SOURCE: NetSol Technologies

March 24, 2005 08:00 ET

NetSol Technologies Restates Financial Results for Fiscal 2004 and First Six Months of Fiscal 2005

Restatement Has a Positive Impact on Net Income For Fiscal 2004 and First Six Months of Fiscal 2005

CALABASAS, CA -- (MARKET WIRE) -- March 24, 2005 -- NetSol Technologies, Inc. (NASDAQ: NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that subsequent to the issuance of its financial statements for the year ended June 30, 2004 along with the first quarter ended September 30, 2004 and the second quarter ended December 31, 2004, the Company determined that certain transactions and presentation in the financial statements had not been accounted for properly. According to NetSol Chairman Najeeb U. Ghauri, the financial statements have been amended, including the Form SB-2, and filed with the Securities and Exchange Commission.

Year Ended June 30, 2004

The restatement of the Balance Sheet for the fiscal year ended June 30, 2004 increased Net Shareholder's Equity from $7.1 million to $7.4 million. The restatement of the Statement of Operations reduced the net loss to approximately $2.5 million, or a net loss per share of $0.32 versus the previously stated net loss of approximately $3 million, or a net loss per share of $0.38.

Six Month Period ended December 31, 2004

The restatement of the Balance Sheet for the first six months of fiscal 2005 ended December 31, 2004 increased the Net Shareholders Equity from $10.6 million to $11.0 million. The restatement of the Statement of Operations increased net income to $294,024, or basic net income per share of $0.03 versus previously stated net income of approximately $78,692, or basic net income per share of $0.01.

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

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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