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Background Information

VERIO, an NTT Communications Company
CORPORATE PROFILE

Verio, one of the technology leaders that originally helped shape Web hosting and Internet Protocol (IP) services into powerful business tools, stands today as the largest operator of Web sites for businesses and a leading provider of global IP network solutions. A wholly owned subsidiary of NTT Communications Corporation (NTT Com), part of the world's largest telecommunications firm, Verio has embarked on a strategy to set apart NTT/VERIO services as the leading global IP solutions for business. Small-to-medium businesses, large global enterprises and multi-national corporations alike turn to Verio's managed Web hosting, network access, and enhanced IP network solutions, such as virtual private networks-all taking advantage of the award-winning, NTT Com Tier 1 Global IP Network and leveraging the NTT family of companies and solutions.

Verio has experienced rapid growth and change during its seven-year history. Incorporated in 1996, Verio underwent a successful initial public offering in 1998, setting the stage for a series of acquisitions of rapidly growing hosting companies including iServer, Hiway, digitalNATION and others. Then, having emerged as the largest domain-based Web hosting provider in the world with customers in more than 170 countries, Verio was acquired by NTT Communications in September 2000, thereby creating one of the world's leading providers of Internet Protocol (IP) services. Today, the combined entities market their global suite of IP services under the NTT/VERIO brand in the US, Europe and Asia.

As a member of the NTT Communications family, Verio enjoys a strong industry position with financial strength to support future growth and lend stability in today's challenging economy. The NTT/VERIO service portfolio possesses a comprehensive global reach-including a gateway to the Asia Pacific-enabling NTT Communications and Verio to deliver the highest quality customer experience around the globe. The company operates in nearly two dozen key U.S. markets, the top European markets, including the UK, Germany, France, the Netherlands and Spain, and all major Asian locations. With its global, 24-hour operations structure, Verio is poised to connect customers to its full range of products, regardless of where they do business.

Verio continues to leverage the NTT/VERIO global brand and build on its strong leadership position in the US and Europe, as well as NTT Communications' leadership position in the Asia Pacific. The company has moved aggressively to take advantage of its global footprint, including more than 5000 active resellers and more than 100 higher-end enterprise channel partners around the world. In addition, Verio's business unit structure brings focus to the distinct needs of each customer segment to better support customer needs through the delivery of enhanced business solutions.

Small and Medium Enterprise (SME) hosting services
The clear market leader in the small and medium business market, Verio is well- poised to maintain this leadership role and leverage it to move into new areas. Verio's SME hosting solutions focuses on helping customers build their business, and moving forward, this will increasingly take a global focus as Verio continues to work on global solutions with large OEM and reseller partners.

At the heart of the SME strategy lies a focus on delivering products that maximize a business' presence on the Web, building on the group's expertise in indirect distribution and introducing next generation offerings on a global basis. These products include basic shared hosting, virtual private server and managed private server hosting, e-commerce applications and domain name registration. NTT/VERIO services provide SME customers with the ability to establish their Web presence and expand their business as the company grows, all while delivering exemplary customer service. With the industry's broadest product portfolio for the SME market, Verio remains well positioned with its end-to-end capability and high quality of service and reliability.

NTT/VERIO Enterprise Hosting Services
Traditionally dominant in the SMB niche for dedicated hosting, Verio has expanded its NTT/VERIO service offerings to mid-market and enterprise customers, providing these customers with an outsourcing choice that lets them focus on building their business. The Enterprise Hosting business unit serves 4,000 customers and has 5,500 dedicated servers online. With the NTT/VERIO Global IP Network, new and enhanced products and services, strategic partnerships and the development of a comprehensive indirect sales program, Verio is well positioned to continue to expand intelligently in the large company marketplace.

Verio is building leading operational capabilities to support its goal of migrating larger companies from more basic to advanced services. Today, Verio offers a range of managed services in its PowerPlatform managed hosting offerings, including backup and recovery, managed security, enhanced monitoring, storage, global load balancing and bandwidth management, and applications management, all designed to enable companies to solve their unique needs and business problems. The future strategy centers on leveraging partnerships and alliances to create and deliver a higher-value set of outsourced solutions for these businesses and to deliver vertical solutions to meet the unique needs of key industry sectors.

NTT Communications Network access and services
The NTT Communications Global IP Network spans over 125,000 miles worldwide, delivering backbone services to nearly two dozen key markets in the United States, five countries in Europe, and 12 countries throughout Asia. Leveraging the NTT Communications Global IP Network, the Broadband Services unit delivers carrier-class Internet connectivity and managed network services such as IP-VPNs to companies with high-bandwidth needs. These tailored services are priced to match customers' traffic patterns, while guaranteeing these services with one of the most comprehensive network Service Level Agreements in the industry. With the NTT Communications Global IP Network, Verio boasts a reliable and scalable global infrastructure featuring a superior network that is recognized for its design and that has been strengthened by significant recent investment and ongoing upgrades. NTT Communications currently operates OC48 connectivity and continues to evaluate and integrate best in class service partner products. The NTT Communications network also delivers top-quality redundancy, private peering and exchanges and continues its expansion in Europe and Asia, while supporting traffic growth that drives economies of scale. With the recent launch of its Global IP VPN product, and Smart Content Delivery, Verio continues to deliver enhanced network services and next-generation technologies.

NTT Europe IP Services
NTT Europe advanced Internet solutions are delivered in all major markets, in Europe, including the UK, France, Germany, Spain and The Netherlands, where NTT Europe has its European headquarters. Working with clients such as Cyota, The Football Association and UEFA-the European football league, NTT Europe Europe delivers hosting solutions to both small-to-medium enterprises as well as large global organizations. NTT Europe Europe leverages the NTT Communications Global IP Network to deliver Tier One backbone connectivity to hosting customers who have high-end bandwidth needs, as well as the NTT Communications network of data centers, including Premier Data Centers in the US, Asia and throughout Europe in London, Paris, Frankfurt, Madrid and Amsterdam. NTT Europe works with industry-leading technology partners, and extends its European services delivery through an extensive network of channel partners, including OEMs and value added resellers.

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