Industry-Leading Corporations Choose Network-1's Intranet Firewall to Secure E-Business Networks.

WALTHAM, Mass.--(BUSINESS WIRE)--Oct. 26, 1999--

National Semiconductor, Capital One and Consumers Energy Latest

to Deploy CyberwallPLUS(TM)-AP, Unique Multi-Protocol Intranet

Firewall Technology

Network-1 Security Solutions, Inc. (NASDAQ:NSSI) today announced that three major customers - National Semiconductor Corp., Capital One, and Consumers Energy - have purchased CyberwallPLUS-AP 5.1 to secure their mission-critical, multi-protocol corporate network environments.

"These significant contracts indicate the emerging importance of intranet and internal network firewalls," noted Avi Fogel, president and CEO of Network-1 Security Solutions. "As companies continue to extend network access to trusted employees, the inherent risks multiply. However, organizations can ill-afford to ignore opportunities that streamline business processes and leverage new e-Business initiatives. Network-1's CyberwallPLUS-AP provides the adaptive security to open these corporate networks safely."

Mounting statistics clearly indicate the growing need for internal firewalls and intrusion prevention. The damage "trusted" insiders - such as sub-contractors, consultants and employees - can inflict on corporate data, applications and networks is substantial. ("A new strain of computer virus that attacked MCI WorldCom's internal business network of NT servers may have been started by a disgruntled employee, MCI WorldCom has acknowledged...")(1)

According to statistics cited in the well-respected Computer Crime and Security Survey conducted by the FBI and the Computer Security Institute, unauthorized insider access abuse cost corporations over $2.85 billion in 1998 alone. The same study also reveals that 30% of the organizations with deployed perimeter firewalls still reported breaches by outsiders who managed to infiltrate corporate networks.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation (NYSE:COF) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One's subsidiaries are among the largest providers of MasterCard and Visa credit cards in the world. The company is well known for its use of state-of-the-art technology, garnering the 1996 Excellence in Technology Award from Gartner Group for its use of data mining and other information-based strategies. Ranked 11th in ComputerWorld's 1997 listing of the nation's top IT training programs, Capital One will employ Network-1's CyberwallPLUS-AP to secure the IP and IPX protocol connections between its corporate headquarters and branch training centers.

A pioneer in the semiconductor industry, National Semiconductor Corp. (NYSE:NSM) provides solutions for the information appliance, personal computing, consumer and communication markets. The company is an acknowledged global leader in the design and manufacture of analog and mixed signal semiconductor products that provide access to the information highway. National Semiconductor is utilizing CyberwallPLUS-AP to protect a complex network environment that supports thousands of users and utilizes IP, IPX, DECNet, DEC MOP, NETBUI, DEC LAT and AppleTalk protocols.

Consumers Energy, the principal subsidiary of CMS Energy Corporation (NYSE:CMS), has been generating and distributing electrical power in Michigan for over 100 years. It is Michigan's largest natural gas and electric utility and it is the fourth largest combined gas and electric utility in the United States. The company has an exceptional long-term record of low-cost power production - generating power at over 70 plants that supply electricity and natural gas to 1.6 million residential, commercial, and industrial customers. Its power generation facilities include fossil fuel, nuclear, and hydro power plants. Consumers Energy will utilize Network-1's CyberwallPLUS-AP product to protect power grid networks that rely on the DECNet protocol.

CyberwallPLUS-AP is a member of Network-1 Security Solutions' powerful family of CyberwallPLUS firewalls. The product provides high-performance, multi-level, adaptive security and supports over 4500 application protocols (IP and non-IP). CyberwallPLUS-AP overcomes the limitations of earlier Internet-oriented firewalls by treating non-IP traffic with the same security measures as IP traffic. As a result, departmental networks, process control and plant networks, and a wide range of other internal network domains can be securely interconnected by an organization's multi-protocol backbone network. For more information, please visit www.network-1.com.

About Network-1 Security Solutions, Inc.

Network-1 Security Solutions, Inc. provides a family of network security software products and a full range of network security and network design consulting services that are focused on enabling corporations to safely open up strategic assets and networks for new e-Business opportunities. The company's "cyberwall" security technology can reside anywhere on the enterprise network - including between sub-networks and on Windows NT application servers, as embedded firewalls, and provides multiple layers of defense to protect data from external attacks as well as access abuse by such "trusted insiders" as employees, sub-contractors or consultants. Network-1 Security Solutions' customers include GLOBAL 1000 companies, federal, state and foreign governments and utilities as well as education and research institutions. The company is headquartered in Waltham, MA and maintains field offices in New York, Dallas, Seattle and Hong-Kong.

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 6 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.

(1) Taken from an article which appeared in the December 22, 1998 issue of Network World Fusion.

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