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Last Updated April 23, 2008
Copyright 1998-2008,
ZookNIC Inc.

--------- FOR IMMEDIATE RELEASE -----------

Five weeks of positive Domain Name growth;

VeriSign's and Register.com Domain Name Holdings Stabilizing

Berkeley, CA – August 5, 2002

Zooknic (www.zooknic.com) reports that the total number of .com, .net and .org domain names grew by 128,874 in July 2002. This marks the first full calendar month of growth in total number of domain registrations since September 2001. During the last quarter of 2001 and the first two quarters of 2002 the total number of .com, .net and .org registrations shrank by 3.6 million from a high of 30.7 Million in October 2001.

Since the end of June, however, this decline has reversed. Zooknic data indicates that from a recorded low of 27,110,804 on June 23rd, the overall number of .com, .net and .org domain names has increased by 149,274 over the next five and a half weeks. As of July 31, 2002 the total number of registered com/net/org domains is 27,260,078 (See Figure 1). Although there have been scattered weeks of growth over the past six months, July is the first full month of sustained positive growth. This combined with what appears to be the end of the purge of millions of promotional domain names, suggests a turning point in the patterns of growth within the domain name industry.

This change towards positive growth is a welcome change for all registrars, particularly the largest, VeriSign (VRSN), which has lost more than 4 million domains since the beginning of 2002. Although market share data for July is preliminary, VeriSign's negative growth in domain names has slowed over the past month (see Figure 2) and is trending towards zero. Verisign's holdings of com, net, and org domains as of July 31, 2002 is estimated at 9.01 million domains. Likewise Register.com (RCOM) losses of com, net, and org domain names appear to have reversed (see Figure 3). Register.com holdings of com, net, and org domains as of July 31, 2002 is currently estimated at 2.72 million domains. Due to the methodology used to determine market share, these figures are subject to a margin of error of 0.7 and 0.4 percent respectively of the total number of domains registered worldwide.

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Zooknic (www.zooknic.com) provides timely and accurate analysis on the use and diffusion of the Internet and domain names. It was established in 1998 by Matthew Zook, Ph.D, and serves as a base for academic and economic analysis. These figures are based on Zooknic’s ongoing analysis of the root zone files that form the foundation of the domain name systems. Market share is estimated using a random sampling technique and is subject to a margin of error.

Contact:

Matthew Zook, Ph.D.
zook@zooknic.com

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