SOURCE: NetSol Technologies, Inc.

July 01, 2005 10:03 ET

NetSol Technologies Received SECP Approval for IPO of Subsidiary on Karachi Stock Exchange

IPO to Strengthen Balance Sheet, Improve Visibility and New Business Opportunities for NetSol Technologies

CALABASAS, CA -- (MARKET WIRE) -- July 1, 2005 -- NetSol Technologies, Inc. (NASDAQ: NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that it has been approved by Securities and Exchange Commission of Pakistan (SECP) to list its securities on the Karachi Stock Exchange (Guarantee) Limited (KSE). This was the final regulatory approval required.

Subsequent to this approval, NetSol Technologies Ltd. will now proceed for the public offering of its common stocks, procedural formalities of which will commence on July 10, 2005, and will be completed by July 19, 2005. It is anticipated that the offering will be oversubscribed and in such an event, the KSE rules require shares be allotted to successful applicant through a balloting process which is to be held within 10 days from the last date of public subscription.

Funds from the IPO will be available to NetSol prior to the common stock trading date. It is expected that the common stock will begin trading three to four weeks after the completion of the IPO. NetSol management is cognizant of the market conditions and is endeavoring to time the trading of the new stock issues in a stable market.

NetSol Technologies is committed to keeping its shareholders informed of all developments of the IPO process and will disseminate a public announcement with the stock symbol, number of shares issued and effective date of trading as soon as it is available.

About NetSol Technologies, Inc.

NetSol Technologies is a leading 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 www.netsoltek.com.

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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