sells or otherwise disposes of the purchased shares within
two years after commencement of the offering period during which those shares
were purchased or within one year of the date of purchase, the participant will
recognize ordinary income in the year of sale or disposition equal to the
amount by which the fair market value of the shares on the purchase date
exceeded the purchase price paid for those shares. If the participant sells or
disposes of the purchased shares more than two years after the commencement of
the offering period in which those shares were purchased and more than one year
from the date of purchase, then the participant will recognize ordinary income
in the year of sale or disposition equal to the lesser of the amount by which
the fair market value of the shares on the sale or disposition date exceeded
the purchase price paid for those shares or 15% of the fair market value of the
shares on the date of commencement of such offering period. Any additional gain
upon the disposition will be taxed as a capital gain.

If the participant still owns the purchased shares at the time of death, the
lesser of the amount by which the fair market value of the shares on the date
of death exceeds the purchase price or 15% of the fair market value of the
shares on the date of commencement of the offering period during which those
shares were purchased will constitute ordinary income in the year of death.

If the purchased shares are sold or otherwise disposed of within two years
after commencement of the offering period during which those shares were
purchased or within one year after the date of purchase, then VeriSign will be
entitled to an income tax deduction in the year of sale or disposition equal to
the amount of ordinary income recognized by the participant as a result of that
sale or disposition. No deduction will be allowed in any other case.

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<PAGE>

New Purchase Plan Benefits

No shares have been issued through March 31, 2000 under the Purchase Plan out
of the 250,000 additional shares reserved under the Purchase Plan that
stockholders are being asked to approve. The number of shares to be issued
under the Purchase Plan in 2000 to the individuals or groups of individuals
listed in the table below and the net values to be realized upon these
issuances, are not determinable. The following table sets forth the Purchase
Plan shares that were issued during the year ended December 31, 1999 under the
Purchase Plan to:

. the VeriSign named executive officers;

. all current executive officers, as a group;

. all current directors who are not executive officers, as a group; and

. all employees, including officers who are not executive officers, as a
group.

<TABLE>
<CAPTION>
Number of
Net Value Shares
Name and Position Realized(1) Purchased
- ----------------- ----------- ---------
<S> <C> <C>
Stratton D. Sclavos..................................... $ 241,983 10,364
President and Chief Executive Officer
Quentin P. Gallivan..................................... 272,541 9,872
Executive Vice President of Worldwide Sales
Richard A. Yanowitch.................................... 189,272 7,140
Executive Vice President of Worldwide Marketing
Dana L. Evan............................................ 196,554 7,492
Executive Vice President of Finance and Administration
and Chief Financial Officer
Diana S. Keith.......................................... 170,331 6,390
Vice President of Customer Service
Arnold Schaeffer........................................ 189,370 7,146
Executive Vice President of Engineering
All current executive officers as a group (5 persons)... 1,260,050 48,404
All current directors who are not executive officers as
a group (5 persons).................................... -- --
All employees, including officers who are not executive
officers, as a group................................... 13,348,936 499,492
</TABLE>
- --------
(1) Computed as the fair market value of the purchased shares on the purchase
date less the purchase price.

The Board of Directors Recommends a Vote "FOR" Increasing
the Number of Shares of Common Stock Authorized
for Issuance Under the Purchase Plan.

108
<PAGE>

Proposal No. 7
Approval of Amendment to 1998 Directors Stock Option Plan

The following is a summary of the principal provisions of VeriSign's 1998
Directors Stock Option Plan, or the Directors Plan. This summary is qualified
in its entirety by reference to the full text of the plan.

Plan History

In October 1997, the board adopted, and in January 1998 the stockholders
approved, the 1998 Directors Stock Option Plan and reserved a total of 500,000
shares, as adjusted for stock splits, of VeriSign's common stock for issuance
under that plan. As of December 31, 1999, options to purchase 300,000 shares of
common stock had been granted under the Directors Plan and 200,000 shares
remained available for future grant. The Directors Plan authorizes the award of
options, restricted stock awards and stock bonuses. Each of these is referred
to as an Award.

Proposed Amendment to the Directors Plan

In March 2000, the board approved an amendment to the Directors Plan to
increase the number of shares reserved and authorized for issuance under the
plan by 250,000 shares. This amendment to the Directors Plan to increase, by an
aggregate of 250,000 shares, the total number of shares issuable under the plan
to 750,000 shares, is the subject of this proposal. The board believes that the
increase in the number of shares reserved under the Directors Plan proposed by
this amendment is necessary in order to enable VeriSign to continue to use the
grant of stock options to retain and attract directors.

Shares Subject to the Directors Plan

An aggregate of 750,000 shares of VeriSign's common stock has been reserved
by the board for issuance under the Directors Plan, after approval of the
amendment under this proposal. If any option granted pursuant to the Directors
Plan expires or terminates for any reason without being exercised in whole or
in part, or any award terminates without being issued, or any award is
forfeited, the shares released from this award will again become available for
grant and purchase under the Directors Plan. This number of shares is subject
to proportional adjustment to reflect stock splits, stock dividends and other
similar events.

Administration

The Directors Plan may be administered by the board or by a committee of not
less than two members of the board appointed to administer the Directors Plan.
Currently, this Plan is administered by the board. The board, or the committee
appointed by the board, has the authority to construe and interpret any of the
provisions of the Directors Plan or any options granted under the plan.

Eligibility

Members of the board who are not employees of VeriSign, or any parent,
subsidiary or affiliate of VeriSign are eligible to participate in the
Directors Plan.

Stock Options

The option grants under the Directors Plan are automatic and
nondiscretionary, and the exercise price of the options is 100% of the fair
market value of the common stock on the date of grant. Each new director who is
eligible to participate will initially be granted an option to purchase 60,000
shares on the date that director first becomes a director. These grants are
referred to as "Initial Grants." On each anniversary of a director's Initial
Grant or most recent grant if that director did not receive an Initial Grant,
each eligible director will

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<PAGE>

automatically be granted an additional option to purchase 30,000 shares if that
director has served continuously as a member of the board since the date of
that director's Initial Grant, or most recent grant if that director did not
receive an Initial Grant.

All options granted under the Directors Plan will vest as to 6.25% of the
shares each quarter after the date of grant, provided the optionee continues as
a director or, if VeriSign so specifies in the grant, as a consultant of
VeriSign.

The exercise price of options granted under the Directors Plan may be paid as
approved by the board or by a committee appointed by the board at the time of
grant: (1) in cash (by check); (2) by cancellation of indebtedness of VeriSign
to the participant; (3) by surrender of shares of VeriSign's common stock owned
by the participant for at least six months and having a fair market value on
the date of surrender equal to the aggregate exercise price of the option; (4)
by tender of a full recourse promissory note; (5) by waiver of compensation due
to or accrued by the participant for services rendered; (6) by a "same-day
sale" commitment from the participant and a National Association of Securities
Dealers, Inc., or NASD, broker; (7) by a "margin" commitment from the
participant and a NASD broker; or (8) by any combination of the above.

Termination of Options

The term of these options is ten years. They will terminate seven months
following the date the director ceases to be a director or, if VeriSign so
specifies in the grant, a consultant of VeriSign (twelve months if the
termination is due to death or disability).

Dissolution, Liquidation or Change in Control

Immediately prior to the dissolution or liquidation of VeriSign or a "change
in control" transaction, all options granted under the Directors Plan will
accelerate and will be exercisable for a period of up to six months following
the transaction, after which period any unexercised options will expire.

Amendment of the Plan

The board may at any time amend or terminate the Directors Plan, including
amendment of any form of award agreement or instrument to be executed pursuant
to the Directors Plan. However, the board may not amend the Directors Plan in
any manner that requires stockholder approval or related regulations, or the
Security Exchange Act or Rule 16b-3, or any successor.

Term of the Plan

The Directors Plan will terminate in October 2007, unless sooner terminated
in accordance with the terms of the Directors Plan.

Federal Income Tax Information

The following is a general summary as of the date of this document of the
federal income tax consequences to VeriSign and participants under the
Directors Plan. The federal tax laws may change and the federal, state and
local tax consequences for any participant will depend upon his or her
individual circumstances. Each participant has been, and is, encouraged to seek
the advice of a qualified tax advisor regarding the tax consequences of
participation in the Directors Plan.

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<PAGE>

income tax and FICA withholding by VeriSign, either by payment in cash or
withholding out of the participant's salary. Upon resale of the shares by the
participant, any subsequent appreciation or depreciation in the value of the
shares will be treated as capital gain or loss. Special rules apply where all,
or a portion, of the exercise price is paid by tendering shares of common
stock.

ERISA

The Directors Plan is not subject to any of the provisions of the Employee
Retirement Income Security Act of 1974 or "ERISA" and is not qualified under
section 401(a) of the Internal Revenue Code.

New Plan Benefits

No option grants have been made through March 31, 2000 under the Directors
Plan out of the 250,000 additional shares reserved under the Directors Plan
that stockholders are being asked to approve.

In July 1999, VeriSign granted to each of Messrs. Bidzos, Chenevich, Compton,
Cowan and Tomlinson an option to purchase 30,000 shares of its common stock
under the Directors Plan with an exercise price of $41.19 per share.

The Board Recommends a Vote "FOR" Increasing the Number
of Shares of Common Stock Authorized For Issuance
Under the Directors Plan.

Proposal No. 8
Ratification of Selection of Independent Auditors

VeriSign has selected KPMG LLP as its independent auditors to perform the
audit of its financial statements for the year ending December 31, 2000, and
the stockholders are being asked to ratify this selection. Representatives of
KPMG LLP are expected to be present at the meeting, will have the opportunity
to make a statement at the meeting if they desire to do so and are expected to
be available to respond to appropriate questions.

The affirmative vote of a majority of the shares of common stock represented
in person or by proxy at the meeting and voting together as a class will be
required to approve the ratification of KPMG LLP as VeriSign's independent
auditors.

The Board Recommends a Vote "FOR" the Ratification
of the Selection of KPMG LLP.

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<PAGE>

MANAGEMENT OF VERISIGN

Executive Officers

The following table sets forth information regarding the executive officers
of VeriSign as of December 31, 1999:

<TABLE>
<CAPTION>
Name Age Position
---- --- --------
<C> <C> <S>
Stratton D. Sclavos... 38 President, Chief Executive Officer and Director
Dana L. Evan.......... 40 Executive Vice President of Finance and
Administration and Chief Financial Officer
Quentin P. Gallivan... 42 Executive Vice President of Worldwide Sales
Diana S. Keith........ 40 Vice President of Customer Services
Arnold Schaeffer...... 36 Executive Vice President of Engineering
Richard A. Yanowitch.. 43 Executive Vice President of Worldwide Marketing
</TABLE>

Stratton D. Sclavos has served as President and Chief Executive Officer and
as a director of VeriSign since he joined VeriSign in July 1995. From October
1993 to June 1995, he was Vice President, Worldwide Marketing and Sales of
Taligent, Inc., a software development company that was a joint venture among
Apple Computer, Inc., IBM and Hewlett-Packard. Prior to that time, he served in
various sales, business development and marketing capacities for GO
Corporation, MIPS Computer Systems, Inc. and Megatest Corporation. Mr. Sclavos
is also a director and a member of the compensation committee of Network
Solutions, Inc. and a director of Keynote Systems, Inc., Marimba, Inc. and
SalesForce.com, Inc. Mr. Sclavos holds a B.S. degree in Electrical and Computer
Engineering from the University of California at Davis.

Dana L. Evan has served as Vice President of Finance and Administration and
Chief Financial Officer of VeriSign since she joined VeriSign in June 1996.
From 1988 to June 1996, she worked as a financial consultant in the capacity of
chief financial officer, vice president of finance or corporate controller for
various public and private companies and partnerships, including VeriSign from
November 1995 to June 1996, Delphi Bioventures, a venture capital firm, from
1988 to June 1995, and Identix Incorporated, a manufacturer of biometric
identity verification and imaging products, from 1991 to August 1993. Prior to
1988, she was employed by KPMG LLP, most recently as a senior manager. Ms. Evan
is a certified public accountant and holds a B.S. degree in Commerce with a
concentration in Accounting and Finance from the University of Santa Clara.

Diana S. Keith has served as Vice President of Customer Services since August
1998. From June 1996 to August 1998 she was Director of Customer Services for
VeriSign. From May 1988 to June 1996 she was employed by Apple Computer, Inc.,
most recently as the Senior Manager of Worldwide Operations of Apple Online
Systems. Ms. Keith holds a B.S. degree in Business Management and
Administration from San Jose State University.

Quentin P. Gallivan has served as Vice President of Worldwide Sales of
VeriSign since he joined VeriSign in October 1997. From April 1996 to October
1997, he was Vice President for Asia Pacific and Latin America of Netscape, a
software company. Prior to that time, Mr. Gallivan was with General Electric
Information Services, an electronic commerce services company, most recently as
Vice President, Sales and Services for the Americas.

Arnold Schaeffer has served as Vice President of Engineering of VeriSign
since he joined VeriSign in January 1996. From March 1992 to December 1995, he
was employed by Taligent, most recently as Vice President of Engineering,
CommonPoint Products. Prior to working at Taligent, he served as a software
engineer for Apple, Intellicorp and Hewlett-Packard. Mr. Schaeffer holds a B.S.
degree in Information and Computer Science from the Georgia Institute of
Technology and an M.B.A. degree from the University of California at Berkeley.

112
<PAGE>

Richard A. Yanowitch has served as Vice President of Marketing of VeriSign
since he joined VeriSign in May 1996. From July 1995 to May 1996, he was a
management consultant to private software companies. From 1989 to June 1995, he
held a series of marketing positions with Sybase, Inc., a software company,
most recently as Vice President of Corporate Marketing. Prior to that time, he
held various sales, marketing and operating positions with The Santa Cruz
Operation, Inc., Digital Equipment Corporation, Lanier Harris Corporation and
Brooks International Corporation. Mr. Yanowitch holds a B.A. degree in History
from Swarthmore College and an M.B.A. degree in Entrepreneurial Management and
Marketing from Harvard Business School.

Executive Compensation

The following table sets forth summary information concerning the
compensation awarded to, earned by, or paid for services rendered to VeriSign
in all capacities during 1997, 1998 and 1999 by VeriSign's Chief Executive
Officer and the four most highly compensated executive officers, other than the
Chief Executive Officer, who were serving as executive officers at the end of
1999 and one executive officer, on a sabbatical at the end of 1999, who would
have otherwise been included in the following table. These officers are
referred to together as the named executive officers.

Summary Compensation Table

<TABLE>
<CAPTION>
Long-Term
Compensation
Annual Compensation Awards
---------------------- ------------
Securities
Name and Principal Underlying
Position Year Salary Bonus Options
------------------ ---- -------- -------- ------------
<S> <C> <C> <C> <C>
Stratton D. Sclavos...... 1999 $250,000 $ 78,125 400,000
President and Chief
Executive Officer 1998 250,000 130,625 400,000
1997 200,000 183,022 100,000

Quentin P. Gallivan...... 1999 150,000 150,000 300,000
Executive Vice President
of Worldwide Sales 1998 150,000 150,000 45,000
1997 40,866 -- 115,000

Richard A. Yanowitch..... 1999 165,000 49,840 200,000
Executive Vice President
of Worldwide 1998 166,667 67,070 45,000
Marketing 1997 140,000 59,084 --

Dana L. Evan............. 1999 165,000 49,840 200,000
Executive Vice President
of Finance and 1998 167,708 65,046 60,000
Administration and
Chief Financial Officer 1997 145,000 46,349 45,000

Diana S. Keith........... 1999 150,000 47,630 150,000
Vice President of
Customer Service 1998 143,295 27,384 280,000
1997 135,914 13,341 --

Arnold Schaeffer......... 1999 165,000 49,840
Executive Vice President
of Engineering 1998 167,708 48,572 90,000
1997 145,000 30,226 58,000
</TABLE>

113
<PAGE>

Option Grants in Fiscal 1999

The following table sets forth information regarding stock options granted
to each of the named executive officers during the year ended December 31,
1999.

<TABLE>
<CAPTION>
Individual Grants(1)
----------------------------------------------------
Potential Realizable
Value at Assumed
Number of Percent of Annual Rates of Stock
Securities Total Options Price Appreciation For
Underlying Granted to Exercise Option Term(2)
Options Employees in Price Expiration ----------------------
Name Granted Fiscal Year(%)(3) Per Share(4) Date 5% 10%
---- ---------- ----------------- ------------ ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Stratton D. Sclavos..... 400,000 5.8% $37.06 7/30/06 $6,035,264 $14,064,731
Quentin P. Gallivan..... 300,000 4.4 37.06 7/30/06 4,526,448 10,548,548
Richard A. Yanowitch.... 200,000 2.9 37.06 7/30/06 3,017,632 7,032,366
Dana L. Evan............ 200,000 2.9 37.06 7/30/06 3,017,632 7,032,366
Arnold Schaeffer........ -- -- -- -- -- --
Diana S. Keith.......... 150,000 2.2 37.06 7/30/06 2,263,224 5,274,274
</TABLE>
- --------
Notes:
(1) Options granted in 1999 were granted under VeriSign's 1998 Equity
Incentive Plan. These options become exercisable with respect to 25% of
the shares covered by the option on the first anniversary of the date of
grant and with respect to an additional 6.25% of these shares each quarter
thereafter. These options have a term of seven years. Upon specific
changes in control of VeriSign, this vesting schedule will accelerate as
to 50% of any shares that are then unvested.
(2) Potential realizable values are net of exercise price but before taxes,
and are based on the assumption that the common stock of VeriSign
appreciates at the annual rate shown, compounded annually, from the date
of grant until the expiration of the seven-year term. These numbers are
calculated based on Securities and Exchange Commission requirements and do
not reflect VeriSign's projection or estimate of future stock price
growth.
(3) VeriSign granted options to purchase 6,869,950 shares of common stock to
employees during 1999.
(4) Options were granted at an exercise price equal to the fair market value
per share of VeriSign common stock, as quoted on the Nasdaq National
Market.

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<PAGE>

Aggregate Option Exercises in Fiscal 1999 and Fiscal Year-End Option Values

The following table sets forth for each of the named executive officers the
shares acquired and the value realized on each exercise of stock options during
the year ended December 31, 1999 and the year-end number and value of
exercisable and unexercisable options.

<TABLE>
<CAPTION>
Number of Securities Value of Unexercised
Shares Underlying Unexercised In-the-Money
Acquired Options at 12/31/99(1) Options at 12/31/99(2)
on Value ------------------------- -------------------------
Name Exercise Realized Exercisable Unexercisable Exercisable Unexercisable
---- -------- ---------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Stratton D. Sclavos..... -- -- 300,000 1,800,000 $55,700,150 $314,849,300
Quentin P. Gallivan..... 160,024 $6,566,208 -- 665,000 -- 114,474,314
Richard A. Yanowitch.... -- -- 74,608 335,000 13,673,117 55,516,024
Dana L. Evan............ 91,000 6,460,360 59,000 470,000 11,059,576 80,812,418
Arnold Schaeffer........ 116,000 6,496,541 62,000 386,000 11,559,999 71,456,655
Diana S. Keith.......... 136,252 6,555,191 13,749 376,247 2,622,629 64,849,159
</TABLE>
- --------
Notes:
(1) Options shown were granted under VeriSign's 1995 Stock Option Plan, 1997
Stock Option Plan and 1998 Equity Incentive Plan, and are subject to
vesting as described in footnote (1) to the option grant table above.
(2) Based on a value of $190.94, the closing price per share of VeriSign's
common stock on The Nasdaq National Market on December 31, 1999, net of the
option exercise price.

No compensation intended to serve as incentive for performance to occur over
a period longer than one year was paid pursuant to a long-term incentive plan
during 1999 to any named executive officer. VeriSign does not have any defined
benefit or actuarial plan under which benefits are determined primarily by
final compensation and years of service with any of the named executive
officers.

Compensation Arrangements with Executive Officers

In November 1996, Dana L. Evan was granted an option to purchase 680,000
shares of common stock, Arnold Schaeffer was granted an option to purchase
800,000 shares of common stock and Richard A. Yanowitch was granted an option
to purchase 1,160,000 shares of common stock, at exercise prices ranging from
$0.03 to $1.50. Each of these options is subject to the standard four-year
vesting schedule under the 1995 Stock Option Plan or, in some circumstances, is
immediately exercisable, subject to VeriSign's right to repurchase shares
subject to these options, which repurchase right lapses on a schedule similar
to the vesting schedule for options granted under the 1995 Stock Option Plan.
However, upon the occurrence of specific change-in-control transactions, 50% of
each of these named executive officer's then-unvested options will become
vested or, if applicable, the right of repurchase will lapse as to 50% of the
shares covered by the right of repurchase. As of December 31, 1999, 245,500
shares subject to these options were unvested.

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REPORT OF THE COMPENSATION COMMITTEE OF VERISIGN

Under Item 402(a)(9) of Regulation S-K promulgated by the Securities and
Exchange Commission, neither the "Report of the Compensation Committee" nor the
material under the caption "Performance Graph" shall be deemed to be filed with
the SEC for purposes of the Securities Exchange Act of 1934, nor shall the
report or the graph be deemed to be incorporated by reference in any past or
future filing by the Company under the Securities Exchange Act or the
Securities Act.

The compensation committee of the board of directors administers VeriSign's
executive compensation program. The current members of the compensation
committee are D. James Bidzos, William Chenevich and David J. Cowan. Each of
these persons is a non-employee director within the meaning of section 16 of
the Securities Exchange Act of 1934, and an "outside director" within the
meaning of section 162(m) of the Internal Revenue Code. None of Mr. Bidzos, Mr.
Chenevich or Mr. Cowan has any interlocking relationships as defined by the
Securities and Exchange Commission.

General Compensation Philosophy

The role of the compensation committee is to set the salaries and other
compensation of the executive officers and other key employees of VeriSign, and
to make grants under, and to administer, the stock option and other employee
equity and bonus plans. VeriSign's compensation philosophy for executive
officers is to relate compensation to corporate performance and increases in
stockholder value, while providing a total compensation package that is
competitive and enables VeriSign to attract, motivate, reward and retain key
executives and employees. Accordingly, each executive officer's compensation
package may, in one or more years, be comprised of the following three
elements:

. base salary that is designed primarily to be competitive with base
salary levels in effect at high technology companies in the Silicon
Valley that are of comparable size to VeriSign and with which VeriSign
competes for executive personnel;

. annual variable performance awards, such as bonuses, payable in cash and
tied to the achievement of performance goals, financial or otherwise,
established by the compensation committee; and

. long-term stock-based incentive awards, which strengthen the mutuality
of interests between the executive officers and VeriSign's stockholders.

Executive Compensation

Base Salary. Salaries for executive officers for 1999 were generally
determined on an individual basis by evaluating each executive's scope of
responsibility, performance, prior experience and salary history, as well as
the salaries for similar positions at comparable companies. In addition,
VeriSign's Human Resources department provided information to the compensation
committee regarding salary range guidelines for specific positions.

Annual Incentive Awards. VeriSign has established a management incentive
plan. Certain employees, including executive officers, are eligible to
participate in this plan. Target bonuses are established based on a percentage
of base salary and become payable upon the achievement of specified total
company financial goals and personal and team objectives. The compensation
committee administers this plan with regard to Mr. Sclavos. Mr. Sclavos
administers the plan with regard to the other executive officers.

Long-Term Incentive Awards. The compensation committee believes that equity-
based compensation in the form of stock options links the interests of
executive officers with the long-term interests of VeriSign's stockholders and
encourages executive officers to remain in VeriSign's employ. Stock options
generally have value for executive officers only if the price of VeriSign's
stock increases above the fair market value on the grant date and the officer
remains in VeriSign's employ for the period required for the shares to vest.

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VeriSign grants stock options in accordance with the Equity Incentive Plan.
In 1999, stock options were granted to some executive officers as incentives
for them to become employees or to aid in the retention of executive officers
and to align their interests with those of the stockholders. Stock options
typically have been granted to executive officers when the executive first
joins VeriSign, in connection with a significant change in responsibilities
and, occasionally, to achieve equity within a peer group. The compensation
committee may, however, grant additional stock options to executive officers
for other reasons. The number of shares subject to each stock option granted is
within the discretion of the compensation committee and is based on anticipated
future contribution and ability to impact VeriSign's results, past performance
or consistency within the officer's peer group. In 1999, the compensation
committee considered these factors, as well as the number of unvested option
shares held by the officer as of the date of grant. At the discretion of the
compensation committee, executive officers may also be granted stock options to
provide greater incentives to continue their employment with VeriSign and to
strive to increase the value of VeriSign's common stock. The stock options
generally become exercisable over a four-year period and are granted at a price
that is equal to the fair market value of VeriSign's common stock on the date
of grant.

Chief Executive Officer Compensation

Mr. Sclavos' base salary, target bonus, bonus paid and long-term incentive
awards for 1998 were determined by the compensation committee in a manner
consistent with the factors described above for all executive officers.

Internal Revenue Code Section 162(m) Limitation

Section 162(m) of the Internal Revenue Code limits the tax deduction to $1.0
million for compensation paid to executives of public companies. Having
considered the requirements of section 162(m), the compensation committee
believes that grants made pursuant to the Equity Incentive Plan meet the
requirements that such grants be "performance based" and are, therefore, exempt
from the limitations on deductibility. Historically, the combined salary and
bonus of each executive officer has been below the $1.0 million limit. The
compensation committee's present intention is to comply with section 162(m)
unless the compensation committee feels that required changes would not be in
the best interest of VeriSign or its stockholders.

Compensation Committee

/s/ D. James Bidzos
/s/ William Chenevich
/s/ David J. Cowan

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VERISIGN, INC. STOCK PRICE PERFORMANCE GRAPH

The following graph compares the cumulative total stockholder return on
VeriSign's common stock, the Nasdaq Composite Index, and the Hambrecht & Quist
Internet Index. The graph assumes that $100 was invested in VeriSign's common
stock, the Nasdaq Composite Index and the Hambrecht & Quist Internet Index on
January 30, 1998, the date of VeriSign's initial public offering, and
calculates the return monthly through December 31, 1999. The stock price
performance on the following graph is not necessarily indicative of future
stock price performance.

<TABLE>
<CAPTION>
Period Covered VeriSign Nasdaq H&Q Internet
-------------- -------- ------ ------------
<S> <C> <C> <C>
1/30/98......................................... 100.00 100.00 100.00
2/28/98......................................... 204.46 110.09 118.92
3/31/98......................................... 314.29 114.16 130.99
4/30/98......................................... 274.11 116.09 139.10
5/31/98......................................... 228.13 109.72 126.88
6/30/98......................................... 266.96 117.46 164.53
7/31/98......................................... 221.43 116.22 149.02
8/31/98......................................... 202.68 93.43 105.14
9/30/98......................................... 194.64 106.34 132.19
10/31/98........................................ 219.20 110.68 138.54
11/30/98........................................ 286.61 121.59 189.38
12/31/98........................................ 422.32 137.15 228.32
1/31/99......................................... 373.53 154.75 341.88
2/28/99......................................... 384.31 141.29 306.35
3/31/99......................................... 603.92 152.00 389.28
4/30/99......................................... 450.98 157.03 440.60
5/31/99......................................... 464.71 152.56 370.89
6/30/99......................................... 676.47 165.88 400.94
7/31/99......................................... 581.37 162.93 353.64
8/31/99......................................... 849.51 169.16 372.30
9/30/99......................................... 835.29 169.58 412.13
10/31/99........................................ 968.63 183.19 455.69
11/30/99........................................ 1,457.35 206.02 574.31
12/31/99........................................ 2,995.10 251.29 797.80
</TABLE>

[logo]

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CERTAIN TRANSACTIONS WITH RESPECT TO VERISIGN

Since January 1, 1999, there has not been, nor is there currently proposed,
any transaction or series of similar transactions to which VeriSign or any of
its subsidiaries was or is to be a party in which the amount involved exceeded
or will exceed $60,000 and in which any director, executive officer or holder
of more than 5% of the common stock of VeriSign or any member of the immediate
family of any of the foregoing persons had or will have a direct or indirect
material interest other than (1) the compensation agreements, which are
described where required in "Executive Compensation," and (2) the transactions
described below.

Legal Fees. During 1999, the law firm of Tomlinson Zisko Morosoli & Maser
LLP, of which Mr. Tomlinson is a partner, provided legal services to VeriSign
on a variety of matters. VeriSign paid to Tomlinson Zisko Morosoli & Maser LLP
an aggregate of approximately $738,000 in 1999.

VeriSign believes that all of the transactions set forth above were made on
terms no less favorable to it than could have been obtained from unaffiliated
third parties. All future transactions between VeriSign and its officers,
directors and principal stockholders and their affiliates will be approved by a
majority of the board, including a majority of the independent and
disinterested directors of the board, and will be on terms no less favorable to
VeriSign than could be obtained from unaffiliated third parties.

VERISIGN STOCKHOLDER PROPOSALS

VeriSign's bylaws establish an advance notice procedure for stockholder
proposals not included in VeriSign's proxy statement, to be brought before an
annual meeting of stockholders. In general, nominations for the election of
directors may be made by:

. VeriSign's board of directors;

. any nominating committee appointed by VeriSign's board of directors; or

. any stockholder entitled to vote who has delivered written notice to the
Secretary of VeriSign 60 days or no more than 90 days in advance of May
24, 2001, which notice must contain specified information concerning the
nominees and concerning the stockholder proposing the nominations.

The only business that will be conducted at an annual meeting of VeriSign
stockholders is business that is brought before the meeting by or at the
direction of the chairman of the meeting or by any stockholder entitled to vote
who has delivered timely written notice to the Secretary of VeriSign 60 days or
no more than 90 days prior to the first anniversary of this year's annual
meeting. In the event that the date of the annual meeting is more than thirty
(30) days before or more than sixty (60) days after that anniversary date,
notice by the stockholder to be timely must be so delivered not earlier than
the close of business on the ninetieth (90th) day prior to the annual meeting
and not later than the close of business on the later of the sixtieth (60th)
day prior to the annual meeting or the close of business on the tenth (10th)
day following the day on which public announcement of the date of that meeting
is first made by VeriSign. The stockholder's notice must contain specified
information concerning the matters to be brought before the meeting and
concerning the stockholder proposing those matters. If a stockholder who has
not notified VeriSign of his intention to present a proposal at an annual
meeting does not appear or send a qualified representative to present his
proposal at the meeting, VeriSign need not present the proposal for a vote at
the meeting. A copy of the full text of the bylaw provisions discussed above
may be obtained by writing to the Secretary of VeriSign. All notices of
proposals by stockholders, whether or not included in VeriSign's proxy
materials, should be sent to the Secretary of VeriSign at its principal
executive offices.

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<PAGE>

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16 of the Securities Exchange Act of 1934, as amended, requires
VeriSign's directors and officers, and persons who own more than 10% of
VeriSign's common stock to file initial reports of ownership and reports of
changes in ownership with the Securities and Exchange Commission (the "SEC")
and the Nasdaq Stock Market. These persons are required by SEC regulations to
furnish VeriSign with copies of all section 16(a) forms that they file.

Based solely on its review of the copies of the forms furnished to VeriSign
and written representations from the executive officers and directors, VeriSign
believes that all section 16(a) filing requirements for the year ended December
31, 1999 were met with the exception of the following: James D. Bidzos filed a
report on Form 4 for the month of July one day late. Stratton D. Sclavos filed
a report on Form 4 for the month of December one day late and David Cowan filed
a report on Form 5 for 1999 one day late.

OTHER BUSINESS

The board does not presently intend to bring any other business before the
Meeting, and, so far as is known to the board, no matters are to be brought
before the Meeting except as specified in the Notice of the Meeting. As to any
business that may properly come before the Meeting, however, it is intended
that proxies, in the form enclosed, will be voted in respect thereof in
accordance with the judgment of the persons voting those proxies.

Whether or not you expect to attend the meeting, please complete, date, sign
and promptly return the accompanying proxy in the enclosed postage paid
envelope so that your shares may be represented at the meeting.

NETWORK SOLUTIONS STOCKHOLDER PROPOSALS

Under Rule 14a-8 of the Exchange Act, Network Solutions stockholders may
present proper proposals for inclusion in Network Solutions' proxy statement
and for consideration at the next annual meeting of its stockholders by
submitting those proposals to Network Solutions in a timely manner. As noted in
Network Solutions' proxy statement relating to its 1999 annual meeting of
stockholders, in order to be so included for the 2000 annual meeting,
stockholder proposals must have been received by Network Solutions no later
than , 2000, and must have other complied with the requirements of Rule
14a-8.

LEGAL OPINION

The validity of the shares of VeriSign common stock offered by this
prospectus/proxy statement will be passed upon for VeriSign by Fenwick & West
LLP.

EXPERTS

The consolidated financial statements of VeriSign, Inc. and subsidiaries as
of December 31, 1999 and 1998, and for each of the years in the three-year
period ended December 31, 1999, have been incorporated by reference herein and
in the registration statement in reliance upon the report of KPMG LLP,
independent certified public accountants, incorporated by reference herein, and
upon the authority of said firm as experts in accounting and auditing.

The financial statements of Signio, Inc. (formerly PaymentNet, Inc.) as of
December 31, 1999 and 1998, and for each of the years in the two-year period
ended December 31, 1999, have been incorporated by

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<PAGE>

reference herein and in the registration statement in reliance upon the report
of KPMG LLP, independent auditors, incorporated by reference herein and upon
the authority of said firm as experts in accounting and auditing.

The combined financial statements of THAWTE HOLDINGS (PTY.) LTD., THAWTE
CONSULTING (PTY.) LTD. and THAWTE USA, INC. as of February 28, 1999 and 1998,
and for each of the years in the two-year period ended February 28, 1999, have
been incorporated by reference herein and in the registration statement in
reliance upon the report of KPMG, Inc., independent auditors, incorporated by
reference herein and upon the authority of said firm as experts in accounting
and auditing.

The financial statements of Network Solutions, Inc. incorporated in this
prospectus/proxy statement by reference to Network Solutions' Annual Report on
Form 10-K for the year ended December 31, 1999 have been so incorporated in
reliance on the report of PricewaterhouseCoopers LLP, independent accountants,
given on the authority of said firm as experts in auditing and accounting.

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<PAGE>

DOCUMENTS INCORPORATED BY REFERENCE IN THIS
PROSPECTUS/PROXY STATEMENT

This prospectus/proxy statement incorporates documents by reference that are
not presented in or delivered with this document.

All documents filed by us under section 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act, after the date hereof and before the date of the
Network Solutions special meeting and the VeriSign annual meeting are
incorporated by reference into and to be a part of this prospectus/proxy
statement from the date of filing of those documents.

