NETWORK-1 TECHNOLOGIES, INC. — Director's Dealing 2007

Apr 26, 2007

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: NETWORK 1 SECURITY SOLUTIONS INC (NSSI-OTC)
CIK: 0001065078
Period of Report: 2007-04-17

Reporting Person: Hound Partners, LLC (10% Owner)
Reporting Person: Hound Performance, LLC (10% Owner)
Reporting Person: AUERBACH JONATHAN A G (10% Owner)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock $.01 par value per share	1081817	Indirect
Common Stock $.01 par value per share	1084850	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Common Stock Warrant (Right to Buy)	$2.00	2011-04-16	Common Stock (540908)		Indirect
Common Stock Warrant (Right to Buy)	$2.00	2011-04-16	Common Stock (524425)		Indirect

Footnotes

F1: The securities may be deemed to be beneficially owned by (a) Hound Performance, LLC, the general partner of Hound Partners,
LP; (b) Hound Partners, LLC, the investment manager of Hound Partners, LP and (c) Jonathan Auerbach, the managing member of
Hound Performance, LLC and Hound Partners, LLC. Each Reporting Person disclaims beneficial ownership in the securities
reported on this Form 3 except to the extent of his or its pecuniary interest, if any, therein, and this report shall not be
deemed to be an admission that such Reporting Person is the beneficial owner of such securities for purposes of Section 16
or for any other purpose.

F2: The securities may be deemed to be beneficially owned by (a) Hound Performance, LLC, the general partner of Hound Partners
Offshore Fund, LP; (b) Hound Partners, LLC, the investment manager of Hound Partners Offshore Fund, LP and (c) Jonathan
Auerbach, the managing member of Hound Performance, LLC and Hound Partners, LLC. Each Reporting Person disclaims beneficial
ownership in the securities reported on this Form 3 except to the extent of his or its pecuniary interest, if any, therein,
and this report shall not be deemed to be an admission that such Reporting Person is the beneficial owner of such securities
for purposes of Section 16 or for any other purpose.