NETSOL TECHNOLOGIES NEW BEIJING, CHINA OFFICE OPERATIONAL

Calabasas, CA – July 06, 2005 – NetSol Technologies, Inc. (NASDAQ:NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that its new Beijing, China office location is fully operational as of July 1, 2005. The new Asia-Pacific headquarters is jointly managed by NetSol Technologies and its wholly-owned U.K. subsidiary, CQ Systems Ltd.

"We are pleased to announce our new office is up and running, on time and on budget," said Paul Grace, Senior Executive Director for CQ Systems and Managing Director for the Asia Pacific region. "With two new client projects already underway, the Asia Pacific region promises to be one of the largest opportunities for our leasing and asset management solutions moving forward. We look forward to continued aggressive expansion in the region over the coming months."

NetSol recently announced several Asia-Pacific region contracts, including a new LeaseSoft contract with Toyota Motor Finance China Co., Ltd. (TMFCN). Under the terms of the contract, NetSol is implementing a customized LeaseSoft Wholesale Finance System (WFS) to automate management of floorplan financing business of TMFCN. The contract also provides for ongoing technical support.


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.


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