You should rely only on the information contained in this document or that we
have referred you to. We have not authorized anyone to provide you with
information that is different.

The following documents, which were filed by Network Solutions with the
Securities and Exchange Commission, are incorporated by reference into this
prospectus/proxy statement:

. Network Solutions' Annual Report on Form 10-K for the fiscal year ended
December 31, 1999;

. Network Solutions' Current Reports on Form 8-K dated January 31, 2000,
February 10, 2000 and March 8, 2000; and

. Network Solutions' Registration Statement on Form 8-A dated August 8,
1997, as amended, SEC file number 000-22967, which describes Network
Solutions' common stock.

The following documents, which have been filed by VeriSign with the
Securities and Exchange Commission, are incorporated by reference into this
prospectus/proxy statement:

. VeriSign's Annual Report on Form 10-K for the year ended December 31,
1999

. VeriSign's Current Reports on Form 8-K dated January 6, 2000, February
16, 2000, March 7 and March 8, 2000 and Form 8-K/A on March 10, 2000;
and

. VeriSign's Registration Statement on Form 8-A, SEC file number 000-
23593, which describes VeriSign's common stock.

Any statement contained in a document incorporated or deemed to be
incorporated in this document by reference will be deemed to be modified or
superseded for purposes of this prospectus/proxy statement to the extent that a
statement contained in this document or any other subsequently filed document
that is deemed to be incorporated in this document by reference modifies or
supersedes the statement. Any statement so modified or superseded will not be
deemed, except as so modified or superseded, to constitute a part of this
prospectus/proxy statement.

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<PAGE>

WHERE YOU CAN FIND MORE INFORMATION

The documents incorporated by reference into this prospectus/proxy statement
are available from us upon request. We will provide a copy of any and all of
the information that is incorporated by reference in this prospectus/proxy
statement not including exhibits to the information unless those exhibits are
specifically incorporated by reference into this proxy statement prospectus, to
you, without charge, upon written or oral request. You should make any request
for documents by , 2000 to ensure timely delivery of the documents.

Requests for documents relating to Requests for documents relating to
Network Solutions should be directed VeriSign
to: should be directed to:

Network Solutions, Inc. VeriSign, Inc.
505 Huntmar Park Drive 1350 Charleston Road
Herndon, Virginia 20170-5139 Mountain View, California 94043-1331
Attn: Jonathan W. Emery, Esq. Attn: Investor Relations
(703) 742-0400 (650) 961-7500

We file reports, proxy statements and other information with the Securities
Exchange Commission, or SEC. Copies of our reports, proxy statements and other
information may be inspected and copied at the public reference facilities
maintained by the SEC:

Judiciary Plaza Citicorp Center Seven World Trade Center
Room 1024 500 West Madison Street 13th Floor
450 Fifth Street, N.W. Suite 1400 New York, New York 10048
Washington, D.C. 20549 Chicago, Illinois 60661

Copies of these materials can also be obtained by mail at prescribed rates
from the Public Reference section of the SEC, 450 Fifth Street, N.W.,
Washington, D.C. 20549 or by calling the SEC at 1-800-SEC-0330. The SEC
maintains a website that contains reports, proxy statements and other
information regarding each of us. The address of the SEC website is
http://www.sec.gov.

VeriSign has filed a registration statement under the Securities Act with the
SEC with respect to VeriSign's common stock to be issued to Network Solutions
stockholders in the merger. This prospectus/proxy statement constitutes the
prospectus of VeriSign filed as part of the registration statement. This
prospectus/proxy statement does not contain all of the information set forth in
the registration statement because some parts of the registration statement are
omitted as provided by the rules and regulations of the SEC. You may inspect
and copy the registration statement at any of the addresses listed above.

This document does not constitute an offer to sell, or a solicitation of an
offer to purchase, the VeriSign common stock or the solicitation of a proxy, in
any jurisdiction to or from any person to whom or from whom it is unlawful to
make the offer, solicitation of an offer or proxy solicitation in that
jurisdiction. Neither the delivery of this prospectus/proxy statement nor any
distribution of securities means, under any circumstances, that there has been
no change in the information set forth or incorporated in this document by
reference or in our affairs since the date of this prospectus/proxy statement.
The information contained in this document with respect to Network Solutions
and its subsidiaries was provided by Network Solutions and the information
contained in this document with respect to VeriSign was provided by VeriSign.

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<PAGE>

STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This prospectus/proxy statement and the documents incorporated in this
document by reference contain forward-looking statements within the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995 with
respect to our financial condition, results of operations and business, and on
the expected impact of the merger on VeriSign's financial performance. Words
such as "anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates" and similar expressions identify forward-looking statements. These
forward-looking statements are not guarantees of future performance and are
subject to risks and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking statements.
These risks and uncertainties include:

. the possibility that the value of the VeriSign common stock to be issued
to Network Solutions stockholders in the merger will decrease prior to
completion of the merger and no corresponding adjustment to the number
of shares of VeriSign stock to be received by Network Solutions
stockholders will be made;

. the possibility that the merger will not be consummated;

. the possibility that the anticipated benefits from the merger cannot be
fully realized;

. the possibility that costs or difficulties related to the integration of
our businesses and infrastructure are greater than expected;

. our dependence on the timely development, introduction and customer
acceptance of new Internet services;

. the impact of competition on revenues and margins;

. rapidly changing technology and shifting demand requirements and
Internet usage patterns;

. other risks and uncertainties, including the risks and uncertainties
involved in continued acceptance of the combined companys' products and
services, Network Solutions' customer acceptance of VeriSign's products
and services, increased use of the Internet for electronic commerce, the
impact of competitive services, products and prices, the unsettled
conditions in the Internet and other high- technology industries and the
ability to attract and retain key personnel; and

. other risk factors as may be detailed from time to time in Network
Solutions' and VeriSign's public announcements and filings with the
Securities and Exchange Commission.

In evaluating the merger, you should carefully consider the discussion of
these and other factors in the section entitled "Risk Factors."

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<PAGE>

ANNEX A

AGREEMENT AND PLAN OF MERGER

This Agreement and Plan of Merger (this "Agreement") is made and entered into
as of March 6, 2000, among VeriSign, Inc., a Delaware corporation ("Parent"),
Nickel Acquisition Corporation, a Delaware corporation and a wholly owned
first-tier subsidiary of Parent ("Merger Sub"), and Network Solutions, Inc., a
Delaware corporation ("Company").

Recitals

A. The respective Boards of Directors of Parent, Merger Sub and Company have
approved this Agreement, and declared advisable the merger of Merger Sub with
and into Company (the "Merger") upon the terms and subject to the conditions of
this Agreement and in accordance with the General Corporation Law of the State
of Delaware ("Delaware Law").

B. For United States federal income tax purposes, the Merger is intended to
qualify as a "reorganization" pursuant to the provisions of Section 368 of the
Internal Revenue Code of 1986, as amended (the "Code"). For accounting
purposes, the Merger is intended to be accounted for as a "purchase" under
United States generally accepted accounting principles ("GAAP").

C. Concurrently with the execution of this Agreement, and as a condition and
inducement to Parent's willingness to enter into this Agreement, a stockholder
of Company is entering into a Voting Agreement with Parent in the form of
Exhibit A (the "Voting Agreement").

D. Concurrently with the execution of this Agreement, Parent and a
stockholder of Company are entering into a Registration Rights Agreement in the
form of Exhibit B (the "Registration Rights Agreement").

In consideration of the foregoing and the representations, warranties,
covenants and agreements set forth in this Agreement, the parties agree as
follows:

ARTICLE I

The Merger

1.1 The Merger. Upon the terms and subject to the conditions of this
Agreement and the applicable provisions of Delaware Law, at the Effective Time,
Merger Sub shall be merged with and into Company, the separate corporate
existence of Merger Sub shall cease, and Company shall continue as the
surviving corporation of the Merger (the "Surviving Corporation").

1.2 Effective Time; Closing. Subject to the provisions of this Agreement,
Company and Merger Sub will file a certificate of merger, in such appropriate
form as determined by the parties, with the Secretary of State of the State of
Delaware in accordance with the relevant provisions of Delaware Law (the
"Certificate of Merger") (the time of such filing (or such later time as may be
agreed in writing by Company and Parent and specified in the Certificate of
Merger) being the "Effective Time") as soon as practicable on or after the
Closing Date. The closing of the Merger (the "Closing") shall take place at the
offices of Fenwick & West LLP, Two Palo Alto Square, Palo Alto, California, at
a time and date to be specified by the parties, which shall be no later than
the second business day after the satisfaction or waiver of the conditions set
forth in Article VI, or at such other time, date and location as the parties
hereto agree in writing (the "Closing Date").

1.3 Effect of the Merger. At the Effective Time, the effect of the Merger
shall be as provided in this Agreement and the applicable provisions of
Delaware Law. Without limiting the generality of the foregoing, at the
Effective Time, the Surviving Corporation shall possess all the property,
rights, privileges, powers and

A-1
<PAGE>

franchises of Company and Merger Sub, and shall be subject to all debts,
liabilities and duties of Company and Merger Sub.

1.4 Certificate of Incorporation; Bylaws.

(a) At the Effective Time, the Certificate of Incorporation of Merger Sub,
as in effect immediately prior to the Effective Time, shall be the Certificate
of Incorporation of the Surviving Corporation until thereafter amended as
provided by law and such Certificate of Incorporation of the Surviving
Corporation; provided, however, that at the Effective Time Article I of the
Certificate of Incorporation of the Surviving Corporation shall be amended to
read: "The name of the corporation is "Network Solutions, Inc."'

(b) At the Effective Time, the Bylaws of Merger Sub, as in effect
immediately prior to the Effective Time, shall be the Bylaws of the Surviving
Corporation until thereafter amended.

1.5 Directors and Officers. The initial directors of the Surviving
Corporation shall be the directors of Merger Sub immediately prior to the
Effective Time, until their respective successors are duly elected or
appointed and qualified. The initial officers of the Surviving Corporation
shall be the officers of Company immediately prior to the Effective Time,
until their respective successors are duly appointed.

1.6 Effect on Capital Stock. Subject to the terms and conditions of this
Agreement, at the Effective Time, by virtue of the Merger and without any
action on the part of Merger Sub, Company or the holders of any of the
following securities:

(a) Conversion of Company Common Stock. Each share of common stock, par
value $0.001 per share, of Company ("Company Common Stock") issued and
outstanding immediately prior to the Effective Time, other than any shares
of Company Common Stock to be canceled pursuant to Section 1.6(b), will be
canceled and extinguished and automatically converted (subject to Section
1.6(e)) into the right to receive 2.15 (the "Exchange Ratio") shares of
common stock, par value $0.001 per share, of Parent ("Parent Common Stock")
upon surrender of the certificate representing such share of Company Common
Stock in the manner provided in Section 1.7. No fraction of a share of
Parent Common Stock will be issued by virtue of the Merger, but in lieu
thereof, a cash payment shall be made pursuant to Section 1.7(e). For the
avoidance of doubt, following the two-for-one stock dividend payable on
Company Common Stock on March 10, 2000, the Exchange Ratio will be 1.075.

(b) Cancellation of Company-Owned and Parent-Owned Stock. Each share of
Company Common Stock held by Company or owned by Merger Sub, Parent or any
direct or indirect wholly owned subsidiary of Company or of Parent
immediately prior to the Effective Time shall be canceled and extinguished
without any conversion thereof.

(c) Stock Options; Employee Stock Purchase Plan. At the Effective Time,
all options to purchase Company Common Stock then outstanding under
Company's 1996 Stock Incentive Plan (the "Company Stock Option Plan") shall
be assumed by Parent in accordance with Section 5.9 of this Agreement.
Rights outstanding under Company's 1997 Employee Stock Purchase Plan (the
"Company ESPP") shall be treated as set forth in Section 5.9 of this
Agreement.

(d) Capital Stock of Merger Sub. Each share of common stock, par value
$0.01 per share, of Merger Sub (the "Merger Sub Common Stock"), issued and
outstanding immediately prior to the Effective Time shall be converted into
one validly issued, fully paid and nonassessable share of common stock,
$0.01 par value per share, of the Surviving Corporation. Following the
Effective Time, each certificate evidencing ownership of shares of Merger
Sub common stock shall evidence ownership of such shares of capital stock
of the Surviving Corporation.

(e) Adjustments to Exchange Ratio. The Exchange Ratio shall be adjusted
to reflect appropriately the effect of any stock split, reverse stock
split, stock dividend (including any dividend or distribution of securities
convertible into Parent Common Stock or Company Common Stock),
reorganization,

A-2
<PAGE>

recapitalization, reclassification or other like change with respect to
Parent Common Stock or Company Common Stock occurring on or after the date
hereof and prior to the Effective Time.

1.7 Exchange of Certificates.

(a) Exchange Agent. Parent shall select an institution reasonably acceptable
to Company to act as the exchange agent (the "Exchange Agent") in the Merger.

(b) Exchange Fund. Promptly after the Effective Time, Parent shall make
available to the Exchange Agent for exchange in accordance with this Article I,
the shares of Parent Common Stock (such shares of Parent Common Stock, together
with cash in lieu of fractional shares and any dividends or distributions with
respect thereto, are hereinafter referred to as the "Exchange Fund") issuable
pursuant to Section 1.6 in exchange for outstanding shares of Company Common
Stock.

(c) Exchange Procedures. Promptly after the Effective Time, Parent shall
instruct the Exchange Agent to mail to each holder of record of a certificate
or certificates ("Certificates") which immediately prior to the Effective Time
represented outstanding shares of Company Common Stock whose shares were
converted into shares of Parent Common Stock pursuant to Section 1.6, (i) a
letter of transmittal in customary form (that shall specify that delivery shall
be effected, and risk of loss and title to the Certificates shall pass, only
upon proper delivery of the Certificates to the Exchange Agent and shall
contain such other provisions as Parent may reasonably specify) and (ii)
instructions for use in effecting the surrender of the Certificates in exchange
for certificates representing shares of Parent Common Stock. Upon surrender of
Certificates for cancellation to the Exchange Agent together with such letter
of transmittal, duly completed and validly executed in accordance with the
instructions thereto, the holders of such Certificates shall be entitled to
receive in exchange therefor certificates representing the number of whole
shares of Parent Common Stock into which their shares of Company Common Stock
were converted at the Effective Time, payment in lieu of fractional shares that
such holders have the right to receive pursuant to Section 1.7(e) and any
dividends or distributions payable pursuant to Section 1.7(d), and the
Certificates so surrendered shall forthwith be canceled. Until so surrendered,
outstanding Certificates will be deemed from and after the Effective Time, for
all corporate purposes, to evidence only the ownership of the number of full
shares of Parent Common Stock into which such shares of Company Common Stock
shall have been so converted and the right to receive an amount in cash in lieu
of the issuance of any fractional shares in accordance with Section 1.7(e) and
any dividends or distributions payable pursuant to Section 1.7(d). No interest
will be paid or accrued on any cash in lieu of fractional shares of Parent
Common Stock or on any unpaid dividends or distributions payable to holders of
Certificates. In the event of a transfer of ownership of shares of Company
Common Stock which is not registered in the transfer records of Company, a
certificate representing the proper number of shares of Parent Common Stock may
be issued to a transferee if the Certificate representing such shares of
Company Common Stock is presented to the Exchange Agent, accompanied by all
documents required to evidence and effect such transfer and by evidence that
any applicable stock transfer taxes have been paid.

(d) Distributions With Respect to Unexchanged Shares. No dividends or other
distributions declared or made after the date of this Agreement with respect to
Parent Common Stock with a record date after the Effective Time will be paid to
the holders of any unsurrendered Certificates with respect to the shares of
Parent Common Stock represented thereby until the holders of record of such
Certificates shall surrender such Certificates. Subject to applicable law,
following surrender of any such Certificates, the Exchange Agent shall deliver
to the holders of certificates representing whole shares of Parent Common Stock
issued in exchange therefor, without interest, (i) promptly, the amount of any
cash payable with respect to a fractional share of Parent Common Stock to which
such holder is entitled pursuant to Section 1.7(e) and the amount of dividends
or other distributions with a record date after the Effective Time theretofore
paid with respect to such whole shares of Parent Common Stock, and (ii) at the
appropriate payment date, the amount of dividends or other distributions with a
record date after the Effective Time but prior to surrender and a payment date
occurring after surrender, payable with respect to such whole shares of Parent
Common Stock.

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(e) Fractional Shares. (i) As promptly as practicable following the Effective
Time, the Exchange Agent shall determine the excess of (A) the number of full
shares of Parent Common Stock delivered to the Exchange Agent pursuant to
Section 1.7(b), over (B) the aggregate number of full shares of Parent Common
Stock to be distributed to holders of Company Common Stock pursuant to Section
1.7(c) (such excess, the "Excess Shares"). Following the Effective Time, the
Exchange Agent, as agent for the holders of Company Common Stock, shall sell
the Excess Shares at then prevailing prices on the Nasdaq Stock Market in the
manner set forth in paragraph (ii) of this Section 1.7(e).

(ii) The sale of the excess shares by the Exchange Agent shall be
executed on the Nasdaq Stock Market and shall be executed in round lots to
the extent practicable. The Exchange Agent shall use all commercially
reasonable efforts to complete the sale of the Excess Shares as promptly
following the Effective Time as, in the Exchange Agent's reasonable
judgment, is practicable consistent with obtaining the best execution of
such sales in light of prevailing market conditions. Until the net proceeds
of such sales have been distributed to the holders of Company Common Stock,
the Exchange Agent will hold such proceeds in trust for the holders of
Company Common Stock. The Exchange Agent will determine the portion of such
net proceeds to which each holder of Company Common Stock shall be
entitled, if any, by multiplying the amount of the aggregate net proceeds
by a fraction the numerator of which is the amount of the fractional share
interest to which such holder of Company Common Stock is entitled (after
taking into account all shares of Parent Common Stock to be issued to such
holder) and the denominator of which is the aggregate amount of fractional
share interests to which all holders of Company Common Stock are entitled.
As soon as practicable after the determination of the amount of cash, if
any, to be paid to holders of Company Common Stock with respect to
fractional share interests, the Exchange Agent shall promptly pay such
amounts to such holders of Company Common Stock in accordance with the
terms of Section 1.7(c).

(iii) Notwithstanding the provisions of paragraphs (i) and (ii) of this
Section 1.7(e), Parent may decide, at its option, exercised prior to the
Effective Time, in lieu of the issuance and sale of Excess Shares and the
making of the payments contemplated in such paragraphs, that Parent shall
pay to the Exchange Agent an amount sufficient for the Exchange Agent to
pay each holder of Company Common Stock the amount such holder would have
received pursuant to Section 1.7(e)(ii) assuming that the sales of Parent
Common Stock were made at a price equal to the average of the closing
prices of the Parent Common Stock on the Nasdaq Stock Market for the ten
consecutive trading days immediately following the Effective Time and, in
such case, all references herein to the cash proceeds of the sale of the
Excess Shares and similar references shall be deemed to mean and refer to
the payments calculated as set forth in this paragraph (iii). In such
event, Excess Shares shall not be issued or otherwise transferred to the
Exchange Agent pursuant to Sections 1.7(b) or (e).

(f) Required Withholding. Each of the Exchange Agent, Parent and the
Surviving Corporation shall be entitled to deduct and withhold from any
consideration payable or otherwise deliverable pursuant to this Agreement to
any holder or former holder of Company Common Stock such amounts as may be
required to be deducted or withheld therefrom under the Code or under any
provision of state, local or foreign tax law or under any other applicable
Legal Requirement (as defined in Section 2.2(b)). To the extent such amounts
are so deducted or withheld, such amounts shall be treated for all purposes
under this Agreement as having been paid to the person to whom such amounts
would otherwise have been paid.

(g) Lost, Stolen or Destroyed Certificates. In the event that any
Certificates shall have been lost, stolen or destroyed, the Exchange Agent
shall issue in exchange for such lost, stolen or destroyed Certificates, upon
the making of an affidavit of that fact by the holder thereof, certificates
representing the shares of Parent Common Stock into which the shares of Company
Common Stock represented by such Certificates were converted pursuant to
Section 1.6, cash for fractional shares, if any, as may be required pursuant to
Section 1.7(e) and any dividends or distributions payable pursuant to Section
1.7(d); provided, however, that Parent may, in its discretion and as a
condition precedent to the issuance of such certificates representing shares of
Parent Common Stock, cash and other distributions, require the owner of such
lost, stolen or destroyed

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Certificates to deliver a bond in such sum as it may reasonably direct as
indemnity against any claim that may be made against Parent, the Surviving
Corporation or the Exchange Agent with respect to the Certificates alleged to
have been lost, stolen or destroyed.

(h) No Liability. Notwithstanding anything to the contrary in this Section
1.7, neither the Exchange Agent, Parent, the Surviving Corporation nor any
party hereto shall be liable to a holder of shares of Parent Common Stock or
Company Common Stock for any amount properly paid to a public official pursuant
to any applicable abandoned property, escheat or similar law.

(i) Termination of Exchange Fund. Any portion of the Exchange Fund which
remains undistributed to the holders of Company Common Stock for six months
after the Effective Time shall be delivered to Parent, upon demand, and any
holders of Company Common Stock who have not theretofore complied with the
provisions of this Section 1.7 shall thereafter look only to Parent for the
shares of Parent Common Stock, any cash in lieu of fractional shares of Parent
Common Stock to which they are entitled pursuant to Section 1.7(e) and any
dividends or other distributions with respect to Parent Common Stock to which
they are entitled pursuant to Section 1.7(d), in each case, without any
interest thereon.

1.8 No Further Ownership Rights in Company Common Stock. All shares of Parent
Common Stock issued in accordance with the terms hereof (including any cash
paid in respect thereof pursuant to Section 1.7(d) and (e)) shall be deemed to
have been issued in full satisfaction of all rights pertaining to such shares
of Company Common Stock, and there shall be no further registration of
transfers on the records of the Surviving Corporation of shares of Company
Common Stock that were outstanding immediately prior to the Effective Time. If
after the Effective Time Certificates are presented to the Surviving
Corporation for any reason, they shall be canceled and exchanged as provided in
this Article I.

1.9 Restricted Stock. If any shares of Company Common Stock that are
outstanding immediately prior to the Effective Time are unvested or are subject
to a repurchase option, risk of forfeiture or other condition providing that
such shares ("Company Restricted Stock") may be forfeited or repurchased by the
Company upon any termination of the stockholders' employment, directorship or
other relationship with the Company (and/or any affiliate of the Company) under
the terms of any restricted stock purchase agreement or other agreement with
the Company that does not by its terms provide that such repurchase option,
risk of forfeiture or other condition lapses upon consummation of the Merger,
then the shares of Parent Common Stock issued upon the conversion of such
shares of Company Common Stock in the Merger will continue to be unvested and
subject to the same repurchase options, risks of forfeiture or other conditions
following the Effective Time, and the certificates representing such shares of
Parent Common Stock may accordingly be marked with appropriate legends noting
such repurchase options, risks of forfeiture or other conditions. Company shall
take all actions that may be necessary to ensure that, from and after the
Effective Time, Parent is entitled to exercise any such repurchase option or
other right set forth in any such restricted stock purchase agreement or other
agreement. A listing of the holders of Company Restricted Stock, together with
the number of shares and the vesting schedule of Company Restricted Stock held
by each, is set forth in Part 1.9 of the Company Disclosure Letter.

1.10 Tax Consequences. It is intended by the parties hereto that the Merger
shall constitute a "reorganization" within the meaning of Section 368 of the
Code. The parties hereto adopt this Agreement as a "plan of reorganization"
within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the United States
Income Tax Regulations.

1.11 Taking of Necessary Action; Further Action. If, at any time after the
Effective Time, any further action is necessary or desirable to carry out the
purposes of this Agreement and to vest the Surviving Corporation with full
right, title and possession to all assets, property, rights, privileges, powers
and franchises of Company and Merger Sub, the officers and directors of Company
and Merger Sub will take all such lawful and necessary action. Parent shall
cause Merger Sub to perform all of its obligations relating to this Agreement
and the transactions contemplated hereby.

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ARTICLE II

Representations and Warranties of Company

As of the date of this Agreement and as of the Closing Date, except as
disclosed in (i) Company's Annual Report on Form 10-K for the year ending
December 31, 1998 and any Company SEC Reports (as defined below) filed
subsequent to such Form 10-K, and (ii) the disclosure letter delivered by
Company to Parent dated as of the date hereof and certified by a duly
authorized officer of Company (the "Company Disclosure Letter") (each Part of
which qualifies the correspondingly numbered representation, warranty or
covenant to the extent specified therein and such other representations,
warranties or covenants to the extent a matter in such Part is disclosed in
such a way as to make its relevance to such other representation, warranty or
covenant readily apparent), Company represents and warrants to Parent and
Merger Sub as follows:

2.1 Organization; Subsidiaries.

(a) Company and each of its subsidiaries is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority, and all
requisite qualifications to do business as a foreign corporation, to conduct
its business in the manner in which its business is currently being conducted,
except where the failure to be so organized, existing or in good standing or to
have such power, authority or qualifications would not, individually or in the
aggregate, have a Material Adverse Effect (as defined in Section 8.3) on
Company.

(b) Other than as set forth in Part 2.1 of the Company Disclosure Letter,
neither Company nor any of the other corporations identified in Part 2.1 of the
Company Disclosure Letter owns any capital stock of, or any equity interest of
any nature in, any corporation, partnership, joint venture arrangement or other
business entity, other than the entities identified in Part 2.1 of the Company
Disclosure Letter, except for passive investments in equity interests of public
companies as part of the cash management program of Company. Neither Company
nor any of its subsidiaries has agreed or is obligated to make, or is bound by
any written, oral or other agreement, contract, subcontract, lease, binding
understanding, instrument, note, option, warranty, purchase order, license,
sublicense, insurance policy, benefit plan or legally binding commitment or
undertaking of any nature, as in effect as of the date hereof or as may
hereinafter be in effect under which it may become obligated to make any future
material investment in or material capital contribution to any other entity.
Neither Company, nor any of its subsidiaries, is a general partner of any
general partnership, limited partnership or other similar entity. Part 2.1 of
the Company Disclosure Letter indicates the jurisdiction of organization of
each entity listed therein and Company's direct or indirect equity interest
therein.

(c) Company has delivered or made available to Parent a true and correct copy
of the Certificate of Incorporation and Bylaws of Company and similar governing
instruments of each of its subsidiaries, each as amended to date (collectively,
the "Company Charter Documents"), and each such instrument is in full force and
effect. Neither Company nor any of its subsidiaries is in violation of any of
the provisions of the Company Charter Documents.

2.2 Company Capitalization.

(a) The authorized capital stock of Company consists solely of 210,000,000
shares of Company Common Stock, of which there were 36,166,801 shares issued
and outstanding as of the close of business on March 3, 2000, and 10,000,000
shares of preferred stock, par value $0.001 per share, of which no shares are
issued or outstanding. All outstanding shares of Company Common Stock are duly
authorized, validly issued, fully paid and nonassessable and are not subject to
preemptive rights created by statute, the Certificate of Incorporation or
Bylaws of Company or any agreement or document to which Company is a party or
by which it is bound. As of the date of this Agreement, there are no shares of
Company Common Stock held in treasury by the Company. From and after the
Effective Time, the shares of Parent Common Stock issued in exchange for any
shares of Company Restricted Stock will, without any further act of Parent, the
Company or any other person,

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become subject to the restrictions, conditions and other provisions of such
Company Restricted Stock, and Parent will automatically succeed to and become
entitled to exercise the Company's rights and remedies under such Company
Restricted Stock.

(b) As of the close of business on March 3, 2000, (i) 4,076,097 shares of
Company Common Stock are subject to issuance pursuant to outstanding options to
purchase Company Common Stock under the Company Stock Option Plan ("Company
Options") for a weighted average aggregate exercise price of approximately
$75.43, (ii) 457,370 shares of Company Common Stock are reserved for future
issuance under the Company ESPP, and (iii) 500,000 shares of Company Common
Stock are reserved for future issuance under the Company's 401(k) Plan. Part
2.2(b) of the Company Disclosure Letter sets forth the following information
with respect to each Company Option outstanding as of the date of this
Agreement: (i) the name of the optionee; (ii) the number of shares of Company
Common Stock subject to such Company Option; (iii) the exercise price of such
Company Option; (iv) the date on which such Company Option was granted or
assumed; (v) the date on which such Company Option expires and (vi) whether the
exercisability of such option will be accelerated in any way by the
transactions contemplated by this Agreement, and indicates the extent of any
such acceleration. Company has made available to Parent an accurate and
complete copy of the Company Stock Option Plan and the form of all stock option
agreements evidencing Company Options. There are no options outstanding to
purchase shares of Company Common Stock other than pursuant to the Company
Stock Option Plan. All shares of Company Common Stock subject to issuance as
aforesaid, upon issuance on the terms and conditions specified in the
instruments pursuant to which they are issuable, will be duly authorized,
validly issued, fully paid and nonassessable.

(c) All outstanding shares of Company Common Stock, all outstanding Company
Options, and all outstanding shares of capital stock of each subsidiary of
Company have been issued and granted in compliance with (i) all applicable
securities laws and other applicable material Legal Requirements and (ii) all
material requirements set forth in applicable agreements or instruments. For
the purposes of this Agreement, "Legal Requirements" means any federal, state,
local, municipal, foreign or other law, statute, constitution, principle of
common law, resolution, ordinance, code, edict, decree, rule, regulation,
ruling or requirement issued, enacted, adopted, promulgated, implemented or
otherwise put into effect by or under the authority of any Governmental Entity
(as defined in Section 2.4).

2.3 Obligations With Respect to Capital Stock. Except as set forth in Part
2.3 of the Company Disclosure Letter, there are no equity securities,
partnership interests or similar ownership interests of any class of Company
equity security, or any securities exchangeable or convertible into or
exercisable for such equity securities, partnership interests or similar
ownership interests, issued, reserved for issuance or outstanding. Company owns
all of the securities of its subsidiaries identified on Part 2.1 of the Company
Disclosure Letter, free and clear of all claims and Encumbrances, and there are
no other equity securities, partnership interests or similar ownership
interests of any class of equity security of any subsidiary of Company, or any
security exchangeable or convertible into or exercisable for such equity
securities, partnership interests or similar ownership interests, issued,
reserved for issuance or outstanding. For purposes of this Agreement,
"Encumbrances" means any lien, pledge, hypothecation, charge, mortgage,
security interest, encumbrance, claim, infringement, interference, option,
right of first refusal, preemptive right, community property interest or
restriction of any nature (including any restriction on the voting of any
security, any restriction on the transfer of any security or other asset, any
restriction on the receipt of any income derived from any asset, any
restriction on the use of any asset and any restriction on the possession,
exercise or transfer of any other attribute of ownership of any asset). Except
as set forth in Part 2.2 or Part 2.3 of the Company Disclosure Letter, there
are no subscriptions, options, warrants, equity securities, partnership
interests or similar ownership interests, calls, rights (including preemptive
rights), commitments or agreements of any character to which Company or any of
its subsidiaries is a party or by which it is bound obligating Company or any
of its subsidiaries to issue, deliver or sell, or cause to be issued, delivered
or sold, or repurchase, redeem or otherwise acquire, or cause the repurchase,
redemption or acquisition of, any shares of capital stock, partnership
interests or similar ownership interests of Company or any of its subsidiaries
or obligating Company or any of its

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subsidiaries to grant, extend, accelerate the vesting of or enter into any such
subscription, option, warrant, equity security, call, right, commitment or
agreement. Except as contemplated by this Agreement, the Registration Rights
Agreement, and the Registration Rights Agreement between Company and Science
Applications International Corporation, there are no registration rights with
respect to any equity security of any class of Company or with respect to any
equity security, partnership interest or similar ownership interest of any
class of any of its subsidiaries.

2.4 Authority; Non-Contravention.

(a) Company has all requisite corporate power and authority to enter into
this Agreement and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of Company, subject only to the approval and
adoption of this Agreement and the approval of the Merger by Company's
stockholders (the "Company Stockholder Approvals") and the filing of the
Certificate of Merger pursuant to Delaware Law. The affirmative vote of the
holders of a majority of the outstanding shares of Company Common Stock is
sufficient for Company's stockholders to approve and adopt this Agreement and
approve the Merger, and no other approval of any holder of any securities of
Company is required in connection with the consummation of the transactions
contemplated hereby. This Agreement has been duly executed and delivered by
Company and, assuming the due execution and delivery by Parent and Merger Sub,
constitutes the valid and binding obligation of Company, enforceable against
Company in accordance with its terms, except as enforceability may be limited
by bankruptcy and other similar laws affecting the rights of creditors
generally and general principles of equity.

(b) The execution and delivery of this Agreement by Company does not, and the
performance of this Agreement by Company will not, (i) conflict with or violate
the Company Charter Documents, (ii) subject to obtaining the Company
Stockholder Approvals and compliance with the requirements set forth in Section
2.4(c), conflict with or violate any law, rule, regulation, order, judgment or
decree applicable to Company or any of its subsidiaries or by which Company or
any of its subsidiaries or any of their respective properties is bound or
affected, or (iii) result in any breach of or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or
impair Company's rights or alter the rights or obligations of any third party
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation of an Encumbrance on any of the
properties or assets of Company or any of its subsidiaries pursuant to, any
note, bond, mortgage, indenture, agreement, lease, license, permit, franchise,
concession, or other instrument or obligation to which Company or any of its
subsidiaries is a party or by which Company or any of its subsidiaries or its
or any of their respective assets are bound or affected, except, in the case of
clauses (ii) and (iii), for such conflicts, violations, breaches, defaults,
impairments, or rights which, individually or in the aggregate, would not have
a Material Adverse Effect on Company. Part 2.4(b) of the Company Disclosure
Letter list all consents, waivers and approvals under any of Company's or any
of its subsidiaries' agreements, licenses or leases required to be obtained in
connection with the consummation of the transactions contemplated hereby,
which, if individually or in the aggregate not obtained, would result in a
material loss of benefits to Company, Parent or the Surviving Corporation as a
result of the Merger.

