PowerDsine and Network-1 Settle Patent Litigation

PowerDsine Ltd. (NASDAQ: PDSN), a pioneer in Power over
Ethernet (PoE) solutions, announced today that it has reached a
settlement in the litigation that it had commenced against Network-1
Security Solutions, Inc.
   PowerDsine, in its suit, originally filed on March 31, 2004 in the
United States District Court for the Southern District of New York,
sought a declaration that the Remote Power Patent (US Patent No.
6,218,930) owned by Network-1 (the "Patent") is invalid and has not
been infringed by PowerDsine or its customers.
   Under the terms of the settlement, PowerDsine has agreed to
dismiss with prejudice its suit against Network-1 in exchange for
certain relief from liability for PowerDsine and its customers.
   Under the terms of the settlement, Network-1 has covenanted not to
sue PowerDsine on account of the Patent with respect to any of
PowerDsine's integrated circuit products. In addition, Network-1 has
covenanted not to seek damages from customers of PowerDsine that
incorporate PowerDsine integrated circuit products into products
manufactured on or before April 30, 2006. Network-1 has also agreed
not to seek damages from PowerDsine or its customers for the sale of
its Midspan products through the period ending 90 days after the
dismissal date and has further agreed not to sue PowerDsine or its
customers for the sale of its Midspan products until three years from
the date of the settlement. No licenses to use the technologies
covered by the Remote Power Patent were granted to PowerDsine or its
customers under the terms of the settlement. PowerDsine, on its part,
has agreed that it will not initiate or assist in litigation relating
to the Remote Power Patent.
   Igal Rotem, CEO of PowerDsine said, "We are pleased that we were
able to reach an amicable settlement with Network-1 and at the same
time obtain some relief for our customers. This settlement does not
express any view on the validity or invalidity of the Remote Power
Patent."
   Mr. Rotem added that "PowerDsine only supplies a single component
that is part of an entire system claimed by Network-1. Under these
circumstances, PowerDsine is not in the best position to pursue this
litigation on behalf of the entire PoE industry. However, we were able
to obtain some relief for our customers and we, therefore, believe
that the resolution that we reached is in the best interests of
PowerDsine, as well as our customers."

   About PowerDsine

   PowerDsine Ltd. (NASDAQ: PDSN) designs, develops and supplies
integrated circuits, modules and systems that enable the
implementation of Power over Ethernet in local area networks,
providing the capability to deliver and manage electrical power over
data network cables. PowerDsine offers integrated products and system
solutions to communications equipment manufacturers in the telecom and
datacom industries who incorporate them into, or bundle them with,
their products. PowerDsine is a founding member of the IEEE 802.3af
Task Force. For more information, please visit
http://www.powerdsine.com

   Forward Looking Statements

   Statements made in this press release that are not historical
facts, including statements regarding our expectations of future
events or our future financial performance, are forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are not guarantees of future performance and are subject to
risks, uncertainties and assumptions about PowerDsine and the matters
covered in this release. You should not place undue reliance on these
statements. Actual events or results may differ materially. Many
factors may cause our actual results to differ materially from any
forward looking statement, including acceptance of new products, costs
relating to such products and other factors detailed in PowerDsine's
filings with the Securities and Exchange Commission, including its
Registration Statement on Form F-1. The forward-looking statements are
made as of this date and PowerDsine does not undertake any obligation
to update any forward-looking statements, whether as a result of new
information, future events or otherwise.