VeriSign (VRSN)

Restructuring, impairments and other charges, net

A comparison of restructuring, impairments and other charges, net, is presented below:

2008 Restructuring Plan: In late 2007, we announced a restructuring plan to change our business strategy to be more aligned with our core competencies, which are to provide highly scaleable, reliable and secure Internet infrastructure and identity services to customers around the world. The restructuring plan includes workforce reductions, abandonment of excess facilities and other exit costs. As of June 30, 2008, we recorded $45.2 million in restructuring charges, inclusive of amounts for discontinued operations, under our 2008 restructuring plan. See

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Note 5, “Restructuring, Impairments and Other Charges, Net,” of the Notes to Condensed Consolidated Financial Statements for further information on our restructuring plans.

Under our 2008 restructuring plan, through the second quarter of fiscal 2008, we notified certain employees of their termination and recognized total consolidated expense relating to severance and benefits costs of $43.6 million, inclusive of amounts for discontinued operations. As part of the 2008 restructuring plan, we anticipate recording additional charges related to our workforce reduction, excess facilities and other exit costs over the next several quarters, the timing of which will primarily depend upon the timing of notification of the employees leaving VeriSign as determined by local employment laws and as we exit facilities. In addition, we anticipate incurring additional charges associated with productivity improvement initiatives and expense reduction measures. While the estimate of these charges is not yet finalized, the total amount and timing of these charges will depend upon the nature, timing, and extent of these future actions.

2007 Restructuring Plan: In January 2007, we initiated a restructuring plan to execute a company-wide reorganization replacing our previous business unit structure with a new combined worldwide sales and services team, and an integrated development and products organization. The restructuring plan included workforce reductions, abandonment of excess facilities and other exit costs.

2003 and 2002 Restructuring Plans: 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 a plan to restructure our operations to rationalize, integrate and align resources.

Impairments of goodwill, other intangible assets and assets held for sale

During the three and six months ended June 30, 2008, we recorded a charge of $91.7 million and $117.2 million, respectively, for impairment of goodwill, other intangible assets and assets held for sale. During the second quarter of 2008, we recorded a charge of $45.8 million in continuing operations for an impairment of goodwill related to our Post-pay business. During the three and six months ended June 30, 2008, we recorded a charge of $45.9 million and $71.4 million, respectively, in discontinued operations, for impairment of assets held for sale.

Other charges

During the second quarter of 2008, we recorded a loss of $79.1 million as a result of the sale of certain Mountain View facilities. The sale of the Mountain View facilities was consummated as a result of our 2008 restructuring plan to divest or wind down our non-core businesses. During the three and six months ended June 30, 2007, we recorded a charge of $6.2 million and $8.5 million, respectively, for excess and obsolete property and equipment. Of the total consolidated other charges, $0.2 million relates to discontinued operations for the six months ended June 30, 2007.

Restructuring, impairments and other charges, net

A comparison of restructuring, impairments and other charges, net, is presented below:

2008 Restructuring Plan: In late 2007, we announced a restructuring plan to change our business strategy to be more aligned with our core competencies, which are to provide highly scaleable, reliable and secure Internet infrastructure and identity services to customers around the world. The restructuring plan includes workforce reductions, abandonment of excess facilities and other exit costs. As of March 31, 2008, we recorded $26.1 million in restructuring charges, inclusive of amounts for discontinued operations, under our 2008 restructuring plan. See Note 5, “Restructuring, Impairments and Other Charges, Net,” of the Notes to Condensed Consolidated Financial Statements for further information on our restructuring plans.

Under our 2008 restructuring plan and through the first quarter of fiscal 2008, we notified certain employees of their termination and recognized total expense relating to severance and benefits costs of $25.6 million. As part of the 2008 restructuring plan, we anticipate recording additional charges related to our workforce reduction, excess facilities and other exit costs over the next several quarters, the timing of which will primarily depend upon the timing of notification of the employees leaving VeriSign as determined by local employment laws and as we exit facilities. In addition, we anticipate incurring additional charges associated with productivity improvement initiatives and expense reduction measures. While the estimate of these charges is not yet finalized, the total amount and timing of these charges will depend upon the nature, timing, and extent of these future actions.

2007 Restructuring Plan: In January 2007, we initiated a restructuring plan to execute a company-wide reorganization replacing our previous business unit structure with a new combined worldwide sales and services team, and an integrated development and products organization. The restructuring plan included workforce reductions, abandonment of excess facilities and other exit costs.

2003 and 2002 Restructuring Plans: 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 a plan to restructure our operations to rationalize, integrate and align resources.

Impairments and other charges for discontinued operations

During the three months ended March 31, 2008, the Company recorded an impairment charge of $25.5 million for estimated loss on assets held for sale.

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