(c) No consent, approval, order or authorization of, or registration,
declaration or filing with any court, administrative agency or commission or
other governmental authority or instrumentality, foreign or domestic
("Governmental Entity") or other person, is required to be obtained or made by
Company in connection with the execution and delivery of this Agreement or the
consummation of the Merger, except for (i) the filing of the Certificate of
Merger with the Secretary of State of the State of Delaware and appropriate
documents with the relevant authorities of other states in which the Company is
qualified to do business, (ii) the filing of the Proxy Statement/Prospectus (as
defined in Section 2.17) with the Securities and Exchange Commission ("SEC") in
accordance with the Securities Exchange Act of 1934, as amended (the "Exchange
Act") and the effectiveness of the Registration Statement (as defined in
Section 2.17), (iii) such consents, approvals, orders, authorizations,
registrations, declarations and filings as may be required under applicable
federal, foreign and state securities (or related) laws and the Hart-Scott-
Rodino Antitrust Improvements Act of 1976, as amended (the "HSR

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Act"), and the securities or antitrust laws of any foreign country, and (iv)
such other consents, authorizations, filings, approvals and registrations which
if not obtained or made would not be material to the Company, Parent or the
Surviving Corporation or have a material adverse effect on the ability of the
parties hereto to consummate the Merger.

2.5 SEC Filings; Company Financial Statements.

(a) Company has filed all forms, reports and documents required to be filed
by Company with the SEC since the effective date of the registration statement
of Company's initial public offering and has made available to Parent such
forms, reports and documents in the form filed with the SEC. All such required
forms, reports and documents (including those that Company may file subsequent
to the date hereof) are referred to herein as the "Company SEC Reports." As of
their respective dates, the Company SEC Reports (i) were prepared in accordance
with the requirements of the Securities Act of 1933, as amended (the
"Securities Act"), or the Exchange Act, as the case may be, and the rules and
regulations of the SEC thereunder applicable to such Company SEC Reports and
(ii) did not at the time they were filed (or if amended or superseded by a
filing prior to the date of this Agreement, then on the date of such filing)
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, except to the extent corrected prior to the date of this Agreement
by a subsequently filed Company SEC Report. None of Company's subsidiaries is
required to file any forms, reports or other documents with the SEC.

(b) Each of the consolidated financial statements (including, in each case,
any related notes thereto) contained in the Company SEC Reports (the "Company
Financials"), including each Company SEC Report filed after the date hereof
until the Closing, (i) complied as to form in all material respects with the
published rules and regulations of the SEC with respect thereto, (ii) was
prepared in accordance with GAAP applied on a consistent basis throughout the
periods involved (except as may be indicated in the notes thereto or, in the
case of unaudited interim financial statements, as may be permitted by the SEC
on Form 10-Q, 8-K or any successor form under the Exchange Act) and (iii)
fairly presented the consolidated financial position of Company and its
subsidiaries as at the respective dates thereof and the consolidated results of
Company's operations and cash flows for the periods indicated, except that the
unaudited interim financial statements may not contain footnotes and were or
are subject to normal and recurring year-end adjustments. The balance sheet of
Company contained in Company SEC Reports as of September 30, 1999 is
hereinafter referred to as the "Company Balance Sheet." Except as disclosed in
the Company Financials, since the date of the Company Balance Sheet, neither
Company nor any of its subsidiaries has any liabilities required under GAAP to
be set forth on a balance sheet (absolute, accrued, contingent or otherwise)
which are, individually or in the aggregate, material to the business, results
of operations or financial condition of Company and its subsidiaries taken as a
whole, except for liabilities incurred since the date of the Company Balance
Sheet in the ordinary course of business consistent with past practices and
liabilities incurred in connection with this Agreement.

(c) Company has heretofore furnished to Parent a complete and correct copy of
any amendments or modifications, which have not yet been filed with the SEC but
which are required to be filed, to agreements, documents or other instruments
which previously had been filed by Company with the SEC pursuant to the
Securities Act or the Exchange Act.

2.6 Absence of Certain Changes or Events. Since the date of the Company
Balance Sheet there has not been: (i) any Material Adverse Effect with respect
to Company, (ii) any declaration, setting aside or payment of any dividend on,
or other distribution (whether in cash, stock or property) in respect of, any
of Company's or any of its subsidiaries' capital stock, or any purchase,
redemption or other acquisition by Company of any of Company's capital stock or
any other securities of Company or its subsidiaries or any options, warrants,
calls or rights to acquire any such shares or other securities except for
repurchases which are not, individually or in the aggregate, material in amount
from employees following their termination pursuant to the terms of their pre-
existing stock option or purchase agreements, (iii) any split, combination or
reclassification of any of Company's or any of its subsidiaries' capital stock,
(iv) any granting by Company or any of its subsidiaries of

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any increase in compensation or fringe benefits to any of their officers or
employees, or any payment by Company or any of its subsidiaries of any bonus to
any of their officers or employees, or any granting by Company or any of its
subsidiaries of any increase in severance or termination pay, other than in the
ordinary course, consistent with past practice, or any entry by Company or any
of its subsidiaries into, or material modification or amendment of, any
currently effective employment, severance, termination or indemnification
agreement or any agreement the benefits of which are contingent or the terms of
which are materially altered upon the occurrence of a transaction involving
Company of the nature contemplated hereby, (v) since November 10, 1999, any
material modification, amendment or cancellation of any of the Registry
Agreement, dated November 10, 1999, between Company and the Internet
Corporation for Assigned Names and Numbers, a not-for-profit corporation
("ICANN"), the Registrar Accreditation Agreement, dated November 10, 1999,
between Company and ICANN, and the Cooperative Agreement No. NCR-92-18742, in
each case, as amended, (vi) any material change by Company in its accounting
methods, principles or practices, except as required by concurrent changes in
GAAP, (vii) any material revaluation by Company of any of its material assets,
including writing off notes or accounts receivable other than in the ordinary
course of business, or (viii) any material change in the pricing of the
registration fees Company charges for its registration services.

2.7 Taxes.

(a) Company and each of its subsidiaries have timely filed all material
federal, state, local and foreign returns, estimates, information statements
and reports ("Returns") relating to Taxes required to be filed by or on behalf
of Company and each of its subsidiaries with any Tax authority, such Returns
are true, correct and complete in all material respects, and Company and each
of its subsidiaries have paid all Taxes shown to be due on such Returns.

(b) Company and each of its subsidiaries have withheld with respect to its
employees all federal and state income taxes, Taxes pursuant to the Federal
Insurance Contribution Act ("FICA"), Taxes pursuant to the Federal Unemployment
Tax Act ("FUTA") and other Taxes required to be withheld, except such Taxes
which are not material to Company.

(c) Other than as set forth in Part 2.7(c) of the Company Disclosure Letter,
neither Company nor any of its subsidiaries has been delinquent in the payment
of any material Tax nor is there any material Tax deficiency outstanding,
proposed or assessed against Company or any of its subsidiaries, nor has
Company or any of its subsidiaries executed any unexpired waiver of any statute
of limitations on or extending the period for the assessment or collection of
any Tax.

(d) No audit or other examination of any Return of Company or any of its
subsidiaries by any Tax authority is presently in progress, nor has Company or
any of its subsidiaries been notified of any request for such an audit or other
examination that is reasonably likely to result in any adjustment that is
material to Company.

(e) No adjustment relating to any Returns filed by Company or any of its
subsidiaries has been proposed in writing formally or informally by any Tax
authority to Company or any of its subsidiaries or any representative thereof
that is reasonably likely to be material to Company.

(f) Neither Company nor any of its subsidiaries has any liability for unpaid
Taxes which has not been accrued for or reserved on the Company Balance Sheet
in accordance with GAAP, whether asserted or unasserted, contingent or
otherwise, which is material to Company, other than any liability for unpaid
Taxes that may have accrued since the date of the Company Balance Sheet in
connection with the operation of the business of Company and its subsidiaries
in the ordinary course.

(g) There is no agreement, plan or arrangement to which Company or any of its
subsidiaries is a party, including this Agreement and the agreements entered
into in connection with this Agreement, covering any employee or former
employee of Company or any of its subsidiaries that, individually or
collectively, would be

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reasonably likely to give rise to the payment of any amount that would not be
deductible pursuant to Sections 280G, 404 or 162(m) of the Code.

(h) Neither Company nor any of its subsidiaries has filed any consent
agreement under Section 341(f) of the Code or agreed to have Section 341(f)(2)
of the Code apply to any disposition of a subsection (f) asset (as defined in
Section 341(f)(4) of the Code) owned by Company.

(i) Neither Company nor any of its subsidiaries is party to or has any
obligation under any tax-sharing, tax indemnity or tax allocation agreement or
arrangement, other than the Tax Sharing Agreement between Company and Science
Applications International Corporation, a Delaware corporation ("SAIC").

(j) Except as may be required as a result of the Merger, Company and its
subsidiaries have not been and will not be required to include any adjustment
in Taxable income for any Tax period (or portion thereof) pursuant to Section
481 of the Code or any comparable provision under state or foreign Tax laws as
a result of transactions, events or accounting methods employed prior to the
Closing.

(k) None of Company's or its subsidiaries' assets are tax exempt use property
within the meaning of Section 168(h) of the Code.

(l) Company has not been distributed in a transaction qualifying under
Section 355 of the Code within the last two years, nor has Company distributed
any corporation in a transaction qualifying under Section 355 of the Code
within the last two years.

(m) Company is not aware of any fact, circumstance, plan or intention on the
part of Company that would be reasonably likely to prevent the Merger from
qualifying as a "reorganization" pursuant to the provisions of Section 368 of
the Code.

For the purposes of this Agreement, "Tax" or "Taxes" refers to (i) any and
all federal, state, local and foreign taxes, assessments and other governmental
charges, duties, impositions and liabilities relating to taxes, including taxes
based upon or measured by gross receipts, income, profits, sales, use and
occupation, and value added, ad valorem, transfer, franchise, withholding,
payroll, recapture, employment, excise and property taxes, together with all
interest, penalties and additions imposed with respect to such amounts, (ii)
any liability for payment of any amounts of the type described in clause (i) as
a result of being a member of an affiliated consolidated, combined or unitary
group, and (iii) any liability for amounts of the type described in clauses (i)
and (ii) as a result of any express or implied obligation to indemnify another
person or as a result of any obligations under any agreements or arrangements
with any other person with respect to such amounts and including any liability
for taxes of a predecessor entity.

2.8 Title to Properties.

(a) Company owns no real property interests. Part 2.8 of the Company
Disclosure Letter list all real property leases to which Company is a party and
each amendment thereto that is in effect as of the date of this Agreement that
provide for annual payments in excess of $5,000,000. All such current leases
are in full force and effect, are valid and effective in accordance with their
respective terms, and there is not, under any of such leases, any existing
default or event of default (or event which with notice or lapse of time, or
both, would constitute a default) that would give rise to a material claim
against Company.

(b) Company has good and valid title to, or, in the case of leased properties
and assets, valid leasehold interests in, all of its tangible properties and
assets, real, personal and mixed, used or held for use in its business, free
and clear of any Encumbrances, except as reflected in the Company Financials
and except for liens for Taxes not yet due and payable and such Encumbrances
which are not material in character, amount or extent.

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2.9 Intellectual Property. For the purposes of this Agreement, the following
terms have the following definitions:

"Intellectual Property" shall mean any or all of the following and all rights
in, arising out of, or associated therewith: (i) all United States,
international and foreign patents and applications therefor and all reissues,
divisions, renewals, extensions, provisionals, continuations and continuations-
in-part thereof; (ii) all inventions (whether patentable or not), invention
disclosures, improvements, trade secrets, proprietary information, know how,
technology, technical data and customer lists, and all documentation relating
to any of the foregoing; (iii) all copyrights, copyrights registrations and
applications therefor, and all other rights corresponding thereto throughout
the world; (iv) all industrial designs and any registrations and applications
therefor throughout the world; (v) all trade names, URLs, logos, common law
trademarks and service marks, trademark and service mark registrations and
applications therefor throughout the world; (vi) all databases and data
collections and all rights therein throughout the world; (vii) all moral and
economic rights of authors and inventors, however denominated, throughout the
world, and (viii) any similar or equivalent rights to any of the foregoing
anywhere in the world.

"Company Intellectual Property" shall mean any Intellectual Property that is
owned by, or exclusively licensed to, Company or one of its subsidiaries.

"Registered Intellectual Property" means all United States, international and
foreign: (i) patents and patent applications (including provisional
applications); (ii) registered trademarks, applications to register trademarks,
intent-to-use applications, or other registrations or applications related to
trademarks; (iii) registered copyrights and applications for copyright
registration; and (iv) any other Intellectual Property that is the subject of
an application, certificate, filing, registration or other document issued,
filed with, or recorded by any Governmental Entity.

"Company Registered Intellectual Property" means all of the Registered
Intellectual Property owned by, or filed in the name of, Company or one of its
subsidiaries.

(a) No material Company Intellectual Property or product or service of
Company is subject to any proceeding or outstanding decree, order, judgment,
agreement, or stipulation restricting in any manner the use, transfer, or
licensing thereof by Company, or which may affect the validity, use or
enforceability of such Company Intellectual Property.

(b) Each material item of Company Registered Intellectual Property is valid
and subsisting, all necessary registration, maintenance and renewal fees
currently due in connection with such Registered Intellectual Property have
been made and all necessary documents, recordations and certificates in
connection with such Registered Intellectual Property have been filed with the
relevant patent, copyright, trademark or other authorities in the United States
or foreign jurisdictions, as the case may be, for the purposes of maintaining
such Registered Intellectual Property, except, in each case, as would not
materially adversely affect such item of Company Registered Intellectual
Property.

(c) Company or one of its subsidiaries owns and has good and exclusive title
to, or has license (sufficient for the conduct of its business as currently
conducted) to, each material item of Company Intellectual Property free and
clear of any Encumbrance (excluding licenses and related restrictions).

(d) Neither Company has nor any of its subsidiaries transferred ownership of,
or granted any exclusive license with respect to, any Intellectual Property
that is or was material Company Intellectual Property, to any third party.

(e) Part 2.9(e) of the Company Disclosure Letter lists (i) all material
contracts, licenses, agreements to which Company is a party with respect to
Company's authority as a registry and registrar for Internet general top level
domains including but not limited to the .com, .net and .org domains, (ii) all
Internet distribution and advertising agreements to which Company is a party
(except for any agreement which, if terminated, would not

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<PAGE>

have a Material Adverse Effect on Company), and (iii) all contracts, licenses
and agreements to which Company is a party pursuant to which a third party has
licensed or transferred any material Intellectual Property to Company (except
for any contract, license and agreement which, if terminated, would not have a
Material Adverse Effect on Company). There are no material contracts, licenses
and agreements to which Company is a party with respect to the software,
hardware, network and technology infrastructure used in Company's business as
currently conducted which, if terminated, would have a Material Adverse Effect
on Company.

(f) To Company's knowledge, the operation of the business of Company as such
business currently is conducted, including Company's design, development,
marketing and sale of the products or services of Company (including with
respect to products currently under development) has not and does not infringe
or misappropriate the Intellectual Property of any third party or, to its
knowledge, constitute unfair competition or trade practices under the laws of
any jurisdiction.

(g) Company has not received notice from any third party that the operation
of the business of Company or any act, product or service of Company, infringes
or misappropriates the Intellectual Property of any third party or constitutes
unfair competition or trade practices under the laws of any jurisdiction, which
allegation, if true, would have a Material Adverse Effect on Company.

(h) Except as set forth in Part 2.9(h) of the Company Disclosure Letter, to
the knowledge of Company, no person has or is infringing or misappropriating
any Company Intellectual Property, which infringement or misappropriation,
individually or in the aggregate, would have a Material Adverse Effect on
Company.

(i) Company and its subsidiaries have taken reasonable steps to protect
Company's and its subsidiaries' rights in Company's and such subsidiaries'
confidential information and trade secrets, except where the failure to do so
would have a Material Adverse Effect on Company.

(j) None of the Company Intellectual Property or product or service of
Company contains any defect in connection with processing data containing dates
in leap years or in the year 2000 or any preceding or following years, which
defects, individually or in the aggregate, would have a Material Adverse Effect
on Company.

(k) Company has obtained requisite authority, governmental approvals and
rights (sufficient for the conduct of its business as currently conducted) to
act as the exclusive registry and a non-exclusive registrar for certain general
Internet top level domains, including but not limited to the .com, .net and
.org domains. The Company Disclosure Letter lists all material contracts,
licenses and agreements to which Company is a party with respect to Company's
authority and obligations as a registry and registrar for Internet general top
level domains including but not limited to the .com, .net and .org domains.

(l) All material contracts, licenses and agreements relating to Company's
authority and obligations as a registry and registrar for Internet general top
level domains including but not limited to the .com, .net and .org domains, are
in full force and effect. The consummation of the transactions contemplated by
this Agreement will neither violate nor result in the breach, modification,
cancellation, termination, or suspension of such contracts, licenses and
agreements. Company and each of its subsidiaries are in material compliance
with, and have not materially breached any term of any of such contracts,
licenses and agreements and, to the knowledge of Company and its subsidiaries,
all other parties to such contracts, licenses and agreements are in compliance
in all material respects with, and have not materially breached any term of,
such contracts, licenses and agreements.

(m) Since November 10, 1999, Company has received no notice from any United
States Governmental Entity or ICANN (i) of any material complaint by a United
States Governmental Entity or ICANN regarding Company's services or activities
related to its role as a registry and registrar for Internet general top level
domains including but not limited to the .com, .net and .org domains; or (ii)
questioning Company's authority to act as the exclusive registry and a non-
exclusive registrar for Internet general top level domains, including but not
limited to the .com, .net and .org domains.

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<PAGE>

(n) To the Company's knowledge, as of the date of this Agreement, Company's
separation of its registrar and registry computer systems was achieved without
a material failure, which, for purposes of this Section 2.9(n), shall be
defined as uptime availability of less than 99% since the date of the
separation of such systems due to the separation of such systems.

2.10 Compliance with Laws.

(a) Neither Company nor any of its subsidiaries is in conflict with, or in
default or in violation of (i) any law, rule, regulation, order, judgment or
decree applicable to Company or any of its subsidiaries or by which Company or
any of its subsidiaries or any of their respective properties is bound or
affected, or (ii) any note, bond, mortgage, indenture, agreement, lease,
license, permit, franchise or other instrument or obligation to which Company
or any of its subsidiaries is a party or by which Company or any of its
subsidiaries or its or any of their respective properties is bound or affected,
except for conflicts, violations and defaults that, individually or in the
aggregate, would not have a Material Adverse Effect on Company. To Company's
knowledge, no investigation or review by any Governmental Entity is pending or,
has been threatened in a writing delivered to Company against Company or any of
its subsidiaries, nor, to Company's knowledge, has any Governmental Entity
indicated an intention to conduct an investigation of Company or any of its
subsidiaries. There is no judgment, injunction, order or decree binding upon
Company or any of its subsidiaries which has or could reasonably be expected to
have the effect of prohibiting or materially impairing any material business
practice of Company or any of its subsidiaries, or any acquisition of material
property by Company or any of its subsidiaries.

(b) Company and its subsidiaries hold all permits, licenses, variances,
exemptions, orders and approvals from governmental authorities that are
material to or required for the operation of the business of Company as
currently conducted (collectively, the "Company Permits"), and are in
compliance with the terms of the Company Permits, except where the failure to
hold such Company Permits, or be in such compliance, would not, individually or
in the aggregate, have a Material Adverse Effect on Company.

2.11 Litigation. There are no claims, suits, actions or proceedings pending
or, to the knowledge of Company, threatened against, relating to or affecting
Company or any of its subsidiaries, before any Governmental Entity or any
arbitrator that seeks to restrain or enjoin the consummation of the
transactions contemplated by this Agreement or which could reasonably be
expected, either singularly or in the aggregate with all such claims, actions
or proceedings, to have a Material Adverse Effect on Company or on the
Surviving Corporation following the Merger or have a material adverse effect on
the ability of the parties hereto to consummate the Merger. No director or
executive officer of Company has asserted a claim to seek indemnification from
Company under the Company Charter Documents or any indemnification agreement
between Company and such person.

2.12 Employee Benefit Plans.

(a) Definitions. With the exception of the definition of "Affiliate" set
forth in Section 2.12(a)(i) below (which definition shall apply only to this
Section 2.12), for purposes of this Agreement, the following terms shall have
the meanings set forth below:

(i) "Affiliate" shall mean any other person or entity under common
control with Company within the meaning of Section 414(b), (c), (m) or (o)
of the Code and the regulations issued thereunder;

(ii) "Company Employee Plan" shall mean any plan, program, policy,
practice, contract, agreement or other arrangement providing for
compensation, severance, termination pay, performance awards, stock or
stock-related awards, fringe benefits or other employee benefits or
remuneration of any kind, whether written or unwritten or otherwise, funded
or unfunded, including without limitation, each "employee benefit plan,"
within the meaning of Section 3(3) of ERISA which is or has been
maintained, contributed to, or required to be contributed to, by Company or
any Affiliate for the benefit of any Employee;

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<PAGE>

(iii) "COBRA" shall mean the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended;

(iv) "DOL" shall mean the Department of Labor;

(v) "Employee" shall mean any current, former, or retired employee,
officer, or director of Company or any subsidiary of Company;

(vi) "Employee Agreement" shall mean each management, employment,
severance, consulting, relocation, repatriation, expatriation, visas, work
permit or similar agreement or contract between Company or any subsidiary
of Company, on the one hand, and any Employee or consultant of Company or
any subsidiary of Company, on the other hand;

(vii) "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended;

(viii) "FMLA" shall mean the Family Medical Leave Act of 1993, as
amended;

(ix) "International Employee Plan" shall mean each Company Employee Plan
that has been adopted or maintained by Company, whether informally or
formally, for the benefit of Employees outside the United States;

(x) "IRS" shall mean the Internal Revenue Service;

(xi) "Multiemployer Plan" shall mean any "Pension Plan" (as defined
below) which is a "multiemployer plan," as defined in Section 3(37) of
ERISA;

(xii) "PBGC" shall mean the Pension Benefit Guaranty Corporation; and

(xiii) "Pension Plan" shall mean each Company Employee Plan which is an
"employee pension benefit plan," within the meaning of Section 3(2) of
ERISA.

(b) Schedule. Part 2.12 of the Company Disclosure Letter contains an accurate
and complete list of each Company Employee Plan and each Employee Agreement.
Company does not have any plan or commitment to establish any new Company
Employee Plan, to modify any Company Employee Plan or Employee Agreement
(except to the extent required by law or to conform any such Company Employee
Plan or Employee Agreement to the requirements of any applicable law, in each
case as previously disclosed to Parent in writing, or as required by this
Agreement), or to enter into any Company Employee Plan or Employee Agreement,
nor does it have any intention or commitment to do any of the foregoing.

(c) Documents. Company has made available to Parent, to the extent requested
by Parent: (i) correct and complete copies of all documents embodying each
Company Employee Plan and each Employee Agreement including all amendments
thereto and written interpretations thereof; (ii) the most recent annual
actuarial valuations, if any, prepared for each Company Employee Plan; (iii)
the most recent annual report (Form Series 5500 and all schedules and financial
statements attached thereto), if any, required under ERISA or the Code in
connection with each Company Employee Plan or related trust; (iv) if the
Company Employee Plan is funded, the most recent annual and periodic accounting
of Company Employee Plan assets; (v) the most recent summary plan description
together with the summary of material modifications thereto, if any, required
under ERISA with respect to each Company Employee Plan; (vi) all IRS
determination, opinion, notification and advisory letters, and rulings relating
to Company Employee Plans and copies of all applications and correspondence to
or from the IRS or the DOL with respect to any Company Employee Plan; (vii) all
material written agreements and contracts relating to each Company Employee
Plan, including, but not limited to, administrative service agreements, group
annuity contracts and group insurance contracts; (viii) all communications
material to any Employee or Employees relating to any Company Employee Plan and
any proposed Company Employee Plans, in each case, relating to any amendments,
terminations, establishments, increases or decreases in benefits, acceleration
of payments or vesting schedules or other events which would result in any
material liability to Company; (ix) all COBRA forms and related notices; and
(x) all registration statements and prospectuses prepared in connection with
each Company Employee Plan.

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<PAGE>

(d) Employee Plan Compliance. Except, in each case, as would not,
individually or in the aggregate, result in a material liability to Company:
(i) Company has performed in all material respects all obligations required to
be performed by it under, is not in default or violation of, and has no
knowledge of any default or violation by any other party to, each Company
Employee Plan, and each Company Employee Plan has been established and
maintained in all material respects in accordance with its terms and in
compliance with all applicable laws, statutes, orders, rules and regulations,
including but not limited to ERISA or the Code; (ii) each Company Employee Plan
intended to qualify under Section 401(a) of the Code and each trust intended to
qualify under Section 501(a) of the Code has either received a favorable
determination letter from the IRS with respect to each such Plan as to its
qualified status under the Code or has remaining a period of time under
applicable Treasury regulations or IRS pronouncements in which to apply for
such a determination letter and make any amendments necessary to obtain a
favorable determination and, to the knowledge of Company, no event has occurred
giving rise to a material likelihood that such Plan would not be treated as
qualified by the IRS; (iii) no "prohibited transaction," within the meaning of
Section 4975 of the Code or Sections 406 and 407 of ERISA, and not otherwise
exempt under Section 408 of ERISA, has occurred with respect to any Company
Employee Plan; (iv) there are no actions, suits or claims pending, or, to the
knowledge of Company, threatened or reasonably anticipated (other than routine
claims for benefits) against any Company Employee Plan or against the assets of
any Company Employee Plan; (v) each Company Employee Plan can be amended,
terminated or otherwise discontinued after the Effective Time in accordance
with its terms, without liability to Parent, Company or any of its Affiliates
(other than ordinary administration expenses typically incurred in a
termination event); (vi) there are no audits, inquiries or proceedings pending
or, to the knowledge of Company, threatened by the IRS or DOL with respect to
any Company Employee Plan; (vii) neither Company nor any Affiliate is subject
to any penalty or tax with respect to any Company Employee Plan under Section
402(i) of ERISA or Sections 4975 through 4980 of the Code; and (viii) all
contributions due from the Company or any Affiliate with respect to any of the
Company Employee Plans have been made as required under ERISA or have been
accrued on the Company Balance Sheet.

(e) Pension Plans. Neither Company nor SAIC has now, nor has it ever,
maintained, established, sponsored, participated in, or contributed to, any
Pension Plan which is subject to Title IV of ERISA or Section 412 of the Code,
that would result in material liability to Company.

(f) Multiemployer Plans. At no time has Company or SAIC contributed to or
been requested to contribute to any Multiemployer Plan, that would result in
material liability to Company.

(g) No Post-Employment Obligations. No Company Employee Plan provides, or has
any liability to provide, retiree life insurance, retiree health or other
retiree employee welfare benefits to any person for any reason, except as may
be required by COBRA or other applicable statute, and Company has never
represented, promised or contracted (whether in oral or written form) to any
Employee (either individually or to Employees as a group) or any other person
that such Employee(s) or other person would be provided with retiree life
insurance, retiree health or other retiree employee welfare benefit, except to
the extent required by statute.

(h) Effect of Transaction. Except as expressly contemplated by this
Agreement, the execution of this Agreement and the consummation of the
transactions contemplated hereby will not (either alone or upon the occurrence
of any additional or subsequent events) constitute an event under any Company
Employee Plan, Employee Agreement, trust or loan that will or may result in any
payment (whether of severance pay or otherwise), acceleration, forgiveness of
indebtedness, vesting, distribution, increase in benefits or obligation to fund
benefits with respect to any Employee.

(i) Employment Matters. Except, in each case, as would not, individually or
in the aggregate, have a Material Adverse Effect on the Company, Company and
each of its subsidiaries: (i) is in compliance in all material respects with
all applicable foreign, federal, state and local laws, rules and regulations
respecting employment, employment practices, terms and conditions of employment
and wages and hours, in each case, with respect to Employees; (ii) has withheld
all amounts required by law or by agreement to be withheld from the wages,
salaries and other payments to Employees; (iii) has properly classified
independent contractors for

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<PAGE>

purposes of federal and applicable state tax laws, laws applicable to employee
benefits and other applicable laws; (iv) is not liable for any arrears of wages
or any taxes or any penalty for failure to comply with any of the foregoing;
and (v) is not liable for any material payment to any trust or other fund or to
any governmental or administrative authority, with respect to unemployment
compensation benefits, social security or other benefits or obligations for
Employees (other than routine payments to be made in the normal course of
business and consistent with past practice). There are no pending, or, to
Company's knowledge, threatened material claims or actions against Company
under any worker's compensation policy or long-term disability policy. To
Company's knowledge, no Employee of Company has materially violated any
employment contract, nondisclosure agreement or noncompetition agreement by
which such Employee is bound due to such Employee being employed by Company and
disclosing to Company or using trade secrets or proprietary information of any
other person or entity.

(j) Labor. No work stoppage or labor strike against Company is pending,
threatened or reasonably anticipated. Company does not know of any activities
or proceedings of any labor union to organize any Employees. There are no
actions, suits, claims, labor disputes or grievances pending, or, to the
knowledge of Company, threatened relating to any labor, safety or
discrimination matters involving any Employee, including charges of unfair
labor practices or discrimination complaints, which, if adversely determined,
would, individually or in the aggregate, result in any material liability to
Company. Neither Company nor any of its subsidiaries has engaged in any unfair
labor practices within the meaning of the National Labor Relations Act. Company
is not presently, nor has it been in the past, a party to, or bound by, any
collective bargaining agreement or union contract with respect to Employees and
no collective bargaining agreement is being negotiated by Company.

(k) International Employee Plan. Each International Employee Plan has been
established, maintained and administered in material compliance with its terms
and conditions and with the requirements prescribed by any and all statutory or
regulatory laws that are applicable to such International Employee Plan.
Furthermore, no International Employee Plan has unfunded liabilities, that as
of the Effective Time, will not be offset by insurance or fully accrued. Except
as required by law, no condition exists that would prevent Company or Parent
from terminating or amending any International Employee Plan at any time for
any reason.

2.13 Environmental Matters.

(a) Hazardous Material. Except as would not have a Material Adverse Effect on
Company, no underground storage tanks and no amount of any substance that has
been designated by any Governmental Entity or by applicable federal, state or
local law to be radioactive, toxic, hazardous or otherwise a danger to health
or the environment, including, without limitation, PCBs, asbestos, petroleum,
urea-formaldehyde and all substances listed as hazardous substances pursuant to
the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended, or defined as a hazardous waste pursuant to the United States
Resource Conservation and Recovery Act of 1976, as amended, and the regulations
promulgated pursuant to said laws, but excluding office and janitorial supplies
(a "Hazardous Material") are present, as a result of the actions of Company or
any of its subsidiaries or any affiliate of Company, or, to Company's
knowledge, as a result of any actions of any third party or otherwise, in, on
or under any property, including the land and the improvements, ground water
and surface water thereof that Company or any of its subsidiaries has at any
time owned, operated, occupied or leased.

(b) Hazardous Materials Activities. Except as would not have a Material
Adverse Effect on Company (in any individual case or in the aggregate) (i)
neither Company nor any of its subsidiaries has transported, stored, used,
manufactured, disposed of released or exposed its employees or others to
Hazardous Materials in violation of any law in effect on or before the Closing
Date, and (ii) neither Company nor any of its subsidiaries has disposed of,
transported, sold, used, released, exposed its employees or others to or
manufactured any product containing a Hazardous Material (collectively
"Hazardous Materials Activities") in violation of any rule, regulation, treaty
or statute promulgated by any Governmental Entity in effect prior to or as of
the date hereof to prohibit, regulate or control Hazardous Materials or any
Hazardous Material Activity.

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(c) Permits. Company and its subsidiaries currently hold all environmental
approvals, permits, licenses, clearances and consents ("Environmental Permits")
material to and necessary for the conduct of Company's and its subsidiaries'
Hazardous Material Activities and other businesses of Company and its
subsidiaries as such activities and businesses are currently being conducted.

(d) Environmental Liabilities. No material action, proceeding, revocation
proceeding, amendment procedure, writ or injunction is pending, and to
Company's knowledge, no material action, proceeding, revocation proceeding,
amendment procedure, writ or injunction has been threatened by any Governmental
Entity against Company or any of its subsidiaries in a writing delivered to
Company concerning any Environmental Permit of Company, Hazardous Material or
any Hazardous Materials Activity of Company or any of its subsidiaries. Company
is not aware of any fact or circumstance which reasonably could be expected to
involve Company or any of its subsidiaries in any environmental litigation or
impose upon Company any environmental liability, with such exceptions as would
not have a Material Adverse Effect on Company.

2.14 Certain Agreements. Except as set forth in Part 2.14 of the Company
Disclosure Letter, neither Company nor any of its subsidiaries is a party to or
is bound by:

(a) any employment or consulting agreement or commitment with any
employee or member of Company's Board of Directors, that, individually or
in the aggregate, is material to Company, other than those that are
terminable by Company or any of its subsidiaries on no more than thirty
days notice without liability or financial obligation, except to the extent
general principles of wrongful termination law may limit Company's or any
of its subsidiaries' ability to terminate employees at will;

(b) any agreement or plan, including any stock option plan, stock
appreciation right plan or stock purchase plan, any of the benefits of
which will be increased, or the vesting of benefits of which will be
accelerated, by the occurrence of any of the transactions contemplated by
this Agreement or the value of any of the benefits of which will be
calculated on the basis of any of the transactions contemplated by this
Agreement;

(c) any material guaranty or any instrument evidencing indebtedness for
borrowed money by way of direct loan or sale of debt securities;

(d) any agreement, obligation or commitment containing covenants
purporting to limit or which effectively limit the Company's or any of its
subsidiaries' freedom to compete in any line of business or in any
geographic area or which would so limit Company or Surviving Corporation or
any of its subsidiaries after the Effective Time that would have a Material
Adverse Effect on Company;

(e) any agreement or commitment currently in force relating to the
disposition or acquisition by Company or any of its subsidiaries after the
date of this Agreement of a material amount of assets not in the ordinary
course of business, or pursuant to which Company has any material ownership
or participation interest in any corporation, partnership, joint venture,
strategic alliance or other business enterprise other than Company's
subsidiaries;

(f) any material agreement or commitment with SAIC other than the
Corporate Services Agreement between Company and SAIC; or

(g) any agreement or commitment currently in force providing for capital
expenditures by Company or its subsidiaries in excess of $5,000,000.

The agreements required to be disclosed in the Company Disclosure Letter
pursuant to clauses (a) through (g) above or pursuant to Section 2.9 or are
required to be filed with any Parent SEC Report ("Company Contracts") are valid
and in full force and effect, except to the extent that such invalidity would
not have a Material Adverse Effect on Company. Neither Company nor any of its
subsidiaries, nor to Company's knowledge, any other party thereto, is in
breach, violation or default under, and neither Company nor any of its
subsidiaries has received written notice that it has breached, violated or
defaulted, any of the terms or conditions of any Company Contract in such a
manner as would have a Material Adverse Effect on Company.

