STERLING, Va. -- NeuStar, Inc. (NYSE: NSR - News), a leading provider of essential communications services to the global communications and Internet industry, announced today that it has entered into a definitive merger agreement to acquire UltraDNS Corporation of Reston, Virginia, for $61.8 million in cash, subject to customary closing conditions.

UltraDNS is a global industry leader in providing managed domain name systems (DNS) services. It plays a key role in directing and managing Internet traffic, enabling its thousands of customers to intelligently and securely control and distribute that traffic, and ensuring security, scalability and reliability of websites and e-mail. Based on unaudited financial statements, UltraDNS' 2005 revenue totaled $12.6 million and the company was profitable. For 2006, NeuStar projects revenue growth for UltraDNS services in excess of 40 percent, and expects the acquisition to be accretive by the first quarter of 2007, including the amortization of intangibles resulting from the acquisition.

"With the acquisition of UltraDNS, NeuStar will be an even stronger provider of essential services to the communications industry, expanding the foundation for our continued growth and profitability," said Jeff Ganek, NeuStar's Chairman and CEO. "In North America, networks already rely on NeuStar's core business to know where to physically deliver communications destined for any telephone number. On the Internet, all communications routed to addresses in the .biz and .us domains are routed according to NeuStar's directory. We understand this business, have experience managing technology and operations, and we look forward to working closely with the UltraDNS team to continue to seek innovative interoperability solutions for the future," Ganek concluded.

Neustar Inc. (NYSE: NSR)