This random name generator works by analyzing a given dictionary of words or names to find the freqencies of letter combinations, and then generating random words which have the same frequencies. Generated words will in general not be words from the chosen dictionary; rather, they will tend to be made up of pieces of other words.

More information: http://www.cs.bell-labs.com/cm/cs/pearls/sec153.html.

Source: namegen.zip.