CoSine Communications Announces Financial Results for the Quarter Ended March 31,...

CoSine Communications Announces Financial Results for the Quarter Ended March
31, 2009

LOS GATOS, Calif., May 11 /PRNewswire-FirstCall/ -- CoSine Communications,
Inc. (Pink Sheets: COSN), today announced net loss of $155,000 or $(0.02) loss
per share for the quarter ended March 31, 2009 as compared to net income of
$52,000 or $0.01 per share for the quarter ended March 31, 2008.

CoSine's strategic plan is to redeploy its existing resources to identify and
acquire new business operations.

About Cosine Communications
CoSine Communications was founded in 1998 as a global telecommunications
equipment supplier to empower service providers to deliver a compelling
portfolio of managed, network-based IP and broadband services to consumers and
business customers. CoSine ceased its customer service operations effective
December 31, 2006. CoSine's strategic plan is to redeploy its existing
resources to identify and acquire new business operations. CoSine's
redeployment strategy will involve the acquisition of one or more operating
businesses with existing or prospective taxable earnings. This strategy may
allow CoSine to realize future cash flow benefits from its net operating loss
carry-forwards ("NOLs"). As of this date, no assurance can be given that
CoSine will find suitable candidates, and if it does, that it will be able to
utilize its existing NOLs.

Safe Harbor Warning
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This release contains forward-looking statements, which include, among
others, statements concerning CoSine's expected financial performance,
exploration of strategic alternatives, and business outlook, expected
performance and developments. The company uses words such as "anticipate,"
"believe," "plan," "expect," "future," "intend" and similar expressions to
identify forward-looking statements. These forward-looking statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those reflected in the forward-looking statements.

Factors that might cause such a difference include, but are not limited to,
CoSine's ability to identify and effectuate desirable strategic acquisitions,
the time and costs required to explore and investigate possible transactions
and other corporate actions, management and board interest in and distraction
due to exploring and investigating strategic alternatives, the reactions,
either positive or negative, of investors, competitors, customers, employees
and others to CoSine exploring and executing possible strategic acquisitions.
A detailed discussion of these factors and other risks that affect CoSine's
business is contained in its SEC filings, including its most recent reports on
Form 10-K and Form 10-Q, particularly under the heading "Risk Factors."
Readers are cautioned not to place undue reliance on these forward-looking
statements, which reflect management's opinions only as of the date hereof.
CoSine undertakes no obligation to revise or publicly release the results of
any revision to these forward-looking statements.

For additional information contact:

Terry Gibson
(408) 399-6494
E-mail: Terry.Gibson@Cosinecom.com

CoSine Communications, Inc.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)

Three months ended
March 31,
2009 2008
---- ----

Revenue:
Product $- $-
Service - -
----- -----
Total revenue - -
Cost of revenue - -
----- -----

Gross profit - -

Operating expenses:
Research and development - -
Sales and marketing - -
General and administrative 225 178
----- -----
Total operating expenses 225 178
----- -----

Loss from operations (225) (178)

Interest and other income 71 230
----- -----

Income (loss) before income tax
provision (154) 52

Income tax provision (1) -
----- -----

Net (loss) income $(155) $52
----- -----

Basic net (loss) income per share $(0.02) $0.01
Diluted net (loss) income per share $(0.02) $0.01
Shares used in computing basic and
diluted net income per share
Basic 10,091 10,091
Diluted 10,091 10,091

CoSine Communications, Inc.
CONDENSED BALANCE SHEETS
(in thousands)

March 31, 2009 December 31,
(Unaudited) 2008(1)
------------ ------------

ASSETS
Current assets:
Cash and cash equivalents $15,311 $9,155
Short-term investments 7,715 13,997
Other receivables 32 96
Prepaid expenses and other current
assets 20 31
----- -----
Total Current Assets 23,078 23,279
Long-Term Deposits 3 3
----- -----
Total Assets $23,081 $23,282
------- -------

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $224 $207
Other accrued liabilities 20 53
Total liabilities 244 260
----- -----

Stockholders' equity:
Common stock 1 1
Additional paid-in capital 539,068 539,060
Accumulated other comprehensive
income 50 88
Accumulated deficit (516,282) (516,127)
-------- --------
Total stockholders' equity 22,837 23,022
------ ------
$23,081 $23,282
------- -------

(1) Amounts are derived from the December 31, 2008 audited financial
statements.

SOURCE CoSine Communications, Inc.

Terry Gibson of CoSine Communications, Inc., +1-408-399-6494,
Terry.Gibson@Cosinecom.com