Registry Operator's Proposal - BUSINESS CAPABILITIES AND PLAN

D13.2.12.1. 90% Confidence Scenario (worst case)

Revenue (in $000's) at 90% Confidence

	2001	2002	2003	2004
Digital Mobile Phones	$2,234	$7,691	$13,083	$23,193
NetTVs	110	451	843	1,508
Internet Screenphones	14	52	100	197
Internet Gaming Devices	74	411	897	1,591
Web Terminals	3	20	71	227
Internet Smart Handheld Devices	32	179	485	1,250
Other	1	6	16	37
Total	$2,468	$8,810	$15,495	$28,002
Registry Operator Portion	$2,130	$2,422	$2,849	$3,345
Sponsor Portion	$338	$6,389	$12,647	$24,657

The total revenue per year for the registry is calculated by multiplying Group One Registry’s market share of the information appliance installed base by the $5 average price per registered domain name described in Sections D13.2.2 and D13.2.3. We use the installed base of information appliances in our calculation because the domain name fee will be renewable annually.

These total revenues will be collected at the Sponsoring Organization level. The Sponsoring Organization will then pay the Registry Operator $0.50 per registered domain name subject to a minimum monthly payment of approximately $ 178,000. The minimum monthly payment has been set in this model to cover the minimum registry operator operating costs. This minimum monthly payment will be increased on an annual basis for cost inflation. In the 90% Confidence level scenario, revenues increase from $ 2.1 million in 2001 to $ 3.3 million in 2004 for the Registry Operator, and from $300,000 to $24.7 million in 2004 for the Sponsoring Organization. See Section C12 in the Sponsoring Organization’s proposal for the pro-forma revenues and expenses of the Sponsoring Organization.

Group One Registry will establish a fund from positive net income generated by the registry for the general betterment of the internet and to help improve the Internet’s infrastructure and public outreach. The formula currently contemplated and modeled calls for a ranging percentage of cumulative net income to be contributed to the fund at the amount of $0 for cumulative net income less than $5 million up to 35% once cumulative net income reaches $100 million. See Section C12 in the Sponsoring Organization’s proposal for projected funding amounts through 2004.

D13.2.12.2. 50% Confidence Scenario (base case)

Revenue (in $000's) at 50% Confidence

	2001	2002	2003	2004
Digital Mobile Phones	$4,305	$13,750	$23,389	$41,462
NetTVs	211	807	1,507	2,696
Internet Screenphones	27	92	179	352
Internet Gaming Devices	143	734	1,604	2,844
Web Terminals	5	36	126	405
Internet Smart Handheld Devices	61	320	868	2,235
Other	2	11	28	66
Total	$4,754	$15,750	$27,701	$50,060
Registry Operator Portion	$2,130	$2,422	$2,849	$5,006
Sponsor Portion	$2,624	$13,328	$24,852	$45,054

The total revenue per year for the 50% Confidence scenario is calculated as in the 90% Confidence scenario as projected demand multiplied by an average subscription price of $5. In the 50% Confidence level scenario, the revenues increase from $ 2.1 million in 2001 to $ 5 million in 2004 for the Registry Operator. See Section C12 in the Sponsoring Organization’s proposal for the pro-forma revenues and expenses of the Sponsoring Organization.

D13.2.12.3. 10% Confidence Scenario (best case)

Revenue (in $000's) at 10% Confidence

	2001	2002	2003	2004
Digital Mobile Phones	$6,150	$19,957	$34,490	$62,119
NetTVs	302	1,171	2,223	4,040
Internet Screenphones	39	134	264	528
Internet Gaming Devices	204	1,066	2,365	4,260
Web Terminals	7	53	186	607
Internet Smart Handheld Devices	88	464	1,280	3,348
Other	2	16	42	98
Total	$6,792	$22,860	$40,849	$75,000
Registry Operator Portion	$2,130	$2,422	$4,085	$7,500
Sponsor Portion	$4,662	$20,438	$36,764	$67,500

Again, the total revenue per year for the 10% Confidence scenario is calculated as in the 90% Confidence scenario as projected demand multiplied by an average subscription price of $5. In the 10% Confidence level scenario, the revenues increase from $2.1 million to $7.5 million for the Registry Operator. See Section C12 in the Sponsoring Organization’s proposal for the pro-forma revenues and expenses of the Sponsoring Organization.