SOURCE: NetSol Technologies, Inc.

July 26, 2005 07:31 ET

NetSol Technologies, Ltd. IPO 125 Percent Subscribed

Largest Oversubscription on Karachi Stock Exchange This Year

CALABASAS, CA -- (MARKET WIRE) -- July 26, 2005 -- NetSol Technologies, Inc. (NASDAQ: NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that its subsidiary, NetSol Technologies, Ltd., has completed the most oversubscribed initial public offering (IPO) for 2005 on the Karachi Stock Exchange (KSE). The IPO brought in more than $6.0 million, which included a $1.6 million private placement finalized in March 2005.

"This IPO has exceeded our expectations," commented NetSol Technologies' Chief Executive Officer, Naeem Ghauri. "Priced at a Rs. 25, a Rs.15 premium, the IPO was oversubscribed both in terms of share applications and subscription monies. NetSol Technologies Ltd. now ranks as this year's most successful IPO on the KSE."

Ghauri continued, "We anticipate that, in addition to using a portion of the proceeds for working capital, we will also use a significant portion of the monies to drive organic growth in the U.S., Europe and China by ramping up new marketing, sales and business development efforts." He concluded, "This has been our best year in revenues and profits. The new capital would help us to consolidate our position and help drive up sales to make fiscal 2006 another record year for the company."

Najeeb U. Ghauri, Chairman of both NetSol Technologies, Inc. and NetSol Technologies, Ltd., added, "We are excited and encouraged by the response to our offering on the KSE. As of today's tally, we have been subscribed by over 125 percent of the prospectus offering."

NetSol Technologies, Inc. retained a leading Pakistani brokerage and investment banking firm, AKD Securities (AKD), to list 27 percent of its subsidiary, NetSol Technologies, Ltd., on the KSE. Substantial due diligence and an assessment of NetSol Technologies, Ltd. was carried out by AKD in order to underwrite the IPO. AKD is the primary underwriter with four large banking institutions participating with AKD.

About NetSol Technologies, Inc.

NetSol Technologies is an end-to-end solution provider for the lease and finance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the U.S., Europe, East Asia and Asia Pacific. NetSol helps its clients identify, evaluate and implement technology solutions to meet their most critical business challenges and maximize their bottom line. By utilizing its worldwide resources, NetSol delivers high-quality, cost-effective IT services ranging from consulting and application development to systems integration and outsourcing. NetSol's commitment to quality is demonstrated by its achievement of both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 4 assessment. For more information, visit NetSol Technologies' web site at

Securities Exchange Act of 1934

This release is comprised of inter-related information that must be interpreted in the context of all the information provided; accordingly, care should be exercised not to consider portions of this release out of context. This release is provided in compliance with Commission Regulation FD and contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance, are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur. Such statements reflect the current views of NetSol Technologies with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of the underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed or expected. NetSol Technologies does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.

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