Domain Name Market Continues Dramatic Expansion in 2005; Domain Sales Volume Grew by 58% to More than $60M; Number of Domains Sold Increased 75% to 16,000.

CAMBRIDGE, Mass. -- According to data analysis conducted by Sedo, the leading online marketplace for the buying and selling of secondary domain names, 2005 witnessed significant growth across the domain name market. Sedo analyzed data from more than 25,000 domain sales which demonstrated significantly increased interest in and value derived from domain names.

Based on all 6,500 sales reported on DNJournal.com from October 2003 to January 2006 and from more than 18,000 Sedo sales during the same period, the analysis presents a clear picture for the state of the domain market. Between 2004 and 2005, the volume of reported domain sales grew by 58 percent, to more than $60 million. During that period, the number of domains sold increased dramatically by 75 percent, from 9,000 to more than 16,000 domains sold.

"2005 was a significant year for the domain name market, from new top level domains approved and put into circulation to the heightened role of domain parking services to drive quality Web traffic," said Matt Bentley, chief strategy officer of Sedo.com. "The significant increase in sales volume - $60 million - and domains sold on the secondary market in 2005 - more than 16,000 - illustrates how valuable domain names can be and that people are trying to improve their online presence whether for personal or business reasons."

In addition, Sedo found that:

--Between 2004 and 2005, the volume of domain sales grew by 58 percent to more than $60 million

--Between 2004 and 2005, the number of domain names sold increased 75 percent, from 9,000 to more than 16,000

--Sedo increased its market share of premium domain sales ($5,000 and up) from 59 percent in 2004 to 65 percent in 2005

--Between 2004 and 2005, more and more premium domains were sold through organized platforms, with volume nearly doubling to nearly $18 million, while the volume of private sales reported remained flat (approximately $6 million)

--Due to a massive increase in the volume of low-end transactions (under $500), the average price actually decreased from 2004 to 2005, but anecdotal evidence suggests that one got less domain for their money

--"Flipping" domains proved to be a sound investment. In a study of 37 domains that were sold twice during 2004 and 2005, the average domain gained 288 percent in value in just 230 days, demonstrating a significant return on domain investment

"The domain name market continues to evolve and drive greater value each year, whether for owners of comprehensive domain portfolios, businesses driving quality traffic to their Web sites or for hobbyists," said Ron Jackson, editor of DN Journal. "The analysis completed by Sedo shows the growing role of organized platforms for domain sales and the growth of the overall domain market - with these numbers as early indicators, 2006 looks to be another growth year for the market."

About Sedo

Sedo, an acronym for "Search Engine for Domain Offers," is the leading online marketplace for buying and selling domain names and websites. Headquartered in Cambridge, Mass., Sedo has assembled the world's largest database of domain names for sale, with more than three million listings. Buyers and sellers are brought together through a searchable online marketplace, and conduct negotiations anonymously using an offer-counteroffer system. To facilitate successful transactions, Sedo has introduced a range of related services, including domain name escrow/transfer services, domain name appraisals, a domain brokerage service and paid domain name parking. The success of Sedo's model has attracted a global membership base of more than 200,000 domain professionals, and helped more than 5,000 businesses start their Web presence off on the right foot with a great new domain name. Sedo offers regional versions of its site for the UK (Sedo.co.uk), France (Sedo.fr), Germany (Sedo.de), and Spain (eSedo.com). For additional information, please visit www.sedo.com.