REDWOOD CITY, Calif., Nov. 4 /PRNewswire-FirstCall/ -- CoSine Communications, Inc. (Nasdaq: COSN), a leading provider of managed, network-based IP Service Delivery Platforms for service providers, today announced that Cybera, Inc., a new entrant to the service provider market, has deployed CoSine's IPSX 3500(TM) with the advanced IP Service Generator (IPSG) technology to serve as the basis for its portfolio of network-based IP services including private networking, secure Internet access, managed firewall and secure remote and mobile access.

By basing its SmartNetwork(TM) architecture on CoSine's Virtual Routing technology and its own automated OSS system, Cybera has made inroads in the enormous market for IP service delivery to Small- and Medium-sized Businesses (SMBs). Cybera's network-based service portfolio delivers private networking and secure Internet access for business, telecommuter and mobile users at a price point 50 percent less than a comparable Frame Relay or IP VPN service. Moreover, CoSine's IPSX platform allows Cybera to deliver these services regardless of the customer's access technology.

"We researched a number of competing technologies and found CoSine's to be the best by far," said Cliff Duffey, Cybera president and CEO. "Because of CoSine's virtual routing technology, we are able to reduce capital and operating costs, as well as increase and customize service offerings while improving network maintenance. This combination translates into a big win for Cybera customers."

Cybera offers service nationwide and has already connected 1,200 sites in less than a year, while adding an average of 150 additional sites per month. Perhaps more importantly, because of its network-based approach, Cybera expects to achieve profitability -- without venture funding of any kind -- by early 2003.

Cybera's SmartNetwork architecture creates ubiquitous private networking by leveraging existing network infrastructure via partnerships with AT&T, BellSouth, Covad Communications, Qwest and NewEdge Networks. Additionally, due to its use of CoSine's IPSX platform, Cybera is able to amortize the cost of service delivery across a single platform while avoiding the management burden and scalability problems of a service based upon Customer Premise Equipment (CPE). Cybera has also automated the service provisioning process using its proprietary OSS technology.

"The ability to deliver high-margin IP services as a means to grow one's business is quickly moving from a conference panel discussion to business reality. Cybera is an excellent example of this shift in the market," stated Steve Goggiano, CoSine's president and CEO. "Cybera has accomplished what many in the telecommunications industry are attempting to achieve -- the creation of a profitable and sustainable business model using IP services."

"Virtual routing has shown itself to be an effective choice for many service providers as a cost-effective delivery mechanism of network-based VPNs and firewalls," said Jeff Phillips, director at Telechoice. "Cybera's success in using a virtual routing platform such as CoSine's to deliver its services, as well as their focused business model, provides a positive real-world example for other service providers looking for low-cost market entry and quick time-to-revenue."

About CoSine's IPSX 3500 with IPSG
The IPSX 3500(TM) is an 8-slot, carrier-class IP service switch that incorporates a fully distributed and virtualized architecture designed specifically to profitably deliver computationally-intense IP services such as VPNs and managed firewalls on a mass scale. Unlike traditional edge routers with hardware for forwarding packets quickly but a single control CPU for routing decisions, the IPSX 3500 has an architecture that distributes computing resources across the platform, as well as virtualizing its service capabilities in software. The result is unmatched scalability, flexibility and wire-speed performance.

Located at the edge of a carrier's network, the IPSX 3500 can be configured with any combination of single-slot, IP Service-specific Blades and dual-slot IP Service Generators, providing a wide variety of interfaces and processing capabilities. Deployed with the IPSG, the IPSX 3500 offers service providers the industry's first multi-gigabit rate solution for delivering network-based, value-added IP services. Not only does the IPSX 3500/IPSG solution enable new revenue streams, it delivers value-added services at rates that match those of newly built, high-bandwidth fiber networks and scales to support tens of thousands of subscriber sites simultaneously.

About Cybera, Inc. (www.cybera.net)
Cybera has created a new networking model that saves customers 50 percent or more on their network costs. The company is the first to use exclusively virtual routing as a means of eliminating expensive equipment, maintenance, and upgrade costs that are common with traditional networks, such as Frame Relay or virtual private networks over the Internet. The company was founded in 2001 and is based in Nashville, Tenn. The company's website is www.cybera.net.

About CoSine Communications Inc.
Founded in 1998 and based in Redwood City, Calif., CoSine delivers carrier-class systems for the network edge that solve the fundamental problem of profitably customizing managed services such as IP VPNs, Managed Routers, Firewalls, MPLS, Denial of Service (DoS) protection and more for the unique needs of individual customers. Specifically, the company's intelligent, virtualized architecture infuses service provider networks with an unmatched capability to integrate, customize and effectively deliver managed services to hundreds of thousands of users. For more information about CoSine Communications, visit the company's Web site at www.cosinecom.com or contact Len LuPriore at 877-4-COSINE.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: 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," "future," "intend" 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 changes in economic conditions in the various markets CoSine serves. We refer you to the Risk Factors section and other information contained in the Company's filings with the Securities and Exchange Commission. For additional information contact:

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