X. Click To Print!SUPPORTING DOCUMENTATION
C50.

The following documentation should be provided in support of your .org Proposal:

 
C50.1.

Organizational documents of applicant. A copy of the organizational documents (articles of association, bylaws, enabling legislation, etc.) of the applicant.

 

Please find immediately following NeuStarís Amended By-laws and Certification of Incorporation.

NeuStar organizational documents (pdf 9.986 kb)

 

C50.2.

Organizational documents of certain other entities. A copy of the organizational documents of each non-profit entity identified in item C13.

 

Not applicable.† No response required.†

 

C50.3.

Business references. A list of significant trade and credit references of the applicant and each entity identified in item C13.

 

NeuStarís demonstrable record of financial and operational performanceó reflected in solid trade, credit, and client referencesóis critical to ensuring the stability of the .org TLD.

When selecting a registry operator to seamlessly transition and successfully administer the .org domain, it is incumbent upon ICANN to weigh the fiscal and organizational stability of each applicant as a primary criterion. NeuStar has the requisite financial health and backing (please see Proposal Section C50.4) and an exceptional track record of service to the Internet and telecommunications industriesósupported by significant trade, credit, and client referencesóto fully satisfy ICANNís requirements for the .org TLD.† As we are proposing to perform the entire Registry Function, information for C13 entities is not applicable.

The following table provides NeuStarís trade, credit, and client references.† NeuStar will provide ICANN detailed contact information immediately upon request.

NeuStar business references

Trade references

Kaufman Davis, Inc.

7475 Wisconsin Avenue, Suite 700

Bethesda, Maryland 20814†

United States

Morrison & Foerster LLP

2000 Pennsylvania Avenue, NW

Washington, DC 20006

United States

Fifth Third Leasing Company

38 Fountain Square Plaza

Cincinnati, Ohio 45239

United States

Credit reference

Wachovia Bank

8270 Greensboro Drive

McLean, Virginia 22102 United States

Client references

Encirca

P.O. Box 164

Reading, Massachusetts 01867

United States

Internetters Limited

Reasearch House, Fraser Road

Greenford, Middlesex

UB6 7AQ, United Kingdom

OnlineNIC, Inc.

2315 26th Avenue

San Francisco, California 94116

United States

C50.4.

Annual reports. A copy of the most recent annual financial report (or similar document), if any, of the applicant and each entity identified in item C13.

 

As requested we have included NeuStarís recent financial results Ė an income statement for the fiscal (also calendar) years of 2000-2001, and a year-end balance sheet for 2001.†† These statements represent the consolidated financial results for NeuStarís two lines of business Ė Numbering and Internet Registry.

As noted in our company description (Section C10) and in our qualifications (Section C15) of our Proposal for Reassignment of .org, NeuStarís Numbering business has provided the foundation for NeuStarís growth.† The Numbering line of business has been and continues to be profitable and generates positive cash flows, which the company has used to improve service and performance in its Numbering business and in 2001, to launch two new businesses.† In 2000, 100% of the revenue and approximately 85% of the expenses were attributable to the Numbering business.† The remainder of the expense dollars were spent in pursuit of two new businesses launched in 2001.

As a result of securing customer contracts and closing additional financing NeuStar expanded its Numbering business and launched the Internet Registry line of business in 2001.

NeuStar raised over $82M of incremental financing in 2001, ending the year with a cash balance in excess of $33M.† The financings consisted of a second round of equity investments by Warburg Pincus, DB Capital and ABS Capital Partners in addition to a receivables securitization (please refer to the attached letters for additional information regarding their investments in NeuStar).†† In total, NeuStar has raised over $130M of cash equity since its divestiture from Lockheed Martin in 1999.

Using internally generated and externally raised funds, NeuStar funded the build out of the OSS/CARE Clearinghouse (CARE) in the 1st quarter of 2001.† NeuStar also funded the design, development and implementation of the Internet Registry business starting in the 1Q of 2001.† Each of these businesses (CARE and Internet Registry) began to generate revenue in the 3rd quarter of 2001.†† Therefore, the income statement includes 12 months of startup and operating costs for these new businesses that generated revenue on only a partial year basis in 2001.

Many of the expenses and cash uses of 2001 were one-time efforts to develop and launch the CARE and Registry† businesses, and do not indicate a run-rate for expenses or use of cash into 2002.† The company expects to be EBITDA positive in 2002 and Net Income positive in 2003.†† NeuStarís strong balance sheet and the expected positive cash flows from operations in 2002 will provide opportunities to raise additional debt financing if needed in 2002.† NeuStarís financial highlights include the following:

  • Strong, profitable, cash generating base business;

  • Strong balance sheet;

  • Continuing support from equity stakeholders who have additional cash to invest if needed; and

  • Access to additional capital market financings.



 


Evidence of financial support (pdf 7,991 kb)

 

C50.5.

Evidence of commitment. Any documentation requested by item C14.

 

Not applicable. No response required

 

C50.6.

Evidence of community support. Any documentation requested by item C36.

 

Organizations from multiple countries and noncommercial sectors have expressed support for NeuStar's proposal. Most of those who provided the following letters of support did so based on a desire to participate in a process that gives the noncommercial community a critical role in shaping what is essentially the noncommercial Internet.. In short, these organizations want to have a say in what the noncommercial Internet is and what it becomes. They believe that NeuStar's proposed .org Global Policy Council provides for an appropriate broad-based collaborative process.

Evidence of community support (pdf 1,591 kb)