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In the ordinary course of business, Network Solutions identified unauthorized code on servers supporting some of our E-Commerce merchants’ websites.  We promptly removed this code, and all of our E-Commerce servers are functioning properly.  No servers supporting networksolutions.com were affected.

After conducting an analysis with the assistance of outside experts, we determined that the unauthorized code may have been used to transfer data on certain transactions for approximately 4,343 of our more than 10,000 merchant websites to servers outside the company.  On July 13, 2009, we were informed by our outside forensic experts that the data being transferred may have included credit card information. The code may have captured transaction data from approximately 573,928 cardholders for certain periods this spring.  Exposure varied by merchant, but in all cases took place sometime between March 12, 2009 and June 8, 2009.  Transactions after June 8, 2009 were not exposed to the unauthorized code.  We have notified law enforcement and are working closely with them on the investigation. 

At this point, we have no reports or other reasons to believe that any credit card account information has been misused and, under established practice, credit card issuing companies generally will not hold our merchants’ customers liable for any fraudulent purchases made using their credit card account numbers that are reported in a timely way to the issuer.

We have arranged for a leading credit reporting agency to work with us, on behalf of our merchants, to contact our merchants’ customers whose data may have been affected and provide services that will help potentially affected U.S.-based customers protect their information.  These services are being provided free of charge to our merchants and their U.S.-based customers.  We are in the process of notifying both our merchants and their customers about this matter, and we are encouraging our merchants to visit a website we have established for them at www.careandprotect.com.

Our customers’ ability to rely on the safety of our solutions is our highest priority.  We are deeply sorry for any concern or inconvenience this may cause our merchants or their customers.