REDWOOD CITY, Calif. -- Demonstrating the company's ability to provide new revenue opportunities for Service Providers (SPs), CoSine Communications, Inc., (Nasdaq: COSN), today announced that Masergy Communications, Inc., has purchased the CoSine IP Service Delivery Platform for immediate deployment in its growing network. Masergy is an Integrated Value Services Provider (IVSP) specializing in the intelligent delivery of business software. Based in Irving, Texas, Masergy will utilize CoSine's IPSX 9000(TM) Service Processing Switch to deliver application Quality of Service (QoS) using advanced network services, including Virtual Private Networks (VPNs), managed firewalls and dial tunnel termination for remote access users.

"The Service Provider market is currently undergoing a significant transformation," said Dean Hamilton, president and CEO of CoSine Communications. "Service Providers are recognizing that simple connectivity is no longer a viable business model. They also understand that providing high-value applications and services is key to increased revenue opportunities. In order to sustain profitability and maintain a competitive advantage, Service Providers must add services such as VPNs and firewalls to their portfolios. Masergy is the first among a new breed of IVSPs to embrace this strategy and as a result, will have an immediate leg up on its competitors."

CoSine Communications Inc.