Press Release

Network-1 Announces Commencement of Power Up Licensing Program

Provides Licensing Incentives for Early Adopters of Essential Power over Ethernet (PoE) Technology

New York, September 8, 2005 – Network-1 Security Solutions, Inc. (OTCBB: NSSI.OB) today commenced its previously announced Power Up licensing program for its Remote Power Patent (US Patent No. 6,218,930) entitled, “Apparatus and Method for Remotely Powering Access Equipment Over a 10/100 Switched Ethernet Network”. The Remote Power Patent relates to several key technologies enabling the delivery and receipt of power over data communications networks, including technologies underlying the IEEE 802.3af Power over Ethernet (PoE) standard (the “PoE Standard”) that was approved in June 2003 by the Institute of Electrical and Electronic Engineers (the “IEEE”).  

Analysts forecast explosive growth for the PoE market since it is an enabler of reliable, cost effective deployment of next generation IT solutions, including Voice over IP and Wireless LANS.  To reach its full potential, however, vendors and customers need clarity regarding intellectual property issues, which is best achieved through amicable business negotiations.  In accordance with IEEE policies, Network-1 has agreed to offer manufacturers of PoE network equipment licenses to the Remote Power Patent on reasonable and non-discriminatory terms (RAND).  In a further effort to facilitate the growth of PoE, Network-1 is offering, for a limited time, a quick and easy method for vendors of PoE network equipment to obtain licenses through the Power Up program on favorable terms.

Beginning September 8, 2005, and continuing for a limited time, vendors of Power over Ethernet power sourcing equipment (PSE) and powered devices (PD) may license the Remote Power Patent at a substantial discount from Network-1’s standard reasonable and non-discriminatory royalty rates and a discount from standard license origination fees. Detailed royalty information is now available for review by qualified vendors of Power over Ethernet equipment. Interested parties should contact Network-1 for such information. 

Upon completion of the Power Up program, Network-1 will only offer licenses on its standard terms and conditions, which will include higher royalty rates and full license origination fees.

Network-1, with the assistance of Thinkfire Services, USA, LTD, its worldwide licensing partner, is engaged in discussions with several industry participants relating to licensing the Remote Power Patent. With the commencement of the Power Up program, the entire industry will have an opportunity to take advantage of a level playing field for discounted license terms, which will clarify outstanding intellectual property issues and promote the continued rapid growth of PoE.

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 products offerings. Indeed, industry analysts expect PoE to become a defacto technology embedded in LAN switches that power devices such as wireless access points, RFID card readers, VOIP telephones, and network cameras.

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. The Company owns six patents covering various telecommunications and data networking technologies. As part of its business strategy it is offering licenses to third parties who Network-1 believes could benefit from the technologies covered by its patents.

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 the Company's business plans. Such statements are subject to a number of factors and uncertainties, such as future economic conditions, technology changes, the ability of Network-1 to obtain license agreements from third parties for its patent portfolio, uncertainty of patent litigation, the Company's ability to achieve revenues and profits from its patent portfolio, and legislative, regulatory and competitive developments. Except as otherwise required to be disclosed in periodic reports, the Company expressly disclaims any future obligation or undertaking to update or revise any forward-looking statement contained herein.