Demand Media Acquires Name.com

  Demand Media Acquires Name.com

           Adds Domain Name Retail Operations to Registrar Services

Business Wire

SANTA MONICA, Calif. -- January 7, 2013

Demand Media® (NYSE: DMD), a leading digital media company, today announced
the acquisition of Denver-based Name.com, a domain name registrar known for
its strong retail footprint, award-winning customer service and creative
spirit. The acquisition is intended to expand Demand Media’s platform as it
prepares for the historic release of new Top Level Domains (TLDs) this year.

Founded in 2003, Name.com customers have registered nearly 1.5 million
domains, and use the company’s tools and services to grow their online
presence. As the second largest registrar in the World, Demand Media’s eNom
subsidiary has over 13.5 million domain names on its platform registered by
over 8,800 resellers and partners. “Name.com will provide a direct channel for
us to reach consumers and small businesses as they develop and manage their
online identities,” said Richard Rosenblatt, chairman and CEO, Demand Media.
“This becomes even more valuable as over one thousand new domain extensions
are expected to become available for registration in the years ahead.”

In 2011, ICANN initiated the process for creating new domain extensions as a
way to increase domain name choices for memorable or descriptive web addresses
(for example, integritymortgagesolutions.com can become integrity.mortgage or
integritymortgage.solutions) and help organize websites and information better
(for example, gwathmey-siegel.com could end in a domain extension that maps to
the nature of the business, such as .law, .architect or .cpa). Last June,
ICANN announced it had received 1,930 applications for new TLDs that were
submitted by entrepreneurs, businesses, governments and communities around the
world looking to operate a TLD registry of their own choosing.

Demand Media will retain the Denver-based team and the business will report to
Taryn Naidu, executive vice president, Registrar Services. “Our strategy is to
provide an end-to-end solution for all things domains -- whether you are
looking to consume or distribute names and services,” said Naidu. “Name.com
brings innovation, creativity and a deep commitment to their customers –
factors which we believe are essential in the environment of new gTLDs.”

About Demand Media

Demand Media, Inc. (NYSE: DMD) is a leading digital media company that informs
and entertains one of the internet’s largest audiences, helps advertisers find
innovative ways to engage with their customers and enables publishers to
expand their online presence. Headquartered in Santa Monica, CA, Demand Media
has offices in North America, South America and Europe. For more information
about Demand Media, please visit www.demandmedia.com.

© 2013 Demand Media, Inc.

Cautionary Information Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995, as amended. These forward-looking statements involve risks and
uncertainties regarding the Company's future financial performance, and are
based on current expectations, estimates and projections about our industry,
financial condition, operating performance and results of operations,
including certain assumptions related thereto. Statements containing words
such as "guidance," "may," "believe," "anticipate," "expect," "intend,"
"plan," "project," "projections," "business outlook," and "estimate" or
similar expressions constitute forward-looking statements. Actual results may
differ materially from the results predicted, and reported results should not
be considered an indication of future performance. Potential risks and
uncertainties include, among others: changes in the methodologies of Internet
search engines, including the recent algorithmic changes made by Google to its
search results as well as possible future changes, and the impact such changes
may have on page view growth and driving search related traffic to our owned
and operated websites and the websites of our network customers; the inherent
challenges of estimating the overall impact on page views and search driven
traffic to our owned and operated websites based on the limited data available
to us since the last algorithmic changes made by Google; our ability to
compete with new or existing competitors; our ability to maintain or increase
our advertising revenue; our ability to continue to drive and grow traffic to
our owned and operated websites and the websites of our network customers; our
ability to effectively monetize our portfolio of content; our dependence on
material agreements with a specific business partner for a significant portion
of our revenue; future internal rates of return on content investment and our
decision to invest in different types of content in the future; our ability to
attract and retain freelance content creators; the effects of changes in
marketing expenditures or shifts in marketing expenditures; the effects of
seasonality on traffic to our owned and operated websites and the websites of
our network customers; changes in stock-based compensation; changes in
amortization or depreciation expense due to a variety of factors; potential
write downs, reserves against or impairment of assets including receivables,
goodwill, intangibles or other assets; changes in tax laws, our business or
other factors that would impact anticipated tax benefits or expenses; our
ability to successfully identify, consummate and integrate acquisitions,
including integrating our recent acquisitions; our ability to retain key
customers and key personnel; risks associated with litigation; the impact of
governmental regulation; and the effects of discontinuing or discontinued
business operations. From time to time, we may consider acquisitions or
divestitures that, if consummated, could be material. Any forward-looking
statements regarding financial metrics are based upon the assumption that no
such acquisition or divestiture is consummated during the relevant periods. If
an acquisition or divestiture were consummated, actual results could differ
materially from any forward-looking statements. More information about
potential risk factors that could affect our operating and financial results
are contained in our annual report on Form 10-K for the fiscal year ending
December 31, 2010 filed with the Securities and Exchange Commission
(http://www.sec.gov) on March 1, 2011, and as such risk factors may be updated
in our quarterly reports on Form 10-Q filed with the Securities and Exchange
Commission, including, without limitation, information under the captions
"Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations."

Furthermore, as discussed above, the Company does not intend to revise or
update the information set forth in this press release, except as required by
law, and may not provide this type of information in the future.

Contact:

Demand Media
Media Inquiries:
Kristen Moore
310-917-6432
kristen.moore@demandmedia.com
or
Investor Relations Inquiries:
Julie MacMedan
310-917-6485
julie.macmedan@demandmedia.com
 
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