NETWORK-1 TECHNOLOGIES, INC. — Director's Dealing 2003

Nov 26, 2003

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: NETWORK 1 SECURITY SOLUTIONS INC (NSSI.PK)
CIK: 0001065078
Period of Report: 2003-11-18

Reporting Person: CMH CAPITAL MANAGEMENT CORP (10% Owner)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock, $.01 par value per share	155463	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Warrants	$2.4200	2004-04-04	Common Stock, $.01 par value per share (62856)		Direct
Warrants	$1.6100	2004-01-15	Common Stock, $.01 par value per share (31040)		Direct
Warrants	$0.7000	2011-07-11	Common Stock, $.01 par value per share (300000)		Direct
Warrants	$1.4800	2007-10-08	Common Stock, $.01 par value per share (250000)		Direct
Series E Convertible Preferred Stock	$0.0000		Common Stock, $.01 par value per share (2169870)		Direct
Option to Purchase Common Stock	$1.2000	2007-04-18	Common Stock, $.01 par value per share (750000)		Direct

Footnotes

F1: The warrants are all currently exercisable.

F2: The Series E Convertible Preferred Shares became convertible upon issuance. No additional payment is required for the conversion.

F3: The Series E Convertible Preferred Shares do not have an expiration date.

F4: The shares underlying the Option shall vest over a three (3) year period in equal amounts of 250,000 shares per year on each of April 18, 2003, April 18, 2004 and April 18, 2005. In addition, the shares underlying the Option shall vest in full in the event of (i) a "Change of Control" or (ii) the closing price of Network - 1's Common Stock shall be a minimum of $3.50 per share for twenty (20) consecutive trading days.