5

THIS RESTATED SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED FINANCIAL STATEMENTS OF NETWORK-1 SECURITY SOLUTIONS, INC. FOR THE PERIOD ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

12-MOS DEC-31-1998 JAN-01-1998 DEC-31-1998 6,423,000 0 188,000 77,000 2,000 6,619,000 872,000 (478,000) 8,080,000 841,000 0 0 6,000 44,000 7,189,000 8,080,000 569,000 699,000 166,000 767,000 4,633,000 126,000 0 (5,981,000) 0 (5,981,000) 204,000 0 0 (5,777,000) (2.56) (2.56)