From: NetSol Technologies, Inc.
Published: Thu Jun 09 2005

Calabasas, CA – June 9, 2005 – NetSol Technologies, Inc. (NASDAQ:NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that it has received approval of its prospectus by Karachi Stock Exchange (KSE) to place an IPO of $6.0 million, which includes a $1.6 million private placement that was finalized in March 2005. Additionally, the company expects approval by the Securities and Exchange Commission Pakistan (SECP) any day now and anticipates finalizing the listing by end of its fiscal 2005 year.

As previously announced, NetSol Technologies retained a leading Pakistani brokerage and investment banking firm, AKD Securities, to list its wholly owned subsidiary, NetSol Technologies, Ltd., on the KSE. A substantial due diligence and assessment was carried out by AKD in order to underwrite the IPO. AKD is the primary underwriter with four large banking institutions participating with AKD.

NetSol reported revenue growth of 54 percent when comparing fiscal 2003 to 2004, and revenue growth of 93 percent when comparing fiscal 2004 to estimated revenue of $11 million for fiscal 2005 ending June 30, 2005. In addition to the substantial revenue growth, NetSol has reported three consecutive profitable quarters and expects to continue increasing its net income. NetSol has carefully evaluated its growth strategy, both organic and through acquisition, which led to the decision to raise additional funds through the listing of its wholly owned subsidiary on the KSE. This initiative will provide NetSol significantly more visibility and access to emerging capital markets to support its growth strategy.

"We have been working diligently on the IPO of our Pakistan-based subsidiary for over six months now and are waiting for final approval from the SECP for the completion of this initiative," commented NetSol Technologies Chairman Najeeb Ghauri. "In the last three years the KSE has emerged as one of the most bullish and positive growth markets, growing from 1,100 points nearly three years ago to over 10,300 points in March 2005. Although the market in Pakistan is going through an expected correction cycle, the Morgan Stanley Index indicates that the KSE has outperformed every other stock exchange in South Asian markets.

"We are pleased to be working with NetSol management and advising them through the IPO process," said AKD Securities Chairman Aqeel Karim Dhedhi. "NetSol has surprised us by exceeding our earnings estimates over the last three quarters, which has assisted us in securing several premium institutions to assist in underwriting the total IPO. We are very optimistic not only of NetSol’s prospects but of the success of the IPO."

Dhedhi continued, "The Pakistani stock markets have recently undergone some corrections and the KSE is now trading around 7,300 points. However, we believe the markets have stabilized and have a tremendous appetite for new technology-based IPOs. The standard IPO on the KSE is traditionally priced at Rs.10, but AKD has priced NetSol’s IPO at Rs. 25, a 150 percent premium. The IPO shares being offered represent approximately 27 percent of the common stock of NetSol Technologies, Ltd."

About AKD Securities

Aqeel Karim Dhedhi Securities (Pvt.) Ltd. is Pakistan’s largest stock brokerage firm and a leading securities firm providing financial services to a large and diversified group of foreign and local institutional and corporate clients. The firm’s services include raising and providing risk capital in underwriting, market making and arbitrage risk capital for the purpose of mergers and acquisitions in Pakistan. In last 6 months AKD has managed some of the biggest IPOs and placements such as Attock Oil and United Bank Limited in Pakistan. In November of 2002, the firm launched AKD Trade, Pakistan’s first online trading site, enabling investors to trade at the Karachi Stock Exchange online, anywhere at any time. In its first 12 months, more than one billion shares have been traded using the AKD Trade Online Trading System. AKD is a corporate member of the Karachi Stock Exchange and Islamabad Stock Exchange. For more information, visit

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

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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Company: NetSol Technologies, Inc.
Contact Name: Marty Tullio or Mark Tullio
Contact Email:
Contact Phone: 949 553 9748

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