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2.15 Brokers' and Finders' Fees. Except for fees payable to J.P. Morgan & Co.
Incorporated and Chase Securities, Inc. pursuant to engagement letters which
have been provided to Parent, Company has not incurred, nor will it incur,
directly or indirectly, any liability for brokerage or finders' fees or agents'
commissions or any similar charges in connection with this Agreement or any
transaction contemplated hereby.

2.16 Insurance. Company and each of its subsidiaries have policies of
insurance and bonds of the type and in amounts customarily carried by persons
conducting business or owning assets similar to those of the Company and its
subsidiaries. There is no material claim pending under any of such policies or
bonds as to which coverage has been questioned, denied or disputed by the
underwriters of such policies or bonds. All premiums due and payable under all
such policies have been paid and the Company and its subsidiaries are otherwise
in compliance in all material respects with the terms of such policies and
bonds. To the knowledge of Company, there has been no threatened termination
of, or material premium increase with respect to, any of such policies.

2.17 Disclosure. The information supplied by Company for inclusion in the
Form S-4 (or any similar successor form thereto) Registration Statement to be
filed by Parent with the SEC in connection with the issuance of Parent Common
Stock in the Merger (the "Registration Statement") shall not at the time the
Registration Statement is filed with the SEC and at the time it becomes
effective under the Securities Act contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading. The information
supplied by Company for inclusion or incorporation by reference in the proxy
statement/prospectus to be filed with the SEC as part of the Registration
Statement (the "Proxy Statement/Prospectus") shall not, on the date the Proxy
Statement/Prospectus is mailed to Company's stockholders or to Parent's
stockholders, at the time of the meeting of Company's stockholders (the
"Company Stockholders' Meeting") to consider the Company Stockholder Approvals,
at the time of the meeting of Parent's stockholders (the "Parent Stockholders'
Meeting") to consider (1) the issuance of shares of Parent Common Stock
pursuant to the Merger, (2) an amendment to Parent's Certificate of
Incorporation to increase the authorized number of shares of Parent Common
Stock in order to permit the issuance of shares of Parent Common Stock pursuant
to the Merger, and (3) an amendment to Parent's Bylaws to increase the
authorized number of directors of Parent (collectively, the "Parent Stockholder
Approvals") or as of the Effective Time, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not false or misleading; or omit to
state any material fact necessary to correct any statement in any earlier
communication with respect to the solicitation of proxies for the Company
Stockholders' Meeting or Parent Stockholders' Meeting which has become false or
misleading. The Proxy Statement/Prospectus will comply as to form in all
material respects with the provisions of the Securities Act, the Exchange Act
and the rules and regulations thereunder. If at any time prior to the Effective
Time any event relating to Company or any of its affiliates, officers or
directors should be discovered by Company which is required to be set forth in
an amendment to the Registration Statement or a supplement to the Proxy
Statement/Prospectus, Company shall promptly inform Parent. Notwithstanding the
foregoing, Company makes no representation or warranty with respect to any
information supplied by Parent or Merger Sub which is contained in any of the
foregoing documents.

2.18 Board Approval. The Board of Directors of Company has, as of the date of
this Agreement, (i) determined that the Merger is fair to, and in the best
interests of Company and its stockholders, and has approved this Agreement and
(ii) declared the advisability of the Merger and recommends that the
stockholders of Company approve and adopt this Agreement and approve the
Merger.

2.19 Fairness Opinion. Company's Board of Directors has received opinions
from J.P. Morgan & Co. Incorporated and Chase Securities, Inc., dated as of the
date hereof, to the effect that, as of the date hereof, the consideration to be
received by Company's stockholders in the Merger is fair to Company's
stockholders from a financial point of view, and will promptly deliver to
Parent copies of such opinions.

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2.20 DGCL Section 203 and Rights Agreement Not Applicable. The restrictions
contained in Section 203 of the Delaware Law applicable to a "business
combination" (as defined in such Section 203) are not applicable to the
execution, delivery or performance of this Agreement or to the consummation of
the Merger by express provision of the Company's Certificate of Incorporation,
duly adopted pursuant to the provisions of Section 203(b)(3) of the Delaware
Law. To Company's knowledge, no other anti-takeover, control share acquisition,
fair price, moratorium or other similar statute or regulation (each, a
"Takeover Statute") applies or purports to apply to this Agreement, the Merger
or the other transactions contemplated hereby. Company is not a party to, and
Company's equity securities will not be affected by, any rights agreement,
"poison pill" or similar plan, agreement or arrangement which would have an
adverse effect on the ability of Parent to consummate the Merger or the other
transactions contemplated hereby.

2.21 Affiliates. Part 2.21 of the Company Disclosure Letter is a complete
list of those persons who may be deemed to be, in Company's reasonable
judgment, affiliates of Company within the meaning of Rule 145 promulgated
under the Securities Act. Except as set forth in the Company SEC Reports, since
the date of the Company's last proxy statement filed with the SEC, no event has
occurred as of the date of this Agreement that would be required to be reported
by the Company pursuant to Item 404 of Regulation S-K promulgated by the SEC.

ARTICLE III

Representations and Warranties of Parent and Merger Sub

As of the date of this Agreement and as of the Closing Date, except as
disclosed in (i) Parent's Annual Report on Form 10-K for the year ending
December 31, 1998 and any Parent SEC Reports (as defined below) filed
subsequent to such Form 10-K, and (ii) the disclosure letter delivered by
Parent to Company dated as of the date hereof and certified by a duly
authorized officer of Parent (the "Parent Disclosure Letter") (each Part of
which qualifies the correspondingly numbered representation, warranty or
covenant to the extent specified therein and such other representations,
warranties or covenants to the extent a matter in such Part is disclosed in
such a way as to make its relevance to such other representation, warranty or
covenant readily apparent, Parent and Merger Sub represent and warrant as
follows:

3.1 Organization of Parent and Merger Sub.

(a) Each of Parent and Merger Sub is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority, and all
requisite qualifications to do business as a foreign corporation, to conduct
its business in the manner in which its business is currently being conducted,
except where the failure to be so organized, existing or in good standing or to
have such power, authority or qualifications would not, individually or in the
aggregate, have a Material Adverse Effect on Parent.

(b) Parent has delivered or made available to Company a true and correct copy
of the Certificate of Incorporation and Bylaws of Parent and Merger Sub, each
as amended to date (collectively, the "Parent Charter Documents"), and each
such instrument is in full force and effect. Neither Parent nor Merger Sub is
in violation of any of the provisions of the Parent Charter Documents.

3.2 Parent and Merger Sub Capitalization.

(a) The authorized capital stock of Parent consists solely of 200,000,000
shares of Parent Common Stock, of which there were 114,820,683 shares issued
and outstanding as of the close of business on March 3, 2000, and 5,000,000
shares of Preferred Stock, par value $0.001 per share, of which no shares are
issued or outstanding. All outstanding shares of Parent Common Stock are duly
authorized, validly issued, fully paid and nonassessable and are not subject to
preemptive rights created by statute, the Certificate of Incorporation or
Bylaws of Parent or any agreement or document to which Parent is a party or by
which it is bound. As of the close of business on March 3, 2000, (i) 17,137,292
shares of Parent Common Stock are subject to issuance

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pursuant to outstanding options to purchase Parent Common Stock, and (ii)
1,748,494 shares of Parent Common Stock are reserved for future issuance under
Parent's 1998 Equity Employee Stock Purchase Plan. All shares of Parent Common
Stock subject to issuance as aforesaid, upon issuance on the terms and
conditions specified in the instruments pursuant to which they are issuable,
would be duly authorized, validly issued, fully paid and nonassessable.

(b) The authorized capital stock of Merger Sub consists of 1,000 shares of
common stock, $0.01 par value, all of which, as of the date hereof, are issued
and outstanding and are held by Parent. All of the outstanding shares of Merger
Sub's common stock have been duly authorized and validly issued, and are fully
paid and nonassessable. Merger Sub was formed for the purpose of consummating
the Merger and has no material assets or liabilities except as necessary for
such purpose.

(d) The Parent Common Stock to be issued in the Merger, when issued in
accordance with the provisions of this Agreement, will be validly issued, fully
paid and nonassessable.

3.3 Obligations With Respect to Capital Stock. Except as set forth in Part
3.3 of the Parent Disclosure Letter, there are no equity securities,
partnership interests or similar ownership interests of any class of Parent
equity security, or any securities exchangeable or convertible into or
exercisable for such equity securities, partnership interests or similar
ownership interests, issued, reserved for issuance or outstanding. Except for
securities Parent owns free and clear of all claims and Encumbrances, directly
or indirectly through one or more subsidiaries, and except for shares of
capital stock or other similar ownership interests of certain subsidiaries of
Parent that are owned by certain nominee equity holders as required by the
applicable law of the jurisdiction of organization of such subsidiaries, as of
the date of this Agreement, there are no equity securities, partnership
interests or similar ownership interests of any class of equity security of any
subsidiary of Parent, or any security exchangeable or convertible into or
exercisable for such equity securities, partnership interests or similar
ownership interests, issued, reserved for issuance or outstanding. Except as
set forth in Part 3.2 or Part 3.3 of the Parent Disclosure Letter, there are no
subscriptions, options, warrants, equity securities, partnership interests or
similar ownership interests, calls, rights (including preemptive rights),
commitments or agreements of any character to which Parent or any of its
subsidiaries is a party or by which it is bound obligating Parent or any of its
subsidiaries to issue, deliver or sell, or cause to be issued, delivered or
sold, or repurchase, redeem or otherwise acquire, or cause the repurchase,
redemption or acquisition of, any shares of capital stock, partnership
interests or similar ownership interests of Parent or any of its subsidiaries
or obligating Parent or any of its subsidiaries to grant, extend, accelerate
the vesting of or enter into any such subscription, option, warrant, equity
security, call, right, commitment or agreement.

3.4 Authority; Non-Contravention.

(a) Each of Parent and Merger Sub has all requisite corporate power and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized
by all necessary corporate action on the part of Parent and Merger Sub, subject
only to the Parent Stockholder Approvals and the filing of the Certificate of
Merger pursuant to Delaware Law. The affirmative vote of (i) the holders of a
majority in interest of the stock present or represented by proxy at the Parent
Stockholders' Meeting is sufficient for Parent's stockholders to approve the
issuance of shares of Parent Common Stock pursuant to the Merger, (ii) the
holders of a majority of the outstanding shares of Parent Common Stock is
sufficient for Parent's stockholders to amend Parent's Certificate of
Incorporation to increased the authorized number of shares of Parent Common
Stock in order to permit the issuance of shares of Parent Common Stock pursuant
to the Merger, and (iii) the holders of at least a majority of the voting power
of all of then outstanding shares of Parent Common Stock is sufficient to amend
Parent's Bylaws to increase the authorized number of

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directors of Parent, and no other approval of any holder of any securities of
Company is required in connection with the consummation of the transactions
contemplated hereby. This Agreement has been duly executed and delivered by
each of Parent and Merger Sub and, assuming the due authorization, execution
and delivery by Company, constitute the valid and binding obligations of Parent
and Merger Sub, respectively, enforceable against Parent and Merger Sub in
accordance with their terms, except as enforceability may be limited by
bankruptcy and other similar laws affecting the rights of creditors generally
and general principles of equity.

(b) The execution and delivery of this Agreement by each of Parent and Merger
Sub does not, and the performance of this Agreement by Parent and Merger Sub
will not, (i) subject to obtaining the Parent Stockholder Approvals, conflict
with or violate the Certificate of Incorporation or Bylaws of Parent or Merger
Sub, (ii) subject to obtaining the Parent Stockholder Approvals and compliance
with the requirements set forth in Section 3.4(c), conflict with or violate any
law, rule, regulation, order, judgment or decree applicable to Parent or Merger
Sub or by which any of their respective properties is bound or affected, or
(iii) result in any breach of or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or impair
Parent's rights or alter the rights or obligations of any third party under, or
give to others any rights of termination, amendment, acceleration or
cancellation of; or result in the creation of an Encumbrance on any of the
properties or assets of Parent or Merger Sub pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise or
other instrument or obligation to which Parent or Merger Sub is a party or by
which Parent or Merger Sub or any of their respective properties are bound or
affected, except, in the case of clauses (ii) and (iii), for such conflicts,
violations, breaches, defaults, impairments, or rights which, individually or
in the aggregate, would not have a Material Adverse Effect on Parent. Part
3.4(b) of the Parent Disclosure Letter list all consents, waivers and approvals
under any of Parent's or any of its subsidiaries' agreements, contracts,
licenses or leases required to be obtained in connection with the consummation
of the transactions contemplated hereby, which, if individually or in the
aggregate not obtained, would result in a material loss of benefits to Parent
or the Surviving Corporation as a result of the Merger.

(c) No consent, approval, order or authorization of, or registration,
declaration or filing with any Governmental Entity or other person is required
to be obtained or made by Parent or Merger Sub in connection with the execution
and delivery of this Agreement or the consummation of the Merger, except for
(i) the filing of the Certificate of Merger with the Secretary of State of the
State of Delaware, (ii) the filing of the Proxy Statement/Prospectus and the
Registration Statement with the SEC and a Schedule 13D with regard to the
Voting Agreement in accordance with the Securities Act and the Exchange Act,
and the effectiveness of the Registration Statement, (iii) such consents,
approvals, orders, authorizations, registrations, declarations and filings as
may be required under applicable federal, foreign and state securities (or
related) laws and the HSR Act and the securities or antitrust laws of any
foreign country, and (v) such other consents, authorizations, filings,
approvals and registrations which if not obtained or made would not be material
to Parent or the Surviving Corporation or have a material adverse effect on the
ability of the parties hereto to consummate the Merger.

3.5 SEC Filings; Parent Financial Statements.

(a) Parent has filed all forms, reports and documents required to be filed by
Parent with the SEC since the effective date of the registration statement of
Parent's initial public offering, and has made available to Company such forms,
reports and documents in the form filed with the SEC. All such required forms,
reports and documents (including those that Parent may file subsequent to the
date hereof) are referred to herein as the "Parent SEC Reports." As of their
respective dates, the Parent SEC Reports (i) were prepared in accordance with
the requirements of the Securities Act or the Exchange Act, as the case may be,
and the rules and regulations of the SEC thereunder applicable to such Parent
SEC Reports, and (ii) did not at the time they were filed (or if amended or
superseded by a filing prior to the date of this Agreement, then on the date of
such filing) contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, except to the extent corrected prior to the date of this
Agreement by a subsequently

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filed Parent SEC Report. None of Parent's subsidiaries is required to file any
forms, reports or other documents with the SEC.

(b) Each of the consolidated financial statements (including, in each case,
any related notes thereto) contained in the Parent SEC Reports (the "Parent
Financials"), including any Parent SEC Reports filed after the date hereof
until the Closing, (i) complied as to form in all material respects with the
published rules and regulations of the SEC with respect thereto, (ii) was
prepared in accordance with GAAP applied on a consistent basis throughout the
periods involved (except as may be indicated in the notes thereto or, in the
case of unaudited interim financial statements, as may be permitted by the SEC
on Form 1O-Q, 8-K or any successor form under the Exchange Act) and (iii)
fairly presented the consolidated financial position of Parent and its
subsidiaries as at the respective dates thereof and the consolidated results of
Parent's operations and cash flows for the periods indicated, except that the
unaudited interim financial statements may not contain footnotes and were or
are subject to normal and recurring year-end adjustments. The balance sheet of
Parent contained in Parent SEC Reports as of September 30, 1999 is hereinafter
referred to as the "Parent Balance Sheet." Except as disclosed in the Parent
Financials, since the date of the Parent Balance Sheet neither Parent nor any
of its subsidiaries has any liabilities required under GAAP to be set forth on
a balance sheet (absolute, accrued, contingent or otherwise) which are,
individually or in the aggregate, material to the business, results of
operations or financial condition of Parent and its subsidiaries taken as a
whole, except for liabilities incurred since the date of the Parent Balance
Sheet in the ordinary course of business consistent with past practices and
liabilities incurred in connection with this Agreement.

(c) Parent has heretofore furnished to Company a complete and correct copy of
any amendments or modifications, which have not yet been filed with the SEC but
which are required to be filed, to agreements, documents or other instruments
which previously had been filed by Parent with the SEC pursuant to the
Securities Act or the Exchange Act.

3.6 Absence of Certain Changes or Events. Since the date of the Parent
Balance Sheet there has not been (i) any Material Adverse Effect with respect
to Parent, (ii) any declaration, setting aside or payment of any dividend on,
or other distribution (whether in cash, stock or property) in respect of, any
of Parent's or any of its subsidiaries' capital stock, or any purchase,
redemption or other acquisition by Parent of any of Parent's capital stock or
any other securities of Parent or its subsidiaries or any options, warrants,
calls or rights to acquire any such shares or other securities except for
repurchases which are not, individually or in the aggregate, material in amount
from employees following their termination pursuant to the terms of their pre-
existing stock option or purchase agreements, (iii) any split, combination or
reclassification of any of Parent's or any of its subsidiaries' capital stock,
(iv) any material change by Parent in its accounting methods, principles or
practices, except as required by concurrent changes in GAAP, or (v) any
material revaluation by Parent of any of its material assets, including writing
off notes or accounts receivable other than in the ordinary course of business.

3.7 Taxes.

(a) Parent and each of its subsidiaries have timely filed all material
Returns relating to Taxes required to be filed by or on behalf of Parent and
each of its subsidiaries with any Tax authority, such Returns are true, correct
and complete in all material respects, and Parent and each of its subsidiaries
have paid all Taxes shown to be due on such Returns.

(b) Parent and each of its subsidiaries have withheld with respect to its
employees all federal and state income taxes, Taxes pursuant to FICA, Taxes
pursuant to FUTA and other Taxes required to be withheld, except such Taxes
which are not material to Parent.

(c) Neither Parent nor any of its subsidiaries has been delinquent in the
payment of any material Tax nor is there any material Tax deficiency
outstanding, proposed or assessed against Parent or any of its subsidiaries,
nor has Parent or any of its subsidiaries executed any unexpired waiver of any
statute of limitations on or extending the period for the assessment or
collection of any Tax.

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(d) No audit or other examination of any Return of Parent or any of its
subsidiaries by any Tax authority is presently in progress, nor has Parent or
any of its subsidiaries been notified of any request for such an audit or other
examination that is reasonably likely to result in any adjustment that is
material to Parent.

(e) No adjustment relating to any Returns filed by Parent or any of its
subsidiaries has been proposed in writing formally or informally by any Tax
authority to Company or any of its subsidiaries or any representative thereof
that is reasonably likely to be material to Parent.

(f) Neither Parent nor any of its subsidiaries has any liability for unpaid
Taxes which has not been accrued for or reserved on the Parent Balance Sheet in
accordance with GAAP, whether asserted or unasserted, contingent or otherwise,
which is material to Parent, other than any liability for unpaid Taxes that may
have accrued since the date of the Parent Balance Sheet in connection with the
operation of the business of Parent and its subsidiaries in the ordinary
course.

(g) There is no agreement, plan or arrangement to which Parent or any of its
subsidiaries is a party, including this Agreement and the agreements entered
into in connection with this Agreement, covering any employee or former
employee of Parent or any of its subsidiaries that, individually or
collectively, would be reasonably likely to give rise to the payment of any
amount that would not be deductible pursuant to Sections 280G, 404 or 162(m) of
the Code. There is no contract, agreement, plan or arrangement to which Parent
is a party or by which it is bound to compensate any individual for excise
taxes paid pursuant to Section 4999 of the Code.

(h) Neither Parent nor any of its subsidiaries has filed any consent
agreement under Section 341(f) of the Code or agreed to have Section 341(f)(2)
of the Code apply to any disposition of a subsection (f) asset (as defined in
Section 341(f)(4) of the Code) owned by Parent.

(i) Neither Parent nor any of its subsidiaries is party to or has any
obligation under any tax-sharing, tax indemnity or tax allocation agreement or
arrangement.

(j) Except as may be required as a result of the Merger, Parent and its
subsidiaries have not been and will not be required to include any adjustment
in Taxable income for any Tax period (or portion thereof) pursuant to Section
481 of the Code or any comparable provision under state or foreign Tax laws as
a result of transactions, events or accounting methods employed prior to the
Closing.

(k) None of Parent's or its subsidiaries' assets are tax exempt use property
within the meaning of Section 168(h) of the Code.

(l) Parent has not been distributed in a transaction qualifying under Section
355 of the Code within the last two years, nor has Parent distributed any
corporation in a transaction qualifying under Section 355 of the Code within
the last two years.

(m) Parent is not aware of any fact, circumstance, plan or intention on the
part of Parent that would be reasonably likely to prevent the Merger from
qualifying as a "reorganization" pursuant to the provisions of Section 368 of
the Code.

3.8 Title to Properties. Parent has good and valid title to, or, in the case
of leased properties and assets, valid leasehold interests in, all of its
tangible properties and assets, real, personal and mixed, used or held for use
in its business, free and clear of any Encumbrances, except as reflected in the
Parent Financials and except for liens for Taxes not yet due and payable and
such Encumbrances which are not material in character, amount or extent.

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3.9 Intellectual Property. For the purposes of this Agreement, the following
terms have the following definitions:

"Parent Intellectual Property" shall mean any Intellectual Property that
is owned by, or exclusively licensed to, Parent or one of its subsidiaries.

"Parent Registered Intellectual Property" means all of the Registered
Intellectual Property owned by, or filed in the name of, Parent or one of
its subsidiaries.

(a) No material Parent Intellectual Property or product or service of
Parent is subject to any proceeding or outstanding decree, order, judgment,
agreement, or stipulation restricting in any manner the use, transfer, or
licensing thereof by Parent, or which may affect the validity, use or
enforceability of such Parent Intellectual Property.

(b) Each material item of Parent Registered Intellectual Property is
valid and subsisting, all necessary registration, maintenance and renewal
fees currently due in connection with such Registered Intellectual Property
have been made and all necessary documents, recordations and certificates
in connection with such Registered Intellectual Property have been filed
with the relevant patent, copyright, trademark or other authorities in the
United States or foreign jurisdictions, as the case may be, for the
purposes of maintaining such Registered Intellectual Property except, in
each case, as would not materially adversely affect such item of Parent
Registered Intellectual Property.

(c) Parent or one of its subsidiaries owns and has good and exclusive
title to, or has license (sufficient for the conduct of its business as
currently conducted and as proposed to be conducted) to, each material item
of Parent Intellectual Property free and clear of any Encumbrance
(excluding licenses and related restrictions).

(d) Neither Parent nor any of its subsidiaries have transferred ownership
of, or granted any exclusive license with respect to, any Intellectual
Property that is or was material Parent Intellectual Property, to any third
party.

(e) To Parent's knowledge, the operation of the business of Parent as
such business currently is conducted, including Parent's design,
development, marketing and sale of the products or services of Parent
(including with respect to products currently under development) has not,
does not and will not infringe or misappropriate the Intellectual Property
of any third party or, to its knowledge, constitute unfair competition or
trade practices under the laws of any jurisdiction.

(f) Parent has not received notice from any third party that the
operation of the business of Parent or any act, product or service of
Parent, infringes or misappropriates the Intellectual Property of any third
party or constitutes unfair competition or trade practices under the laws
of any jurisdiction, which allegation, if true, would have a Material
Adverse Effect on Parent.

(g) To the knowledge of Parent, no person has or is infringing or
misappropriating any material Parent Intellectual Property, which
infringement or misappropriation, individually or in the aggregate, would
have a Material Adverse Effect on Parent.

(h) Parent and its subsidiaries have taken reasonable steps to protect
Parent's and its subsidiaries' rights in Parent's and such subsidiaries'
confidential information and trade secrets, except where the failure to do
so would have a Material Adverse Effect on Parent.

(i) None of the Parent Intellectual Property or product or service of
Parent contains any significant defect in connection with processing data
containing dates in leap years or in the year 2000 or any preceding or
following years, which defects, individually or in the aggregate, would
have a Material Adverse Effect on Parent.

3.10 Compliance with Laws.

(a) Neither Parent nor any of its subsidiaries is in conflict with, or in
default or in violation of (i) any law, rule, regulation, order, judgment or
decree applicable to Parent or any of its subsidiaries or by which Parent or

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any of its subsidiaries or any of their respective properties is bound or
affected, or (ii) any note, bond, mortgage, indenture, agreement, lease,
license, permit, franchise or other instrument or obligation to which Parent or
any of its subsidiaries is a party or by which Parent or any of its
subsidiaries or its or any of their respective properties is bound or affected,
except for conflicts, violations and defaults that, individually or in the
aggregate, would not have a Material Adverse Effect on Parent. No investigation
or review by any Governmental Entity is pending or, to Parent's knowledge, has
been threatened in a writing delivered to Parent against Parent or any of its
subsidiaries, nor, to Parent's knowledge, has any Governmental Entity indicated
an intention to conduct an investigation of Parent or any of its subsidiaries.
There is no judgment, injunction, order or decree binding upon Parent or any of
its subsidiaries which has or could reasonably be expected to have the effect
of prohibiting or materially impairing any material business practice of Parent
or any of its subsidiaries, or any acquisition of material property by Parent
or any of its subsidiaries.

(b) Parent and its subsidiaries hold all permits, licenses, variances,
exemptions, orders and approvals from governmental authorities that are
material to or required for the operation of the business of Parent as
currently conducted (collectively, the "Parent Permits"), and are in compliance
with the terms of the Parent Permits, except where the failure to hold such
Parent Permits, or be in such compliance, would not, individually or in the
aggregate, have a Material Adverse Effect on Parent.

3.11 Litigation. There are no claims, suits, actions or proceedings pending
or, to the knowledge of Parent, threatened against, relating to or affecting
Parent or any of its subsidiaries, before any Governmental Entity or any
arbitrator that seeks to restrain or enjoin the consummation of the
transactions contemplated by this Agreement or which could reasonably be
expected, either singularly or in the aggregate with all such claims, actions
or proceedings, to have a Material Adverse Effect on Parent or have a material
adverse effect on the ability of the parties hereto to consummate the Merger.
No director or executive officer of the Parent has asserted a claim to seek
indemnification from the Parent under Parent Charter Documents or any
indemnification agreements between Parent and such person.

3.12 Employee Benefit Plans.

(a) Definitions. With the exception of the definition of "Affiliate" set
forth in Section 3.12(a)(i) below (which definition shall apply only to this
Section 3.12), for purposes of this Agreement, the following terms shall have
the meanings set forth below:

(i) "Affiliate" shall mean any other person or entity under common
control with Parent within the meaning of Section 414(b), (c), (m) or (o)
of the Code and the regulations issued thereunder;

(ii) "Parent Employee Plan" shall mean any plan, program, policy,
practice, contract, agreement or other arrangement providing for
compensation, severance, termination pay, performance awards, stock or
stock-related awards, fringe benefits or other employee benefits or
remuneration of any kind, whether written or unwritten or otherwise, funded
or unfunded, including without limitation, each "employee benefit plan,"
within the meaning of Section 3(3) of ERISA which is or has been
maintained, contributed to, or required to be contributed to, by Parent or
any Affiliate for the benefit of any Employee;

(iii) "Parent Employees" shall mean any current, former or retired
employee, officer or director or any subsidiary of Parent;

(iv) "International Parent Employee Plan" shall mean each Parent Employee
Plan that has been adopted or maintained by Parent, whether informally or
formally, for the benefit of Employees outside the United States;

(v) "Multiemployer Plan" shall mean any "Pension Plan" (as defined below)
which is a "multiemployer plan," as defined in Section 3(37) of ERISA;

(vi) "Pension Plan" shall mean each Parent Employee Plan which is an
"employee pension benefit plan," within the meaning of Section 3(2) of
ERISA.

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(b) Schedule. Part 3.12 of the Parent Disclosure Letter contains an accurate
and complete list of each Parent Employee Plan. Parent does not have any plan
or commitment to establish any new Parent Employee Plan, to modify any Parent
Employee Plan (except to the extent required by law or to conform any such
Parent Employee Plan to the requirements of any applicable law, in each case as
previously disclosed to Parent in writing, or as required by this Agreement),
or to enter into any Parent Employee Plan, nor does it have any intention or
commitment to do any of the foregoing.

(c) Documents. Parent has made available to Company, to the extent requested
by Company: (i) correct and complete copies of all documents embodying each
Parent Employee Plan including all amendments thereto and written
interpretations thereof; (ii) the most recent annual actuarial valuations, if
any, prepared for each Parent Employee Plan; (iii) the most recent annual
report (Form Series 5500 and all schedules and financial statements attached
thereto), if any, required under ERISA or the Code in connection with each
Parent Employee Plan or related trust; (iv) if the Parent Employee Plan is
funded, the most recent annual and periodic accounting of Parent Employee Plan
assets; (v) the most recent summary plan description together with the summary
of material modifications thereto, if any, required under ERISA with respect to
each Parent Employee Plan; (vi) all IRS determination, opinion, notification
and advisory letters, and rulings relating to Parent Employee Plans and copies
of all applications and correspondence to or from the IRS or the DOL with
respect to any Parent Employee Plan; and (vii) all registration statements and
prospectuses prepared in connection with each Parent Employee Plan.

(d) Employee Plan Compliance. Except, in each case, as would not,
individually or in the aggregate, result in a material liability to Parent, (i)
Parent has performed in all material respects all obligations required to be
performed by it under, is not in default or violation of, and has no knowledge
of any default or violation by any other party to, each Parent Employee Plan,
and each Parent Employee Plan has been established and maintained in all
material respects in accordance with its terms and in compliance with all
applicable laws, statutes, orders, rules and regulations, including but not
limited to ERISA or the Code; (ii) each Parent Employee Plan intended to
qualify under Section 401(a) of the Code and each trust intended to qualify
under Section 501(a) of the Code has either received a favorable determination
letter from the IRS with respect to each such Plan as to its qualified status
under the Code or has remaining a period of time under applicable Treasury
regulations or IRS pronouncements in which to apply for such a determination
letter and make any amendments necessary to obtain a favorable determination
and, to the knowledge of Parent, no event has occurred giving rise to a
material likelihood that such Plan would not be treated as qualified by the
IRS; (iii) no "prohibited transaction," within the meaning of Section 4975 of
the Code or Sections 406 and 407 of ERISA, and not otherwise exempt under
Section 408 of ERISA, has occurred with respect to any Parent Employee Plan;
(iv) there are no actions, suits or claims pending, or, to the knowledge of
Parent, threatened or reasonably anticipated (other than routine claims for
benefits) against any Parent Employee Plan or against the assets of any Parent
Employee Plan; (v) each Parent Employee Plan can be amended, terminated or
otherwise discontinued after the Effective Time in accordance with its terms,
without liability to Parent or any of its Affiliates (other than ordinary
administration expenses typically incurred in a termination event); (vi)
neither Parent nor any Affiliate is subject to any penalty or tax with respect
to any Parent Employee Plan under Section 402(i) of ERISA or Sections 4975
through 4980 of the Code.

(e) Pension Plans. Parent does not now, nor has it ever, maintained,
established, sponsored, participated in, or contributed to, any Pension Plan
which is subject to Title IV of ERISA or Section 412 of the Code, that would
result in material liability to Parent.

(f) Multiemployer Plans. At no time has Parent contributed to or been
requested to contribute to any Multiemployer Plan, that would result in
material liability to Parent.

(g) No Post-Employment Obligations. No Parent Employee Plan provides, or has
any liability to provide, retiree life insurance, retiree health or other
retiree employee welfare benefits to any person for any reason, except as may
be required by COBRA or other applicable statute, and Parent has never
represented, promised or contracted (whether in oral or written form) to any
Parent Employee (either individually or to Parent Employees as a group) or any
other person that such Parent Employee(s) or other person would be

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provided with retiree life insurance, retiree health or other retiree employee
welfare benefit, except to the extent required by statute.

(h) Effect of Transaction. Except as expressly contemplated by this
Agreement, the execution of this Agreement and the consummation of the
transactions contemplated hereby will not (either alone or upon the occurrence
of any additional or subsequent events) constitute an event under any Parent
Employee Plan, trust or loan that will or may result in any payment (whether of
severance pay or otherwise), acceleration, forgiveness of indebtedness,
vesting, distribution, increase in benefits or obligation to fund benefits with
respect to any Parent Employee.

(i) Employment Matters. Except, in each case, as would not, individually or
in the aggregate, have a Material Adverse Effect on the Parent, Parent and each
of its subsidiaries is in compliance in all material respects with all
applicable foreign, federal, state and local laws, rules and regulations
respecting employment, employment practices, terms and conditions of employment
and wages and hours, in each case, with respect to Employees.

(j) Labor. No work stoppage or labor strike against Parent is pending,
threatened or reasonably anticipated. Parent does not know of any activities or
proceedings of any labor union to organize any Parent Employees. There are no
actions, suits, claims, labor disputes or grievances pending, or, to the
knowledge of Parent, threatened relating to any labor, safety or discrimination
matters involving any Parent Employee, including charges of unfair labor
practices or discrimination complaints, which, if adversely determined, would,
individually or in the aggregate, result in any material liability to Parent.
Neither Parent nor any of its subsidiaries has engaged in any unfair labor
practices within the meaning of the National Labor Relations Act. Parent is not
presently, nor has it been in the past, a party to, or bound by, any collective
bargaining agreement or union contract with respect to Parent Employees and no
collective bargaining agreement is being negotiated by Parent.

(k) International Parent Employee Plan. No International Parent Employee Plan
has unfunded liabilities, that as of the Effective Time, will not be offset by
insurance or fully accrued.

3.13 Environmental Matters.

(a) Hazardous Material. Except as would not have a Material Adverse Effect on
Parent, no underground storage tanks and no amount of any Hazardous Materials
are present, as a result of the actions of Parent or any of its subsidiaries or
any affiliate of Parent, or, to Parent's knowledge, as a result of any actions
of any third party or otherwise, in, on or under any property, including the
land and the improvements, ground water and surface water thereof that Parent
or any of its subsidiaries has at any time owned, operated, occupied or leased.

(b) Hazardous Materials Activities. Except as would not have a Material
Adverse Effect on Parent (in any individual case or in the aggregate) (i)
neither Parent nor any of its subsidiaries has transported, stored, used,
manufactured, disposed of released or exposed its employees or others to
Hazardous Materials in violation of any law in effect on or before the Closing
Date, and (ii) neither Parent nor any of its subsidiaries has disposed of;
transported, sold, used, released, exposed its employees or others to or
manufactured any product containing a Hazardous Material in violation of any
rule, regulation, treaty or statute promulgated by any Governmental Entity in
effect prior to or as of the date hereof to prohibit, regulate or control
Hazardous Materials or any Hazardous Material Activity.

