EXHIBIT 99.1
                                                                    ------------
- ---------------------
FOR IMMEDIATE RELEASE
- ---------------------

              NETWORK-1 RECEIVES PROCEEDS FROM EXERCISE OF WARRANTS

NEW YORK, September 13, 2006 -- Network-1 Security Solutions, Inc. (OTC BB:
NSSI), today announced that it had received $635,000 in proceeds from the
exercise of common stock purchase warrants held by FalconStor Software, Inc.
(NASDAQ:FALC). The warrants were originally issued in 2001 as part of a private
financing and were each exercisable for one share of Network-1 Common Stock at
$1.00 per share.

Network-1's patent infringement litigation against D-Link Systems Inc. and its
corporate parent D-Link Corporation, Inc. of Taiwan involving the Company's
Remote Power Patent is proceeding on a timely basis in the United States
District Court for the Eastern District of Texas, Tyler Division. A Markman
hearing will be held on September 19, 2006 and a trial is set for March 9, 2007.

The Remote Power Patent relates to, among other things, the delivery of power
over Ethernet cables in order to remotely power network connected devices
including, among others, wireless switches, wireless access points, RFID card
readers, VOIP telephones and network cameras. In June 2003, the Institute of
Electrical and Electronic Engineers (IEEE) approved the IEEE 802.3af Power over
Ethernet ("PoE") standard (the "Standard") which has led to the rapid adoption
of PoE. According to industry analysts, annual revenues for several of the
markets adopting this technology each exceed or are projected to exceed $1
billion.

ABOUT NETWORK-1 SECURITY SOLUTIONS, INC.

Network-1 Security Solutions, Inc. is engaged in the acquisition, development,
licensing and protection of its intellectual property and proprietary
technologies. As part of its business strategy it is offering licenses to third
parties who Network-1 believes could benefit from the technologies covered by
its patents. In February 2004, the Company initiated its licensing efforts
relating to its patent (U.S. Patent No. 6,218,930) covering the remote delivery
of Power over Ethernet cables.

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 RISK FACTORS AND
UNCERTAINTIES AS DISCLOSED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-QSB FOR
THE THREE MONTHS ENDED JUNE 30, 2006 INCLUDING, AMONG OTHERS, THE ABILITY OF
NETWORK-1 TO OBTAIN LICENSE AGREEMENTS FROM THIRD PARTIES FOR ITS PATENT
PORTFOLIO, UNCERTAINTY OF PATENT LITIGATION, THE COMPANY'S ABILITY TO ACHIEVE
REVENUES AND PROFITS FROM ITS PATENT PORTFOLIO, THE COMPANY'S ABILITY TO RAISE
CAPITAL WHEN NEEDED, FUTURE ECONOMIC CONDITIONS AND TECHNOLOGY CHANGES AND
LEGISLATIVE, REGULATORY AND COMPETITIVE DEVELOPMENTS. 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.

CONTACTS:
Company
- -------
Network-1 Security Solutions, Inc.
Corey M. Horowitz, 212-829-5770
Corey@Network-1.com
- -------------------

Or
Investors
- ---------
Alliance Advisors, LLC
Alan Sheinwald, 914-244-0062
asheinwald@allianceadvisors.net
- -------------------------------

                                       ###