Tucows to Launch Auction Service for Expiring Domain Names

Existing Registrants to share in revenue from $60 million market

TORONTO, CANADA, September 7, 2004 — Tucows Inc. (OTCBB:TCOW) today announced the upcoming release of its new auction service for reselling expiring domain names. The company expects the service to become available through its channel of service providers in late 2004.

“Presently, most registrants of expiring domain names are unaware of the potential value of their name and do not share in any revenue from the resale of their domain name,” said Elliot Noss, President and CEO, Tucows Inc. “We estimate that the resale of expiring domain names in the secondary market generates about $60 million a year in revenue. Tucows’ new service will enable our registrants to get their fair share of this market.”

Tucows is the largest, ICANN accredited, wholesale provider of domain name registration services. A significant percentage of the expiring domain names currently resold in the secondary market, were originally registered through Tucows’ extensive channel of service providers. Tucows‚Äô new domain auction service is designed to give its registrants the opportunity to share in the revenue from the resale of their expiring or recently expired domain name while preserving all of their existing rights. Tucows will share all proceeds from the auction service with the former registrant and participating service providers – with the registrant receiving the largest portion.

“Currently a registrant has approximately seventy-five days after the domain expiry date to renew or redeem their domain name,” continued Noss. “Tucows’ new domain auction service will preserve the original registrant’s right to renew or redeem their domain name, with the added bonus of being able to participate in the revenue if the name is resold after it expires. Currently, when most registrants allow their domains to expire, they never know if that name was subsequently resold in the secondary market and they don’t share in that revenue.”

Further details about Tucows’ domain auction service will be available when the new service is launched.

About Tucows

Tucows Inc. is a leading provider of wholesale Internet services and back office solutions to a global network of more than 6,000 web hosting companies, ISPs and other service providers. As the largest ICANN-accredited wholesale domain name registrar, Tucows offers a suite of complementary internet services including: domain name registration and management, digital certificates, email services and web publishing services. Tucows back office products, including the Platypus Billing System and customer relationship management solutions, enable service providers to automate and enhance their service offerings. Tucows also distributes software and other digital content through its global network of affiliates offering more than 40,000 software titles. For more information, please visit: www.tucowsinc.com.

This press release includes statements that constitute “forward-looking” statements, including, without limitation, that Tucows expects its new auction service to become available through its channel of service providers in late 2004 and it estimates that the resale of expiring domain names in the secondary market generates about $60 million a year in revenue. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward- looking statements. More information about potential factors that could affect Tucows is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available to Tucows as of the date of this document, and Tucows assumes no obligation to update such forward-looking statements.

Contact:

Jacqueline Cook
Director Marketing
Tucows Inc.
jcook@tucows.com
416-538-5450

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. Platypus Billing System and Wombat Help Desk are trademarks of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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