(c) Permits. Parent and its subsidiaries currently hold all Environmental
Permits material to and necessary for the conduct of Parent's and its
subsidiaries' Hazardous Material Activities and other businesses of Parent and
its subsidiaries as such activities and businesses are currently being
conducted.

(d) Environmental Liabilities. No material action, proceeding, revocation
proceeding, amendment procedure, writ or injunction is pending, and to Parent's
knowledge, no material action, proceeding, revocation proceeding, amendment
procedure, writ or injunction has been threatened by any Governmental Entity
against

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Parent or any of its subsidiaries in a writing delivered to Parent concerning
any Environmental Permit of Parent, Hazardous Material or any Hazardous
Materials Activity of Parent or any of its subsidiaries. Parent is not aware of
any fact or circumstance which reasonably could be expected to involve Parent
or any subsidiaries in any environmental litigation or impose upon Parent any
material environmental liability, with such exceptions as would not have a
Material Adverse Effect on Parent.

3.14 Certain Agreements. Except as set forth in Part 3.14 of the Parent
Disclosure Letter, neither Parent nor any of its subsidiaries is a party to or
is bound by:

(a) any agreement, obligation or commitment containing covenants
purporting to limit or which effectively limit the Parent's or any of its
subsidiaries' freedom to compete in any line of business or in any
geographic area or granting any exclusive distribution or other exclusive
rights; or

(b) any agreement or commitment currently in force relating to the
disposition or acquisition by Parent or any of its subsidiaries after the
date of this Agreement of a material amount of assets not in the ordinary
course of business, or pursuant to which Parent has any material ownership
or participation interest in any corporation, partnership, joint venture,
strategic alliance or other business enterprise other than Parent's
subsidiaries.

The agreements required to be disclosed in the Parent Disclosure Letter
pursuant to clauses (a) and (b) above or pursuant to Section 3.9 or are
required to be filed with any Parent SEC Report ("Parent Contracts") are valid
and in full force and effect, except to the extent that such invalidity would
not have a Material Adverse Effect on Parent. Neither Parent nor any of its
subsidiaries, nor to Parent's knowledge, any other party thereto, is in breach,
violation or default under, and neither Parent nor any of its subsidiaries has
received written notice that it has breached, violated or defaulted, any of the
terms or conditions of any Parent Contract in such a manner as would have a
Material Adverse Effect on Parent.

3.15 Brokers' and Finders' Fees. Except for fees payable to Morgan Stanley &
Co. Incorporated, Parent has not incurred, nor will it incur, directly or
indirectly, any liability for brokerage or finders' fees or agents' commissions
or any similar charges in connection with this Agreement or any transaction
contemplated hereby.

3.16 Disclosure. The information supplied by Parent for inclusion in the
Registration Statement shall not at the time the Registration Statement is
filed with the SEC and at the time it becomes effective under the Securities
Act contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made,
not misleading. The information supplied by Parent for inclusion in the Proxy
Statement/Prospectus shall not, on the date the Proxy Statement/Prospectus is
mailed to Company's stockholders or to Parent's stockholders, at the time of
the Company Stockholders' Meeting, at the time of the Parent Stockholders'
Meeting or as of the Effective Time, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they are made, not false or misleading, or omit to
state any material fact necessary to correct any statement in any earlier
communication with respect to the solicitation of proxies for the Company
Stockholders' Meeting or the Parent Stockholders' Meeting which has become
false or misleading. The Registration Statement and Proxy Statement/Prospectus
will comply as to form in all material respects with the provisions of the
Securities Act and the rules and regulations thereunder. If at any time prior
to the Effective Time, any event relating to Parent or any of its affiliates,
officers or directors should be discovered by Parent which is required to be
set forth in an amendment to the Registration Statement or a supplement to the
Proxy Statement/Prospectus, Parent shall promptly inform Company.
Notwithstanding the foregoing, Parent makes no representation or warranty with
respect to any information supplied by Company which is contained in any of the
foregoing documents.

3.17 Board Approval. The Board of Directors of Parent has, as of the date of
this Agreement, (i) determined that the Merger is fair to, and in the best
interests of Parent and its stockholders, and has approved this Agreement and
(ii) recommends that the stockholders of Parent approve each of the Parent
Stockholder Approvals.

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3.18 Fairness Opinion. Parent's Board of Directors has received a written
opinion from Morgan Stanley & Co. Incorporated, dated as of the date hereof, to
the effect that, as of the date hereof, the Exchange Ratio is fair to Parent
from a financial point of view, and has delivered to Company a copy of such
opinion.

ARTICLE IV

Conduct Prior to the Effective Time

4.1 Conduct of Business by Company. During the period from the date of this
Agreement and continuing until the earlier of the termination of this Agreement
pursuant to its terms or the Effective Time, Company and each of its
subsidiaries shall, except to the extent that Parent shall otherwise consent in
writing, carry on its business in the usual, regular and ordinary course, in
substantially the same manner as heretofore conducted and in compliance in all
material respects with all applicable laws and regulations, pay its debts and
Taxes when due subject to good faith disputes over such debts or Taxes, pay or
perform other material obligations when due, and use its commercially
reasonable efforts consistent with past practices and policies to (i) preserve
intact its present business organization, (ii) keep available the services of
its present officers and employees and (iii) preserve its relationships with
customers, suppliers, licensors, licensees, and others with which it has
business dealings. In addition, during that period Company will promptly notify
Parent of any material event involving its business or operations consistent
with the agreements contained herein.

In addition, except as permitted by the terms of this Agreement, and except
as contemplated by this Agreement or provided in Schedule 4.1 of the Company
Disclosure Letter, without the prior written consent of Parent, during the
period from the date of this Agreement and continuing until the earlier of the
termination of this Agreement pursuant to its terms or the Effective Time,
Company shall not do any of the following and shall not permit its subsidiaries
to do any of the following:

(a) Waive any stock repurchase rights, accelerate, amend or change the
period of exercisability of options or restricted stock, or reprice options
granted under any employee, consultant, director or other stock plans or
authorize cash payments in exchange for any options granted under any of
such plans;

(b) Grant any severance or termination pay to any officer or employee
except (i) pursuant to written agreements in effect, or policies existing,
on the date hereof and as previously disclosed in writing to Parent, (ii)
in an amount not to exceed four months base pay of the terminated person or
(iii) as consented to by Parent, whose consent shall not be unreasonably
withheld or delayed, or adopt any new severance plan;

(c) Transfer or license to any person or entity or otherwise extend,
amend or modify in any material respect any rights to the material Company
Intellectual Property, other than non-exclusive licenses in the ordinary
course of business and consistent with past practice;

(d) Except for the two-for-one stock dividend payable on Company Common
Stock on March 10, 2000, declare, set aside or pay any dividends on or make
any other distributions (whether in cash, stock, equity securities or
property) in respect of any capital stock of Company or split, combine or
reclassify any capital stock of Company or issue or authorize the issuance
of any other securities in respect of, in lieu of or in substitution for
any capital stock of Company;

(e) Purchase, redeem or otherwise acquire, directly or indirectly, any
shares of capital stock of Company or its subsidiaries, except repurchases
of unvested shares at cost in connection with the termination of the
employment relationship with any employee pursuant to stock option or
purchase agreements in effect on the date hereof;

(f) Issue, deliver, sell, authorize, pledge or otherwise encumber any
shares of capital stock or any securities convertible into shares of
capital stock, or subscriptions, rights, warrants or options to acquire any
shares of capital stock or any securities convertible into shares of
capital stock, or enter into other agreements or commitments of any
character obligating it to issue any such shares or convertible securities,
other than the issuance delivery and/or sale of (i) shares of Company
Common Stock pursuant

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to the exercise of Company Options, (ii) shares of Company Common Stock
issuable to participants in the Company ESPP, (iii) shares of Company
Common Stock issuable to participants in the Company's 401(k) Plan, in the
case of (i), (ii) and (iii), consistent with the terms thereof, and (iv)
pursuant to grants of Company Options to newly hired employees, upon
promotions of existing employees, or as part of Company's annual option
grant program, in each case, in the ordinary course of business, consistent
with past practice, and not to exceed in the aggregate pursuant to this
clause (iv), 500,000 shares of Company Common Stock;

(g) Cause, permit or propose any amendments to its Certificate of
Incorporation, Bylaws or other charter documents (or similar governing
instruments of any of its subsidiaries);

(h) Acquire or agree to acquire by merging or consolidating with, or by
purchasing any equity interest in or a portion of the assets of, or by any
other manner, any business or any corporation, partnership, association or
other business organization or division thereof; or otherwise acquire or
agree to acquire any assets which are material, individually or in the
aggregate, to the business of Company or enter into any material joint
ventures, strategic relationships or alliances; provided, that Company
shall not be prohibited under this clause (h) from (i) making or agreeing
to make debt or equity investments which do not exceed (A) the lesser of
(x) 20% of the fully diluted ownership of the entity or (y) $10 million,
individually, or (B) $100 million, in the aggregate, or (ii) making or
agreeing to make acquisitions which do not (A) exceed $200 million per
acquisition, (B) exceed $500 million in the aggregate (which valuations
shall be determined upon the signing of agreements regarding such
transactions), or (C) which could reasonably be expected to delay the
Merger or the other transactions contemplated hereby; provided, further,
that Company shall provide written notice to Parent prior to signing any
agreement regarding any such acquisition;

(i) Sell, lease, license, encumber or otherwise dispose of any properties
or assets which are material, individually or in the aggregate, to the
business of Company;

(j) Incur any indebtedness for borrowed money or guarantee any such
indebtedness of another person, issue or sell any debt securities or
options, warrants, calls or other rights to acquire any debt securities of
Company, enter into any "keep well" or other agreement to maintain any
financial statement condition or enter into any arrangement having the
economic effect of any of the foregoing other than (i) in the ordinary
course of business, consistent with past practice or (ii) pursuant to
existing credit facilities, in the ordinary course of business;

(k) Except as required to comply with any Legal Requirement, adopt or
amend any employee benefit plan or employee stock purchase or employee
stock option plan, or enter into any employment contract (other than offer
letters and letter agreements entered into in the ordinary course of
business consistent with past practice providing for compensation and other
benefits generally commensurate with similarly situated employees) or
collective bargaining agreement, pay any special bonus or special
remuneration to any director or employee, or increase the salaries or wage
rates or fringe benefits (including rights to severance or indemnification)
of its directors, officers, employees or consultants other than in the
ordinary course of business, consistent with past practice, or change in
any material respect any management policies or procedures that are
material to the business of Company; provided, that any unilateral
amendment by SAIC of any employee benefit plan in which Company
participates shall not be a violation of this Section 4.1(k);

(l) Make any material capital expenditures other than capital
expenditures contained in the capital budget of Company approved by Company
prior to the date of this Agreement;

(m) Modify, amend or terminate any Company Contract to which Company or
any subsidiary thereof is a party or waive, release or assign any material
rights or claims thereunder, in each case, in a manner that could
reasonably be expected to materially adversely affect the Company;

(n) Enter into any licensing or other agreement with regard to the
acquisition, distribution or licensing of any material Intellectual
Property other than licenses, distribution or other similar agreements
entered into in the ordinary course of business consistent with past
practice;

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(o) Materially revalue any of its assets or, except as required by GAAP,
make any change in accounting methods, principles or practices;

(p) Materially change the pricing of the registration fees Company
charges for its registration services; or

(q) Agree in writing or otherwise to take any of the actions described in
Section 4.1 (a) through (p) above.

4.2 Conduct of Business by Parent. During the period from the date of this
Agreement and continuing until the earlier of the termination of this Agreement
pursuant to its terms or the Effective Time, Parent and each of its
subsidiaries shall, except to the extent that Company shall otherwise consent
in writing, carry on its business in the usual, regular and ordinary course, in
substantially the same manner as heretofore conducted and in compliance in all
material respects with all applicable laws and regulations, pay its debts and
Taxes when due subject to good faith disputes over such debts or Taxes, pay or
perform other material obligations when due, and use its commercially
reasonable efforts consistent with past practices and policies to (i) preserve
intact its present business organization, (ii) keep available the services of
its present officers and employees and (iii) preserve its relationships with
customers, suppliers, licensors, licensees, and others with which it has
business dealings. In addition, during that period Parent will promptly notify
Company of any material event involving its business or operations consistent
with the agreements contained herein.

In addition, except as permitted by the terms of this Agreement, and except
as contemplated by this Agreement or provided in Schedule 4.2 of the Parent
Disclosure Letter, without the prior written consent of Company, during the
period from the date of this Agreement and continuing until the earlier of the
termination of this Agreement pursuant to its terms or the Effective Time,
Parent shall not do any of the following and shall not permit its subsidiaries
to do any of the following:

(a) Declare, set aside or pay any dividends on or make any other
distributions (whether in cash, stock, equity securities or property) in
respect of any capital stock of Parent or split, combine or reclassify any
capital stock of Parent or issue or authorize the issuance of any other
securities in respect of, in lieu of or in substitution for any capital
stock of Parent;

(b) Purchase, redeem or otherwise acquire, directly or indirectly, any
shares of capital stock of Parent or its subsidiaries, except repurchases
of unvested shares at cost in connection with the termination of the
employment relationship with any employee pursuant to stock option or
purchase agreements in effect on the date hereof;

(c) Cause, permit or propose any amendments to its Certificate of
Incorporation, Bylaws or other charter documents (or similar governing
instruments of any of its subsidiaries);

(d) Acquire or agree to acquire by merging or consolidating with, or by
purchasing any equity interest in or a portion of the assets of, or by any
other manner, any business or any corporation, partnership, association or
other business organization or division thereof; or otherwise acquire or
agree to acquire any assets which are material, individually or in the
aggregate, to the business of Parent or enter into any material joint
ventures, strategic relationships or alliances; provided, that Parent shall
not be prohibited under this clause (h) from (i) making or agreeing to make
debt or equity investments which do not exceed (A) the lesser of (x) 20% of
the fully diluted ownership of the entity or (y) $10 million, individually,
or (B) $100 million, in the aggregate, or (ii) making or agreeing to make
acquisitions which do not (A) exceed $200 million per acquisition, (B)
exceed $500 million in the aggregate (which valuations shall be determined
upon the signing of agreements regarding such transactions), or (C) which
could reasonably be expected to delay the Merger or the other transactions
contemplated hereby; provided, further, that Parent shall provide written
notice to Company prior to signing any agreement regarding any such
acquisition;

(e) Enter into any licensing or other agreement with regard to the
acquisition, distribution or licensing of any material Intellectual
Property other than licenses, distribution or other similar agreements
entered into in the ordinary course of business consistent with past
practice;

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(f) Except as required by GAAP, make any change in accounting methods,
principles or practices; or

(g) Agree in writing or otherwise to take any of the actions described in
Section 4.2 (a) through (f) above.

ARTICLE V

Additional Agreements

5.1 Proxy Statement/Prospectus; Registration Statement; Antitrust and Other
Filings.

(a) As promptly as practicable after the execution of this Agreement, Company
and Parent will prepare and file with the SEC, the Proxy Statement/Prospectus
and Parent will prepare and file with the SEC the Registration Statement in
which the Proxy Statement/Prospectus will be included as a prospectus. Each of
Company and Parent will respond to any comments of the SEC, will use its
respective commercially reasonable efforts to have the Registration Statement
declared effective under the Securities Act as promptly as practicable after
such filing and each of Company and Parent will cause the Proxy
Statement/Prospectus to be mailed to its respective stockholders at the
earliest practicable time after the Registration Statement is declared
effective by the SEC. Promptly after the date of this Agreement, each of the
Company and Parent will prepare and file (i) with the United States Federal
Trade Commission and the Antitrust Division of the United States Department of
Justice Notification and Report Forms relating to the transactions contemplated
herein as required by the HSR Act, as well as comparable pre-merger
notification forms required by the merger notification or control laws and
regulations of any applicable jurisdiction, as agreed to by the parties (the
"Antitrust Filings") and (ii) any other filings required to be filed by it
under the Exchange Act, the Securities Act or any other federal, state or
foreign laws relating to the Merger and the transactions contemplated by this
Agreement (the "Other Filings"). The Company and Parent each shall promptly
supply the other with any information which may be required in order to
effectuate any filings pursuant to this Section 5.1.

(b) Each of the Company and Parent will notify the other promptly upon the
receipt of any comments from the SEC or its staff or any other government
officials in connection with any filing made pursuant hereto and of any request
by the SEC or its staff or any other government officials for amendments or
supplements to the Registration Statement, the Proxy Statement/Prospectus or
any Antitrust Filings or Other Filings or for additional information and will
supply the other with copies of all correspondence between such party or any of
its representatives, on the one hand, and the SEC, or its staff or any other
government officials, on the other hand, with respect to the Registration
Statement, the Proxy Statement/Prospectus, the Merger or any Antitrust Filing
or Other Filing. Each of the Company and Parent will cause all documents that
it is responsible for filing with the SEC or other regulatory authorities under
this Section 5.1 to comply in all material respects with all applicable
requirements of law and the rules and regulations promulgated thereunder.
Whenever any event occurs which is required to be set forth in an amendment or
supplement to the Proxy Statement/Prospectus, the Registration Statement or any
Antitrust Filing or Other Filing, the Company or Parent, as the case may be,
will promptly inform the other of such occurrence and cooperate in filing with
the SEC or its staff or any other government officials, and/or mailing to
stockholders of the Company and/or Parent, such amendment or supplement.

5.2 Meeting of Company Stockholders.

(a) Promptly after the date hereof, Company will take all action necessary in
accordance with the Delaware Law and its Certificate of Incorporation and
Bylaws to convene the Company Stockholders' Meeting to be held as promptly as
practicable, and in any event (to the extent permissible under applicable law)
within 45 days after the declaration of effectiveness of the Registration
Statement, for the purpose of voting upon approval and adoption of this
Agreement and approval of the Merger. Subject to Section 5.2(c), Company will
use its commercially reasonable efforts to solicit from its stockholders
proxies in favor of the adoption and approval of this Agreement and the
approval of the Merger and will take all other action necessary to secure the
vote or consent of its stockholders required by the rules of the Nasdaq Stock
Market or Delaware Law to

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obtain such approvals. Notwithstanding anything to the contrary contained in
this Agreement, Company may adjourn or postpone the Company Stockholders'
Meeting to the extent necessary to ensure that any necessary supplement or
amendment to the Proxy Statement/Prospectus is provided to Company's
stockholders in advance of a vote on the Merger and this Agreement or, if as of
the time for which Company Stockholders' Meeting is originally scheduled (as
set forth in the Proxy Statement/Prospectus) there are insufficient shares of
Company Common Stock represented (either in person or by proxy) to constitute a
quorum necessary to conduct the business of the Company Stockholders' Meeting.
Company shall ensure that the Company Stockholders' Meeting is called, noticed,
convened, held and conducted, and that all proxies solicited by the Company in
connection with the Company Stockholders' Meeting are solicited, in compliance
with the Delaware Law, its Certificate of Incorporation and Bylaws, the rules
of the Nasdaq Stock Market and all other applicable legal requirements.
Company's obligation to call, give notice of, convene and hold the Company
Stockholders' Meeting in accordance with this Section 5.2(a) shall not be
limited to or otherwise affected by the commencement, disclosure, announcement
or submission to Company of any Acquisition Proposal or Superior Offer, or by
any withdrawal, amendment or modification of the recommendation of the Board of
Directors of Company with respect to this Agreement or the Merger.

(b) Subject to Section 5.2(c): (i) the Board of Directors of Company shall
recommend that Company's stockholders vote in favor of and adopt and approve
this Agreement and approve the Merger at the Company Stockholders' Meeting;
(ii) the Proxy Statement/Prospectus shall include a statement to the effect
that the Board of Directors of Company has recommended that Company's
stockholders vote in favor of and adopt and approve this Agreement and the
Merger at the Company Stockholders' Meeting; and (iii) neither the Board of
Directors of Company nor any committee thereof shall withdraw, amend or modify,
or propose or resolve to withdraw, amend or modify in a manner adverse to
Parent, the recommendation of the Board of Directors of Company that Company's
stockholders vote in favor of and adopt and approve this Agreement and the
Merger.

(c) Nothing in this Agreement shall prevent the Board of Directors of the
Company from withholding, withdrawing, amending or modifying its recommendation
in favor of the Merger if (i) a Superior Offer (as defined below) is made to
the Company and is not withdrawn, (ii) the Company shall have provided written
notice to Parent (a "Notice of Superior Offer") advising Parent that the
Company has received a Superior Offer, specifying all of the material terms and
conditions of such Superior Offer and identifying the person or entity making
such Superior Offer, (iii) Parent shall not have, within three business days of
Parent's receipt of the Notice of Superior Offer, made an offer that the
Company's Board of Directors by a majority vote determines in its good faith
judgment (based on the written advice of a financial advisor of national
standing) to be at least as favorable to Company's stockholders as such
Superior Offer (it being agreed that the Board of Directors of Company shall
convene a meeting to consider any such offer by Parent promptly following the
receipt thereof), (iv) the Board of Directors of Company concludes in good
faith, after consultation with its outside counsel, that, in light of such
Superior Offer, the withholding, withdrawal, amendment or modification of such
recommendation is required in order for the Board of Directors of Company to
comply with its fiduciary obligations to Company's stockholders under
applicable law and (v) Company shall not have violated any of the restrictions
set forth in Section 5.4 or this Section 5.2. Company shall provide Parent with
at least two business days prior notice (or such lesser prior notice as
provided to the members of the Company's Board of Directors but in no event
less than twenty-four hours) of any meeting of the Company's Board of Directors
at which Company's Board of Directors is reasonably expected to consider any
Acquisition Proposal (as defined in Section 5.4) to determine whether such
Acquisition Proposal is a Superior Offer. Nothing contained in this Section
5.2(c) shall limit the Company's obligation to hold and convene the Company
Stockholders' Meeting (regardless of whether the recommendation of the Board of
Directors of Company shall have been withdrawn, amended or modified). For
purposes of this Agreement, "Superior Offer" shall mean an unsolicited, bona
fide written offer made by a third party to consummate any of the following
transactions: (i) a merger or consolidation involving Company pursuant to which
the stockholders of Company immediately preceding such transaction hold less
than 50% of the equity interest in the surviving or resulting entity of such
transaction or (ii) the acquisition by any person or group (including by way of
a tender offer or an exchange offer or a two step transaction involving a
tender offer followed with reasonable promptness by a merger

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involving the Company), directly or indirectly, of ownership of 100% of the
then outstanding shares of capital stock of the Company, on terms that the
Board of Directors of the Company determines, in its reasonable judgment (based
on the written advice of a financial advisor of national standing) to be more
favorable to the Company stockholders than the terms of the Merger; provided,
however, that any such offer shall not be deemed to be a "Superior Offer" if
any financing required to consummate the transaction contemplated by such offer
is not committed and is not likely in the reasonable judgment of the Company's
Board of Directors (based on the advice of its financial advisor) to be
obtained by such third party on a timely basis.

(d) Nothing contained in this Agreement shall prohibit the Company or its
Board of Directors from taking and disclosing to its stockholders a position
contemplated by Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act.

5.3 Meeting of Parent Stockholders.

(a) Promptly after the date hereof, Parent will take all action necessary in
accordance with the Delaware Law and its Certificate of Incorporation and
Bylaws to convene the Parent Stockholders' Meeting to be held as promptly as
practicable, and in any event (to the extent permissible under applicable law)
within 45 days after the declaration of effectiveness of the Registration
Statement, for the purpose of voting upon the Parent Stockholder Approvals.
Parent will use its commercially reasonable efforts to solicit from its
stockholders proxies in favor of the approval of the Parent Stockholder
Approvals and will take all other action necessary to secure the vote or
consent of its stockholders required by the rules of the Nasdaq Stock Market or
Delaware Law to obtain such approvals. Notwithstanding anything to the contrary
contained in this Agreement, Parent may adjourn or postpone the Parent
Stockholders' Meeting to the extent necessary to ensure that any necessary
supplement or amendment to the Proxy Statement/Prospectus is provided to
Parent's stockholders in advance of a vote on the Parent Stockholder Approvals
or, if as of the time for which Parent Stockholders' Meeting is originally
scheduled (as set forth in the Proxy Statement/Prospectus) there are
insufficient shares of Parent Common Stock represented (either in person or by
proxy) to constitute a quorum necessary to conduct the business of the Parent
Stockholders' Meeting. Parent shall ensure that the Parent Stockholders'
Meeting is called, noticed, convened, held and conducted, and that all proxies
solicited by Parent in connection with the Parent Stockholders' Meeting are
solicited, in compliance with the Delaware Law, its Certificate of
Incorporation and Bylaws, the rules of the Nasdaq Stock Market and all other
applicable legal requirements.

(b) (i) The Board of Directors of Parent shall recommend that Parent's
stockholders approve the Parent Stockholder Approvals at the Parent
Stockholders' Meeting; (ii) the Proxy Statement/Prospectus shall include a
statement to the effect that the Board of Directors of Parent has recommended
that Parent's stockholders approve the Parent Stockholder Approvals at the
Company Stockholders' Meeting; and (iii) neither the Board of Directors of
Parent nor any committee thereof shall withdraw, amend or modify, or propose or
resolve to withdraw, amend or modify in a manner adverse to Company, the
recommendation of the Board of Directors of Parent that Parent's stockholders
approve the Parent Stockholder Approvals.

(c) Nothing contained in this Agreement shall prohibit Parent or its Board of
Directors from taking and disclosing to its stockholders a position
contemplated by Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act.

5.4 No Solicitation.

(a) From and after the date of this Agreement until the Effective Time or
termination of this Agreement pursuant to Article VII, Company and its
subsidiaries will not, nor will they authorize or permit any of their
respective officers, directors, affiliates or employees or any investment
banker, attorney or other advisor or representative retained by any of them to,
directly or indirectly, (i) solicit, initiate, encourage or induce the making,
submission or announcement of any Acquisition Proposal (as hereinafter
defined), (ii) participate in any discussions or negotiations regarding, or
furnish to any person any non-public information with respect to, or take any
other action to facilitate any inquiries or the making of any Acquisition
Proposal, (iii) engage in

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discussions with any person with respect to any Acquisition Proposal, except as
to the existence of these provisions, (iv) approve, endorse or recommend any
Acquisition Proposal or (v) enter into any letter of intent or similar document
or any contract, agreement or commitment contemplating or otherwise relating to
any Acquisition Proposal; provided, however, that notwithstanding the
foregoing, prior to the approval of this Agreement and the Merger at the
Company Stockholders' Meeting, this Section 5.4(a) shall not prohibit Company
from furnishing nonpublic information regarding Company and its subsidiaries
to, or entering into discussions or negotiations with, any person or group who
has submitted (and not withdrawn) to Company an unsolicited, written, bona fide
Acquisition Proposal that the Board of Directors of Company reasonably
concludes (based on the written advice of a financial advisor of national
standing) may constitute a Superior Offer if (1) neither Company nor any
representative of Company and its subsidiaries shall have violated any of the
restrictions set forth in this Section 5.4, (2) the Board of Directors of
Company concludes in good faith, after consultation with its outside legal
counsel, that such action is required in order for the Board of Directors of
Company to comply with its fiduciary obligations to Company's stockholders
under applicable law, (3) prior to furnishing any such nonpublic information
to, or entering into any such discussions with, such person or group, Company
gives Parent written notice of the identity of such person or group and all of
the material terms and conditions of such Acquisition Proposal and of Company's
intention to furnish nonpublic information to, or enter into discussions with,
such person or group, and Company receives from such person or group an
executed confidentiality agreement containing terms at least as restrictive
with regard to Company's confidential information as the Confidentiality
Agreement, (4) Company gives Parent at least two business days advance notice
of its intent to furnish such nonpublic information or enter into such
discussions, and (5) contemporaneously with furnishing any such nonpublic
information to such person or group, Company furnishes such nonpublic
information to Parent (to the extent such nonpublic information has not been
previously furnished by the Company to Parent). Company and its subsidiaries
will immediately cease any and all existing activities, discussions or
negotiations with any parties conducted heretofore with respect to any
Acquisition Proposal. Without limiting the foregoing, it is understood that any
violation of the restrictions set forth in the preceding two sentences by any
officer, director or employee of Company or any of its subsidiaries or any
investment banker, attorney or other advisor or representative of Company or
any of its subsidiaries shall be deemed to be a breach of this Section 5.4 by
Company.

For purposes of this Agreement, "Acquisition Proposal" shall mean any offer
or proposal by a third party relating to: (A) any acquisition or purchase from
the Company by any person or "group" (as defined under Section 13(d) of the
Exchange Act and the rules and regulations thereunder) of more than a 20%
interest in the total outstanding voting securities of the Company or any of
its subsidiaries or any tender offer or exchange offer that if consummated
would result in any person or "group" (as defined under Section 13(d) of the
Exchange Act and the rules and regulations thereunder) beneficially owning 20%
or more of the total outstanding voting securities of the Company or any of its
subsidiaries or any merger, consolidation, business combination or similar
transaction involving the Company pursuant to which the stockholders of the
Company immediately preceding such transaction hold less than 80% of the equity
interests in the surviving or resulting entity of such transaction; (B) any
sale, lease (other than in the ordinary course of business), exchange,
transfer, license (other than in the ordinary course of business), acquisition,
or disposition of more than 50% of the assets of the Company; (C) any sale,
lease, exchange, transfer, license or disposition to a third party of either of
the "registry" or "registrar" businesses of Company; or (D) any liquidation or
dissolution of the Company.

(b) In addition to the obligations of Company set forth in paragraph (a) of
this Section 5.4, Company as promptly as reasonably practicable shall advise
Parent orally and in writing of any request for non-public information which
Company reasonably believes would lead to an Acquisition Proposal or of any
Acquisition Proposal, or any inquiry with respect to or which Company
reasonably should believe would lead to any Acquisition Proposal, the material
terms and conditions of such request, Acquisition Proposal or inquiry, and the
identity of the person or group making any such request, Acquisition Proposal
or inquiry. Company will keep Parent informed as promptly as reasonably
practicable in all material respects of the status and details (including
material amendments or proposed amendments) of any such request, Acquisition
Proposal or inquiry.

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5.5 Confidentiality; Access to Information.

(a) The parties acknowledge that Company and Parent have previously executed
a mutual confidentiality agreement, dated as of March 3, 2000 (the
"Confidentiality Agreement"), which Confidentiality Agreement will continue in
full force and effect in accordance with its terms.

(b) Access to Information. Company will afford Parent and its accountants,
counsel and other representatives reasonable access during normal business
hours to the properties, books, records and personnel of Company during the
period prior to the Effective Time to obtain all information concerning the
business, including the status of product development efforts, properties,
results of operations and personnel of Company, as Parent may reasonably
request. Parent will afford Company and its accountants, counsel and other
representatives reasonable access during normal business hours to the
properties, books, records and personnel of Parent during the period prior to
the Effective Time to obtain all information concerning the business, including
the status of product development efforts, properties, results of operations
and personnel of Parent, as Company may reasonably request. No information or
knowledge obtained in any investigation pursuant to this Section 5.5 will
affect or be deemed to modify any representation or warranty contained herein
or the conditions to the obligations of the parties to consummate the Merger.

5.6 Public Disclosure. Parent and Company will consult with each other, and
to the extent practicable, agree, before issuing any press release or otherwise
making any public statement with respect to the Merger, this Agreement or an
Acquisition Proposal and will not issue any such press release or make any such
public statement prior to such consultation, except as may be required by law
or any listing agreement with a national securities exchange. The parties have
agreed to the text of the joint press release announcing the signing of this
Agreement.

5.7 Reasonable Efforts; Notification.

(a) Upon the terms and subject to the conditions set forth in this Agreement,
each of the parties agrees to use all reasonable efforts to take, or cause to
be taken, all actions, and to do, or cause to be done, and to assist and
cooperate with the other parties in doing, all things necessary, proper or
advisable to consummate and make effective, in the most expeditious manner
practicable, the Merger and the other transactions contemplated by this
Agreement, including using reasonable efforts to accomplish the following: (i)
the taking of all reasonable acts necessary to cause the conditions precedent
set forth in Article VI to be satisfied, (ii) the obtaining of all necessary
actions or nonactions, waivers, consents, approvals, orders and authorizations
from Governmental Entities and the making of all necessary registrations,
declarations and filings (including registrations, declarations and filings
with Governmental Entities, if any) and the taking of all reasonable steps as
may be necessary to avoid any suit, claim, action, investigation or proceeding
by any Governmental Entity, (iii) the obtaining of all necessary consents,
approvals or waivers from third parties, (iv) the defending of any suits,
claims, actions, investigations or proceedings, whether judicial or
administrative, challenging this Agreement or the consummation of the
transactions contemplated hereby, including seeking to have any stay or
temporary restraining order entered by any court or other Governmental Entity
vacated or reversed and (v) the execution or delivery of any additional
instruments necessary to consummate the transactions contemplated by, and to
fully carry out the purposes of, this Agreement. Notwithstanding anything in
this Agreement to the contrary, neither Parent nor any of its affiliates shall
be under any obligation to make proposals, execute or carry out agreements or
submit to orders providing for the sale or other disposition or holding
separate (through the establishment of a trust or otherwise) of any assets or
categories of assets of Parent, any of its affiliates or Company or the holding
separate of the shares of Company Common Stock (or shares of stock of the
Surviving Corporation) or imposing or seeking to impose any limitation on the
ability of Parent or any of its subsidiaries or affiliates to conduct their
business or own such assets or to acquire, hold or exercise full rights of
ownership of the shares of Company Common Stock (or shares of stock of the
Surviving Corporation).

(b) Each of Company and Parent will give prompt notice to the other of (i)
any notice or other communication from any person alleging that the consent of
such person is or may be required in connection

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with the Merger, (ii) any notice or other communication from any Governmental
Entity in connection with the Merger, (iii) any litigation relating to,
involving or otherwise affecting Company, Parent or their respective
subsidiaries that relates to the consummation of the Merger. Company shall give
prompt notice to Parent of any representation or warranty made by it contained
in this Agreement becoming untrue or inaccurate, or any failure of Company to
comply with or satisfy in any material respect any covenant, condition or
agreement to be complied with or satisfied by it under this Agreement, in each
case, such that the conditions set forth in Section 6.3 would not be satisfied,
provided, however, that no such notification shall affect the representations,
warranties, covenants or agreements of the parties or the conditions to the
obligations of the parties under this Agreement. Parent shall give prompt
notice to Company of any representation or warranty made by it or Merger Sub
contained in this Agreement becoming untrue or inaccurate, or any failure of
Parent or Merger Sub to comply with or satisfy in any material respect any
covenant, condition or agreement to be complied with or satisfied by it under
this Agreement, in each case, such that the conditions set forth in Section 6.2
would not be satisfied, provided, however, that no such notification shall
affect the representations, warranties, covenants or agreements of the parties
or the conditions to the obligations of the parties under this Agreement.

