Audited Financial Report for Fiscal Year Ending 30 June 2001 (Audit Letter)

INTERNET CORPORATION
FOR ASSIGNED NAMES AND NUMBERS

Financial Statements
June 30, 2001 and 2000
(With Independent Auditors' Report Thereon)

355 South Grand Avenue
Suite 2000
Los Angeles, CA 90071-1568

Independent Auditors' Report

The Board of Directors
Internet Corporation for Assigned Names and Numbers:

We have audited the accompanying statements of financial position of Internet Corporation for Assigned Names and Numbers (ICANN) as of June 30, 2001 and 2000 and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of ICANN's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our report dated September 18, 2000, we expressed an opinion on ICANN's 2000 financial statements qualified for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to examine verifiable supporting evidence regarding certain Country Code Top Level Domain (ccTLD) accounts receivable totaling $1,355,000 at June 30, 2000 and the related registry fee revenue which was included in the change in net assets for the year then ended. Since that date, ICANN has provided us with such evidence. Accordingly, our present opinion on the 2000 financial statements, as presented herein, is different from that expressed in our previous report.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Internet Corporation for Assigned Names and Numbers as of June 30, 2001 and 2000 and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

August 3, 2001

KPMG LLP. KPMG LLP, a U.S. limited partnership, is
a member of KPMG International, a Swiss association.