VeriSign (VRSN)

Note 15.     Network Solutions and International Affiliates

The following table shows a comparison of revenue recognized from customers in which VeriSign holds an equity investment, including International Affiliates:

VeriSign had $1.5 million, $0.7 million and $0.6 million of trade receivables from Network Solutions at December 31, 2005, 2004 and 2003, respectively. VeriSign had $10.7 million, $9.2 million and $13.5 million in trade receivables from International Affiliates at December 31, 2005, 2004 and 2003, respectively.

Note 15. Network Solutions and International Affiliates

VeriSign retained a 15% interest in Network Solutions’ domain name registrar business after the sale to Pivotal Private Equity on November 25, 2003. The following table shows a comparison of revenue recognized from customers in which VeriSign holds an equity investment, including International Affiliates.

VeriSign had $0.2 million and $0.7 million of trade receivables from Network Solutions at September 30, 2005 and December 31, 2004, respectively. VeriSign had $9.8 million and $5.0 million in trade receivables from International Affiliates at September 30, 2005 and December 31, 2004, respectively.

As part of the consideration for the Company’s sale of its Network Solutions domain name registrar business, VeriSign received a $40 million senior subordinated note that bears interest at 7% per annum for the first three years and 9% per annum thereafter and matures five years from the date of closing. During the three months ended March 31, 2005, VeriSign received a payment from Network Solutions in the amount of $20.0 million, which included $14.0 million to reduce the principal balance of the note receivable, $3.8 million of interest income related to the note receivable and a dividend payment of $2.2 million recorded in other income. The remaining principal and interest are due upon maturity. The present value of the note at September 30, 2005 was approximately $25.8 million using a 10% market interest rate.

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Table of Contents

VERISIGN, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)