5.8 Third Party Consents. As soon as practicable following the date hereof,
Parent and Company will each use its commercially reasonable efforts to obtain
any material consents, waivers and approvals under any of its or its
subsidiaries' respective agreements, contracts, licenses or leases required to
be obtained in connection with the consummation of the transactions
contemplated hereby.

5.9 Stock Options and ESPP.

(a) At the Effective Time, each outstanding Company Option, whether or not
then exercisable, will be assumed by Parent. Each Company Option so assumed by
Parent under this Agreement will continue to have, and be subject to, the same
terms and conditions set forth in the Company Stock Option Plan immediately
prior to the Effective Time (including, without limitation, any repurchase
rights or vesting provisions), except that (i) each Company Stock Option will
be exercisable (or will become exercisable in accordance with its terms) for
that number of whole shares of Parent Common Stock equal to the product of the
number of shares of Company Common Stock that were issuable upon exercise of
such Company Option immediately prior to the Effective Time multiplied by the
Exchange Ratio, rounded down to the nearest whole number of shares of Parent
Common Stock and (ii) the per share exercise price for the shares of Parent
Common Stock issuable upon exercise of such assumed Company Option will be
equal to the quotient determined by dividing the exercise price per share of
Company Common Stock at which such Company Option was exercisable immediately
prior to the Effective Time by the Exchange Ratio, rounded up to the nearest
whole cent. Continuous employment with Company or its subsidiaries shall be
credited to the optionee for purposes of determining the vesting of all assumed
Company Options after the Effective Time.

(b) It is intended that Company Options assumed by Parent shall qualify
following the Effective Time as incentive stock options as defined in Section
422 of the Code to the extent Company Options qualified as incentive stock
options immediately prior to the Effective Time and the provisions of this
Section 5.9 shall be applied consistent with such intent.

(c) Company shall take all actions necessary pursuant to the terms of the
Company ESPP in order to shorten the Participation Period(s) under such plan
which includes the Effective Time (the "Current Offerings") such that a new
purchase date for each such Participation Period shall occur prior to the
Effective Time and shares shall be purchased by Company ESPP participants prior
to the Effective Time. The Current Offerings shall expire immediately following
such new purchase date, and the Company ESPP shall terminate immediately prior
to the Effective Time. Subsequent to such new purchase date, Company shall take
no action, pursuant to the terms of the Company ESPP, to commence any new
offering period.

5.10 Form S-8. Parent agrees to file a registration statement on Form S-8 for
the shares of Parent Common Stock issuable with respect to assumed Company
Options as soon as is reasonably practicable, but in

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no event more than five business days, after the Effective Time and shall
maintain the effectiveness of such registration statement thereafter for so
long as any of such options or other rights remain outstanding.

5.11 Indemnification.

(a) From and after the Effective Time, Parent will cause the Surviving
Corporation to fulfill and honor in all respects the obligations of Company
pursuant to any indemnification agreements between Company and its directors
and officers as of the Effective Time (the "Indemnified Parties") and any
indemnification provisions under Company's Certificate of Incorporation or
Bylaws as in effect on the date hereof. The Certificate of Incorporation and
Bylaws of the Surviving Corporation will contain provisions with respect to
exculpation and indemnification that are at least as favorable to the
Indemnified Parties as those contained in the Certificate of Incorporation and
Bylaws of Company as in effect on the date hereof, which provisions will not be
amended, repealed or otherwise modified for a period of six years from the
Effective Time in any manner that would adversely affect the rights thereunder
of individuals who, immediately prior to the Effective Time, were directors,
officers, employees or agents of Company, unless such modification is required
by law.

(b) For a period of six years after the Effective Time, Parent will cause the
Surviving Corporation to maintain in effect, if available, directors' and
officers' liability insurance covering those persons who are currently covered
by Company's directors' and officers' liability insurance policy on terms
comparable to those applicable to the current directors and officers of
Company; provided, however, that in no event will Parent or the Surviving
Corporation be required to expend in excess of 200% of the annual premium
currently paid by Company for such coverage (or such coverage as is available
for such 200% of such annual premium).

(c) This Section 5.11 shall survive the consummation of the Merger, is
intended to benefit Company, the Surviving Corporation and each Indemnified
Party, shall be binding on all successors and assigns of the Surviving
Corporation and Parent, and shall be enforceable by the Indemnified Parties.

5.12 Parent Board of Directors. Parent will submit to its stockholders for
consideration at the Parent Stockholders' Meeting an amendment to Parent's
Bylaws to increase the authorized number of members of the Parent Board of
Directors to a number to be determined by the Parent Board of Directors from
time to time, provided, that for three years following the Effective Time, any
increase in the actual number of directors to a total of more than nine will
require the affirmative vote of 80% of the directors then in office. The Board
of Directors of Parent will take all actions reasonably necessary such that,
effective upon the Effective Time, three persons mutually agreed upon by
Parent's Board of Directors and Company's Board of Directors (the "New
Directors") shall be appointed to Parent's Board of Directors, one of each of
whom shall be appointed to Class I, Class II and Class III of Parent's Board of
Directors, such designation to be made by mutual agreement of Parent's Board of
Directors and Company's Board of Directors. Parent will use its best efforts to
fulfill the conditions set forth in Section 6.2(e).

5.13 Nasdaq Listing. Parent agrees to authorize for listing on the Nasdaq
Stock Market the shares of Parent Common Stock issuable, and those required to
be reserved for issuance, in connection with the Merger, effective upon
official notice of issuance.

5.14 Letters of Accountants. Company and Parent shall use their respective
reasonable efforts to cause to be delivered to Parent letters of Company's and
Parent's independent accountants, respectively, dated no more than two business
days before the date on which the Registration Statement becomes effective (and
satisfactory in form and substance to Parent), that is customary in scope and
substance for letters delivered by independent public accountants in connection
with registration statements similar to the Registration Statement.

5.15 Takeover Statutes. If any Takeover Statute is or may become applicable
to the Merger or the other transactions contemplated by this Agreement, each of
Parent and Company and their respective Boards of Directors shall grant such
approvals and take such lawful actions as are necessary to ensure that such
transactions may be consummated as promptly as practicable on the terms
contemplated by this Agreement and

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otherwise act to eliminate or minimize the effects of such statute and any
regulations promulgated thereunder on such transactions.

5.16 Certain Employee Benefits.

(a) As soon as practicable after the execution of this Agreement, Company and
Parent shall confer and work together in good faith to agree upon mutually
acceptable employee benefit and compensation arrangements (and terminate
Company Employee Plans immediately prior to the Effective Time if appropriate).
In addition, Company agrees that it and its subsidiaries shall terminate any
and all severance, separation, retention and salary continuation plans,
programs or arrangements (other than contractual agreements disclosed on the
Company Disclosure Letter) prior to the Effective Time.

(b) Employees of the Company and its subsidiaries will be granted credit for
all service with the Company, its subsidiaries and with SAIC and its Affiliates
under each Company employee benefit plan, program or arrangement of Parent or
its Affiliates in which such Employees are eligible to participate for all
purposes, except for purposes of benefit accrual under a defined benefit
pension plan. If Employees become eligible to participate in a medical, dental
or health plan of Parent or its Affiliates, Parent will cause such plan to (i)
waive any preexisting condition exclusions and waiting period limitations for
conditions covered under the applicable medical, dental or health plans
maintained or contributed to by Company (but only to the extent corresponding
exclusions and limitations were satisfied by such Employees under the
applicable medical, dental or health plans maintained or contributed to by
Company); and (ii) credit any deductible or out of pocket expenses incurred by
the Employees and their beneficiaries under such plans during the portion of
the calendar year prior to such participation.

5.17 Tax Matters. Each of Parent, Merger Sub and Company agrees that it will
not take any action, or fail to take any action, which action or failure to act
would be reasonably likely to cause the Merger to fail to qualify as a
"reorganization" pursuant to the provisions of Section 368 of the Code.

ARTICLE VI

Conditions to the Merger

6.1 Conditions to Obligations of Each Party to Effect the Merger. The
respective obligations of each party to this Agreement to effect the Merger
shall be subject to the satisfaction at or prior to the Closing Date of the
following conditions:

(a) Company Stockholder Approval. This Agreement shall have been approved
and adopted, and the Merger shall have been approved, by the requisite vote
of the stockholders of Company under applicable law and the Company Charter
Documents.

(b) Parent Stockholder Approval. The issuance of shares of Parent Common
Stock pursuant to the Merger, and the amendment to Parent's Certificate of
Incorporation to increase the authorized number of shares of Parent Common
Stock in order to permit the issuance of shares of Parent Common Stock
pursuant to the Merger, shall have been approved by the requisite vote of
the stockholders of Parent under applicable law and the Parent Charter
Documents.

(c) Registration Statement Effective; Proxy Statement. The SEC shall have
declared the Registration Statement effective. No stop order suspending the
effectiveness of the Registration Statement or any part thereof shall have
been issued and no proceeding for that purpose, and no similar proceeding
in respect of the Proxy Statement/Prospectus, shall have been initiated or
threatened in writing by the SEC.

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(d) No Order; HSR Act. No Governmental Entity shall have enacted, issued,
promulgated, enforced or entered any statute, rule, regulation, executive
order, decree, injunction or other order (whether temporary, preliminary or
permanent) which is in effect and which has the effect of making the Merger
illegal or otherwise prohibiting consummation of the Merger. All waiting
periods, if any, under the HSR Act relating to the transactions
contemplated hereby will have expired or been terminated.

(e) Nasdaq Listing. The shares of Parent Common Stock to be issued in the
Merger shall have been approved for listing on the Nasdaq Stock Market,
subject to official notice of issuance.

(f) Consents. (i) All required approvals or consents of any Governmental
Entity or other person in connection with the Merger and the consummation
of the other transactions contemplated hereby shall have been obtained (and
all relevant statutory, regulatory or other governmental waiting periods,
shall have expired) unless the failure to receive any such approval or
consent would not be reasonably likely, directly or indirectly, to result
in a Material Adverse Effect on Parent and its subsidiaries (including, for
the purposes of this condition, Company and its subsidiaries), taken as a
whole, and (ii) all such approvals and consents which have been obtained
shall be on terms that are not reasonably likely, directly or indirectly,
to result in a Material Adverse Effect on Parent and its subsidiaries
(including, for the purposes of this condition, Company and its
subsidiaries), taken as a whole.

6.2 Additional Conditions to Obligations of Company. The obligation of
Company to consummate and effect the Merger shall be subject to the
satisfaction at or prior to the Closing Date of each of the following
conditions, any of which may be waived, in writing, exclusively by Company:

(a) Representations and Warranties. The representations and warranties of
Parent and Merger Sub contained in this Agreement, disregarding all
qualifications and exceptions contained therein relating to materiality or
Material Adverse Effect or any similar standard or qualification, shall be
true and correct at and as of the Closing Date as if made at and as of the
Closing Date (other than representations and warranties that address
matters only as of a certain date, which shall be true and correct as of
such date), except where the failure of such representations or warranties
to be true or correct would not have, individually or in the aggregate, a
Material Adverse Effect on Parent. It is understood that, for purposes of
determining the accuracy of such representations and warranties, any update
of or modification to the Parent Disclosure Letter made or purported to
have been made after the execution of this Agreement shall be disregarded.
Company shall have received a certificate with respect to the foregoing
signed on behalf of Parent by the Chief Executive Officer or Chief
Financial Officer of Parent.

(b) Agreements and Covenants. Parent and Merger Sub shall have performed
or complied in all material respects with all agreements and covenants
required by this Agreement to be performed or complied with by them on or
prior to the Closing Date, and Company shall have received a certificate to
such effect signed on behalf of Parent by the Chief Executive Officer or
Chief Financial Officer of Parent.

(c) Material Adverse Effect. No Material Adverse Effect with respect to
Parent shall have occurred since the date of this Agreement and be
continuing.

(d) Tax Opinion. Company shall have received an opinion of Davis Polk &
Wardwell, dated as of the Closing Date, in form and substance reasonably
satisfactory to it, on the basis of the facts, representations and
assumptions set forth or referred to in such opinion, that the Merger will
constitute a reorganization within the meaning of Section 368(a) of the
Code and that each of Parent and Company will be a party to the
reorganization within the meaning of Section 368(a) of the Code. The
parties to this Agreement agree to make such reasonable representations as
requested by such counsel for the purpose of rendering such opinions.

(e) Parent Board of Directors. All actions necessary in order for the New
Directors to become members of the Parent Board of Directors upon the
Effective Time shall have occurred, and, if such actions included an
amendment to Parent's Bylaws, such amendment shall have been approved at
the Parent Stockholders' Meeting and shall be substantially as described in
Section 5.12.

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6.3 Additional Conditions to the Obligations of Parent and Merger Sub. The
obligations of Parent and Merger Sub to consummate and effect the Merger shall
be subject to the satisfaction at or prior to the Closing Date of each of the
following conditions, any of which may be waived, in writing, exclusively by
Parent:

(a) Representations and Warranties. The representations and warranties of
Company contained in this Agreement, disregarding all qualifications and
exceptions contained therein relating to materiality or Material Adverse
Effect or any similar standard or qualification, shall be true and correct
at and as of the Closing Date as if made at and as of the Closing Date
(other than representations and warranties that address matters only as of
a certain date, which shall be true and correct as of such date), except
where the failure of such representations or warranties to be true or
correct would not have, individually or in the aggregate, a Material
Adverse Effect on Company. It is understood that, for purposes of
determining the accuracy of such representations and warranties, any update
of or modification to the Company Disclosure Letter made or purported to
have been made after the execution of this Agreement shall be disregarded.
Parent shall have received a certificate with respect to the foregoing
signed on behalf of Company by the Chief Executive Officer or Chief
Financial Officer of Company.

(b) Agreements and Covenants. Company shall have performed or complied in
all material respects with all agreements and covenants required by this
Agreement to be performed or complied with by it at or prior to the Closing
Date, and Parent shall have received a certificate to such effect signed on
behalf of Company by the Chief Executive Officer or Chief Financial Officer
of Company.

(c) Material Adverse Effect. No Material Adverse Effect with respect to
Company shall have occurred since the date of this Agreement and be
continuing.

(d) Tax Opinion. Parent shall have received an opinion of Fenwick & West
LLP, dated as of the Closing Date, in form and substance reasonably
satisfactory to it, on the basis of the facts, representations and
assumptions set forth or referred to in such opinion, that the Merger will
constitute a reorganization within the meaning of Section 368(a) of the
Code and that each of Parent and Company will be a party to the
reorganization within the meaning of Section 368(a) of the Code. The
parties to this Agreement agree to make such reasonable representations as
requested by such counsel for the purpose of rendering such opinions.

(e) No Restraints. There shall not be instituted or pending any action or
proceeding by any Governmental Entity (i) seeking to restrain, prohibit or
otherwise interfere with the ownership or operation by Parent or any of its
subsidiaries of all or any portion of the business of Company or any of its
subsidiaries or of Parent or any of its subsidiaries or to compel Parent or
any of its subsidiaries to dispose of or hold separate all or any portion
of the business or assets of Company or any of its subsidiaries or of
Parent or any of its subsidiaries, (ii) seeking to impose or confirm
limitations on the ability of Parent or any of its subsidiaries effectively
to exercise full rights of ownership of the shares of Company Common Stock
(or shares of stock of the Surviving Corporation) including the right to
vote any such shares on any matters properly presented to stockholders or
(iii) seeking to require divestiture by Parent or any of its subsidiaries
of any such shares.

ARTICLE VII

Termination, Amendment and Waiver

7.1 Termination. This Agreement may be terminated at any time prior to the
Effective Time, whether before or after the requisite approvals of the
stockholders of Company or Parent:

(a) by mutual written consent duly authorized by the Boards of Directors
of Parent and Company;

(b) by either Company or Parent if the Merger shall not have been
consummated by September 15, 2000 for any reason; provided, however, that
the right to terminate this Agreement under this Section 7.1(b) shall not
be available to any party whose action or failure to act has been a
principal cause of or

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resulted in the failure of the Merger to occur on or before such date and
such action or failure to act constitutes a breach of this Agreement;

(c) by either Company or Parent if a Governmental Entity shall have
issued an order, decree or ruling or taken any other action, in any case
having the effect of permanently restraining, enjoining or otherwise
prohibiting the Merger, which order, decree, ruling or other action is
final and nonappealable;

(d) by either Company or Parent, if the approval and adoption of this
Agreement, and the approval of the Merger, by the stockholders of Company
shall not have been obtained by reason of the failure to obtain the
required vote at a meeting of Company stockholders duly convened therefore
or at any adjournment thereof; provided, however, that the right to
terminate this Agreement under this Section 7.1(d) shall not be available
to Company where the failure to obtain the Company stockholder approval
shall have been caused by (i) the action or failure to act of Company and
such action or failure to act constitutes a material breach by Company of
this Agreement or (ii) a breach of the Voting Agreement by any party
thereto other than Parent;

(e) by either Company or Parent, if the approval of the issuance of
shares of Parent Common Stock pursuant to the Merger, and the amendment to
Parent's Certificate of Incorporation to increase the authorized number of
shares of Parent Common Stock in order to permit the issuance of shares of
Parent Common Stock pursuant to the Merger by the stockholders of Parent
shall not have been obtained by reason of the failure to obtain the
respective required votes at a meeting of Parent stockholders duly convened
therefore or at any adjournment thereof; provided, however, that the right
to terminate this Agreement under this Section 7.1(e) shall not be
available to Parent where the failure to obtain the Parent stockholder
approvals shall have been caused by the action or failure to act of Parent
and such action or failure to act constitutes a material breach by Parent
of this Agreement;

(f) by Parent (at any time prior to the adoption and approval of this
Agreement and the Merger by the required vote of the stockholders of
Company) if a Triggering Event (as defined below) shall have occurred;

(g) by Company, upon a breach of any representation, warranty, covenant
or agreement on the part of Parent set forth in this Agreement, or if any
representation or warranty of Parent shall have become untrue, in either
case such that the conditions set forth in Section 6.2(a) or Section 6.2(b)
would not be satisfied as of the time of such breach or as of the time such
representation or warranty shall have become untrue, provided that if such
inaccuracy in Parent's representations and warranties or breach by Parent
is curable by Parent through the exercise of its commercially reasonable
efforts, then Company may not terminate this Agreement under this Section
7.1(g) for 30 days after delivery of written notice from Company to Parent
of such breach, provided Parent continues to exercise commercially
reasonable efforts to cure such breach (it being understood that Company
may not terminate this Agreement pursuant to this paragraph (g) if such
breach by Parent is cured during such 30-day period, or if Company shall
have materially breached this Agreement); or

(h) by Parent, upon a breach of any representation, warranty, covenant or
agreement on the part of Company set forth in this Agreement, or if any
representation or warranty of Company shall have become untrue, in either
case such that the conditions set forth in Section 6.3(a) or Section 6.3(b)
would not be satisfied as of the time of such breach or as of the time such
representation or warranty shall have become untrue, provided that if such
inaccuracy in Company's representations and warranties or breach by Company
is curable by Company through the exercise of its commercially reasonable
efforts, then Parent may not terminate this Agreement under this Section
7.1(h) for 30 days after delivery of written notice from Parent to Company
of such breach, provided Company continues to exercise commercially
reasonable efforts to cure such breach (it being understood that Parent may
not terminate this Agreement pursuant to this paragraph (h) if such breach
by Company is cured during such 30-day period, or if Parent shall have
materially breached this Agreement).

For the purposes of this Agreement, a "Triggering Event" shall be deemed to
have occurred if: (i) the Board of Directors of Company or any committee
thereof shall for any reason have withdrawn or shall have

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amended or modified in a manner adverse to Parent its recommendation in favor
of the adoption and approval of the Agreement or the approval of the Merger;
(ii) Company shall have failed to include in the Proxy Statement/Prospectus the
recommendation of the Board of Directors of Company in favor of the adoption
and approval of the Agreement and the approval of the Merger; (iii) the Board
of Directors of Company fails to reaffirm its recommendation in favor of the
adoption and approval of the Agreement and the approval of the Merger within 10
business days after Parent requests in writing that such recommendation be
reaffirmed at any time following the public announcement of an Acquisition
Proposal; (iv) the Board of Directors of Company or any committee thereof shall
have approved or publicly recommended any Acquisition Proposal; (v) Company
shall have entered into any letter of intent of similar document or any
agreement, contract or commitment accepting any Acquisition Proposal; (vi)
Company shall have materially breached any of the provisions of Sections 5.2 or
5.4; or (vii) a tender or exchange offer relating to securities of Company
shall have been commenced by a person unaffiliated with Parent, and Company
shall not have sent to its securityholders pursuant to Rule 14e-2 promulgated
under the Securities Act, within 10 business days after such tender or exchange
offer is first published sent or given, a statement disclosing that Company
recommends rejection of such tender or exchange offer.

7.2 Notice of Termination; Effect of Termination. Any proper termination of
this Agreement under Section 7.1 above will be effective immediately upon the
delivery of written notice of the terminating party to the other parties
hereto. In the event of the termination of this Agreement as provided in
Section 7.1, this Agreement shall be of no further force or effect, except (i)
as set forth in this Section 7.2, Section 7.3 and Article 8, each of which
shall survive the termination of this Agreement, and (ii) nothing herein shall
relieve any party from liability for any willful breach of this Agreement. No
termination of this Agreement shall affect the obligations of the parties
contained in the Confidentiality Agreement, all of which obligations shall
survive termination of this Agreement in accordance with their terms.

7.3 Fees and Expenses.

(a) General. Except as set forth in this Section 7.3, all fees and expenses
incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such expenses whether or not the
Merger is consummated; provided, however, that Parent and Company shall share
equally all fees and expenses, other than attorneys' and accountants fees and
expenses, incurred in relation to the printing and filing with the SEC of the
Proxy Statement/Prospectus (including any preliminary materials related
thereto) and the Registration Statement (including financial statements and
exhibits) and any amendments or supplements thereto.

(b) Company Payments. In the event that this Agreement is terminated by
Parent or Company, as applicable, pursuant to Sections 7.1(d), 7.1(f) or
7.1(h), the Company shall promptly, but in no event later than two days after
the date of such termination, pay Parent a fee equal to $425 million in
immediately available funds (the "Termination Fee"); provided, that in the case
of a termination under Sections 7.1(d) or 7.1(h) prior to which no Triggering
Event has occurred, (i) such payment shall be made only if (A) following the
date of this Agreement and prior to the termination of this Agreement, a person
has publicly announced an Acquisition Proposal and (B) within nine months
following the termination of this Agreement, either a Company Acquisition (as
defined below) is consummated, or the Company enters into an agreement
providing for a Company Acquisition and such Company Acquisition is later
consummated with the person (or another person controlling, controlled by, or
under common control with, such person) with whom such agreement was entered
into (regardless of when such consummation occurs if the Company has entered
into such an agreement within such nine-month period), and (ii) such payment
shall be made promptly, but in no event later than two days after the
consummation of such Company Acquisition (regardless of when such consummation
occurs if the Company has entered into such an agreement within such nine-month
period). Company acknowledges that the agreements contained in this Section
7.3(b) are an integral part of the transactions contemplated by this Agreement,
and that, without these agreements, Parent would not enter into this Agreement.
Accordingly, if the Company fails to pay in a timely manner the amounts due
pursuant to this Section 7.3(b), and, in order to obtain such payment, Parent
makes a claim that results in a judgment against the Company for the amounts
set

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forth in this Section 7.3(b), Company shall pay to Parent its reasonable costs
and expenses (including reasonable attorneys' fees and expenses) in connection
with such suit, together with interest on the amounts set forth in this Section
7.3(b) at the prime rate of The Chase Manhattan Bank in effect on the date such
payment was required to be made. Payment of the fees described in this Section
7.3(b) shall not be in lieu of damages incurred in the event of breach of this
Agreement.

For the purposes of this Agreement, "Company Acquisition" shall mean any of
the following transactions (other than the transactions contemplated by this
Agreement); (i) a merger, consolidation, business combination,
recapitalization, liquidation, dissolution or similar transaction involving the
Company pursuant to which the stockholders of the Company immediately preceding
such transaction hold less than 50% of the aggregate equity interests in the
surviving or resulting entity of such transaction, (ii) a sale or other
disposition by the Company of assets representing in excess of 50% of the
aggregate fair market value of the Company's business immediately prior to such
sale, or of either of the "registry" or "registrar" businesses of Company, or
(iii) the acquisition by any person or group (including by way of a tender
offer or an exchange offer or issuance by Company), directly or indirectly, of
beneficial ownership or a right to acquire beneficial ownership of shares
representing in excess of 50% of the voting power of the then outstanding
shares of capital stock of the Company; provided, that, notwithstanding the
foregoing, a Company Acquisition shall not include a spin-off or other
distribution of either the "registry" or "registrar" businesses of Company to
Company's stockholders.

7.4 Amendment. Subject to applicable law, this Agreement may be amended by
the parties hereto at any time by execution of an instrument in writing signed
on behalf of each of Parent and Company.

7.5 Extension; Waiver. At any time prior to the Effective Time any party
hereto may, to the extent legally allowed, (i) extend the time for the
performance of any of the obligations or other acts of the other parties
hereto, (ii) waive any inaccuracies in the representations and warranties made
to such party contained herein or in any document delivered pursuant hereto and
(iii) waive compliance with any of the agreements or conditions for the benefit
of such party contained herein. Any agreement on the part of a party hereto to
any such extension or waiver shall be valid only if set forth in an instrument
in writing signed on behalf of such party. Delay in exercising any right under
this Agreement shall not constitute a waiver of such right.

ARTICLE VIII

General Provisions

8.1 Non-Survival of Representations and Warranties. The representations and
warranties of Company, Parent and Merger Sub contained in this Agreement shall
terminate at the Effective Time, and only the covenants that by their terms
survive the Effective Time shall survive the Effective Time.

8.2 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given upon delivery either personally or by
commercial delivery service, or sent via facsimile (receipt confirmed) to the
parties at the following addresses or facsimile numbers (or at such other
address or facsimile numbers for a party as shall be specified by like notice):

(a)if to Parent or Merger Sub, to:

VeriSign, Inc.
1350 Charleston Road
Mountain View, California 94043
Attention: Chief Financial Officer
Facsimile No.: 650-961-7300

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with a copy to:

Fenwick & West LLP
Two Palo Alto Square
Palo Alto, California 94306
Attention: Gordon K. Davidson
Douglas N. Cogen
Facsimile No.: 650-494-1417

(b)if to Company, to:

Network Solutions, Inc.
505 Huntmar Park Drive
Herndon, Virginia 20170
Attention: General Counsel
Facsimile No.: 703-742-0069

with a copy to:

Davis Polk & Wardwell
1600 El Camino Real
Menlo Park, California 94025
Attention: William S. Rosoff
David W. Ferguson
Facsimile No.: 650-752-2111

8.3 Interpretation; Certain Defined Terms.

(a) When a reference is made in this Agreement to Exhibits, such reference
shall be to an Exhibit to this Agreement unless otherwise indicated. When a
reference is made in this Agreement to Sections, such reference shall be to a
Section of this Agreement unless otherwise indicated. The words "include,"
"includes" and "including" when used herein shall be deemed in each case to be
followed by the words "without limitation." The table of contents and headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. When
reference is made herein to "the business of" an entity, such reference shall
be deemed to include the business of all direct and indirect subsidiaries of
such entity. Reference to the subsidiaries of an entity shall be deemed to
include all direct and indirect subsidiaries of such entity.

(b) For purposes of this Agreement, the term "knowledge" means with respect
to a party hereto, with respect to any matter in question, that any of the
executive officers of such party has actual knowledge of such matter, after
reasonable inquiry of such matter. For purposes of this definition, the
"executive officers" of Company shall be those person listed on Part 8.3(b) of
the Company Disclosure Letter.

(c) For purposes of this Agreement, the term "Material Adverse Effect" when
used in connection with an entity means any change, event, circumstance or
effect that is or is reasonably likely to be materially adverse to the
business, assets (including intangible assets), capitalization, financial
condition, operations or results of operations of such entity taken as a whole
with its subsidiaries, except to the extent that any such change, event,
circumstance or effect results from (i) changes in general economic conditions,
(ii) changes affecting the industry generally in which such entity operates
(provided that such changes do not affect such entity in a substantially
disproportionate manner) or (iii) changes in the trading prices for such
entity's capital stock.

(d) For purposes of this Agreement, the term "person " shall mean any
individual, corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, joint venture,
estate, trust, company (including any limited liability company or joint stock
company), firm or other enterprise, association, organization, entity or
Governmental Entity.

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(e) For purposes of this Agreement, "subsidiary" of a specified entity will
be any corporation, partnership, limited liability company, joint venture or
other legal entity of which the specified entity (either alone or through or
together with any other subsidiary) owns, directly or indirectly, 50% or more
of the stock or other equity or partnership interests the holders of which are
generally entitled to vote for the election of the Board of Directors or other
governing body of such corporation or other legal entity.

8.4 Counterparts. This Agreement may be executed in one or more counterparts,
all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties
and delivered to the other party, it being understood that all parties need not
sign the same counterpart.

8.5 Entire Agreement; Third Party Beneficiaries. This Agreement, its Exhibits
and the documents and instruments and other agreements among the parties hereto
as contemplated by or referred to herein, including the Company Disclosure
Letter and the Parent Disclosure Letter (a) constitute the entire agreement
among the parties with respect to the subject matter hereof and supersede all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof, it being understood that the
Confidentiality Agreement shall continue in full force and effect until the
Closing and shall survive any termination of this Agreement; and (b) are not
intended to confer upon any other person any rights or remedies hereunder,
except as specifically provided in Section 5.11.

8.6 Severability. In the event that any provision of this Agreement or the
application thereof, becomes or is declared by a court of competent
jurisdiction to be illegal, void or unenforceable, the remainder of this
Agreement will continue in full force and effect and the application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further
agree to replace such void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such void or unenforceable provision.

8.7 Other Remedies; Specific Performance. Except as otherwise provided
herein, any and all remedies herein expressly conferred upon a party will be
deemed cumulative with and not exclusive of any other remedy conferred hereby,
or by law or equity upon such party, and the exercise by a party of any one
remedy will not preclude the exercise of any other remedy. The parties hereto
agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to seek an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
hereof in any court of the United States or any state having jurisdiction, this
being in addition to any other remedy to which they are entitled at law or in
equity.

8.8 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, regardless of the laws that
might otherwise govern under applicable principles of conflicts of law thereof.

8.9 Rules of Construction. The parties hereto agree that they have been
represented by counsel during the negotiation and execution of this Agreement
and, therefore, waive the application of any law, regulation, holding or rule
of construction providing that ambiguities in an agreement or other document
will be construed against the party drafting such agreement or document.

8.10 Assignment. No party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written consent
of the other parties hereto. Subject to the preceding sentence, this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Any purported assignment in
violation of this Section shall be void.

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8.11 Waiver Of Jury Trial. EACH OF PARENT, COMPANY AND MERGER SUB HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE ACTIONS OF PARENT, COMPANY OR MERGER SUB IN
THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

* * * * *

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<PAGE>

In Witness Whereof, the parties hereto have caused this Agreement and Plan of
Merger to be executed by their duly authorized respective officers as of the
date first written above.

Verisign, Inc.

/s/ Stratton D. Sclavos
By: _________________________________
Name: Stratton D. Sclavos
Title: President and Chief
Executive Officer

Nickel Acquisition Corporation

/s/ Stratton D. Sclavos
By: _________________________________
Name: Stratton D. Sclavos
Title: President

Network Solutions, Inc.

/s/ James P. Rutt
By: _________________________________
Name: James P. Rutt
Title: Chief Executive Officer

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ANNEX B

March 6, 2000

Board of Directors
VeriSign, Inc.
1350 Charleston Road
Mountain View, CA 94043

Members of the Board:

We understand that VeriSign, Inc. ("VeriSign"), Networks Solutions, Inc.
("Network Solutions") and Nickel Acquisition Corporation, a wholly-owned
subsidiary of VeriSign ("Merger Sub"), propose to enter into an Agreement and
Plan of Merger, dated as of March 6, 2000 (the "Merger Agreement"), which
provides, among other things, for the merger (the "Merger") of Merger Sub with
and into Network Solutions. Pursuant to the Merger, each share of Network
Solutions common stock, par value $0.001 per share (the "Network Solutions
Common Stock"), other than shares held by Network Solutions, Merger Sub,
VeriSign or any wholly-owned subsidiary of Network Solutions or VeriSign, shall
be converted into the right to receive 2.15 shares (the "Exchange Ratio") of
VeriSign common stock, par value $0.001 per share (the "VeriSign Common Stock")
and Network Solutions will become a wholly-owned subsidiary of VeriSign. The
terms and conditions of the Merger are more fully set forth in the Merger
Agreement.

You have asked for our opinion as to whether the Exchange Ratio pursuant to
the Merger Agreement is fair from a financial point of view to VeriSign.

For purposes of the opinion set forth herein, we have:

(i) reviewed certain publicly available financial statements and other
information of Network Solutions and VeriSign;

(ii) reviewed certain historical internal financial statements and other
historical financial and operating data concerning Network Solutions
prepared by the management of Network Solutions;

(iii) reviewed the past and current operations and financial condition and
the prospects of Network Solutions and VeriSign, including
information relating to certain strategic, financial and operational
benefits anticipated from the Merger, with senior executives of
Network Solutions and VeriSign, respectively;

(iv) reviewed the pro forma impact of the Merger on VeriSign's financial
performance;

(v) reviewed the reported prices and trading activity for the Network
Solutions Common Stock and the VeriSign Common Stock;

(vi) compared the financial performance of Network Solutions and VeriSign
with that of certain other publicly-traded companies comparable to
Network Solutions and VeriSign, respectively;

(vii) reviewed the financial terms, to the extent publicly available, of
certain comparable business combinations;

(viii) participated in discussions and negotiations among representatives
of Network Solutions and VeriSign and their financial and legal
advisors;

(ix) reviewed a draft of the Merger Agreement, dated as of March 6, 2000,
and certain related documents; and

(x) performed such other analyses and considered such other factors as we
have deemed appropriate.

