Registry Operator's Proposal - BUSINESS CAPABILITIES AND PLAN

Capital expenditures include servers and initial set up fees for the registry infrastructure. The servers will be owned by the registry operator. Capital expenditures are based on comparable registry operator’s capital expenditures. Capacity includes two redundant systems that operate concurrently with the primary system. If the primary system fails, the traffic loads automatically switch to the one of the redundant systems to minimize risk of service interruption. The number of servers and the infrastructure outlined in this proposal have the capacity to handle approximately 300,000 new domain names a day which is many times more than would be required in the high demand scenario. This capacity is inexpensive and assures that unexpected variation of demand can be met. Bandwidth infrastructure costs are not included since Webvision already has the infrastructure in place necessary to meet the needs of the Registry Operator.

Our planned capital expenditures will be funded through equity capital currently in Webvision’s bank accounts. Group One Registry currently has firm commitments for $12 million to fund the Sponsoring Organization’s capital expenditures and operating costs. Please see Section C12 of the Sponsoring Organization’s proposal for a discussion of the Sponsoring Organization’s capital costs and operating needs.

We anticipate that these capital expenditures will be incurred during the first quarter of 2001 based on the experience of other registries. Ongoing maintenance will be provided by technical support personnel as budgeted and discussed in Section D.13.2.11