Press Release

NETWORK-1 ACQUIRES PATENT PORTFOLIO

WILL PURSUE LICENSING STRATEGY AS CORE BUSINESS

New York, November 19, 2003 -- Network-1 Security Solutions, Inc. (NSSI.PK) today announced that it had acquired a patent portfolio (the “Patent Portfolio”) from Merlot Communications, Inc. of Bethel, Connecticut, a broadband communications solutions provider.  In connection with the acquisition, Network-1 additionally announced that it would pursue licensing opportunities related to the technologies covered by the Patent Portfolio as well as pursue the acquisition of additional patents as its new core business.

The Patent Portfolio consists of six patents issued by the U.S. Patent Office that relate to various telecommunications and networking technologies and include, among other things, patents covering the transmission of audio, voice and data over computer and telephony networks and the delivery of remote power over Ethernet networks. The financial terms of the transaction were not disclosed. 

In December 2002, Network-1 discontinued its security software product business, as it was unable to achieve sufficient product revenue to support the expenses of such operations.  In June 2003, Network-1 sold its CyberwallPLUS security software and related intellectual property to an unaffiliated third party.  The Board of Directors focused its efforts on seeking a merger candidate or other strategic transaction for the Company in order to enhance shareholder value.  After reviewing numerous opportunities, the Board decided that the acquisition of the Patent Portfolio and the pursuit of licensing opportunities related thereto was the most attractive alternative for its shareholders.

“Although there are numerous risks associated with a program designed to capture licensing revenues for technologies covered by patents, the potential revenue stream generated, if successful, greatly outweighs those risks” said Corey M. Horowitz, Chairman of Network-1.  “We believe the Patent Portfolio presents very interesting licensing opportunities in large markets in the telecommunications and networking industries and we plan to pursue these opportunities aggressively.  We will also continue to review other patent opportunities and, where appropriate, may acquire additional patents where we believe the opportunities are most attractive for the shareholder’s of Network-1. ”

ABOUT NETWORK-1 SECURITY SOLUTIONS, INC.

Until December 2002, Network-1 Security Solutions, Inc. (the “Company”) developed, marketed and licensed security software products designed to prevent unauthorized access to information residing on an enterprise’s computers.  In December 2002, the Company discontinued offering its security software product offering and instead focused its efforts on seeking a merger candidate or other strategic transaction for the Company.  In November 2003, the Company entered the technology licensing business in connection with the acquisition of several telecommunications and networking 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,  changes in consumer demand, and legislative, regulatory and competitive developments.  Network-1 urges investors  to review in detail  the  risks and  uncertainties  disclosed in the Company's filings  under  the  Securities  Exchange  Act of 1934, as  amended, including, but not limited to the Company's  annual report on Form 10-KSB for the year ended December 31, 2002 and the Company's  quarterly reports on Form 10-QSB, copies of which can be obtained from the Company or the Securities and Exchange Commission.  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.