We have assumed and relied upon, without independent verification, the
accuracy and completeness of the information reviewed by us for the purposes of
this opinion. As you are aware, neither Network Solutions nor

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<PAGE>

VeriSign made available to us any forecasts of future financial performance.
Rather, for purposes of our analysis, we have relied with your consent on the
publicly available estimates of certain research analysts, including those at
Morgan Stanley & Co. Incorporated. With respect to the financial statements and
data, including information relating to certain strategic and operational
benefits anticipated from the Merger, we have assumed that they have been
reasonably prepared on bases reflecting the best currently available estimates
and judgments of the future financial and operational performance of Network
Solutions and VeriSign, respectively. In addition, we have assumed that the
Merger will be consummated in accordance with the terms set forth in the draft
of the Merger Agreement, dated as of March 6, 2000, including that the Merger
will be treated as a tax-free reorganization and/or exchange pursuant to the
Internal Revenue Code of 1986.

We have relied upon, without independent verification, the assessment by the
managements of Network Solutions and VeriSign of the strategic benefits
expected to result from the Merger. We have also relied upon, without
independent verification, the assessment by the management of VeriSign of the
impact of certain financial effects of the Merger accounting adjustments,
pursuant to purchase accounting, on the financial statements and performance of
the combined entity following the Merger. In addition, we have relied on the
assessment by the management of Network Solutions and VeriSign of the
technologies and products of Network Solutions and VeriSign, the timing and
risks associated with the integration of Network Solutions and VeriSign and the
validity of, and risks associated with, Network Solutions's and VeriSign's
existing and future products and technologies.

We have not made any independent valuation or appraisal of the assets or
liabilities of Network Solutions or VeriSign, nor have we been furnished with
any such appraisals. Our opinion is necessarily based on financial, economic,
market and other conditions as in effect on, and the information made available
to us as of, the date hereof.

We have acted as financial advisor to the Board of Directors of VeriSign in
connection with this transaction and will receive a fee for our services. In
the past, Morgan Stanley & Co. Incorporated and its affiliates have provided
financial advisory and financing services for VeriSign and Network Solutions
and have received fees for the rendering of these services.

It is understood that this letter is for the information of the Board of
Directors of VeriSign and may not be used for any other purpose without our
prior written consent (which shall not be unreasonably withheld), except that
this opinion may be included in any filing made by VeriSign with the Securities
and Exchange Commission in connection with the Merger. This opinion does not in
any manner address the prices at which the VeriSign Common Stock will trade at
any time prior to or following the consummation of the Merger, and Morgan
Stanley expresses no opinion as to how shareholders of VeriSign should vote at
any shareholders' meeting held in connection with the Merger.

Based upon and subject to the foregoing, we are of the opinion on the date
hereof that the Exchange Ratio pursuant to the Merger Agreement is fair from a
financial point of view to VeriSign.

Very truly yours,

Morgan Stanley & Co. Incorporated

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ANNEX C

March 6, 2000

The Board of Directors
Network Solutions, Inc.
505 Huntmar Park Drive
Herndon, Virginia 20170

Attention: Michael A. Daniels
Chairman of the Board

Ladies and Gentlemen:

You have requested our opinion as to the fairness, from a financial point of
view, to the stockholders of Network Solutions, Inc. (the "Company") of the
consideration proposed to be paid to them in connection with the proposed
merger (the "Merger") of the Company with a wholly-owned subsidiary of
VeriSign, Inc. (the "Buyer"). Pursuant to the agreement and plan of merger,
dated as of March 6, 2000 (the "Agreement"), among the Company, the Buyer and
Nickel Acquisition Corporation (the "Merger Subsidiary"), the Company will
become a wholly-owned subsidiary of the Buyer, and stockholders of the Company
will receive, for each share of common stock, par value $0.001 per share, of
the Company held by them, consideration equal to 2.15 shares of common stock of
the Buyer (the "Exchange Ratio").

In arriving at our opinion, we have reviewed (i) the Agreement; (ii) certain
publicly available information concerning the business of the Company and of
certain other companies engaged in businesses comparable to those of the
Company, and the reported market prices for certain other companies' securities
deemed comparable; (iii) publicly available terms of certain transactions
involving companies comparable to the Company and the consideration received
for such companies; (iv) current and historical market prices of the common
stock of the Company and the Buyer; (v) the audited financial statements of the
Company and the Buyer for the fiscal year ended December 31, 1998 and the
unaudited financial statements of the Company and the Buyer for the period
ended December 31, 1999; and (vi) the terms of other business combinations that
we deemed relevant.

In addition, we have held discussions with certain members of the management
of the Company and the Buyer with respect to certain aspects of the Merger, and
the past and current business operations of the Company and the Buyer, the
financial condition and future prospects and operations of the Company and the
Buyer, the effects of the Merger on the financial condition and future
prospects of the Company and the Buyer, and certain other matters we believed
necessary or appropriate to our inquiry. We have reviewed such other financial
studies and analyses and considered such other information as we deemed
appropriate for the purposes of this opinion.

In giving our opinion, we have relied upon and assumed, without independent
verification, the accuracy and completeness of all information reviewed by us,
and we have not assumed any responsibility or liability therefor. We have not
conducted any valuation or appraisal of any assets or liabilities, nor have any
such valuations or appraisals been provided to us. In relying on financial
analyses reviewed by us, we have assumed that they have been reasonably
prepared based on assumptions reflecting the best currently available
estimates. We have also assumed that the Merger will have the tax consequences
described in discussions with, and materials furnished to us by,
representatives of the Company, and that the other transactions contemplated by
the Agreement will be consummated as described in the Agreement. We have relied
as to all legal matters relevant to rendering our opinion upon the advice of
counsel.

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<PAGE>

Our opinion is necessarily based on economic, market and other conditions as
in effect on, and the information made available to us as of, the date hereof.
It should be understood that subsequent developments may affect this opinion
and that we do not have any obligation to update, revise, or reaffirm this
opinion. We are expressing no opinion herein as to the price at which the
Buyer's stock will trade at any future time.

We have acted as financial advisor to the Company with respect to the
proposed Merger and will receive a fee from the Company for our services if the
proposed Merger is consummated. In the ordinary course of their businesses,
J.P. Morgan and its affiliates may actively trade the equity securities of the
Company or the Buyer for their own account or for the accounts of customers
and, accordingly, they may at any time hold long or short positions in such
securities.

On the basis of and subject to the foregoing, it is our opinion as of the
date hereof that the Exchange Ratio in the proposed Merger is fair, from a
financial point of view, to the Company's stockholders.

This letter is provided to the Board of Directors of the Company in
connection with and for the purposes of its evaluation of the Merger. This
opinion does not constitute a recommendation to any stockholder of the Company
as to how such stockholder should vote with respect to the Merger. This opinion
may not be disclosed, referred to, or communicated (in whole or in part) to any
third party for any purpose whatsoever except with our prior written consent in
each instance. This opinion may be reproduced in full in any proxy or
information statement mailed to stockholders of the Company but may not
otherwise be disclosed publicly in any manner without our prior written
approval and must be treated as confidential.

Very truly yours,

J.P. Morgan Securities Inc.

/s/ Dag J. Skattum
By: _________________________________
Name: Dag J. Skattum
Title: Managing Director

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<PAGE>

ANNEX D

One Bush Street
San Francisco, CA 94104
Tel 415-371-3000

March 6, 2000

Confidential

The Board of Directors
Network Solutions, Inc.
505 Huntmar Park Drive
Herndon, Virginia 20170

Gentlemen:

You have requested our opinion as to the fairness from a financial point of
view to the holders of the outstanding shares of common stock (the "Common
Stock") of Network Solutions, Inc. ("NSI" or the "Company") of the
consideration to be received by such shareholders in connection with the
proposed merger of Nickel Acquisition Corporation, a Delaware corporation and a
wholly owned first-tier subsidiary of VeriSign, Inc., ("Merger Sub"), with and
into the Company (the "Proposed Transaction") pursuant to the Agreement and
Plan of Merger to be dated as of March 6, 2000, among VeriSign, Inc.
("VeriSign"), Merger Sub, and NSI (the "Agreement").

We understand that the terms of the Agreement provide, among other things,
that each issued and outstanding share of Common Stock shall be converted into
the right to receive 2.15 shares of common stock of VeriSign, as more fully set
forth in the Agreement. For purposes of this opinion, we have assumed that the
Proposed Transaction will qualify as a tax-free reorganization under the United
States Internal Revenue Code for the shareholders of the Company and that the
Proposed Transaction will be accounted for as a purchase.

Chase Securities Inc. ("Chase"), as part of its investment banking services,
is regularly engaged in the valuation of businesses and their securities in
connection with mergers and acquisitions, strategic transactions, corporate
restructurings, negotiated underwritings, secondary distributions of listed and
unlisted securities, private placements and valuations for corporate and other
purposes. We have acted as a financial advisor to the Board of Directors of the
Company in connection with the Proposed Transaction, and we will receive a fee
for our services, which include the rendering of this opinion.

In the past, we have provided investment banking and other financial advisory
services to VeriSign and NSI and have received fees for rendering these
services. In the ordinary course of business, Chase acts as a market maker and
broker in the publicly traded securities of VeriSign and NSI and receives
customary compensation in connection therewith, and also provides research
coverage for VeriSign and NSI. In the ordinary course of business, Chase
actively trades in the equity and derivative securities of VeriSign and NSI for
its own account and for the accounts of its customers and, accordingly, may at
any time hold a long or short position in such securities. Chase may in the
future provide additional investment banking or other financial advisory
services to VeriSign or NSI.

In connection with our review of the Proposed Transaction, and in arriving at
our opinion, we have, among other things:

(i) reviewed the publicly available consolidated financial statements of
VeriSign for recent years and interim periods to date and certain other
relevant financial and operating data of VeriSign (including its
capital structure) available to us from published sources;

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<PAGE>

(ii) discussed the business, financial condition and prospects of VeriSign
with certain members of senior management;

(iii) reviewed the publicly available consolidated financial statements of
NSI for recent years and interim periods to date and certain other
relevant financial and operating data of NSI available to us from
published sources;

(iv) discussed the business, financial condition and prospects of NSI with
certain members of senior management;

(v) reviewed the recent reported prices and trading activity for the common
stocks of VeriSign and NSI and compared such information and certain
financial information for VeriSign and NSI with similar information for
certain other companies engaged in businesses we consider comparable;

(vi) reviewed the financial terms, to the extent publicly available, of
certain comparable merger and acquisition transactions;

(vii) reviewed the Agreement dated March 6, 2000; and

(viii) performed such other analyses and examinations and considered such
other information, financial studies, analyses and investigations
and financial, economic and market data as we deemed relevant.

In rendering our opinion, we have assumed and relied upon the accuracy and
completeness of all of the information concerning VeriSign or NSI considered in
connection with our review of the Proposed Transaction, and we have not assumed
any responsibility for independent verification of such information. We have
not prepared any independent valuation or appraisal of any of the assets or
liabilities of VeriSign or NSI, nor have we conducted a physical inspection of
the properties and facilities of either company. With respect to the financial
forecasts and projections made available to us and used in our analysis, we
have assumed that they reflect the best currently available estimates and
judgments of the expected future financial performance of VeriSign and NSI. For
purposes of this opinion, we have assumed that neither VeriSign nor NSI is a
party to any pending transactions, including external financings,
recapitalizations or material merger discussions, other than the Proposed
Transaction and those activities undertaken in the ordinary course of
conducting their respective businesses. Our opinion is necessarily based upon
market, economic, financial and other conditions as they exist and can be
evaluated as of the date of this letter and any change in such conditions would
require a reevaluation of this opinion. We express no opinion as to the price
at which VeriSign or NSI's common stock will trade subsequent to the date of
this opinion. In rendering this opinion, we have assumed that the proposed
merger will be consummated substantially on the terms discussed in the
Agreement, without any waiver of any material terms or conditions by any party
thereto. We were not requested to, and did not, solicit indications of interest
from any other parties in connection with a possible acquisition of, or
business combination with, NSI.

It is understood that this letter is for the information of the Board of
Directors and may not be used for any other purpose without our prior written
consent; provided, however, that this letter may be reproduced in full in the
Proxy Statement related to the Proposed Transaction. This letter does not
constitute a recommendation to any stockholder as to how such stockholder
should vote on the Proposed Transaction.

Based upon and subject to the foregoing and after considering such other
matters as we deem relevant, we are of the opinion that as of the date hereof
the consideration to be received by the holders of the Common Stock in the
Proposed Transaction is fair to such holders from a financial point of view.

Very truly yours,

Chase Securities Inc.

By /s/ Paul B. Cleveland__________
Paul B. Cleveland
Managing Director

D-2
<PAGE>

ANNEX E

VOTING AGREEMENT

This VOTING AGREEMENT (the "Agreement") is made and entered into as of March
6, 2000, between VeriSign, Inc., a Delaware corporation ("Parent"), and the
undersigned stockholder ("Stockholder") of Network Solutions, Inc., a Delaware
corporation ("Company").

Recitals

A. Concurrently with the execution of this Agreement, Parent, Company and
Nickel Acquisition Corporation, a Delaware corporation and a wholly-owned
first-tier subsidiary of Parent ("Merger Sub"), are entering into an Agreement
and Plan of Merger (the "Merger Agreement") which provides for the merger of
Merger Sub with and into Company (the "Merger"). Pursuant to the Merger, shares
of common stock of Company, par value $0.001 per share ("Company Common Stock")
will be converted into shares of Parent Common Stock on the basis described in
the Merger Agreement. Capitalized terms used but not defined herein shall have
the meanings set forth in the Merger Agreement.

B. Stockholder is the record holder of such number of outstanding shares of
Company Common Stock as is indicated on the final page of this Agreement.

C. As a material inducement to enter into the Merger Agreement, Parent
desires Stockholder to agree, and Stockholder is willing to agree, to vote the
Shares (as defined below), and such other shares of capital stock of Company
over which Stockholder has voting power, so as to facilitate consummation of
the Merger.

In consideration of the foregoing and the representations, warranties,
covenants and agreements set forth in this Agreement, the parties agree as
follows:

1. AGREEMENT TO VOTE SHARES

1.1 Definitions. For purposes of this Agreement:

(a) Shares. The term "Shares" shall mean all issued and outstanding
shares of Company Common Stock owned of record or beneficially by
Stockholder or over which Stockholder exercises voting power, in each case,
as of the record date for persons entitled (i) to receive notice of, and to
vote at the meeting of the stockholders of Company called for the purpose
of voting on the matters referred to in Section 1.2, or (ii) to take action
by written consent of the stockholders of Company with respect to the
matters referred to in Section 1.2. Stockholder agrees that any shares of
capital stock of Company that Stockholder purchases or with respect to
which Stockholder otherwise acquires beneficial ownership or over which
Stockholder exercises voting power after the execution of this Agreement
and prior to the date of termination of this Agreement pursuant to Section
6 below shall be subject to the terms and conditions of this Agreement to
the same extent as if they constituted Shares on the date hereof.

(b) Subject Securities. The term "Subject Securities" shall mean: (i) all
securities of Company (including all shares of Company Common Stock and all
options, warrants and other rights to acquire shares of Company Common
Stock beneficially owned by Stockholder as of the date of this Agreement;
and (ii) all additional securities of Company (including all additional
shares of Company Common Stock and all additional options, warrants and
other rights to acquire shares of Company Common Stock) of which
Stockholder acquires ownership during the period from the date of this
Agreement through the earlier of termination of this Agreement pursuant to
Section 3 below or the record date for the meeting at which stockholders of
Company are asked to vote upon approval of the Merger Agreement and the
Merger.

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<PAGE>

(c) Transfer. Stockholder shall be deemed to have effected a "Transfer"
of a security if Stockholder directly or indirectly: (i) sells, pledges,
encumbers, transfers or disposes of, or grants an option with respect to,
such security or any interest in such security; or (ii) enters into an
agreement or commitment providing for the sale, pledge, encumbrance,
transfer or disposition of, or grant of an option with respect to, such
security or any interest therein.

1.2 Agreement to Vote Shares. Stockholder hereby covenants and agrees that,
during the period commencing on the date hereof and continuing until the first
to occur of (i) such date and time as the Merger shall become effective in
accordance with the terms and provisions of the Merger Agreement (the
"Effective Time") and (ii) termination of this Agreement in accordance with its
terms, at any meeting (whether annual or special and whether or not an
adjourned or postponed meeting) of the stockholders of Company, however called,
or in connection with any written consent of the stockholders of Company,
Stockholder will appear at the meeting or otherwise cause the Shares to be
counted as present thereat for purposes of establishing a quorum and vote or
consent (or cause to be voted or consented) the Shares:

(1) in favor of the approval and adoption of the Merger Agreement and the
approval of the Merger and the other actions contemplated by the Merger
Agreement and any actions required in furtherance thereof;

(2) against approval of any proposal made in opposition to or in
competition with the consummation of the Merger, including, without
limitation, any Acquisition Proposal or Superior Offer (each as defined in
the Merger Agreement) or any action or agreement that would result in a
breach in any respect of any covenant, representation or warranty or any
other obligation or agreement of Company under the Merger Agreement or of
the Stockholder under this Agreement.

Stockholder further agrees not to enter into any agreement or understanding
with any person the effect of which would be inconsistent with or violative of
any provision contained in this Section 1.2.

1.3. Transfer and Other Restrictions. (a) Prior to the termination of this
Agreement, Stockholder agrees not to, directly or indirectly:

(i) except pursuant to the terms of the Merger Agreement, offer for sale,
Transfer or otherwise dispose of, or enter into any contract, option or
other arrangement or understanding with respect to or consent to the offer
for sale Transfer or other disposition of any or all of the Subject
Securities or any interest therein except as provided in Section 1.2
hereof;

(ii) grant any proxy, power of attorney, deposit any of the Subject
Securities into a voting trust or enter into a voting agreement or
arrangement with respect to the Subject Securities except as provided in
this Agreement; or

(iii) take any other action that would make any representation or
warranty of Stockholder contained herein untrue or incorrect or have the
effect of preventing or disabling Stockholder from performing its
obligations under this Agreement.

(b) To the extent Stockholder is, as of the date hereof, party to a contract
or agreement that requires Stockholder to Transfer Shares to another person or
entity (excluding a contract or agreement pledging Shares to Company),
Stockholder will not effect any such Transfer unless and until the transferee
agrees to be bound by and executes an agreement in the form of this Agreement
with respect to the Shares to be Transferred. Nothing herein shall prohibit
Stockholder from exercising (in accordance with the terms of the option or
warrant, as applicable) any option or warrant Stockholder may hold; provided
that the securities acquired upon such exercise shall be deemed Shares.

1.4 Irrevocable Proxy. Concurrently with the execution of this Agreement,
Stockholder agrees to deliver to Parent a proxy in the form attached hereto as
Exhibit I (the "Proxy"), which shall be irrevocable, with respect to the
Shares, subject to the other terms of this Agreement.

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<PAGE>

2. REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER

(a) Stockholder is the record and beneficial owner of, or Stockholder
exercises voting power over, the shares of Company Common Stock indicated on
the final page of this Agreement, which, on and as of the date hereof, are free
and clear of any Encumbrances that would adversely affect the ability of
Stockholder to carry out the terms of this Agreement. The number of Shares set
forth on the signature pages hereto are the only Shares beneficially owned by
such Stockholder and, except as set forth on such signature pages, the
Stockholder holds no options to purchase or rights to subscribe for or
otherwise acquire any securities of the Company and has no other interest in or
voting rights with respect to any securities of the Company.

(b) Stockholder has the requisite power and authority to enter into this
Agreement and to consummate the transaction contemplated by this Agreement. The
execution and delivery of this Agreement by such Stockholder and the
consummation by such Stockholder of the transactions contemplated by this
Agreement have been duly authorized by all necessary action. This Agreement has
been duly executed and delivered by such Stockholder and constitutes a valid
and binding obligation of such Stockholder, enforceable against such
Stockholder in accordance with its terms, except (i) as the same may be limited
by applicable bankruptcy, insolvency, moratorium or similar laws of general
application relating to or affecting creditors' rights, and (ii) for the
limitations imposed by general principles of equity. The execution and delivery
of this Agreement does not, and the consummation of the transactions
contemplated by this Agreement and compliance with the provisions of this
Agreement will not, conflict with, or result in any violation of, or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation which
would result in the creation of any Encumbrance upon any of the Shares owned by
such Stockholder under, any provision of applicable law or regulation or of any
agreement, judgment, injunction, order, decree, or other instrument binding on
such Stockholder or any Shares owned by such Stockholder. No consent, approval,
order or authorization of any Governmental Entity is required by or with
respect to such Stockholder in connection with the execution and delivery of
this Agreement by such Stockholder or the consummation by such Stockholder of
the transactions contemplated by this Agreement, except (i) for applicable
requirements, if any, of the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder, and (ii) where the failure to obtain such
consents, approvals, orders or authorizations would not prevent or materially
delay the performance by Stockholder of its obligations under this Agreement.
If this Agreement is being executed in a representative or fiduciary capacity,
the person signing this Agreement has full power and authority to enter into
and perform such Agreement.

3. TERMINATION

This Agreement shall terminate and shall have no further force or effect as
of the first to occur of (i) the Effective Time and (ii) such date and time as
the Merger Agreement shall have been validly terminated pursuant to Article VII
thereof.

4. MISCELLANEOUS

4.1 Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, then the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

4.2 Binding Effect and Assignment. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but, except as otherwise
specifically provided herein, neither this Agreement nor any of the rights,
interests or obligations of the parties hereto may be assigned by either of the
parties without prior written consent of the other. Any purported assignment in
violation of this Section shall be void.

4.3 Amendments and Modification. This Agreement may not be modified, amended,
altered or supplemented except upon the execution and delivery of a written
agreement executed by the parties hereto.

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<PAGE>

4.4 Specific Performance; Injunctive Relief. The parties hereto acknowledge
that Parent will be irreparably harmed and that there will be no adequate
remedy at law for a violation of any of the covenants or agreements of
Stockholder set forth herein. Therefore, it is agreed that, in addition to any
other remedies that may be available to Parent upon any such violation, Parent
shall have the right to enforce such covenants and agreements by specific
performance, injunctive relief or by any other means available to Parent at law
or in equity.

4.5 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given upon delivery either by commercial
delivery service, or sent via facsimile (receipt confirmed) to the parties at
the following address or facsimile numbers (or at such other address or
facsimile numbers for a party as shall be specified by like notice):

If to Parent:

Verisign, Inc.
1350 Charleston Road
Mountain View, California 94043-1331
Attn: Chief Financial Officer
Facsimile: 650-961-7300

with a copy to:

Fenwick & West LLP
Two Palo Alto Square
Palo Alto, California 94306
Attn: Gordon K. Davidson
Douglas N. Cogen
Facsimile: 650-494-1417

If to Stockholder, to the address for notice set forth on the last page
hereof.

with a copy to:

SAIC Venture Capital Corporation
3753 Howard Hughes Parkway
Las Vegas, Nevada 89109
Attn: Ira J. Miller
President

Any party hereto may by notice so given provide and change its address for
future notices hereunder. Notice shall conclusively be deemed to have been
given when personally delivered or when deposited in the mail in the manner set
forth above.

4.6 Governing Law. This Agreement shall be governed by and construed
exclusively in accordance with the laws of the State of Delaware, excluding
that body of law relating to conflict of laws.

4.7 Entire Agreement. This Agreement and the Plan constitute and contains the
entire agreement and understanding of the parties with respect to the subject
matter hereof and supersede any and all prior negotiations, correspondence,
agreements, understandings, duties or obligations between the parties
respecting the subject matter hereof.

4.8 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

4.9 Captions. The captions to sections of this Agreement have been inserted
for identification and reference purposes only and shall not be used to
construe or interpret this Agreement.

* * * * *

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<PAGE>

In Witness Whereof, the parties hereto have caused this Voting Agreement to
be executed by their duly authorized respective officers as of the date first
above written.

VeriSign, Inc.

/s/ Stratton D. Sclavos
By: _________________________________
Name:
Title:

Stockholder:

SAIC Venture Capital Corporation

/s/ Douglas E. Scott
By: _________________________________
Name:
Title:

Stockholder's Address for Notice:

3753 Howard Hughes Parkway, Suite
200
Las Vegas, Nevada 89109
Attn: Ira J. Miller
President

Outstanding Shares of Company
Common
Stock Beneficially Owned by
Stockholder:

8,150,000
__________________________________

E-5
<PAGE>

EXHIBIT I

IRREVOCABLE PROXY

The undersigned stockholder (the "Stockholder") of Network Solutions, Inc., a
Delaware corporation (the "Company"), hereby irrevocably appoints and
constitutes the members of the Board of Directors of VeriSign, Inc., a Delaware
corporation ("Parent"), and each such Board member (collectively the
"Proxyholders"), the agents, attorneys and proxies of the undersigned, with
full power of substitution and resubstitution, to the full extent of the
undersigned's rights with respect to the shares of capital stock of Company
which are listed below (the "Shares"), and any and all other shares or
securities issued or issuable in respect thereof on or after the date hereof
and prior to the date this proxy terminates, to vote the Shares as follows: the
agents and proxies named above are empowered at any time prior to termination
of this proxy to exercise all voting and other rights (including, without
limitation, the power to execute and deliver written consents with respect to
the Shares) of the undersigned at every annual, special or adjourned meeting of
Company stockholders, and in every written consent in lieu of such a meeting,
or otherwise, (i) in favor of adoption of the Agreement and Plan of Merger (the
"Merger Agreement") among Parent, Nickel Acquisition Corporation and Company,
and the approval of the merger of Nickel Acquisition Corporation with and into
Company (the "Merger"), and (ii) against approval of any proposal made in
opposition to or in competition with consummation of the Merger, including,
without limitation, any Acquisition Proposal or Superior Offer (each as defined
in the Merger Agreement) or any action or agreement that would result in a
breach in any respect of any covenant, representation or warranty or any other
obligation or agreement of Company under the Merger Agreement or of the
Stockholder under the Voting Agreement.

The Proxyholders may not exercise this proxy on any other matter. The
Stockholder may vote the Shares on all such other matters. The proxy granted by
the Stockholder to the Proxyholders hereby is granted as of the date of this
Irrevocable Proxy in order to secure the obligations of the Stockholder set
forth in Section 1 of the Voting Agreement, and is irrevocable and coupled with
an interest in such obligations and in the interests in Company to be purchased
and sold pursuant the Merger Agreement.

This proxy will terminate upon the termination of the Voting Agreement in
accordance with its terms. Upon the execution hereof, all prior proxies given
by the undersigned with respect to the Shares and any and all other shares or
securities issued or issuable in respect thereof on or after the date hereof
are hereby revoked and no subsequent proxies will be given until such time as
this proxy shall be terminated in accordance with its terms. Any obligation of
the undersigned hereunder shall be binding upon the successors and assigns of
the undersigned. The undersigned stockholder authorizes the Proxyholders to
file this proxy and any substitution or revocation of substitution with the
Secretary of the Company and with any Inspector of Elections at any meeting of
the stockholders of the Company.

This proxy is irrevocable and shall survive the insolvency, incapacity, death
or liquidation of the undersigned. Dated: March 6, 2000.

/s/ Douglas E. Scott
----------------------------------------------------
Signature

Douglas E. Scott, Director, SAIC Venture
Capital Corporation
----------------------------------------------------
Name (and Title)

Shares of Company Common Stock beneficially
owned: 8,150,000

E-6
<PAGE>

ANNEX F

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this "Agreement") is made and entered
into as of March 6, 2000 (the "Effective Date") by and between VeriSign, Inc.,
a Delaware corporation ("Parent"), and SAIC Venture Capital Corporation, a
Nevada corporation (the "Holder"), who immediately prior to the Effective Time
of the Merger (as defined below) is a stockholder of Network Solutions, Inc., a
Delaware corporation ("NSI").

Recitals

A. Parent, NSI and Nickel Acquisition Corporation ("Merger Sub") have entered
into an Agreement and Plan of Merger (the "Plan") dated as of the date hereof,
pursuant to which Merger Sub will merge with and into NSI in a reverse
triangular merger with NSI to be the surviving corporation of the Merger (the
"Merger"). Capitalized terms used herein and not defined herein shall have the
meanings given in the Merger Agreement.

B. In connection with the Merger, Parent desires to grant to Holder certain
registration rights with respect to the shares of the Parent Common Stock that
are issued to Holder in the Merger (the "Merger Shares"), subject to the terms
and conditions set forth in this Agreement.

In consideration of the foregoing and the representations, warranties,
covenants and agreements set forth in this Agreement, the parties agree as
follows:

1. Registration Rights.

1.1 Definitions. For purposes of this Section 1:

(a) Registration. The terms "register," "registered," and "registration"
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act of 1933, as amended (the
"Securities Act"), and the declaration or ordering of effectiveness of such
registration statement.

(b) Registrable Securities. The term "Registrable Securities" means: (1)
all of the Merger Shares, and (2) any shares of Common Stock of Parent
issued as a dividend or other distribution with respect to, or in exchange
for or in replacement of, the Merger Shares; excluding in all cases,
however, any Registrable Securities sold in a public offering pursuant to a
registration statement filed with the SEC or sold to the public pursuant to
Rule 144 promulgated under the Securities Act ("Rule 144") or Rule 145
under the Securities Act ("Rule 145") or otherwise.

(c) Prospectus. The term "Prospectus" shall mean the prospectus included
in any Registration Statement filed pursuant to the provisions hereof
(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement
(including, without limitation, any prospectus supplement with respect to
the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement), and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

(d) SEC. The term "SEC" or "Commission" means the U.S. Securities and
Exchange Commission.

1.2 Demand Registration.

(a) Request by Holders. Any time after six months following the date of this
Agreement, if the Parent shall receive a written request from the Holder that
Parent file a registration statement under the Securities Act

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<PAGE>

covering the registration of not less than 2,000,000 shares of Registrable
Securities pursuant to this Section 1.2, then Parent shall, as soon as
practicable, effect the registration under the Securities Act of all
Registrable Securities that Holder requests to be registered and included in
such registration.

(b) Underwriting. If the Holder intends to distribute the Registrable
Securities covered by its request by means of an underwriting, then it shall so
advise the Parent as a part of its request made pursuant to this Section
1.2(a). The Holder shall enter into an underwriting agreement in customary form
with the managing underwriter or underwriters selected for such underwriting by
the Holder, which managing underwriter or underwriters shall be reasonably
satisfactory to the Parent. Notwithstanding any other provision of this Section
1.2, if the underwriter(s) advise(s) the Parent in writing that marketing
factors require a limitation of the number of securities to be underwritten
then the Parent shall so advise the Holder, and the number of Registrable
Securities that may be included in the underwriting shall be reduced as
required by the underwriter(s) and allocated first to the Holder and second to
the Parent or other stockholders of the Parent; provided, however, that the
number of shares of Registrable Securities to be included in such underwriting
and registration shall not be reduced unless all other securities of the Parent
are first entirely excluded from the underwriting and registration. Any
Registrable Securities excluded and withdrawn from such underwriting shall be
withdrawn from the registration.

(c) Maximum Number of Demand Registrations. The Parent is obligated to effect
only one such registration during any six month period and three (3) such
registrations in the aggregate pursuant to this Section 1.2.

(d) Deferral. Notwithstanding the foregoing, if the Parent shall furnish to
Holder, a certificate signed by the President or Chief Executive Officer of the
Parent stating that in the good faith judgment of the Board of Directors of the
Parent, it would be seriously detrimental to the Parent and its shareholders
for such registration statement to be filed and it is therefore essential to
defer the filing of such registration statement, then the Parent shall have the
right to defer such filing for a period of not more than 60 days after receipt
of the request of the Holder; provided, however, that the Parent may not
utilize this right more than once in any twelve month period.

(e) Expenses. All expenses incurred in connection with a registration
pursuant to this Section 1.2, including without limitation all registration and
qualification fees, printers' and accounting fees, fees and disbursements of
counsel for the Parent, (but excluding underwriters' discounts and
commissions), shall be borne by the Parent. The Holder shall bear a
proportionate share (based on the total number of shares sold in such
registration for the account of the Holder) of all discounts, commissions or
other amounts payable to underwriters or brokers in connection with such
offering and the fees and disbursements of any separate counsel retained by the
Holder. Notwithstanding the foregoing, the Parent shall not be required to pay
for any expenses of any registration proceeding begun pursuant to this Section
1.2 if the registration request is subsequently withdrawn at the request of the
Holder, unless the Holder agrees to forfeit its right to demand registration
pursuant to this Section 1.2; provided, further, however, that if at the time
of such withdrawal, the Holder has learned of a material adverse change in the
condition, business, or prospects of the Parent not known to the Holder at the
time of its request for such registration and has withdrawn its request for
registration with reasonable promptness after learning of such material adverse
change, then the Holder shall not be required to pay any of such expenses and
shall retain its rights pursuant to this Section 1.2.

1.3 Piggyback Registrations. The Parent shall notify the Holder in writing at
least thirty days prior to filing any registration statement under the
Securities Act for purposes of effecting a public offering of securities of the
Parent (excluding registration statements relating to any employee benefit plan
or a corporate reorganization) and will afford Holder an opportunity to include
in such registration statement all or any part of the Registrable Securities
then held by Holder. Holder shall, within twenty days after receipt of the
above-described notice from the Parent, so notify the Parent in writing, and in
such notice shall inform the Parent of the number of Registrable Securities
Holder wishes to include in such registration statement. If Holder decides not
to include or does not sell all of its Registrable Securities in any
registration statement thereafter filed by the Parent, Holder shall
nevertheless continue to have the right to include any Registrable Securities
in any

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<PAGE>

subsequent registration statement or registration statements as may be filed by
the Parent with respect to offerings of its securities, all upon the terms and
conditions set forth herein.

(a) Underwriting. If a registration statement under which the Parent
gives notice under this Section 1.3 is for an underwritten offering, then
the Parent shall so advise the Holder. In such event, the right of Holder's
Registrable Securities to be included in a registration pursuant to this
Section 1.3 shall be conditioned upon Holder's participation in such
underwriting and the inclusion of Holder's Registrable Securities in the
underwriting to the extent provided herein. Holder, when proposing to
distribute its Registrable Securities through such underwriting shall enter
into an underwriting agreement in customary form with the managing
underwriter or underwriter(s) selected for such underwriting.
Notwithstanding any other provision of this Agreement, if the managing
underwriter determine(s) in good faith that marketing factors require a
limitation of the number of shares to be underwritten, then the managing
underwriter(s) may exclude shares (including Registrable Securities) from
the registration and the underwriting, and the number of shares that may be
included in the registration and the underwriting shall be allocated,
first, to shareholders exercising any demand registration rights, second to
the Parent, and third, to the Holder. If Holder disapproves of the terms of
any such underwriting, Holder may elect to withdraw therefrom by written
notice to the Parent and the underwriter, delivered at least ten (10) days
prior to the effective date of the registration statement. Any Registrable
Securities excluded or withdrawn from such underwriting shall be excluded
and withdrawn from the registration.

