CoSine's IP Service Delivery Platform Selected by Covad to Provide Private Networking Services to Its Growing Subscriber Base.

Covad Deploys CoSine Platform to Provide Secure Private Network Solutions

REDWOOD CITY, Calif., Dec. 18 /PRNewswire/ --

CoSine Communications, Inc. (Nasdaq: COSN), today announced that Covad Communications (Nasdaq: COVD) -- the nation's leading provider of broadband services utilizing DSL technology -- is utilizing CoSine's IPSX 9000(TM) Service Processing Switch to offer real private networking services to its access subscriber base. CoSine, the leading provider of network-based IP Service Delivery Platforms for Service Providers, also offers Covad the ability to provide other advanced data services, such as VPNs.

"Our platform provides a comprehensive suite of revenue-generating services for DSL broadband Service Providers like Covad-above and beyond basic service selection," said Dean Hamilton, president and CEO, CoSine Communications. "The IPSX 9000 allows Covad the flexibility to cost effectively deliver high-value services to DSL subscribers in key markets on demand and expand to deliver additional services as their customer requirements change and applications evolve."

As part of the initial product rollout, Covad has deployed CoSine IPSX 9000 units in several regional Points of Presence (POPs). As part of the agreement, Covad will also use CoSine's extensive Global Service and Support (GSS) program, which provides 24x7 technical assistance, network design, installation support, training and professional services.

"We looked at other network-based solutions and were impressed by the scalability and reliability of CoSine's platform," said Rich Wong, vice president of marketing for Covad. "The IPSX 9000's ability to support a large number of virtual routers per switch enables us to provide each customer its own routed private network, reduces costs and gives us the flexibility to roll-out additional services."

About CoSine's IP Service Delivery Platform

CoSine's solution includes its IPSX 9000 Service Processing Switch, a carrier-class solution that marries scalable computing, switching, and routing hardware with an open architecture operating system and market-leading application software. The platform also includes the InVision Service Management System (SMS), and the InGage(TM) Customer Network Management (CNM) system. This solution enables Service Providers to create, manage and deliver value-added IP services to enterprise customers, who in turn, can monitor and control their services over the public IP network.

CoSine's platform is designed to support managed, network-based IP application services such as VPNs; managed Network Associates Gauntlet Firewalls; McAfee WebShield Virus Scanning; PGP Security's CyberCop Monitor Intrusion Detection; IP-Enabled Frame Relay, Frame Relay to IPSec Interworking and Frame Relay over IPSec; Secure DSL; Secure Virtual LAN; URL filtering; virtual routing and more.

About CoSine Communications, Inc.

Founded in 1998 and based in Redwood City, Calif., CoSine Communications, Inc. develops, markets, and sells managed IP service delivery platforms designed for Service Providers who risk losing profitability with today's low-value Internet access services. The CoSine solution enables Next-Generation Telcos, Competitive IXCs, International Service Providers, Application Service Providers and PTTs to quickly and reliably turn up value-added services to their wholesale and retail subscribers.

For more information about CoSine Communications, visit the company's Web site at www.cosinecom.com, or contact Suzanne Panoplos at 877-4-COSINE.

This release as it relates to revenues and other company matters, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Except for historical information contained herein, the matters discussed in this release are forward-looking statements that involve risks and uncertainties. The company may use words such as "anticipate," "believe," "plan," "expect," "intend," "future" and similar expressions to identify forward-looking statements. Our actual results may vary significantly based on a number of factors including, but not limited to, product development, commercialization and technology difficulties, manufacturing costs, the impact of competitive products, pricing, changing customer requirements, timely availability and acceptance of new products, and change in the economic conditions of the various markets CoSine serves. We refer you to the Risk Factors section and other information contained in the company's filing with the Securities and Exchange Commission.

CONTACT: Megan Burnett of Gallagher PR, 510-749-6800, ext. 216, or megan@gpr.com, for CoSine Communications; or Suzanne Panoplos of CoSine Communications, 650-637-4777, or spanoplos@cosinecom.com.