GAAP loss from continuing operations for the first quarter ended March 31, 2009 was $8.1 million, or $(0.55) per share, compared to a GAAP loss from continuing operations of $5.5 million, or $(0.37) per share, in the prior year's first quarter. Including income from discontinued operations, GAAP net loss for the first quarter ended March 31, 2008 was $3.7 million, or $(0.25) per share. Because there is no income from discontinued operations after December 31, 2008, GAAP net loss for the quarter ended March 31, 2009 was the same as GAAP loss from continuing operations for the same period. GAAP net loss in the 2009 and 2008 periods include $0.6 million and $0.5 million, respectively, of certain non-cash equity based charges associated with Financial Accounting Standards Board Statement No. 123R ("SFAS 123R").

Non-GAAP loss from continuing operations (GAAP loss from continuing operations excluding charges for certain stock based compensation) for the first quarter ended March 31, 2009 was $7.6 million or $(0.51) per share compared to non-GAAP loss from continuing operations of $5.0 million or $(0.34) per share in the first quarter of 2008. Including income from discontinued operations, non-GAAP net loss (GAAP net loss or income excluding charges for certain stock based compensation) for the first quarter ended March 31, 2008 was $3.2 million, or $(0.22).

Cash, cash equivalents and marketable securities totaled $82.3 million at March 31, 2009.

"During the first quarter we took some critical steps to realign our business while we aggressively explore strategic alternatives," said Bill Leighton, Soapstone's CEO. "We remain committed to executing on our product strategy for the Provider Network Controller and I am pleased to announce that the PNC has been deployed in another Tier 1 carrier lab."

Soapstone Networks will discuss these quarterly results as well as future business and financial expectations in an investor conference on April 30, 2009 at 8:30 AM eastern daylight savings time. The conference telephone number is (800) 230-1074. A replay of the conference call will be available after 11:15 AM. Replay information will be available at (800) 475-6701 (USA) access code: 997574. Replay of this call is also available on Soapstone's Web site, www.soapstonenetworks.com, along with a copy of this release.

Soapstone and PNC (Provider Network Controller) are trademarks of Soapstone Networks Inc.

This release contains information about Soapstone's future expectations, plans, and prospects, including Soapstone's expectations for commercial activities and the growth opportunity for Soapstone Networks, as well the strategic review being undertaken by Soapstone, that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Statements made with regard to interim results are not necessarily indicative of results that may be expected for future interim periods or for the full year. When used in this press release, the word "will," "expected" and other similar expressions are intended to identify such forward looking statements. Such risks and uncertainties include, but are not limited to, the difficulties in identifying, analyzing and consummating strategic alternatives, the early stage of Soapstone Networks, market acceptance of our products, services and enhancements, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes, reliance on technology and distribution partners, and other risks set forth in Soapstone's filings with the Securities and Exchange Commission. Soapstone does not undertake any duty to update forward-looking statements.

About Soapstone Networks

Soapstone Networks is at the forefront of the movement to Carrier Ethernet by developing resource and service control systems that realize NGN software-provisioned services in the new Carrier Ethernet transport network. Soapstone's common control framework decouples services from underlying network technologies.