Network-1 Engages in Alliance Agreement with EDS

Network-1 Engages in Alliance Agreement with EDS; EDS to Offer its Enterprise Customers CyberwallPLUS Distributed Firewalls for Multi-Layered Firewalling Solutions

WALTHAM, Mass.–(BUSINESS WIRE)–Jan. 3, 2001–Network-1 Security Solutions, Inc. (NASDAQ: NSSI), a leader in distributed intrusion prevention solutions for e-Business networks, today announced an alliance agreement with EDS, the leading pure-play global services company that offers corporations and government clients a scalable, safe, secure extranet for their growing e-Business strategies.

The reseller agreement enables EDS to provide its customers with CyberwallPLUS distributed, host-resident firewall and intrusion detection/prevention products for Windows NT and Windows 2000 servers and enterprise desktops. Distributed firewalls provide a much needed layer of security behind the traditional corporate perimeter firewall, protecting the network’s end points from both Internet and internal hacking attacks.

“The Internet has made the enterprise network a very open place, increasing the risk of intrusion immensely,” said Shakil Kidwai, VP, Global Information Assurances Services at EDS. “Offering our customers a means of securing their individual desktops and servers just makes sense as part of an overall network security strategy.”

“EDS is unsurpassed for offering comprehensive IT solutions,” said Avi Fogel, President and CEO of Network-1 Security Solutions. “We are extremely pleased that CyberwallPLUS is now part of their network security strategy.”

CyberwallPLUS-SV was the industry’s first Windows NT and Windows 2000 server-resident distributed firewall and network intrusion/prevention software. It utilizes a unique kernel-mode architecture to create a highly scaleable distributed security solution. CyberwallPLUS-SV enables system administrators to integrate rich firewall and intrusion prevention capabilities right on critical application servers, such as Web, database and ERP servers. The product provides pre-defined security templates for these applications and others such as servers for DNS, Microsoft Exchange, Citrix MetaFrame, and Certificate Authority. CyberwallPLUS-SV provides high-performance stateful packet inspection, intrusion detection and prevention, and kernel mode operation, which allows Windows NT and Windows 2000 to close their greatest security holes and vulnerabilities. The product installs in minutes; applies rule changes dynamically without rebooting the NT/2000 server; and allows for local or remote management.

In addition to CyberwallPLUS-SV, the CyberwallPLUS product line includes: CyberwallPLUS-WS (Workstation) – the only distributed, enterprise firewall for Windows NT/2000 desktops to feature an ICSA-certified packet-filter engine; CyberwallPLUS-IP (Internet Protocol) – a leading value in Internet firewall security software; and CyberwallPLUS-AP (Any Protocol) – a multi-protocol firewall for defending internal networks against attacks.

About EDS

EDS, the leading pure-play global services company, provides strategy, implementation and hosting for clients managing the complexities of the digital economy. EDS brings together the world’s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers’ trust and continuously seek improvement. EDS serves the world’s leading companies and governments in about 55 countries globally. EDS reported revenues of $18.5 billion in 1999. The company’s stock is traded on the New York Stock Exchange (NYSE:EDS – news) and the London Stock Exchange. Learn more at www.eds.com.

About Network-1 Security Solutions, Inc.

Network-1 Security Solutions, Inc. (NASDAQ: NSSI) is a leader in distributed network intrusion prevention products that allow organizations to open up for e-Business. Distributed intrusion prevention combines the benefits of firewalls and host-based network intrusion detection allowing e-Businesses to scale the secure processing of incoming and outgoing traffic. In addition, distributed intrusion prevention protects critical data servers from abuses by those with “insider access” and enables the deployment of multiple layers of defense against breaches by outsiders. Additional details about the Company and its products are available at: http://www.network-1.com.

Certain of the above statements contained in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including but not limited to, risks associated with the Company’s future growth and operating results, the uncertainty of market acceptance of the Company’s products, technological change, competitive factors and general economic conditions. Except as otherwise required to be disclosed in periodic reports required to be filed by companies registered under the Exchange Act by the rules of the Securities and Exchange Commission, the Company has no duty and undertakes no obligation to update such statements.

CyberwallPLUS is a trademark of Network-1 Security Solutions, Inc. All other product, trademark, company or service names mentioned are the property of their respective owners.

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