Recent Study Identifies Significant ROI with NeuStar’s UltraDNS Managed Services

Risk-Adjusted Return on Investment (ROI) of 191% Over Three Years for NeuStar UltraDNS Customers

STERLING, Va., January 09, 2008 – NeuStar (NYSE: NSR) today announced the results of a recent commissioned study conducted by Forrester Consulting on behalf of NeuStar. Using its Total Economic Impact™ methodology, Forrester measured the costs and benefits for a company seeking to migrate its external or public DNS from an in-house solution (BIND, UNIX servers, etc.) to NeuStar’s UltraDNS Managed Services.

The study generated a risk-adjusted, present value, net savings of $262,759 over a three-year period, with a 191% risk-adjusted return on investment (ROI) for a composite NeuStar customer and a break-even point (payback period) of six months after deployment. The composite organization was constructed from the results of interviews with four NeuStar customers.

The primary conclusions of the Forrester study were:

• Using NeuStar’s UltraDNS Managed Services, organizations may realize quantitative benefits in the form of lower infrastructure and administrative costs, revenue assurance from reduced downtime, and reduced customer service costs.
• NeuStar’s UltraDNS Managed Services may provide greater flexibility for rapid growth and international expansion.
• Although not quantified in the study, other forms of revenue assurance and growth from reduced downtime and faster resolution time may also be realized.

The Forrester study drew on financial, technical and operational data culled from interviews with four NeuStar customers, as well as industry statistical analyses developed by Forrester. Using this information, and taking into account four criteria (cost, benefits, flexibility, and risk), Forrester determined that using NeuStar’s UltraDNS Managed Services reduces hardware and manpower costs required to manage external DNS, prevents revenue loss due to outages, and leads to call-center savings.

The study also highlights the ease with which organizations can migrate to NeuStar’s UltraDNS Managed Services, reducing the high upfront costs typically associated with new infrastructure deployments; NeuStar customers make a single monthly payment that reflects their usage of the service during each month.

"Web-enabled businesses of all sizes and industry classifications can realize a significant ROI with NeuStar’s managed DNS services," said Ben Petro, senior vice president of NeuStar Ultra Services. "The Forrester study clearly identifies just how critical DNS has become and highlights the cost-effectiveness of the UltraDNS managed services approach."

To read the study in its entirety, visit www.neustarultraservices.biz/contact/downloadreq_tei.cfm.

Statement Regarding Forward-Looking Statements
The Forrester study discussed in this press release includes information that constitutes forward-looking statements. We cannot assure you that the expectations discussed in the Forrester study will be achieved or that any deviations will not be material. Forward-looking statements are subject to many assumptions, risks and uncertainties that may cause future results to differ materially from those anticipated. All forward-looking statements in the Forrester study are based on information available on the date of this press release, and we undertake no obligation to update any of the forward-looking statements after the date of this press release.

About NeuStar
NeuStar is a provider of essential clearinghouse services to the North American communications industry and Internet service providers around the world. Visit NeuStar online at www.neustar.biz.

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