Cosine Communications Acquisition

1/7/2005

M&A

$22,750,000

Tut Systems, Inc. (Nasdaq: TUTS), today announced that it has signed a definitive merger agreement to acquire all of the outstanding shares of common stock of Cosine Communications, Inc. (Nasdaq: COSN) in a stock-for-stock transaction valued at approximately $24.1 million. Upon closing, Tut Systems will issue approximately 6.0 million shares of its common stock to the shareholders of Cosine. Approximately 25.2 million shares of Tut Systems common stock are currently outstanding. The transaction is expected to result in net cash to Tut Systems of approximately $22.75 million, and is expected to close by March 31, 2005.

Acquired or Merged

Networking

560 S. Winchester Blvd 500
San Jose, CA 95128
USA

Not Recorded

CoSine Communications knows the ups and downs of switching. The company was a manufacturer of switches and software that telecom service providers used to manage their Internet protocol networks.