Demand Media Announces Designs.com to Support New gTLDs

  Demand Media Announces Designs.com to Support New gTLDs

  Platform enables new generic Top Level Domain registrants to create vivid,
                 feature-rich websites attuned to their needs

Business Wire

AUSTIN, Texas -- June 17, 2013

Demand Media® (NYSE: DMD), a leading media and domain services company, today
announced the debut of Designs.com, the latest step in the company’s efforts
to facilitate the launch of upcoming generic Top Level Domains (gTLDs).
Today’s move brings a robust platform to create complementary, high-quality
web experiences to leading new TLD registries, which are already working to
categorize the Internet with more than a thousand new domain extensions.

As Demand Media prepares for this historic gTLD launch, Designs.com expands
the company’s suite of offerings to current and future domain industry
customers, and facilitates expansive consumer online and social engagement.
New Designs.com websites will be included with the registration of newly
available domain extensions, such as .DENTIST or .SOCIAL. Just as the new TLDs
speak to the identity, interest and needs of specific audiences, so too will
the layouts, functionality and user experiences associated with unique
templates in the Designs.com platform.

“A consumer using .FAN needs features related to sharing, ‘liking’ and growing
a community, while a professional using .ARCHITECT needs features related to a
strong visual portfolio and self-promotion,” explained Nick Nelson, general
manager of Designs.com for Demand Media. “Until today, tools and templates
have been designed for no-one in particular. New gTLDs are for specific
audiences, so we must have tools that create a web presence with the same
tailored approach, making the website and web address inseparable.”

Designs.com will be integrated into the purchase process of partnering domain
and web hosting providers, enabling consumers to create a high quality web
presence specific to their chosen web identity already demonstrated by the
domain name. In order to easily facilitate website creation and updates, the
Designs.com platform will have a point and click design tool. Customers will
immediately see how their website will look on mobile devices, as well as have
access to drag and drop social media tools.

A new national survey by Wakefield Research* found that nearly half of small
businesses are not completely satisfied with their current domain name.
Furthermore, 52% of businesses would change their domain name given the
opportunity. “The specificity and categorization offered by new gTLDs and
Designs.com provides an opportunity for business owners to create, make over
or add to their company’s online presence,” said Dave Panos, executive vice
president of emerging markets for Demand Media. “For consumers, this is a
chance to come online and register a new web address that ignites one’s
passion personally or professionally with tools that are creative, intuitive
and on par with high impact design experiences available from the leading
design agencies.”

In 2011, ICANN initiated the process for creating new domain extensions and
entrepreneurs, businesses, and governments around the world, in looking to
operate a TLD registry of their own, submitted nearly two thousand
applications. With the review process in full swing and entrepreneurs
investing more than $350 million in application fees**, the first new gTLD is
expected to launch in Q4 of 2013.

Designs.com will be launching in parallel with the general availability
release of its TLD partners. In addition, as Demand Media is the parent
company of eNom and Name.com, the Designs.com platform will be accessible by
customers of both organizations as new TLDs reach general availability.

About Demand Media

Demand Media, Inc. (DMD) is a leading digital media and domain services
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, individuals and businesses 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.

* Source: The Small Business Domain Name Study, Wakefield Research, April 2013
**Source: Report of Independent Auditors and Financial Statements for ICANN,
June 30, 2012 and 2011

© 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: our ability to complete a separation of our business as announced
herein and unanticipated developments that may delay or negatively impact such
a transaction; the possibility that we may decide not to proceed with the
separation of our business as announced herein if we determine that
alternative opportunities are more favorable to our stockholders; the
possibility that we decide to separate our business in a manner different from
that disclosed herein; the impact and possible disruption to our operations
from pursuing such a separation transaction announced herein; our ability to
retain key personnel; the high costs we will likely incur in connection with
such a transaction, which we would not be able to recoup if such a transaction
is not consummated; the expectation that the transaction announced herein will
be tax-free; revenue and growth expectations for the two independent companies
following the separation of our business; the ability of each business to
operate as an independent entity upon completion of such a transaction;
changes in the methodologies of internet search engines, including ongoing
algorithmic changes made by Google 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; changes in our content creation and distribution platform,
including the possible repurposing of content to alternate distribution
channels, reduced investments in intangible assets or the sale or removal of
content; our ability to successfully launch, produce and monetize new content
formats; the inherent challenges of estimating the overall impact on page
views and search driven traffic to our owned and operated websites based on
the data available to us as internet search engines continue to make
adjustments to their search algorithms; 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, including
premium video and other formats of text content; our ability to attract and
retain freelance creative professionals; changes in our level of investment in
media content intangibles; the effects of changes or shifts in internet
marketing expenditures, including from text to video content as well as from
desktop to mobile content; the effects of shifting consumption of media
content from desktop to mobile; the effects of seasonality on traffic to our
owned and operated websites and the websites of our network customers; our
ability to continue to add partners to our registrar platform on competitive
terms; our ability to successfully pursue and implement our gTLD initiative;
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
(including media content) 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; 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, 2012 filed with the Securities and Exchange
Commission (http://www.sec.gov) on March 5, 2013, 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:

For Demand Media
Quinn Daly, 310-600-8005
quinn.daly@coburnww.com
 
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