Goldman Sachs Technology Symposium

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Goldman Sachs Technology Symposium

• VeriSign, Inc.
• February 2003

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Safe Harbor

• Statements in this presentation other than
  historical data and information, including but
  not limited to, statements regarding benefits of
  VeriSigns restructuring and new service
  offerings, constitute forward-looking statements
  within the meaning of Section 27A of the
  Securities Act of 1933 and Section 21E of the
  Securities Exchange Act of 1934. These
  statements involve risks and uncertainties that
  could cause VeriSign's actual results to differ
  materially from those stated or implied by such
  forward-looking statements. The potential risks
  and uncertainties include, among others
• VeriSign's limited operating history under its
  current business structure,
• the risk that businesses of previously-acquired
  companies as well as other businesses will not
  be integrated successfully and unanticipated
  costs of such integration
• uncertainty of future revenue and profitability
  and potential fluctuations in quarterly results
• the ability of VeriSign to successfully develop
  and market new services and customer acceptance
  of any new services
• the risk that VeriSigns announced strategic
  relationships may not result in additional
  products, services, customers and revenues
• increased competition and pricing pressures
• risk that the company may not be able to achieve
  anticipated cost savings from the restructuring
  and
• risks related to potential security breaches.
• More information about potential factors that
  could affect the company's business and financial
  results is included in VeriSign's filings with
  the Securities and Exchange Commission, including
  in the company's Annual Report on Form 10-K for
  the year ended December 31, 2001 and quarterly
  reports on Form 10-Q. VeriSign undertakes no
  obligation to update any of the forward-looking
  statements after the date of this presentation.

3
VeriSigns Mission
Provide The Critical Infrastructure Services That
Make Commerce and Communications Possible
45 countries 1 billion in revenues 3,200
employees
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VeriSign Services Portfolio
Payment Infrastructure
Web PresenceInfrastructure
Security Infrastructure
Telecom Infrastructure
ATLAS Directory Routing Infrastructure
Q402 Revenue Mix
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Enabling All Types of Interactions
Web Identity

• Every Day We
• Handle 7 billion web and e-mail interactions
• Process more than 40 million in e-commerce
  sales
• Protect more than 400,000 websites
• Route more than 1 billion SS7 messages
• Serve 2 million SMS messages

SMS
Email
Business Communications
Wired Calls
Commerce
Wireless Calls
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Why Customers Buy From Us

• We are a unique and essential utility
• We absorb the complexity
• DNS, PKI, transaction management, SS7
• To enable faster deployment
• 70 of customers deployed in 30 days or less
• With better cost and utilization of resources
• Less people and less capital
• With high performance, trusted infrastructure
• Security, reliability, scalability

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Competitive Position
Security Services
Telecom Services
Registry Services
Web Presence

• 1 in SSL
• 1 in mPKI
• 1 in payment gateway
• Emerging MSS business

• Largest independent network
• 2 in database services
• Emerging billing clearing platform

• 1 in naming services
• ATLAS infrastructure

• 1 in domain name registration
• Leader in domain-based e-mail, websites

Key competitors

• Entrust
• RSA
• Cybersource
• In-house

• RBOCs
• TSI
• SNET
• Convergys

• NeuStar
• Afilias
• UltraDNS

• Register.com
• Tucows
• Go Daddy

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Financial Highlights

• Leadership position in core markets
• Majority of revenues from recurring services
• Margin expansion as volumes increase
• Strong cash flow generation model
• International opportunity ahead of us
• Restructuring of operations nearly complete

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Q4 02 Financial Performance
Income Statement Revenue 275 million Exited 3rd
party product re-selling business anticipated
decline in Mass Markets business Gross
margin 58 Improvement due to decrease in
low-margin 3rd party re-selling
business Operating margin (pf) 17 Benefits from
realization of restructuring and expense
management Net income (pf) 42 million Leverage
in model generated solid income EPS
(pf) 0.14 Balance Sheet Cash cash
equivalents 404 million OCF of 80m and FCF of
77m A/R 134 million Reduced by 72m from Q3
and 50 from 2001 Deferred revenue 484
million 5 anticipated decline in domain name
business, additional 3 from migration of
billing system
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Operating Focus

• Short-Term
• Focus on core, recurring revenue businesses
• Expand security and telecom offerings
• Leverage leadership position to grow
• Enhance penetration through new partnerships
• Long-Term
• Propagate VeriSign technologies into new markets
• Capitalize on synergies in technology and
  infrastructure
• Continue development of converged services
• Capture international market share equal to
  domestic

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Strategic Directions
Propagation and Leverage
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Investment Highlights

• Leading provider in growing markets
• Security, Telecom, Directory
• Critical technology expertise
• Strong brand and strategic partnerships
• Scale and operating leverage
• Profitable, recurring revenue businesses
• A unique Digital Utility