Network-1 Reports Third Quarter 2009 Results

NEW YORK, Nov. 12 /PRNewswire-FirstCall/ -- Network-1 Security Solutions, Inc.
(OTC Bulletin Board: NSSI) today announced financial results for the quarter
ended September 30, 2009. Network-1 had revenues of $141,000 and $655,000 for
the three and nine months ended September 30, 2009 as compared with revenues
of $106,000 and $240,000 for the three and nine months ended September 30,
2008, respectively. The increase in revenues during 2009 was related to
additional licensees of Network-1's Remote Power Patent and its settlement
with Netgear, Inc. ("Netgear").

Network-1 reported a net loss of ($457,000) or $(0.02) per share for the third
quarter ended September 30, 2009 as compared to a net loss of ($383,000) or
$(.02) per share for the third quarter ended September 30, 2008. Included in
the net loss for the quarter ended September 30, 2009 and September 30, 2008
were non-cash compensation expenses of $51,000 and $70,000, respectively.

Network-1 reported a net loss for the nine months ended September 30, 2009 of
$(1,716,000) or $(0.07) per share, compared with a net loss of $(1,104,000),
or $(0.05) per share for the nine months ended September 30, 2008. Included in
the net loss for the nine months ended September 30, 2009 and September 30,
2008 were non-cash compensation expenses of $797,000 and $216,000,
respectively.

At September 30, 2009, Network-1 had approximately $3,450,000 in cash and cash
equivalents which management believes will be sufficient to fund its
operations until at least December 2010.

In May 2009, Network-1 settled its litigation with Netgear, one of the
defendants in the patent litigation pending in United States District Court
for the District of Texas. As part of the settlement and under the
Network-1's Special Licensing Program, Netgear entered into a license
agreement with the Network-1 for the Remote Power Patent, effective April 1,
2009. Under the terms of the license, Netgear licenses the Remote Power
Patent for its full term which expires in March 2020, and pays quarterly
royalties (beginning as of April 1, 2009) based on its sales of Power over
Ethernet products, including those products which comply with the Institute of
Electrical and Electronic Engineers 802.3af and 802.3at Standards. Licensed
products include Netgear's Power over Ethernet enabled switches and wireless
access points. The royalty rates included in the license are 1.7% of the
sales price of Power Sourcing Equipment, which includes Ethernet switches, and
2% of the sales price of Powered Devices, which includes wireless access
points. In addition, Netgear made a payment of $350,000 with respect to the
settlement.

On February 11, 2008, Network-1 announced that it had initiated patent
litigation against several major data networking equipment manufacturers in
the United States District Court for the Eastern District of Texas, Tyler
Division, for infringement of its Remote Power Patent. Remaining defendants
in the lawsuit are Cisco Systems, Inc., Cisco-Linksys, LLC, Enterasys
Networks, Inc., 3Com Corporation, Inc., Extreme Networks, Inc., Foundry
Networks, Inc., and Adtran, Inc.

The Remote Power Patent relates to, among other things, the delivery of power
over Ethernet cables in order to remotely power network connected devices
including, among others, wireless switches, wireless access points, RFID card
readers, VOIP telephones and network cameras. In September 2003, the
Institute of Electrical and Electronic Engineers (IEEE) approved the IEEE
802.3af Power over Ethernet standard which has led to the rapid adoption of
PoE. In September 2009, the IEEE approved the IEEE 802.3at standard, which
is an amendment to the Power over Ethernet Standard. The IEEE 802.3at
standard increases the amount of power that can be delivered over Ethernet
cables, which will allow devices with increased power requirements to also be
remotely powered.

By taking advantage of PoE technology, companies can deploy next generation
solutions such as Voice over IP and Wireless LAN's without having to run
separate power cables. PoE technology provides numerous benefits including
significant deployment savings and increased service reliability through
centralized backup power. These benefits have caused analysts to identify PoE
as a "must have" technology and vendors have responded with a wealth of new
product offerings.

Indeed, industry analysts expect PoE to become a defacto technology embedded
in LAN Ethernet switches that power devices such as wireless access points,
VOIP telephones, and network cameras, among others. Industry analysts project
that in 2009 fully 20% of all Ethernet switch ports were PoE enabled and
between 90 and 95% of IP Phones and Wireless Access Points were also so
enabled.

ABOUT NETWORK-1 SECURITY SOLUTIONS, INC.
Network-1 Security Solutions, Inc. is engaged in the acquisition, development,
licensing and protection of its intellectual property and proprietary
technologies. It currently owns six patents covering various
telecommunications and data networking technologies and is currently focusing
its licensing efforts on its Remote Power Patent (U.S. Patent No. 6,218,930)
covering the remote delivery of power over Ethernet networks. The Remote
Power Patent was granted by the U.S. Office of Patents and Trademarks on April
21, 2001 and expires on March 11, 2020.

This release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements address future events and conditions concerning
Network-1's business plans. Such statements are subject to a number of risk
factors and uncertainties as disclosed in Network-1's Annual Report on Form
10-K for the year ended December 31, 2008 including, among others, the ability
of Network-1 to obtain license agreements from third parties for its patent
portfolio, uncertainty of patent litigation, Network-1's ability to achieve
revenues and profits from its patent portfolio, Network-1's ability to raise
capital when needed, future economic conditions and technology changes and
legislative, regulatory and competitive developments. Except as otherwise
required to be disclosed in periodic reports, Network-1 expressly disclaims
any future obligation or undertaking to update or revise any forward-looking
statement contained herein.

The condensed statements of operations and condensed balance sheets are
attached.

Corey M. Horowitz, Chairman and CEO
Network-1 Security Solutions, Inc.
(212) 829-5770

Network-1 Security Solutions, Inc.
Condensed Statements of Operations

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Royalty Revenue $141,000 $106,000 $655,000 $240,000
Cost of Revenue 4,000 5,000 69,000 12,000
----- ----- ------ ------
Gross Profit 137,000 101,000 586,000 228,000
------- ------- ------- -------

Operating expenses:
General and
administrative 542,000 439,000 1,505,000 1,209,000
Non Cash
Compensation 51,000 70,000 797,000 216,000
------ ------ ------- -------
Total Operating
Expense $593,000 $509,000 2,302,000 1,425,000
-------- -------- --------- ---------

Loss before
interest
income (456,000) (408,000) (1,716,000) (1,197,000)
Interest income -
net (1,000) 25,000 0 93,000
------ ------ --- ------

Net Loss $(457,000) $(383,000) $(1,716,000) $(1,104,000)
========= ========= =========== ===========

Loss per
common share:
basic and
diluted $(0.02) $(0.02) $(0.07) $(.05)
====== ====== ====== =====

Weighted
average shares:
basic and
diluted 24,135,557 24,135,557 24,135,557 24,135,557
========== ========== ========== ==========

Condensed Balance Sheet as of September 30, 2009

Cash and cash equivalents $3,450,000
==========

Total current assets $3,582,000
==========

Total assets $3,681,000
==========

Total current liabilities $198,000
========

Total long term liabilities $- 0 -
====

Total stockholders' equity $3,483,000
==========

SOURCE Network-1 Security Solutions, Inc.

Corey M. Horowitz, Chairman and CEO of Network-1 Security Solutions, Inc.,
+1-212-829-5770