VeriSign (VRSN)

Restructuring, impairment and other charges (reversals), net

In November 2003, we initiated a restructuring plan related to the sale of our Network Solutions business and the realignment of other business units. In April 2002, we initiated plans to restructure our operations to fully

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rationalize, integrate and align our resources. Both plans resulted in reductions in workforce, abandonment of excess facilities, disposal of property and equipment and other charges. We expect these restructuring plans to be completed in 2008 upon the expiration of our lease obligations for abandoned facilities. Restructuring charges take into account the fair value of lease obligations of the abandoned space, including the potential for sublease income. Estimating the amount of sublease income requires management to make estimates for the space that will be rented, the rate per square foot that might be received and the vacancy period of each property. These estimates could differ materially from actual amounts due to changes in the real estate markets in which the properties are located, such as the supply of office space and prevailing lease rates. Changing market conditions by location and considerable work with third-party leasing companies require us to periodically review each lease and change our estimates on a prospective basis, as necessary. During 2006, we recorded net restructuring reversals of approximately $6.4 million primarily related to excess facilities as a result of reductions in lease obligations. Such estimates will likely be revised in the future.

Restructuring, impairment and other charges (reversals), net

2003 Restructuring Plan. In November 2003, we initiated a restructuring plan related to the sale of our Network Solutions business and the realignment of other business units.

2002 Restructuring Plan. In April 2002, we initiated a restructuring plan to restructure our operations to rationalize, integrate and align resources.

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Below is a comparison of the restructuring, impairment and other charges (reversals), net under both plans for the three and six months ended June 30, 2006 and 2005:

During the six months ended June 30, 2006, we recorded a net reversal of approximately $4.2 million primarily due to an unexpected early termination agreement of an existing facility in which we had previously estimated a significant vacancy period in its projection of sublease income. The early termination resulted in a $7.5 million reversal in the three months ended June 30, 2006. In addition, we wrote off approximately $2.0 million of other intangible assets specifically related to abandoned technology acquired for a specific customer.

During the six months ended June 30, 2005, we recorded a net reversal of $4.4 million related to excess facilities primarily in connection with a decision to utilize and build a facility that we had treated as abandoned and for which it had previously recorded a restructuring charge.