NETSOL TECHNOLOGIES ESTABLISHES NEW OFFICE LOCATION IN CHINA

NetSol Technologies, Inc. (NASDAQ:NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that the company and its wholly-owned U.K. subsidiary CQ Systems Ltd. are setting up an office location in Beijing, China. The company also announced the appointment of CQ Systems senior executive director Paul Grace to head up its China Operations. The company expects the Beijing office to be operational by July 2005.

"Given the Chinese government’s recent revisions to net asset and capital qualification criteria, this is an opportune time to enter the market and aggressively capture market share," said Naeem Ghauri, NetSol Technologies CEO. "With our cost-effective software technology center in Lahore, Pakistan, and our already configured and installed range of proven and sophisticated software solutions for finance companies in the Asia-Pacific marketplace, we are ideally positioned in this region, both in the near and long term."

Ghauri continued, "We are pleased to announce the Beijing office and our China Operations will be headed up by Paul Grace. His illustrious career in large multinational companies and his successful track record in driving the growth of CQ Systems over the last ten years, make him ideally suited to this important new role."

"This is a unique opportunity, and an exciting time to spearhead our foray into the Asia-Pacific region," said Paul Grace, newly appointed head of NetSol’s China Operations. "NetSol has an exceptional opportunity to be at the forefront of the largest and most dynamic emerging world economy, where the leasing and asset management market is in its infancy. We believe this market represents tremendous potential for NetSol, and I look forward to further extending our coverage and market penetration, and driving our business objectives in the region."

The establishment of a new office location in Beijing follows the emerging revitalization of the leasing and finance services sector in China for foreign entities, driven by major revisions in late 2004 to the net asset and capital qualification criteria required by the Chinese authorities. To date, a number of major international automotive and equipment manufacturers have obtained, or are in the process of obtaining, the necessary business licenses to conduct leasing and loan transactions for their captive customer base. NetSol is actively in discussions with two such companies, one of which is already underway and another anticipated in the coming weeks. Both projects provide for delivery of systems over the next three to four months.


About CQ Systems Ltd.

CQ Systems Ltd. was established in 1986. It provides robust, powerful, scalable and safe contract management and accounting solutions for the installment credit, motor finance and asset finance markets. The modules provide an end-to-end contractual solution – from underwriting, contract administration and accounting through to asset disposal and re-marketing. Today CQ has more than 55 banking, independent and captive finance house clients in the UK, Europe, Africa and Asia.

CQ Systems' clients include:

- Bank of Ireland (Business Finance)
- Bank of Scotland Equipment Finance
- Broadcastle PLC
- Capital One Services
- DaimlerChrysler Services
- Investec Asset Finance
- Kenya Commercial Bank
- ORIX Leasing Singapore Ltd
- Scania Finance GB
- Singer & Friedlander Insurance Premium Finance

For more information on CQ Systems Ltd, please visit www.cqsystems.com.


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.