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To: alice simmons who wrote (29524)	3/26/1999 12:36:00 AM
From: SMALL FRY	Read Replies (1) \| Respond to of 120523

Alice... Update NSOL- Short Seller Action... IMO the reason Asensio and Co released controversial piece on NSOL... BusinessWire, Thursday, March 25, 1999 at 17:48 HERNDON, Va--(BUSINESS WIRE)--March 25, 1999-- Network Solutions, Inc. (NASDAQ:NSOL), the world leader in Web address registrations, today acknowledged that it has become the subject of a short seller action. Asensio and Co. is self-described as "actively engaged in short selling" and today issued a strong sell and short sell recommendation on Network Solutions. Network Solutions' corporate policy is not to comment on any analyst reports whether positive or negative. Network Solutions notes, however, that the reports of Asensio and Company contain numerous inaccuracies and that Asensio and Co. has never spoken with Network Solutions management. Network Solutions believes it is in full compliance with all obligations under securities laws. Network Solutions denies that it has "purposely disseminated misleading information and failed to disclose material negative information," as claimed in the Asensio report. Network Solutions stands by its public statements included in its reports filed with the Securities and Exchange Commission and in its other public announcements. About Network Solutions Founded in 1979, Network Solutions, Inc. (NASDAQ:NSOL) pioneered the development of registering Web addresses ending in .com, .net, .org and .edu. Network Solutions also provides Internet Technology Services that assist large commercial organizations in the evolution and management of their Internet technologies. For more information, see the www.networksolutions.com Web site. Network Solutions registers the majority of Web addresses through agreements with Internet companies around the globe, including more than 70 domestic and 90 international companies in its Premier program. Network Solutions has created value-added small business solutions through agreements with leading companies including American Express (NYSE:AXP). Through its Alliance program, Network Solutions works closely with EarthLink (NASDAQ:ELNK), MindSpring Enterprises, Inc. (NASDAQ:MSPG), Sage Networks, Inc., and ValueWeb. Network Solutions has also entered into marketing agreements with companies including Yahoo! Inc. (NASDAQ:YHOO) and Netscape Communications Corporation (NASDAQ:NSCP). Statements in this announcement other than historical data and information constitute forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, uncertainty of Internet governance and regulation, increased competition in the domain name registration business, customer acceptance of new products and services offered by the company in addition to or as enhancements of its registration services, risks associated with the company's international business, uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. More information about potential factors that could affect the company's business and financial results is included in the company's filings with the Securities and Exchange Commission, especially in the company's Registration Statement on Form S-3 filed on January 4, 1999, as amended, Annual Report on Form 10-K for the year ended December 31, 1997 and Quarterly Reports on Form 10-Q for the periods ended March 31, 1998, June 30, 1998 and September 30, 1998. CONTACT: Network Solutions, Herndon Media: Christopher Clough, 703/742-4706 chrisc@netsol.com or Investor Relations: Sean McClorey, 703/326-6090 smcclorey@netsol.com KEYWORD: VIRGINIA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com

To: alice simmons who wrote (29524)	3/26/1999 12:47:00 AM
From: SMALL FRY	Read Replies (1) \| Respond to of 120523

One more NSOL update... I hope this company runs over all those short sellers tomorrow... No significant institutional selling noticed... mostly small individual investors like us that got spooked by the Asensio report... Reuters, Thursday, March 25, 1999 at 21:02 By Aaron Pressman WASHINGTON, March 25 (Reuters) - Shares of Network Solutions Inc. (NASDAQ:NSOL), the company that registers the names of most Internet sites, dropped almost 10 percent on Thursday following negative comments by a well-known short-seller. Network Solutions' stock has been highly volatile in recent weeks as investors try to sort out the value of the company's registration business which has grown phenomenally but is expected to face competition for the first time within the next two years. Shares of Network Solutions closed at $101.0625 on Thursday, down $8.9375 in trading on the Nasdaq. The Herndon, Va., company has registered more than four million Internet domain names, like Reuters.com, under an exclusive government agreement that is being phased out. Most analysts believe the company's experience and customer base will give it a leg up on new competitors. But in a report issued Thursday morning, Asensio & Co. said Network Solutions "will simply be one of hundreds of companies with identical registration services capabilities operating in a low price per unit, low barrier to entry, highly competitive, small...dollar value market." Network Solutions said Asensio's report contained "numerous inaccuracies" and denied it had failed to disclose any material negative information. New York-based Asensio has prospered by selling short the stock of companies it believes are in trouble while publicizing its concerns. In a short sale, an investor borrows stock, sells the shares at the current price and hopes to cover the loan by buying back the shares in the future at a lower price. Other analysts were far less pessimistic about Network Solutions. Bill Whyman, an analyst based in Washington with the Legg Mason Precursor Group, said that while Asensio's report made some valid points, Network Solutions was probably well positioned to compete. "Network solutions will lose some market share and pricing will come down," Whyman said. "But I think they've overdramatized the negative. Even as (Network Solutions) loses share, the number of domain names registered is growing exponentially." The market is growing so fast that Network Solutions could keep growing, in part by selling Internet users a variety of services related to domain name registration, he added. Network Solutions also faced complaints this week that it improperly combined a Web site used to look up information about who had registered Internet names with its own site that charges $70 for registering new names. The company always ran both sites, but the informational site was located at www.internic.net while the sales site was at www.networksolutions.com. Much of Thursday's trading activity appeared to come from small investors as less than 123,000 shares of the more tha 5.6 million shares traded changed hands in large blocks typical of institutional investors. After accounting for a two-for-one stock split that took affect Thursday, the shares were down $52.6875 from an all-time high hit on Monday. Thursday's decline came as the overall stock market rose, including most Internet stocks. Copyright 1999, Reuters News Service