IPO Company Profile
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Network-1 Security Solutions, Inc.
70 Walnut Street, Wellesley Hills, MA 02481 * (781) 239-8280

The company develops, markets, licenses and supports a family of network security software products designed to provide comprehensive security to computer networks including Internet based systems and internal networks and computing resources.

Primary Underwriting Group
ManagerTierPhone
Whale Securities CompanyLead Manager (212) 484-2057

Offering Information
NASSCM:NSSI Internet: SIC 7372
Type of Shares:Common Shares Filing Date:7/22/98
U.S. Shares:1,700,000 Offer Date:11/11/98
Non-U.S. Shares:0 Filing Price:$8.00
Primary Shares:1,700,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.60
Offering Amount: $13,600,000 Selling:$0.24
Expenses:$958,000 Reallowance:$0.10
Post-IPO Shares:4,508,369
Employees:22

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Bizar Martin & Taub, LLP
Bank's Law Firm: Tenzer, Greenblatt, Fallon & Kaplan
Registrar/Transfer Agent: American Stock Transfer & Trust Co
Auditor: Eisner, Richard A.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/97 3/31/98 3/31/97 3/31/98
Revenue:$2.37$0.34$0.48Assets:$2.67
Net Income:-$2.39-$0.70-$0.59Curr Assets:$0.38
EPS:-$1.29-$0.41-$0.30Liabilities:$3.24
Prior EPS:-$2.46-$0.38-$0.42Curr Liab:$2.67
Cash Flow/Oper:-$0.71$0.39$0.65Equity:-$0.57
Cash Flow/Fin:$1.38$0.00-$0.31Cash:$0.07
Cash Flow/Inv:-$0.83Working Cap:-$2.28

Use of Proceeds
The proceeds from the proposed offering will be used for sales and marketing, repayment of indebtedness, software development, purchase of computer equipment, payment of trade payables, establishing a new office facility, and working capital and general corporate purposes.

Additional Underwriter Compensation
Warrant to purchase 187,500 shares/units at $100.00 per share/unit.
Exercise price of $13.20 for 4 year(s), 1 year(s) from 11/11/98.

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