Tucows Sees Strengthened Domain Name Market

Number of new registrations market-wide increases 13% in first quarter 2002 – Tucows’ registration transactions increase 17.6%

Toronto, Canada, May 01, 2002 — Tucows Inc. (Tucows) (OTCBB: TCOW),
a leading provider of Internet services to ISPs and Web hosting companies
worldwide, today announced that the Company sees a strengthening domain
name market based on industry data for the first quarter of 2002.

New registrations for the domain name market in the first quarter increased
13% to 2.6 million from 2.3 million in the fourth quarter of 2001. Market
renewals and extensions increased by 22%. The market renewal rate for
the first quarter remained healthy at approximately 52%.

Tucows reported a record number of domain name registrations, renewals
and transfers-in for the first quarter of 2002 of approximately 893,000,
an increase of 17.6% from the previous quarter. Total active domain
names under management at the end of the first quarter increased to
more than 3.7 million.

“We are very encouraged by the strength of the domain name registration
market in the first quarter of the year,” said Elliot Noss, president
and chief executive officer, Tucows Inc. “We believe that the domain
name market is entering a new phase of its evolution – one characterized
by quality customers and sustained growth. As the SnapNames data shows,
shrinkage in the .COM, .NET, and .ORG zone file over the past six months
is primarily the result of the purging of promotional and speculative
names by VeriSign, Inc. (NASDAQ: VRSN) and Register.com, Inc. (NASDAQ:
RCOM). Excluding VeriSign and Register.com, active domain names under
management for the market increased by 12.7% over the past six months.”

.COM/.NET/.ORG Zone File*
Oct 2001
Nov 2001
Dec 2001
Jan 2002
Feb 2002
Mar 2002
All Registrars
30,571,212
30,307,916
29,271,104
29,027,122
28,451,771
28,079,631
All Registrars excluding VeriSign & Register.com
12,733,845
12,981,278
13,330,299
13,730,415
14,012,740
14,354,877
*Domains under managementData
source: SnapNames State of the Domain (SOTD) reports: Oct-01 to
Mar-02

“As Internet usage continues to grow dramatically, we are confident
that the domain name market will expand right along with it, driven
by the need for businesses, organizations, and individuals to have a
presence on the Web,” continued Mr. Noss.

Tucows Captures Number Two Market Share Position

Tucows also announced that, as of the end of March 2002, it had captured
the number two market share position as reported in the latest edition
of SnapNames’ State of the Domain report. Tucows ranked ahead of Register.com,
Inc., and was second only to the former monopoly, VeriSign, Inc. “We
believe that our strong performance is proof of both the exceptional
value of our offering and our commitment to the highest levels of customer
service and support,” said Mr. Noss. “It again demonstrates that our
customers – ISPs and Web hosting companies – are the businesses that
truly sell domain names.”

About Tucows

Tucows Inc. is a leading provider of Internet services to ISPs and Web hosting companies worldwide. An ICANN-accredited registrar, Tucows provides outsourced domain name registrations for generic and country code top-level domains (TLDs), plus web certificates. Tucows also distributes software and other digital content through its integrated network of resellers. Tucows offers more than 30,000 software titles in libraries located around the world and operates search and reference media sites including eLibrary, Encyclopedia.com, and NewsDirectory.com. For more information, please visit: http://www.tucows.com.

Contact:

Joanna Becket
Tucows Inc.
416-538-5451
jbecket@tucows.com

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