(b) Expenses. All expenses incurred in connection with a registration
pursuant to this Section 1.3 (excluding underwriters' and brokers'
discounts and commissions), including, without limitation all federal and
"blue sky" registration and qualification fees, printers' and accounting
fees, fees and disbursements of counsel for the Parent shall be borne by
the Parent.

1.4 Obligations of the Parent. Whenever required to effect the registration
of any Registrable Securities under this Agreement, the Parent shall, as
expeditiously as reasonably possible:

(a) Prepare and file with the SEC a registration statement with respect
to such Registrable Securities and use reasonable, diligent efforts to
cause such registration statement to become effective, and, upon the
request of Holder, keep such registration statement effective for up to
ninety days.

(b) Prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of
the Securities Act with respect to the disposition of all securities
covered by such registration statement.

(c) Furnish to Holder such number of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by
them that are included in such registration.

(d) Use reasonable, diligent efforts to register and qualify the
securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by Holder, provided that the Parent shall not be required in
connection therewith or as a condition thereto to qualify to do business or
to file a general consent to service of process in any such states or
jurisdictions.

(e) In the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter(s) of such offering. Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

(f) Notify Holder at any time when a prospectus relating to the
Registrable Securities covered by such registration statement is required
to be delivered under the Securities Act of the happening of any event as a
result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make
the statements therein not misleading in the light of the circumstances
then existing.

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<PAGE>

1.5 Furnish Information. It shall be a condition precedent to the obligations
of the Parent to take any action pursuant to Sections 1.2 or 1.3 that Holder
shall furnish to the Parent such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such
securities as shall be required to timely effect the registration of its
Registrable Securities.

1.6 Delay of Registration. Holder shall not have any right to obtain or seek
an injunction restraining or otherwise delaying any such registration as the
result of any controversy that might arise with respect to the interpretation
or implementation of this Section 1.

1.7 Indemnification. In the event any Registrable Securities are included in
a registration statement under Sections 1.2 or 1.3:

(a) By the Parent. To the extent permitted by law, the Parent will
indemnify and hold harmless Holder, any officer or director of Holder, any
underwriter (as defined in the Securities Act) for Holder and each person,
if any, who controls Holder or such underwriter within the meaning of the
Securities Act or the Securities Exchange Act of 1934, as amended, (the
"Exchange Act") against any losses, claims, damages, or liabilities (joint
or several) to which they may become subject under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations
(collectively, "Violations" and, individually, a "Violation"):

(1) any untrue statement or alleged untrue statement of a material
fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto;

(2) the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements
therein not misleading; or

(3) any violation or alleged violation by the Parent of the
Securities Act or Exchange Act, any U.S. federal or state securities
law or any rule or regulation promulgated under the Securities Act or
Exchange Act, or any U.S. federal or state securities law in connection
with the offering covered by such registration statement.

and the Parent will reimburse Holder, any officer or director of Holder,
underwriter or such controlling person for any legal or other expenses
reasonably incurred by them, as incurred, in connection with investigating
or defending any such loss, claim, damage, liability or action; provided
however, that the indemnity agreement contained in this subsection 1.7(a)
shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the
consent of the Parent (which consent shall not be unreasonably withheld),
nor shall the Parent be liable in any such case for any such loss, claim,
damage, liability or action to the extent that it arises out of or is based
upon a Violation which occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with such
registration by Holder, such underwriter or controlling person.

(b) By Holder. To the extent permitted by law, Holder will indemnify and
hold harmless the Parent, each of its directors, each of its officers who
have signed the registration statement, each person, if any, who controls
the Parent within the meaning of the Securities Act and any underwriter
against any losses, claims or liabilities to which such person may become
subject under the Securities Act, the Exchange Act or other federal or
state law, insofar as such losses, claims, damages or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation,
in each case to the extent (and only to the extent) that such Violation
occurs in reliance upon and in conformity with written information
furnished by Holder expressly for use in connection with such registration;
and Holder will reimburse any legal or other expenses reasonably incurred
by the Parent or any such director, officer, controlling person or
underwriter in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this subsection 1.7(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if
such settlement is effected without the

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consent of the Holder, which consent shall not be unreasonably withheld;
and provided further, that the total amounts payable in indemnity by Holder
under this subsection 1.7(b) in respect of any Violation, together with the
amount of any damages that such Holder, its directors, officers or any
person who controls such Holder has otherwise been required to pay by
reason of such Violation shall not exceed the net proceeds received by such
Holder in the registered offering out of which such Violation arises.

(c) Notice. Promptly after receipt by an indemnified party under this
Section 1.7 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section
1.7, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in,
and, to the extent the indemnifying party so desires, jointly with any
other indemnifying party similarly noticed, to assume the defense thereof
with counsel mutually satisfactory to the parties; provided, however, that
an indemnified party shall have the right to retain its own counsel, with
the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential
conflict of interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend
such action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 1.7, but the omission so to deliver
written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under
this Section 1.7.

(d) Defect Eliminated in Final Prospectus. The foregoing indemnity
agreements of the Parent and Holder are subject to the condition that,
insofar as they relate to any Violation made in a preliminary prospectus
but eliminated or remedied in the amended prospectus on file with the SEC
at the time the registration statement in question becomes effective or the
amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the
"Final Prospectus"), such indemnity agreement shall not inure to the
benefit of any person if a copy of the Final Prospectus was furnished to
the indemnified party and was not furnished to the person asserting the
loss, liability, claim or damage at or prior to the time such action is
required by the Securities Act, but only to the extent such failure to
deliver the Final Prospectus is the fault of the indemnified party or any
person acting on such indemnified person's behalf.

(e) Contribution. In order to provide for just and equitable contribution
to joint liability under the Securities Act in any case in which either (1)
Holder or any controlling person of Holder, makes a claim for
indemnification pursuant to this Section 1.7 but it is judicially
determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial
of the last right of appeal) that such indemnification may not be enforced
in such case notwithstanding the fact that this Section 1.7 provides for
indemnification in such case, or (2) contribution under the Securities Act
may be required on the part of Holder or any such officer, director or
controlling person in circumstances for which indemnification is provided
under this Section 1.7; then, and in each such case, the Parent and Holder
will contribute to the aggregate losses, claims, damages or liabilities to
which they may be subject (after contribution from others) in such
proportion as is appropriate to reflect the relative faults of the
indemnifying party, on the one hand, and of the indemnified party, on the
other hand, in connection with the statements or omissions which resulted
in such losses, claims, damages, liabilities or judgments, as well as any
other relevant equitable considerations. The relative fault of the
indemnifying party, on the one hand, and of the indemnified party, on the
other hand, shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact relates
to information supplied by the Parent, on the one hand, or by the Holder,
on the other, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission. The Parent and the Holder agree that it would not be just and
equitable if contribution pursuant to this Section 1.7(e) were determined
by pro rata allocation or by any other method of allocation which does not
take account of the equitable considerations referred to in the immediately
preceding paragraph. Notwithstanding any other provision in this Section
1.7, (A) Holder will not be required to contribute any

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<PAGE>

amount in excess of the public offering price of all such Registrable
Securities offered and sold by Holder pursuant to such registration
statement less the amount of any damages which such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission; and (B) no person or entity guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person or entity
who was not guilty of such fraudulent misrepresentation.

(f) Survival. The obligations of the Parent and Holder under this Section
1.7 shall survive the completion of any offering of Registrable Securities
in a registration statement, and otherwise.

1.8 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit
the sale of the Registrable Securities to the public without registration,
after such time as a public market exists for the Common Stock of the Parent,
the Parent agrees to:

(a) Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times
after the effective date of the first registration under the Securities Act
filed by the Parent for an offering of its securities to the general
public;

(b) Use reasonable, diligent efforts to file with the Commission in a
timely manner all reports and other documents required of the Parent under
the Securities Act and the Exchange Act (at any time after it has become
subject to such reporting requirements); and

(c) So long as Holder owns any Registrable Securities, to furnish to the
Holder forthwith upon request a written statement by the Parent as to its
compliance with the reporting requirements of said Rule 144, the Securities
Act and the Exchange Act, a copy of the most recent annual or quarterly
report of the Parent, and such other reports and documents of the Parent as
a Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing Holder to sell any such securities
without registration.

1.9 Termination of the Parent's Obligations. The Parent shall have no
obligations pursuant to Sections 1.2 and 1.3 with respect to (a) any request or
requests for registration made by Holder after March 6, 2005, or (b) any
Registrable Securities proposed to be sold by Holder in a registration pursuant
to Section 1.2 or 1.3 if the Parent has delivered a written opinion addressed
to Holder to the effect that all such Registrable Securities proposed to be
sold by Holder may be sold in a three-month period without registration under
the Securities Act pursuant to Rule 144 or Rule 145 without restrictions with
respect to notice, manner of sale or current public information as provided in
such Rules.

1.10 Termination of NSI Registration Rights. Upon the effectiveness of the
Merger, all of the Holders rights and NSI's obligations under the Registration
Rights Agreement between them shall be terminated and shall be of no further
force or effect.

2. General Provisions.

2.1 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given upon delivery either by commercial
delivery service, or sent via facsimile (receipt confirmed) to the parties at
the following address or facsimile numbers (or at such other address or
facsimile numbers for a party as shall be specified by like notice):

(a)if to Parent, at:

VeriSign, Inc.
1360 Charleston Road
Mountain View, CA 94043
Attention: Chief Financial Officer
Facsimile: 650) 961-7300

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<PAGE>

with a copy to:

Fenwick & West LLP
Two Palo Alto Square
Palo Alto, CA 94306
Attention: Gordon K. Davidson
Douglas N. Cogen
Facsimile: (650) 494-1417

(b)If to Holder:

SAIC Venture Capital Corporation
3753 Howard Hughes Parkway, Suite 200
Las Vegas, Nevada 89109
Attn: Ira J. Miller
President

2.2 Entire Agreement. This Agreement and the Plan constitute and contains the
entire agreement and understanding of the parties with respect to the subject
matter hereof and supersede any and all prior negotiations, correspondence,
agreements, understandings, duties or obligations between the parties
respecting the subject matter hereof.

2.3 Amendment of Rights. Any provision of this Agreement may be amended and
the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of Parent and Holder. Any amendment or waiver effected in accordance
with this Section 2.3 shall be binding upon Holder and Parent.

2.4 Governing Law. This Agreement shall be governed by and construed
exclusively in accordance with the laws of the State of California, excluding
that body of law relating to conflict of laws.

2.5 Severability. In the event that any provision of this Agreement or the
application thereof, becomes or is declared by a court of competent
jurisdiction to the illegal, void or unenforceable, the remainder of this
Agreement will continue in full force and effect and the application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further
agree to replace such void or unenforceable provisions of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such void or unenforceable provision.

2.6 Third Parties. Nothing in this Agreement, express or implied, is intended
to confer upon any person, other than the parties hereto and their successors
and assigns, any rights or remedies under or by reason of this Agreement.

2.7 Assignment. No party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written consent
of the other parties hereto. Subject to the preceding sentence, this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Any purported assignment in
violation of this Section shall be void.

2.8 Captions. The captions to sections of this Agreement have been inserted
for identification and reference purposes only and shall not be used to
construe or interpret this Agreement.

2.9 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

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<PAGE>

2.10 Attorneys' Fees. In the event that any action, suit or other proceeding
is instituted concerning or arising out of this Agreement or any transaction
contemplated hereunder, the prevailing party shall recover all of such party's
costs and attorneys' fees incurred in each such action, suit or other
proceeding, including any and all appeals or petitions therefrom.

2.11 Legends.

Holder understands that prior to the effectiveness of the Registration
Statement certificates or other instruments representing any of the Registrable
Securities acquired by Holder will bear legends substantially similar to the
following, in addition to any other legends required by federal or state laws:

THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN
EFFECT WITH RESPECT TO THE SECURITIES UNDER THE SECURITIES ACT
OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT
TO RULE 145(d) OF SUCH ACT.

Holder agrees that, in order to ensure and enforce compliance with the
restrictions imposed by applicable law and those referred to in the foregoing
legends, or elsewhere herein, Parent may, prior to the effectiveness of the
Registration Statement issue appropriate "stop transfer" instructions to its
transfer agent, if any, with respect to any certificate or other instrument
representing Registrable Securities, or if Parent transfers its own securities,
that it may make appropriate notations to the same effect in Parent's records.

2.12 Waiver of Jury Trial. EACH OF COMPANY AND HOLDER HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE ACTIONS OF COMPANY OR HOLDER IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.
* * * * *

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<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be executed by their duly authorized respective officers as of the
date first above written.

Verisign, Inc.

/s/ Stratton D. Sclavos
By: _________________________________
Name:
Title:

SAIC Venture Capital Corporation

/s/ Douglas E. Scott
By: _________________________________
Name:
Title

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<PAGE>

ANNEX G

CERTIFICATE OF AMENDMENT
OF
THIRD AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION
OF VERISIGN, INC.

VeriSign, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the "Corporation"), whose original
Certificate of Incorporation was filed in the Office of the Secretary of State
of the State of Delaware on April 12, 1995 under the name of Digital
Certificates International, Inc., subsequently amended on April 18, 1995 and
July 7, 1995, subsequently amended and restated on February 15, 1996,
subsequently amended on August 22, 1996, subsequently amended and restated on
November 14, 1996, subsequently amended on November 18, 1997 and January 27,
1998, subsequently amended and restated on February 4, 1998, and subsequently
amended on May 27, 1999, does hereby certify:

A resolution amending the Corporation's Third Amended and Restated
Certificate of Incorporation was approved by the Corporation's Board of
Directors and Stockholders, and that such amendment was adopted in accordance
with the provisions of Section 242 of the Delaware General Corporation Law:

Paragraph A of Article Four is hereby amended in its entirety to read as
follows:

FOUR: A. The Corporation is authorized to issue two classes of stock to be
designated, respectively, "Common Stock" and "Preferred Stock."
The total number of shares which the Corporation is authorized to
issue is One Billion, Five Million (1,005,000,000) shares. One
Billion (1,000,000,000) shares shall be Common Stock, $0.001 par
value per share, and Five Million (5,000,000) shares shall be
Preferred Stock, $0.001 par value per share.

IN WITNESS WHEREOF, VeriSign, Inc. has caused this Certificate to be signed
and attested by its duly authorized officers this day of 2000.

Verisign, Inc.

By __________________________________
Stratton Sclavos, President

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<PAGE>

ANNEX H

AMENDMENT TO

AMENDED AND RESTATED

BYLAWS OF

VERISIGN, INC.

The following sets forth an Amendment to the Amended and Restated Bylaws of
VeriSign, Inc., a Delaware corporation (the "Company").

1. Article II, Section 2 is hereby amended, pursuant to resolutions adopted
by Written Consent of the Board of Directors of the Company with the approval
of a majority of the outstanding capital stock of the Company entitled to vote,
in its entirety, to read as follows:

"Section 2: Number of Directors. The Board
of Directors shall consist of one or more
members. Commencing , 2000 [effective
date of the merger], the number of
directors shall be no less than six (6)
and no more than nine (9), the number
thereof to be fixed from time to time by
resolution of the Board of Directors;
provided that any increase in the actual
number of directors to a total of more
than nine (9) before * will require the
affirmative vote of eighty percent (80%)
of the directors then in office.

IN WITNESS WHEREOF, the undersigned has hereto subscribed his name this day
of , 2000.

_____________________________________
Timothy Tomlinson, Secretary

* Date of the third anniversary of the effectiveness of the merger with Network
Solutions.

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PART II -- INFORMATION NOT REQUIRED IN PROSPECTUS

ITEM 20. INDEMNIFICATION OF OFFICERS AND DIRECTORS

Section 145 of the Delaware General Corporation Law authorizes a court to
award, or a corporation's board of directors to grant, indemnity to directors
and officers in terms sufficiently broad to permit such indemnification under
certain circumstances for liabilities (including reimbursement for expenses
incurred) arising under the Securities Act of 1933.

As permitted by the Delaware General Corporation Law, the Registrant's Third
Amended and Restated Certificate of Incorporation includes a provision that
eliminates the personal liability of its directors for monetary damages for
breach of fiduciary duty as a director, except for liability: (i) for any
breach of the director's duty of loyalty to the Registrant or its stockholders;
(ii) for acts or omissions not in good faith or that involve intentional
misconduct or a knowing violation of law; (iii) under section 174 of the
Delaware General Corporation Law (regarding unlawful dividends and stock
purchases); or (iv) for any transaction from which the director derived an
improper personal benefit.

As permitted by the Delaware General Corporation Law, the Registrant's
Amended and Restated Bylaws provide that: (i) the Registrant is required to
indemnify its directors and officers to the fullest extent permitted by the
Delaware General Corporation Law, subject to certain very limited exceptions;
(ii) the Registrant may indemnify its other employees and agents to the extent
that it indemnifies its officers and directors, unless otherwise required by
law, its Certificate of Incorporation, its Amended and Restated Bylaws, or
agreement; (iii) the Registrant is required to advance expenses, as incurred,
to its directors and executive officers in connection with a legal proceeding
to the fullest extent permitted by the Delaware General Corporation Law,
subject to certain very limited exceptions; and (iv) the rights conferred in
the Amended and Restated Bylaws are not exclusive.

The Registrant has entered into Indemnification Agreements with each of its
current directors and certain of its executive officers and intends to enter
into such Indemnification Agreements with each of its other executive officers
to give such directors and executive officers additional contractual assurances
regarding the scope of the indemnification set forth in the Registrant's
Certificate of Incorporation and to provide additional procedural protections.
At present, there is no pending litigation or proceeding involving a director,
officer or employee of the Registrant regarding which indemnification is
sought, nor is the Registrant aware of any threatened litigation that may
result in claims for indemnification.

The Registrant has obtained directors' and officers' liability insurance with
a per claim and annual aggregate coverage limit of $25 million.

ITEM 21. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(A) Exhibits

<TABLE>
<CAPTION>
Exhibit
Number Exhibit Description
------- -------------------
<C> <S>
2.01 Agreement and Plan of Reorganization dated as of July 6, 1998 among
the Registrant, VeriSign Merger Corp., SecureIT and the stockholders
of SecureIT.(1)

2.02 Exchange Agreement dated as of December 19, 1999 among the Registrant,
Mark Shuttleworth, and THAWTE [USA], Inc.(2)

2.03 Agreement and Plan of Reorganization dated as of December 17, 1999
among the Registrant, Signio, Inc., and BEHAD Acquisition Corp.(3)

2.04 Agreement and Plan of Merger dated as of March 6, 2000 among the
Registrant, Nickel Acquisition Corporation and Network Solutions,
Inc.(4)
</TABLE>

II-1
<PAGE>

<TABLE>
<CAPTION>
Exhibit
Number Exhibit Description
------- -------------------
<C> <S>
4.01 Investors' Rights Agreement, dated November 15, 1996, among the
Registrant and the parties indicated therein.(5)

4.02 Voting Agreement dated as of March 6, 2000 among the Registrant and
the parties indicated therein.(6)

4.03 Registration Rights Agreement dated as of March 6, 2000 among the
Registrant and the parties indicated therein.(7)

4.04 First Amendment to Amended and Restated Investors' Rights Agreement
dated as of July 7, 1998 by and between the Registrant and certain
stockholders of the Registrant.(8)

4.05 Registration Rights Agreement dated as of July 6, 1998 by and between
the Registrant and the former stockholders of SecureIT.(9)

8.01 Tax Opinion of Fenwick & West LLP.+

8.02 Tax Opinion of Davis Polk & Wardwell.+

23.01 Consent of KPMG LLP, independent auditors.

23.02 Consent of KPMG LLP, independent auditors.

23.03 Consent of KPMG LLP, independent auditors.

23.04 Consent of PricewaterhouseCoopers LLP, independent accountants.

23.05 Consent of Fenwick & West LLP.+

23.06 Consent of Davis Polk & Wardwell.+

99.01 Letter to the Stockholders of Registrant, dated , 2000.

Letter to the Stockholders of Network Solutions, Inc., dated ,
99.02 2000.

Notice of Annual Meeting of Stockholders of Registrant, dated ,
99.03 2000.

Notice of Special Meeting of Stockholders of Network Solutions, Inc.,
99.04 dated , 2000.

99.05 Form of Proxy of Registrant.

99.06 Form of Proxy of Network Solutions, Inc.

Consent of Morgan Stanley & Co. Incorporated (contained in Annex B to
99.07 the prospectus/proxy statement).

Consent of J.P. Morgan Securities Inc. (contained in Annex C to the
99.08 prospectus/proxy statement).

Consent of Chase H&Q, a division of Chase Securities Inc. (contained
99.09 in Annex D to the prospectus/proxy statement).
</TABLE>
- --------
(1) Incorporated herein by reference to Exhibit 2.01 to Registrant's Current
Report on Form 8-K filed with the Commission on July 21, 1998 (the "July
21, 1998 8-K").
(2) Incorporated herein by reference to Exhibit 2.1 to Registrant's Current
Report on Form 8-K filed with the Commission on February 16, 2000.
(3) Incorporated herein by reference to Exhibit 2.1 to Registrant's Current
Report o Form 8-K filed with the Commission on March 7, 2000.
(4) Incorporated herein by reference to Exhibit 2.1 to Registrant's Current
Report on Form 8-K filed with the Commission on March 8, 2000 (the "March
8, 2000 8-K").
(5) Incorporated herein by reference to Exhibit 4.01 to Registrant's
Registration Statement on Form S-1 filed with the Commission on November
21, 1997.
(6) Incorporated herein by reference to Exhibit 9.1 to the March 8, 2000 8-K.
(7) Incorporated herein by reference to Exhibit 99.1 to the March 8, 2000 8-
K.
(8) Incorporated herein by reference to Exhibit 4.01 to the July 21, 1998 8-
K.
(9) Incorporated herein by reference to Exhibit 4.09 to Registrant's
Registration Statement on Form S-8 filed with the Commission on July 7,
1998.
+ To be filed by amendment.

II-2
<PAGE>

(B) Financial Statement Schedules

The information required to be set forth herein is incorporated by reference
to VeriSign's Annual Report on Form 10-K for the fiscal year ended December 31,
1999.

ITEM 22. UNDERTAKINGS

The undersigned registrant hereby undertakes:

(a) That, for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrant's annual report pursuant to
section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and,
where applicable, each filing of an employee benefit plan's annual report
pursuant to section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to
be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.

(b) That prior to any public reoffering of the securities registered
hereunder through use of a prospectus that is a part of this registration
statement, by any person or party who is deemed to be an underwriter within
the meaning of Rule 145(c), the registrant undertakes that such reoffering
prospectus will contain the information called for by the applicable
registration form with respect to reofferings by persons who may be deemed
underwriters, in addition to the information called for by the other Items
of the applicable form.

(c) That every prospectus (i) that is filed pursuant to paragraph (1)
immediately preceding, or (ii) that purports to meet the requirements of
section 10(a)(3) of the Act and is used in connection with an offering of
securities subject to Rule 415, will be filed as a part of an amendment to
the registration statement and will not be used until such amendment is
effective, and that, for purposes of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.

(d) To respond to requests for information that is incorporated by
reference into the prospectus pursuant to Items 4, 10(b), 11, or 13 of this
Form, within one business day of receipt of such request, and to send the
incorporated documents by first class mail or other equally prompt means.
This includes information contained in documents filed subsequent to the
effective date of the registration statement through the date of responding
to the request.

(e) To supply by means of a post-effective amendment all information
concerning a transaction, and the company being acquired involved therein,
that was not the subject of and included in the registration statement when
it became effective. Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in
the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.

II-3
<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1933, the
Registrant has duly caused this registration statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Mountain
View, State of California, on the 31st day of March 2000.

VeriSign, Inc.

/s/ Stratton D. Sclavos
By: _________________________________
Stratton D. Sclavos,
President and Chief Executive
Officer

KNOW ALL PERSONS BY THESE PRESENTS that each individual whose signature
appears below constitutes and appoints Stratton D. Sclavos, Dana L. Evan and
Timothy Tomlinson, and each of them, his or her true lawful attorneys-in-fact
and agents, with full power of substitution, for him or her and in his or her
name, place and stead, in any and all capacities, to sign any and all
amendments to this Registration Statement on Form S-4 and to file the same,
with all exhibits thereto and all documents in connection therewith, with the
Securities and Exchange Commission, granted unto said attorneys-in-fact and
agents, and each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about the
premises, as fully to all intends and purposes as he or she might or could do
in person, hereby ratifying and confirming all that said attorneys-in-fact and
agents or any of them, or his, her or their substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.

In accordance with the requirements of the Securities Exchange Act of 1933,
this registration statement has been signed by the following persons on behalf
of the registrant and in the capacities indicated on the 31st day of March
2000.

<TABLE>
<CAPTION>
Signature Title
--------- -----

<S> <C>
/s/ Stratton D. Sclavos President, Chief Executive Officer and
______________________________________ Director
Stratton D. Sclavos

/s/ Dana L. Evan Executive Vice President of Finance and
______________________________________ Administration and Chief Financial Officer
Dana L. Evan

/s/ D. James Bidzos Chairman of the Board
______________________________________
D. James Bidzos

/s/ William Chenevich Director
______________________________________
William Chenevich

/s/ Kevin R. Compton Director
______________________________________
Kevin R. Compton

/s/ David J. Cowan Director
______________________________________
David J. Cowan

/s/ Timothy Tomlinson Director and Secretary
______________________________________
Timothy Tomlinson
</TABLE>

II-4
<PAGE>

EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
Number Exhibit Description
------- -------------------
<C> <S>
23.01 Consent of KPMG LLP, independent auditors.

23.02 Consent of KPMG LLP, independent auditors.

23.03 Consent of KPMG, Inc., independent auditors.

23.04 Consent of PricewaterhouseCoopers LLP, independent accountants.

99.05 Form of Proxy of Registrant.

99.06 Form of Proxy of Network Solutions, Inc.
</TABLE>

<PAGE>

Exhibit 23.01

CONSENT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders
VeriSign, Inc.:

We consent to the incorporation herein by reference of our report dated January
14, 2000, relating to the consolidated balance sheets of VeriSign, Inc. and
subsidiaries as of December 31, 1999 and 1998, and the related consolidated
statements of operations, stockholders' equity, comprehensive income (loss),
and cash flows for each of the years in the three-year period ended December
31, 1999, which report is incorporated herein by reference and to the reference
to our firm under the heading "Experts" in the prospectus.

/s/ KPMG LLP

Mountain View, California
April 12, 2000

<PAGE>

Exhibit 23.02

CONSENT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders
VeriSign, Inc.

We consent to the incorporation herein by reference of our report dated
February 29, 2000, with respect to the balance sheets of Signio, Inc. (formerly
PaymentNet, Inc.) as of December 31, 1999 and 1998, and the related statements
of operations, shareholders' equity (deficit), and cash flows for the years
then ended, which report appears in Current Report on Form 8-K/A of VeriSign,
Inc. filed on March 10, 2000, incorporated herein by reference, and to the
reference to our firm under the heading "Experts" in the prospectus.

/s/ KPMG LLP

San Francisco, California
April 12, 2000

<PAGE>

Exhibit 23.03

CONSENT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders
VeriSign, Inc.

We consent to the incorporation herein by reference of our report dated January
31, 2000, with respect to the combined balance sheets of Thawte Holdings (Pty.)
Ltd., Thawte Consulting (Pty.) Ltd. and Thawte USA, Inc. as of February 28,
1999 and 1998, and the combined income statements, cash flow statements, and
the changes in equity statements for each of the years in the two-year period
ended February 28, 1999, which report appears in the Current Report on Form 8-
K/A of VeriSign, Inc. filed on March 10, 2000, incorporated herein by
reference, and to the reference to our firm under the heading "Experts" in the
prospectus.

/s/ KPMG, Inc.

Cape Town, South Africa
April 12, 2000

<PAGE>

Exhibit 23.04

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in this Registration
Statement on Form S-4 of VeriSign, Inc. of our report dated February 2, 2000
except as to Note 13 which is dated as of March 15, 2000 relating to the
financial statements and financial statement schedule, which appears in Network
Solutions, Inc.'s Annual Report on Form 10-K for the year ended December 31,
1999. We also consent to the reference to us under the heading "Experts" in
such Registration Statement.

PricewaterhouseCoopers LLP

McLean, Virginia
April 10, 2000

<PAGE>

Exhibit 99.05
VeriSign, Inc.
1350 Charleston Road
Mountain View, California 94043-1331

----------------

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned hereby appoints Stratton D. Sclavos and Dana L. Evan, as
proxies, each with full powers of substitution, and hereby authorizes them to
represent and to vote, as designated below, all shares of Common Stock, $0.001
par value, of VeriSign, Inc. (the "Company") held of record by the undersigned
on , 2000, at the Annual Meeting of Stockholders of the Company (the
"Meeting") to be held on , 2000, and at any continuations or
adjournments thereof.

This Proxy, when properly executed and returned in a timely manner, will be
voted at the Meeting and any adjournments thereof in the manner described
herein. If no contrary indication is made, the proxy will be voted FOR
Proposals 1 through 8 and in accordance with the judgment of the persons named
as proxies herein on any other matters that may properly come before the
Meeting.

PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE.

CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE

SEE REVERSE SIDE

- --------------------------------------------------------------------------------
<PAGE>

<TABLE>
<C> <S>
[X] Please mark
votes as in this
example.
</TABLE>

The Board of Directors unanimously recommends that you vote FOR Proposals 1
through 8.

<TABLE>
<C> <S> <C> <C> <C>
1. Proposal to approve the issuance of VeriSign FOR AGAINST ABSTAIN
common stock in the merger of Nickel Acquisition [ ] [ ] [ ]
Corporation, a wholly owned subsidiary of
VeriSign, with and into Network Solutions, Inc.
</TABLE>

<TABLE>
<C> <S> <C> <C> <C>
2. Proposal to approve an amendment to VeriSign's FOR AGAINST ABSTAIN
certificate of incorporation to increase the [ ] [ ] [ ]
number of authorized shares of common stock to
1,000,000,000 shares
</TABLE>

<TABLE>
<C> <S> <C> <C> <C>
3. Proposal to approve an amendment to VeriSign's FOR AGAINST ABSTAIN
bylaws to increase the number of board members [ ] [ ] [ ]
from six to nine, or to another number as the
board may approve

4. Proposal to elect two Class II Directors for a
three year term.
Nominees:
Kevin R. Compton
David J. Cowan
</TABLE>

<TABLE>
<S> <C>
[ ] FOR all nominees listed
below except as marked. [ ] WITHHOLD AUTHORITY to vote for all nominees.
</TABLE>

To withhold authority to vote for any individual nominee, strike a line through
that nominee's name:

<TABLE>
<C> <S> <C> <C> <C>
5. Proposal to approve an amendment to VeriSign's FOR AGAINST ABSTAIN
1998 Equity Incentive Plan to increase the number [ ] [ ] [ ]
of shares reserved for issuance thereunder by an
aggregate of 10,000,000 shares.
</TABLE>

<TABLE>
<C> <S> <C> <C> <C>
6. Proposal to approve an amendment to VeriSign's FOR AGAINST ABSTAIN
1998 Employee Stock Purchase Plan to increase the [ ] [ ] [ ]
number of shares issuable thereunder by an
aggregate of 500,000 shares and to provide for an
automatic annual increase in an amount equal to 1%
of the outstanding shares of VeriSign common
stock.
</TABLE>

<TABLE>
<C> <S> <C> <C> <C>
7. Proposal to approve an amendment to VeriSign's FOR AGAINST ABSTAIN
1998 Directors Stock Option Plan to increase the [ ] [ ] [ ]
number of shares issuable thereunder by an
aggregate of 250,000.
</TABLE>

<TABLE>
<C> <S> <C> <C> <C>
8. Proposal to ratify the appointment of KPMG LLP as FOR AGAINST ABSTAIN
independent auditors for the year ending December [ ] [ ] [ ]
31, 2000.
</TABLE>

In accordance with their judgment, the proxies are authorized to vote upon
such other matters as may properly come before the Special Meeting or any
adjournment thereof.

This Proxy must be signed exactly as your name appears hereon. If more than
one name appears, all persons so designated should sign. Attorneys, executors,
administrators, trustees and guardians should indicate their capacities. If the
signer is a corporation, please print full corporate name and indicate capacity
of duly authorized officer executing on behalf of the corporation. If the
signer is a partnership, please print full partnership name and indicate
capacity of duly authorized person executing on behalf of the partnership.

Signature: Date:
, 2000

(Reverse Side)

WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE AND SIGN
THIS PROXY CARD AND RETURN IT PRIOR TO THE MEETING IN THE ENCLOSED ENVELOPE.

<PAGE>

Exhibit 99.06

Network Solutions, Inc.
505 Huntmar Park Drive
Herndon, Virginia 20170

----------------

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned hereby appoints James P. Rutt and Robert J. Korzeniewski, as
proxies, each with full powers of substitution, and hereby authorizes them to
represent and to vote, as designated below, all shares of Common Stock, $0.001
par value, of Network Solutions, Inc. (the "Company") held of record by the
undersigned on , 2000, at the Special Meeting of Stockholders of the
Company (the "Meeting") to be held on , 2000, and at any continuations
or adjournments thereof.

This Proxy, when properly executed and returned in a timely manner, will be
voted at the Meeting and any adjournments thereof in the manner described
herein. If no contrary indication is made, the proxy will be voted FOR Proposal
1 and in accordance with the judgment of the persons named as proxies herein on
any other matters that may properly come before the Meeting.

PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE.

CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE

SEE REVERSE SIDE

- --------------------------------------------------------------------------------
<PAGE>

<TABLE>
<C> <S>
[X] Please mark
votes as in this
example.
</TABLE>

The Board of Directors recommends that you vote FOR Proposal 1.

<TABLE>
<C> <S> <C> <C> <C>
1. Proposal to approve the merger of Nickel FOR AGAINST ABSTAIN
Acquisition Corporation, a wholly owned subsidiary [ ] [ ] [ ]
of VeriSign, Inc., with and into Network
Solutions, Inc. and to approve and adopt the
merger agreement with VeriSign relating to the
proposed merger, in which VeriSign will issue
1.075 shares of common stock for each share of
outstanding Network Solutions common stock.
</TABLE>

In accordance with their judgment, the proxies are authorized to vote upon
such other matters as may properly come before the Special Meeting or any
adjournment thereof.

Signature: Date:
, 2000

(Reverse Side)

WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE AND SIGN
THIS PROXY CARD AND RETURN IT PRIOR TO THE MEETING IN THE ENCLOSED ENVELOPE.