REDWOOD CITY, Calif. -- CoSine Communications Inc. (NASDAQ: COSN), a leading provider of managed, network-based IP Service Delivery Platforms for service providers, today announced that KT Corporation (formerly Korea Telecom) is growing its existing network-based Virtual Private Network (VPN) and firewall services with new deployments of CoSine’s IPSX 9500™ IP Service Processing Switch. Additional IPSX units have been purchased to expand KT’s integrated network-based service offering that includes MPLS VPNs, IPSec VPNs and managed firewall security.

“The expansion of our service on the CoSine platform is a testimony to the increased adoption of network-based VPN and security services by our enterprise customers,” said Mr. Chang-kil Choe, Korea Telecom’s Business Team Manager. “Because the number of enterprise sites has doubled since our initial deployment of the CoSine solution, we required additional IPSX switches to support the sophisticated network and security requirements of our growing customer base. The CoSine solution provides the scalability and performance we need to support the individual needs of our diverse customer base that range from the government to companies in the construction and tobacco sectors to a variety of small and medium-sized businesses.”

KT can streamline its operating and capital costs by provisioning and managing thousands of enterprise customers using one multifunctional CoSine platform, as opposed to integrating and managing an offering made up of multiple disparate systems. In turn, the CoSine platform enables KT’s business customers to consolidate access lines and premise-based equipment, conserving precious IT resources and budgets. With the CoSine solution, KT can offer a range of services that include secure Internet and Intranet, remote access and IPSec leased line from a single connection.

“As one of the most technologically advanced service providers in the world, KT’s decision to expand its CoSine footprint validates both the strength of the worldwide IP services market and CoSine’s role in enabling its continued growth,” said Steve Goggiano, CoSine’s president and CEO. “The unique virtualized and distributed architecture of the IPSX 9500 gives KT the performance, scalability and reliability needed to accommodate a growing customer base while providing KT with a platform for adding leading-edge services as enterprise requirements evolve.”

CoSine’s IPSX 9500 enables KT to deliver IPSec and MPLS VPN and managed firewall services irrespective of the individual customer’s access technology. KT also uses CoSine’s InVision™ Services Management System to quickly and cost-effectively provision access to its backbone at full line-rate speeds while supporting thousands of virtual routers and encrypted VPN connections.

KT’s expanded integrated service offering based on CoSine’s IPSX 9500 will be available at the end of September.

KT Corp.

CoSine Communications Inc.